To My Fellow Shareholders,

I am honored to address you in my first annual report as CEO of FBL Financial Group. I am happy to report our company had excellent earnings in 2012 with operating income of $2.97 per share, continued growth in life insurance sales and book value, and execution of significant capital management actions.

As important as financial performance are the investments we've made this year to further develop and strengthen relationships - the relationships that drive results. These relationships are based on more than business transactions; they grow from shared values and our mission to protect livelihoods and futures.

Results

I am very proud of FBL’s financial performance in 2012, and of all the agents and employees who delivered these results. Operating income increased 18% from 2011 to $2.97 per share. FBL’s book value increased by 21% to $47.47 per share. We delivered on our strategy to increase life sales and purposely decrease annuity sales, with life premium collected increasing 11% in 2012. We executed our capital management plans, repurchasing more than $181 million of FBL stock, which represents 18% of common shares outstanding at the beginning of 2012. We are successfully managing the challenges of the low interest rate environment by creating new products, managing our in force block of business, making other investments to maintain investment yields and managing expenses.

Relationships

Our positive results reflect investment in business strategies which effectively leverage our competitive advantages. Our relationships with the Farm Bureau organizations result in our Farm Bureau Financial Services consumer brand being highly recognized and regarded in rural and small metro markets. In conjunction with our property casualty company partners, our investment in our multiline Farm Bureau agency force results in deep customer engagement and long-term customer relationships. One of my top priorities is supporting our agents by equipping them with all the tools they need to be successful. That includes a wide portfolio of products to meet the needs of their customers. We’re also reviewing agent hiring and retention practices, training programs and compensation to make sure we have the very best agent business models in place, with the goal of increasing agent count.

The strength of these relationships is demonstrated in our industry leading cross-sell rate. We also see opportunity for further growth in our market territory, as we focus our efforts on knowing our customers and working to make their lives simpler and more secure.

Protecting Livelihoods and Futures

FBL Financial Group – through strong relationships with agents, customers and Farm Bureau partners – is focused on its mission to protect livelihoods and futures. This solid foundation and sound strategies in place position us well to build the future of FBL Financial Group and increase shareholder value. I look forward to our continued success.

Sincerely,

 

Company Profile   |   Form 10-K   |   Proxy Statement   |   Proxy Voting   |   Shareholder Information   |   2012 Annual Report PDF

© 2013 FBL Financial Group, Inc.