Back to top

Image: Bigstock

FBL Financial (FFG) Misses on Q4 Earnings, Beats Revenues

Read MoreHide Full Article

FBL Financial Group, Inc. reported fourth-quarter operating earnings of $1.02 per share, which missed the Zacks Consensus Estimate of $1.08 by 5.56%. Earnings decreased 1.9% due to unfavorable mortality results due to a higher number of claims as well as higher average claim size.
 

 

Revenues of $184 million beat the Zacks Consensus Estimate of $176 million 4.8%. Revenues inched up 0.9% year over year, mainly because of higher premiums and investment income.

Behind the Headlines

FBL Financial's total premiums collected were $173.2 million, down 0.8% year on year. Premiums and product charges increased 2.5% to $78.4 million in the quarter. Interest sensitive products charges were up 2.1% year over year to $29 million, while traditional life insurance premiums rose 2.7% year over year to $49 million.
 
Investment income jumped 2% year over year to $101.5 million in the quarter driven by increase in average invested assets.  As of Dec 31, 2016, around 96% of fixed maturity securities in the company’s portfolio were investment grade debt securities.

Total benefits and expenses increased 4.2% to $149 million in the fourth quarter.

FBL Financial Group, Inc. Price, Consensus and EPS Surprise

FBL Financial Group, Inc. Price, Consensus and EPS Surprise | FBL Financial Group, Inc. Quote

Financial Update

As of Dec 31, 2016, book value per share, including other comprehensive income (OCI), was $47.61 compared with $45.61 as of Dec 31, 2015. Excluding OCI, book value per share was $41.60 as against $40.99 as of Dec 31, 2015.

The company exited the quarter with total assets of $9.6 billion, up 5.5% year over year. Debt level declined 13.4% to $97 million.

Total investments inched up 6.5% to $8.2 billion as of Dec 31, 2016.

The company has $49.5 million remaining under its stock repurchase program.

Zacks Rank

FBL Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Among the other insurers that have reported their fourth-quarter earnings so far, the bottom line at Progressive Corp. (PGR - Free Report) , The Travelers Companies Inc. (TRV - Free Report) and RLI Corp. (RLI - Free Report) beat their respective Zacks Consensus Estimate.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


RLI Corp. (RLI) - free report >>

The Travelers Companies, Inc. (TRV) - free report >>

The Progressive Corporation (PGR) - free report >>

Published in