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Press Release: FBL Financial Group Reports Fourth -2-

· 02/04/2021 16:15
December 31, December 31, 2020 2019 --------------- ----------------- Book value per share $ 69.24 $ 60.12 Less: Per share impact of accumulated other comprehensive income 24.08 14.39 --------------- --------------- Book value per share, excluding accumulated other comprehensive income $ 45.16 $ 45.73 === ========== === ==========Three months ended Year ended December 31, December 31, ------------------ -------------------- 2020 2019 2020 2019 -------- -------- ------- ----------- (Dollars in thousands, except per share data) Net income attributable to FBL Financial Group $27,843 $34,739 $72,513 $126,209 Adjustments: Proposed acquisition transaction expenses(a) 2,147 -- 2,147 -- Net realized gains/losses on investments(b) (2,808) 2,147 12,295 (5,813) Change in fair value of derivatives(b) 91 (2,047) 4,957 (2,703) ------- ------- ------- -------- Adjusted operating income $27,273 $34,839 $91,912 $117,693 ====== ====== ====== ======= Adjusted operating income per common share - assuming dilution $ 1.11 $ 1.41 $ 3.73 $ 4.75 ====== ====== ====== =======FBL Financial Group, Inc. Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except per share data) Three months ended Year ended December 31, December 31, ---------------------------- ------------------------------ 2020 2019 2020 2019 ------------- ------------- ------------- --------------- Revenues: Interest sensitive product charges $ 32,473 $ 32,178 $ 132,522 $ 127,113 Traditional life insurance premiums 51,320 50,502 198,749 197,863 Net investment income 106,023 108,986 397,231 424,998 Net realized capital gains (losses) (3,428) (2,707) (12,085) 8,523 Change in allowance for credit losses on investments 6,656 -- (4,199) -- Other-than-temporary impairment losses -- -- -- (919) Other income 5,400 4,602 20,047 17,103 ------------ ------------ ------------ ------------ Total revenues 198,444 193,561 732,265 774,681 Benefits and expenses: Interest sensitive product benefits 78,944 73,507 282,201 276,473 Traditional life insurance benefits 49,592 43,142 186,441 174,654 Policyholder dividends 1,659 2,514 7,538 10,053 Underwriting, acquisition and insurance expenses 32,843 26,290 143,887 140,624 Interest expense 1,377 1,213 5,015 4,850 Other expenses 10,187 6,597 32,711 25,246 ------------ ------------ ------------ ------------ Total benefits and expenses 174,602 153,263 657,793 631,900 ------------ ------------ ------------ ------------ 23,842 40,298 74,472 142,781 Income tax (2,174) (6,500) (8,061) (19,929) Equity income, net of related income taxes 6,144 1,033 5,906 3,456 ------------ ------------ ------------ ------------ Net income 27,812 34,831 72,317 126,308 Net (income) loss attributable to noncontrolling interest 31 (92) 196 (99) ------------ ------------ ------------ ------------ Net income attributable to FBL Financial Group, Inc. $ 27,843 $ 34,739 $ 72,513 $ 126,209 ======== ======== ======== ======== Earnings per common share $ 1.14 $ 1.40 $ 2.94 $ 5.09 ======== ======== ======== ======== Weighted average shares - basic 24,477,634 24,761,224 24,614,591 24,760,541 Effect of dilutive securities - stock-based compensation 1,728 8,238 3,325 10,134 ------------ ------------ ------------ ------------ Weighted average shares - diluted 24,479,362 24,769,462 24,617,916 24,770,675 ============ ============ ============ ============

FBL Financial Group is a holding company with the purpose to protect livelihoods and futures. Operating under the consumer brand name Farm Bureau Financial Services, its affiliates offer a broad range of life insurance, annuity and investment products distributed by multiline exclusive Farm Bureau agents. Helping complete the financial services offering, advisors offer wealth management and financial planning services. In addition, FBL Financial Group manages all aspects of two Farm Bureau affiliated property-casualty insurance companies for a management fee. Headquartered in West Des Moines, Iowa, FBL Financial Group is traded on the New York Stock Exchange under the symbol FFG. For more information, please visit www.fblfinancial.com and www.fbfs.com.

- FINANCIAL INFORMATION AND NOTES FOLLOW -

(1) Reconciliation of Net Income Attributable to FBL Financial Group to Adjusted Operating Income - Unaudited

FBL Financial Group consistently utilizes adjusted operating income, a financial measure common in the life insurance industry that is not prepared in accordance with U.S. generally accepted accounting principles (GAAP), as a primary economic measure to evaluate its financial performance. Adjusted operating income consists of net income attributable to FBL Financial Group adjusted to exclude expenses associated with the proposed acquisition, realized gains and losses on investments, the change in allowances for credit losses on investments and the change in fair value of derivatives and equity securities, which can fluctuate greatly from period to period. These fluctuations make it difficult to analyze core operating trends. In addition, for derivatives not designated as hedges, there is a mismatch between the valuation of the asset and liability when deriving net income (loss). For example, call options relating to indexed business are one-year assets while the embedded derivatives in the indexed contracts represent the rights of the contract holder to receive index credits over the entire period the indexed products are expected to be in force. This non-GAAP measure is used for goal setting, determining short-term incentive compensation and evaluating performance on a basis comparable to that used by many in the investment community. FBL Financial Group believes the combined presentation and evaluation of adjusted operating income provides information that may enhance an investor's understanding of FBL Financial Group's underlying results and profitability. A reconciliation is provided in the following table:

(a) Amount represents the transaction expenses relating to FBL Financial Group's proposed go-private transaction.

(b) Net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, interest sensitive policy reserves and income taxes attributable to these items.

(2) Premiums Collected - Net statutory premiums collected is a non-GAAP measure and includes premiums collected from annuities and universal life-type products. It is a useful metric for investors as it is a measure of sales production. For GAAP reporting, these premiums received are not reported as revenues.

(3) Reconciliation of Book Value Per Share Excluding Accumulated Other Comprehensive Income - Unaudited

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February 04, 2021 16:15 ET (21:15 GMT)