FBL Financial’s Second-Quarter Net Dips Slightly as Death Benefits, Released Reserves Rise
August 5, 2014 by Fran Matso Lysiak
WEST DES MOINES, Iowa – FBL Financial Group Inc.’s second-quarter 2014 profit declined slightly as death benefits, net of reinsurance and reserves released, rose to $23.1 million from $21.4 million the same period a year ago.
Net income dropped less than 1% to $28.6 million. “By its nature, mortality experience can fluctuate from quarter to quarter,” the company said in a statement.
FBL Financial Group’s second-quarter earnings results “build on the strong financial results in the first quarter and reflect positive momentum from serving the needs of the Farm Bureau niche market,” James P. Brannen, chief executive officer of FBL Financial, said in a statement.
Premiums collected increased to $176.3 million from $165.6 million. Annuity premiums rose 36% but life insurance premiums fell 13%.
“For the remainder of 2014, we are directing our efforts to increase life insurance sales, manage expenses, leverage technology, maintain our strong capital position and support our exclusive Farm Bureau agents and FBL employees who act on our purpose to protect livelihoods and futures,” Brannen said.
Net investment income rose to $95.2 million from $92.9 million on an increase in average invested assets but were partly offset by lower investment yields, the company said.
Total revenues dipped to $175.8 million from $176.7 million.
Farm Bureau Life Group is the 73rd-largest U.S. life insurer out of a list of the top 200 based on 2013 total admitted assets of $7.7 billion, according to A.M. Best Co.
Last month, FBL Financial said it promoted Raymond W. Wasilewski to chief operating officer of life companies to oversee business for its primary operating subsidiary, Farm Bureau Life Insurance Co. (Best’s News Service, July 22, 2014). The position of COO was previously vacant. The company announced in January that Richard J. Kypta would retire from the position on March 1.
Farm Bureau Life Insurance markets life and annuity products through an exclusive agency force in 14 Midwestern and Western states and has demonstrated good penetration into its core Farm Bureau market, according to A.M. Best. Farm Bureau Life has had positive earnings in all lines of business in recent years, despite spread compression in its interest-sensitive products due to ongoing low interest rates, Best said.
Farm Bureau Life Insurance Co. currently has a Best’s Financial Strength Rating of A- (Excellent)
On the afternoon of Aug. 1, FBL Financial Group’s (NYSE: FFG) stock was trading at $42.61 a share, down 0.40% from the previous close.
