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West Des Moines, Iowa - February 4, 2021 - FBL Financial Group, Inc. (NYSE: FFG) today reported net income attributable to FBL Financial Group for the fourth quarter of 2020 of $27.8 million, or $1.14 per diluted common share, compared to net income of $34.7 million, or $1.40 per diluted common share, for the fourth quarter of 2019. Adjusted operating income(1) totaled $27.3 million, or $1.11 per common share, for the fourth quarter of 2020, compared to $34.8 million, or $1.41 per common share, for the fourth quarter of 2019. Fourth quarter 2020 earnings reflect:

Adjusted operating income differs from the GAAP measure, net income attributable to FBL Financial Group, in that it excludes 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. For further information on this non-GAAP financial measure, please refer to Note (1) and the reconciliation provided within this release.


"I am pleased that FBL Financial Group reported solid earnings for the fourth quarter of 2020 as we continued to deliver growth in life insurance sales, offset by unfavorable mortality results due to COVID-19 related claims," said Daniel D. Pitcher, Chief Executive Officer. "With a strong balance sheet and quality operating model, we remain well-positioned to deliver on our purpose to protect the livelihoods and futures of our client/members."

Premiums and product charges for the fourth quarter of 2020 totaled $83.8 million compared to $82.7 million in the fourth quarter of 2019. Interest sensitive product charges increased one percent while traditional life insurance premiums increased two percent during the quarter. Premiums collected(2) in the fourth quarter of 2020 totaled $136.8 million compared to $156.0 million in the fourth quarter of 2019. Total life insurance premiums collected increased seven percent while annuity premiums collected decreased 35 percent, reflecting the impact of lower market interest rates.

Net investment income in the fourth quarter of 2020 totaled $106.0 million, compared to $109.0 million in the fourth quarter of 2019. This decrease reflects a lower investment yield, partially offset by an increase in average invested assets. The annualized yield earned on average invested assets, with securities at amortized cost, including investments held as securities and indebtedness of related parties, was 4.73 percent for the year ended December 31, 2020 compared to 4.95 percent for the year ended December 31, 2019. At December 31, 2020, 96 percent of the fixed maturity securities in FBL Financial Group's investment portfolio were investment grade debt securities.

Benefits and expenses totaled $174.6 million in the fourth quarter of 2020, compared to $153.3 million in the fourth quarter of 2019. Death benefits, net of reinsurance and reserves released, totaled $41.2 million in the fourth quarter of 2020, compared to $33.9 million in the fourth quarter of 2019. The increase in the fourth quarter of 2020 reflects claims with COVID-19 as the reported cause of death. Included in benefits and expenses in the fourth quarter of 2020 is lower than expected amortization of acquisition costs and a lower increase in reserves associated with GLWB totaling $2.8 million as a result of favorable market performance. Other expenses in the fourth quarter of 2020 include $2.1 million of transaction expenses related to FBL Financial Group's proposed merger.

In the fourth quarter of 2020, FBL Financial Group recognized net realized losses on investments of $3.4 million. This is attributable to realized gains on sales of $0.2 million, realized losses on sales of $11.0 million and a net gain from equity securities held at quarter end of $7.4 million. In addition, in the fourth quarter of 2020, $6.7 million was recorded as a decrease to the allowance for credit losses.

As of December 31, 2020, the book value per share of FBL Financial Group common stock totaled $69.24, compared to $60.12 at December 31, 2019. Book value per share, excluding accumulated other comprehensive income(3), totaled $45.16 at December 31, 2020, compared to $45.73 at December 31, 2019. The December 31, 2020 company action level risk based capital ratio of FBL Financial Group's wholly owned subsidiary, Farm Bureau Life Insurance Company, was approximately 524 percent.

On January 11, 2021 Farm Bureau Property & Casualty Insurance Company (“FBPCIC”) and FBL Financial Group announced that they reached a definitive agreement under which FBPCIC will acquire all of the outstanding shares of FBL Financial Group Class A and Class B common stock that neither FBPCIC nor the Iowa Farm Bureau Federation currently own for $56.00 per share in cash. The per share purchase price represents a 50% premium to FBL Financial Group’s unaffected closing share price of $37.25 on September 3, 2020, a 19% premium to FBPCIC’s initial proposal of $47.00 per share on September 4, 2020, and a 56% premium to the FBL Financial Group's unaffected 90-day volume-weighted average share price as measured on September 3, 2020.

Certain statements in this release concerning FBL Financial Group's prospects for the future are forward-looking statements intended to qualify for the “safe harbor” from liability established by the Private Securities Litigation Reform Act. These statements generally can be identified by their context, including terms such as “believes,” “anticipates,” “expects,” or similar words. These statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statement. These risks and uncertainties are detailed in FBL Financial Group's reports filed with the Securities and Exchange Commission and include, but are not limited to, risks related to the proposed transaction with Farm Bureau Property & Casualty Insurance Company, including failure to complete the proposed transaction, the incurrence of costs related to the proposed transaction and operational disruptions resulting from the proposed transaction, changes in interest rates, difficult conditions in financial markets and the economy, lack of liquidity and access to capital, investment valuations, competitive factors, a decrease in ratings, changes in laws and regulations, differences between actual claims experience and underwriting assumptions, relationships with Farm Bureau organizations, the ability to attract and retain sales agents, adverse results from litigation and the impact of the COVID-19 pandemic and any future pandemics. These forward-looking statements are based on assumptions which FBL Financial Group believes to be reasonable; however, no assurance can be given that the assumptions will prove to be correct. FBL Financial Group undertakes no obligation to update any forward-looking statements.

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.


	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 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:


	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

Book value per share excluding accumulated other comprehensive income is a non-GAAP financial measure. Accumulated other comprehensive income totaled $587.3 million at December 31, 2020 and $354.8 million at December 31, 2019. Since accumulated other comprehensive income fluctuates from quarter to quarter due to unrealized changes in the fair value of investments caused principally by changes in market interest rates, FBL Financial Group believes this non-GAAP financial measure provides useful supplemental information.


	December 31, 2020		December 31, 2019
Assets
Investments	$	9,684,010	$	9,091,623
Cash and cash equivalents	12,882		17,277
Deferred acquisition costs	176,085		289,456
Other assets	449,113		435,969
Assets held in separate accounts	674,182		645,881
Total assets	$	10,996,272	$	10,480,206

Liabilities and stockholders' equity
Liabilities
Future policy benefits	$	7,616,272	$	7,393,549
Other policy funds, claims and benefits	602,989		597,256
Debt	97,000		97,000
Other liabilities	313,713		260,604
Liabilities related to separate accounts	674,182		645,881
Total liabilities	9,304,156		8,994,290

Stockholders' equity
FBL Financial Group, Inc. stockholders' equity:
Preferred stock	3,000		3,000
Class A common stock	151,061		152,661
Class B common stock	72		72
Accumulated other comprehensive income	587,279		354,764
Retained earnings	950,687		975,260
Total FBL Financial Group, Inc. stockholders' equity	1,692,099		1,485,757
Noncontrolling interest	17		159
Total stockholders' equity	1,692,116		1,485,916
Total liabilities and stockholders' equity	$	10,996,272	$	10,480,206

Common shares outstanding	24,395,522		24,664,215


	December 31, 2020		December 31, 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