Net income of $4.28 per share ($107 million) was achieved in 2016.
Operating income of $106 million, or $4.25 per share, was achieved in 2016 reflecting a disciplined approach to growing our business, active management of spreads and expenses, and increased death benefits.
FBL’s total capitalization is $1.3 billion. Farm Bureau Life consistently generates excess capital, and FBL’s total excess capital is estimated to be $200 million at year end 2016.
Farm Bureau Life’s capital position is very strong. The company action level risk based capital, or RBC, ended 2016 at 544%. The decrease in 2016 reflects strong earnings growth offset by funds paid from Farm Bureau Life to the holding company to fund the dividends.
FBL’s book value at December 31, 2016 was $47.61. Excluding accumulated other comprehensive income, book value per share grew to $41.60.
At December 31, 2016, FBL’s investments totaled $8.2 billion and are well diversified by individual issue and industry.
FBL’s investment portfolio quality is high with 95.6% of the fixed maturity securities being investment grade.