FBL Financial Group, Inc. :FFG-US: Earnings Analysis: Q3, 2017 By the Numbers : December 20, 2017

FBL Financial Group, Inc. reports financial results for the quarter ended September 30, 2017.

We analyze the earnings along side the following peers of FBL Financial Group, Inc. – Unum Group and CNO Financial Group, Inc. (UNM-US and CNO-US) that have also reported for this period.


  • Summary numbers: Revenues of USD 179.14 million, Net Earnings of USD 27.10 million.
  • Year-on-year change in operating cash flow of -0.84% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings decline from operating margin decreases as well as from unusual items

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2017-09-30 2017-06-30 2017-03-31 2016-12-31 2016-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 179.14 187.6 181.01 186.8 181.31
Revenue Growth (%YOY) -1.2 3.47 -0.47 2.29 1.91
Earnings (mil) 27.1 32.29 26.43 26.88 30.02
Earnings Growth (%YOY) -9.7 32.45 1.88 -13.02 12.6
Net Margin (%) 15.13 17.21 14.6 14.39 16.56
EPS 1.08 1.29 1.05 1.07 1.2
Return on Equity (%) 2.14 2.65 2.23 2.15 2.31
Return on Assets (%) 1.1 1.32 1.1 1.12 1.25

Access our Ratings and Scores for FBL Financial Group, Inc.

Market Share Versus Profits

Revenues History
Earnings History

FFG-US’s change in revenue this period compared to the same period last year of -1.20% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that FFG-US is holding onto its market share. Also, for comparison purposes, revenues changed by -4.51% and earnings by -16.06% compared to the immediate last period.

Revenues Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Leader, Earnings Focus, Laggard, Revenues Focus

Earnings Growth Analysis

Insurance companies sometimes tradeoff for improvements in premiums earned by relaxing standards in underwriting policies. A quick way to check against such activity is to compare the changes in loan loss provisions as well any chnages in the level of policy claims. If either of these checks point to a decline in the underwriting standards, it is quite possible that the company’s performance is a result of underwriting policy changes that could have a longer term impact compared to the shorter term pop in premiums earned.

Premiums Earned Percent History
Loss Ratio History

The company’s year-on-year decline in earnings has been influenced by the following factors: (1) Decline in premiums earned as a percent of total revenues from 26.30% to 26.28% and (2) issues with underwriting policies. As a result, loss ratio went from 285.74% to 298.22% in this period. For comparison, premiums earned as a percent of revenues were 26.79% and the loss ratio 277.88% in the immediate last period.

Premiums Earned Percent Versus Loss Ratio

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings

FFG-US’s change in operating cash flow of -0.84% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.


The company’s fall in earnings have been influenced by the following factors: (1) Contraction in operating margins after interest from 22.73% to 20.54% and (2) One-time items that contributed to a weakening of pretax margins from 22.05% to 19.82%.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

Access our Ratings and Scores for FBL Financial Group, Inc.

Company Profile

FBL Financial Group, Inc. is a holding company, which engages in the sale of individual life insurance and annuity products. It operates through the following segments: Annuity, Life Insurance, and Corporate and Other. The Annuity segment is consists of fixed rate and indexed annuities and supplementary contracts. The Life Insurance segment is the whole life, term life, and universal life policies which provides benefits upon the death of the insured and may allow the client to build cash value on a tax-deferred basis. The Corporate and Other segment includes advisory services, marketing and distribution services, leasing services with affiliates, closed blocks of variable annuity, interest expense, and investments and related investment income. The company was founded in October 1993 and is headquartered in West Des Moines, IA.

CapitalCube does not own any shares in the stocks mentioned and focuses solely on providing unique fundamental research and analysis on approximately 50,000 stocks and ETFs globally. Try any of our analysis, screener or portfolio premium services free for 7 days. To get a quick preview of our services, check out our free quick summary analysis of FFG-US.


The information presented in this report has been obtained from sources deemed to be reliable, but AnalytixInsight does not make any representation about the accuracy, completeness, or timeliness of this information. This report was produced by AnalytixInsight for informational purposes only and nothing contained herein should be construed as an offer to buy or sell or as a solicitation of an offer to buy or sell any security or derivative instrument. This report is current only as of the date that it was published and the opinions, estimates, ratings and other information may change without notice or publication. Past performance is no guarantee of future results. Prior to making an investment or other financial decision, please consult with your financial, legal and tax advisors. AnalytixInsight shall not be liable for any party’s use of this report. AnalytixInsight is not a broker-dealer and does not buy, sell, maintain a position, or make a market in any security referred to herein. One of the principal tenets for us at AnalytixInsight is that the best person to handle your finances is you. By your use of our services or by reading any of our reports, you’re agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that AnalytixInsight, its directors, its employees, and its agents will not be liable for any investment decision made or action taken by you and others based on news, information, opinion, or any other material generated by us and/or published through our services. For a complete copy of our disclaimer, please visit our website www.analytixinsight.com.