FBL Financial posts sharply higher second-quarter earnings

The corporate parent of Farm Bureau Life Insurance posted higher second-quarter net and operating income due to improved premiums and product charges as well as an increase in net investment income.

West Des Moines-based FBL Financial Group recorded net income of $29.6 million, or $1.13 per diluted common share, for the second quarter that ended June 30, compared with $20.3 million, or 73 cents per diluted common share, for the second quarter of 2012.

Operating income totaled $25.6 million, or 98 cents per common share, for the second quarter, compared with $19.9 million, or 72 cents per common share, for the second quarter of 2012. Analysts were expecting second-quarter operating income of 81 cents per share.

Premiums and product charges for the second quarter of 2013 totaled $72.9 million compared with $70.1 million in the second quarter of 2012. Interest-sensitive product charges increased 11 percent while traditional life insurance premiums were flat during the quarter.

Premiums collectedin the second quarter totaled $165.6 million compared with $171.7 million in the second quarter of 2012. Life insurance premiums collected increased 36 percent, while annuity premiums collected declined 29 percent, reflecting the focus on life insurance sales and decreased emphasis on annuity sales due to low interest rates.

Net investment income in the second quarter was $92.9 million, compared with $89.4 million in the second quarter of 2012. The increase was due to an increase in average invested assets and an increase in investment fee income, partially offset by lower investment yields on investments purchased during the quarter.

FBL Financial Group also manages all aspects of two Farm Bureau-affiliated property-casualty insurance companies for a management fee.