FBL Financial Group posts sharply higher earnings

FBL Financial Group reported sharply higher fourth-quarter net income, reflecting strong results for its Farm Bureau Life and EquiTrust Life subsidiaries.

The West Des Moines-based financial services holding company recorded net income of $51.6 million, or $1.67 per share in the three months that ended Dec. 31, compared with $31 million, or $1.02 per share, in the fourth quarter of 2009.  Premiums and product charges for the fourth quarter of 2010 totaled $72.2 million, compared with $69 million in the fourth quarter of 2009.

Traditional life insurance premiums increased 5 percent and interest sensitive and index product charges increased 4 percent.

“FBL Financial Group delivered excellent fourth quarter results, reflecting the solid fundamentals of Farm Bureau Life and EquiTrust Life,” said James Hohmann, chief executive officer of FBL Financial Group “In 2010, we further strengthened our capital position, enhanced the profitability of our business, achieved record highs in full year net income and operating income and diversified EquiTrust Life's business with the introduction of life insurance products.

“As we move forward in 2011, we remain focused on maintaining our strong balance sheet and on growing our business and profits in a disciplined manner.”

FBL Financial recognized net realized gains on investments of $33.7 million in the fourth quarter of 2010, compared with net realized losses on investments of $8.2 million in the fourth quarter of 2009. The net realized gains on investments of $33.7 million are attributable to gains on sales of $40.7 million, losses on sales of $1.8 million and impairments due to credit losses of $5.2 million.