To My Fellow Shareholders,

FBL Financial Group experienced a year of change and growth in 2011. We successfully completed our largest-ever business transaction, strengthened our capital position and were recognized by Fortune magazine for business growth.

On December 30, 2011 we closed the sale of FBL's EquiTrust Life Insurance subsidiary for $465.3 million in cash. With this sale, we were able to reduce the risk of the overall enterprise, increase our financial flexibility and enable capital management. As a result, in the fourth quarter we increased our dividend rate and began to repurchase FBL stock. In addition, we reduced debt with the redemption of $50 million of affiliated senior notes at the end of the year and the redemption of $175 million of public debt at the end of January 2012.

The divestiture of EquiTrust Life allows us to have greater focus on our very attractive Farm Bureau niche. This focus is opportune as our Farm Bureau Life business continues to produce consistent growth, even through uncertain times.

Living Our Values

Our policyholders' stories confirm that we are fulfilling our purpose: to protect livelihoods and futures. This purpose is built upon our values of integrity, leadership, accountability, teamwork and passion. These values provide the foundation for the relationships we have with agents and associates, as we work to make our customers' lives simpler and more secure.

Serving Our Customers

From our deep roots in Midwestern soil to seeds we've planted in western states, we proudly serve customers in a 14-state area. Our Farm Bureau Life subsidiary serves a niche farmer and rancher market as well as others with financial needs. Just as agriculture is sophisticated and innovative, so too is Farm Bureau Life, which designs state-of-the-art applications, delivers outstanding customer service and develops new products to meet twenty-first century needs.

Our cross-sell rate is industry-leading, and we see opportunity for further growth. Farm Bureau Life continues to build upon its rural market leadership through superior market knowledge, product design and customer service.

Driving Results

We look back on 2011 as a year of success, with a significant business transaction and improved financial strength. We celebrate being named to Fortune magazine's list of 100 Fastest Growing Companies, an acknowledgment of our growth in revenue, earnings per share, and total return to shareholders. Despite the impact of the sale of EquiTrust Life, we reported solid financial results for 2011, with net income of $1.00 per share and operating income of $2.61 per share. FBL's book value per share increased 13 percent to $41.60 and FBL's stock price gained 19 percent to close the year at $34.02.

As we move forward in 2012, FBL Financial Group is a more focused organization with attractive growth opportunities in its niche market. This solid foundation, coupled with ongoing capital management action, position us well for the future.

Sincerely,

James E. Hohmann 
Chief Executive Officer