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FBL Financial (FFG) Q3 Earnings and Revenues Miss Estimates

Zacks Equity Research

FBL Financial Group, Inc. FFG reported third-quarter operating earnings of $1.03 per share, which missed the Zacks Consensus Estimate of $1.12 by 8%. The bottom line decreased 10.4% due to unfavorable mortality results.

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


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

Behind the Headlines

Revenues of $182 million missed the Zacks Consensus Estimate of $185 million by 1.6%. The top line inched up 0.5% year over year, mainly because of higher premiums.

FBL Financial’s total premiums collected were $141.6 million, down 9.5% year over year. Premiums and product charges increased 2.2% to $75.1 million in the quarter. Interest sensitive products charges were up 8% year over year to $28 million, while traditional life insurance premiums slipped 1% year over year to $47.1 million.
Investment income dipped 0.5% year over year to $102.9 million in the reported quarter due to lower investment yields and a decline in other investment-related income. As of Sep 30, 2017, 96% of fixed maturity securities in the company’s portfolio were investment grade debt securities.

Total benefits and expenses increased 3.3% to $146 million in the third quarter, mainly due to higher interest sensitive product benefits, traditional life insurance benefits, underwriting, acquisition and insurance expenses plus other expenses, respectively.

Financial Update

As of Sep 30, 2017, book value per share was $51.16 compared with $47.61 as of Dec 31, 2016. Excluding accumulated other comprehensive income, book value per share was $42.18 compared with $41.60 as of Dec 31, 2016.

The company exited the quarter with total assets of $9.9 billion, up 3.4% from the year-end 2016. Debt level remained flat at $97 million compared to Dec 31, 2016.

Total investments increased 3.9% to $8.5 billion as of Sep 30, 2017.

During the quarter under review, the company did not buy back any of its Class A or Class B common stock. The company has $49.5 million remaining under its stock repurchase program.

Zacks Rank

FBL Financial 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 other firms from the insurance industry that have reported third-quarter earnings so far, the bottom line of The Progressive Corporation PGR, The Travelers Companies, Inc. TRV and RLI Corp. RLI surpassed the respective Zacks Consensus Estimate.

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FBL Financial Group, Inc. (FFG) : Free Stock Analysis Report
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