UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
[ X ] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the fiscal year ended December 31, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
Commission File Number: 333-17007
A. Full title of the plan and the address of the plan, if different from
that of the issuer named below:
Iowa Farm Bureau Federation and Affiliated Companies 401(k)
Savings Plan
B. Name of the issuer of the securities held pursuant to the plan and the
address of its principal executive office:
FBL Financial Group, Inc.
5400 University Avenue
West Des Moines, Iowa 50266
INFORMATION PROVIDED
1. Financial statements and schedules of the Iowa Farm Bureau Federation
and Affiliated Companies 401(k) Savings Plan prepared in accordance
with financial reporting requirements of Employee Retirement Income
Security Act of 1974 are incorporated herein by reference and are
attached hereto as Exhibit 1.
2. A written consent of Independent Auditors is attached hereto as Exhibit
2 and is incorporated herein by this reference.
SIGNATURES
THE PLAN. Pursuant to the requirements of the Securities Exchange Act of 1934,
the trustees (or other persons who administer the employee benefit plan) have
duly caused this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.
Date: June 23, 1997
By /s/ Edward M. Wiederstein
Edward M. Wiederstein
Trustee
By /s/ Richard D. Harris
Richard D. Harris
Trustee
IOWA FARM BUREAU FEDERATION AND
AFFILIATED COMPANIES 401(k) SAVINGS
PLAN
By: Iowa Farm Bureau Federation
(Administrator of the Plan)
By /s/ Edward M. Wiederstein
Edward M. Wiederstein
President
By /s/ Richard D. Harris
Richard D. Harris
Secretary and Treasurer
Exhibit 1
Iowa Farm Bureau Federation and Affiliated
Companies 401(k) Savings Plan
Financial Statements
and Schedules
Years ended December 31, 1996 and 1995
Report of Independent Auditors
The Board of Directors
Iowa Farm Bureau Federation
We have audited the accompanying statements of net assets available for plan
benefits of the Iowa Farm Bureau Federation and Affiliated Companies 401(k)
Savings Plan as of December 31, 1996 and 1995, and the related statements of
changes in net assets available for plan benefits for the years then ended.
These financial statements are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan at
December 31, 1996 and 1995, and the changes in its net assets available for plan
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were made for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment at December 31, 1996 and transactions or series of
transactions in excess of 5% of the current value of plan assets for the year
then ended are presented for purposes of complying with the Department of
Labor's Rules and Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974, and are not a required part of the
financial statements. The supplemental schedules have been subjected to the
auditing procedures applied in our audit of the 1996 financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
1996 financial statements taken as a whole.
The information presented in the schedules of assets held for investments and
transactions or series of transactions in excess of 5% of the current value of
plan assets assume cost to be equal to current value as historical cost
information is not available. Disclosure of cost information, which is not
considered material to the financial statements taken as a whole, is required by
the Department of Labor's Rules and Regulations for Reporting and Disclosure
under the Employee Retirement Income Security Act of 1974.
/s/ Ernst & Young LLP
Des Moines, Iowa
May 19, 1997
Iowa Farm Bureau Federation and Affiliated
Companies 401(k) Savings Plan
Statements of Net Assets Available for Plan Benefits
DECEMBER 31
1996 1995
----------- -----------
ASSETS
Investments:
Mutual funds, at fair value:
FBL Series Fund, Inc.:
High Grade Bond Portfolio $ 211,859 $ 225,532
High Yield Bond Portfolio 238,734 246,354
Managed Portfolio 1,005,085 825,183
Money Market Portfolio 51,648 65,997
Blue Chip Portfolio 722,226 516,020
Growth Common Stock Portfolio 2,550,253 2,154,425
----------- -----------
4,779,805 4,033,511
FBL Money Market Fund, Inc. 57,815 70,356
----------- -----------
Total investments in mutual funds 4,837,620 4,103,867
Flexible premium deferred annuities 3,774,829 4,273,444
FBL Financial Group, Inc. common stock 2,022,479 -
Notes receivable from participants 592,745 579,579
----------- -----------
TOTAL INVESTMENTS AND NET ASSETS AVAILABLE
FOR PLAN BENEFITS $11,227,673 $ 8,956,890
=========== ===========
SEE ACCOMPANYING NOTES.
<TABLE>
<CAPTION>
Iowa Farm Bureau Federation and Affiliated
Companies 401(k) Savings Plan
Statements of Changes in Net Assets
Available for Plan Benefits
YEAR ENDED DECEMBER 31
1996 1995
------------ ------------
<S> <C> <C>
Additions:
Investment income:
Interest $ 307,156 $ 314,291
Dividends 101,967 177,406
Net unrealized and realized gains on investments 1,213,023 628,494
------------ ------------
1,622,146 1,120,191
Contributions:
Employee 548,285 501,033
Employer 306,004 -
Rollovers from other plans 142,604 15,298
------------ ------------
Total additions 2,619,039 1,636,522
Deductions - benefits paid to participants (348,256) (265,194)
------------ ------------
Net additions 2,270,783 1,371,328
Net assets available for plan benefits at beginning of year 8,956,890 7,585,562
------------ ------------
Net assets available for plan benefits at end of year $ 11,227,673 $ 8,956,890
============ ============
SEE ACCOMPANYING NOTES.
</TABLE>
Iowa Farm Bureau Federation and Affiliated
Companies 401(k) Savings Plan
Notes to Financial Statements
December 31, 1996
1. SIGNIFICANT ACCOUNTING POLICIES
Investments in FBL Series Fund, Inc., FBL Money Market Fund, Inc. and common
stock of FBL Financial Group, Inc. are stated at fair market value, based on the
latest quoted market price. Investments in flexible premium deferred annuities,
which are considered fully benefit-responsive contracts, are valued at contract
value (including earnings attributed to the investment). Contract value
approximates fair value.
Notes receivable from participants are stated at the unpaid principal balance
plus accrued interest, which approximate fair value. The interest rate is 1-1/2%
above the FBL Flexible Premium Deferred Annuity Rate and ranged from 7.75% to
8.35% during the year ended December 31, 1996 and 8.10% to 8.60% during the year
ended December 31, 1995.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
2. DESCRIPTION OF THE PLAN
Iowa Farm Bureau Federation and Affiliated Companies 401(k) Savings Plan (the
Plan) is a defined contribution plan which covers substantially all employees of
Iowa Farm Bureau Federation and affiliated companies (the Companies) and is
designed to provide retirement benefits. Participants are allowed to contribute
from 1% to 15% of their salaries, after tax, to the Plan, subject to certain
limitations described in the plan document. The Companies may contribute a
discretionary matching contribution equal to a percentage not to exceed the
aggregate amount of compensation contributed to each participant's deferral
account for each plan year. Effective January 1, 1996, the Company approved a
plan amendment which provides profit sharing for agency managers and assistant
agency managers through employer contributions to the Plan. All amounts are 100%
vested. The Plan also allows for participants to borrow money from the Plan
subject to certain provisions.
In addition, the Companies provide a supplemental early retirement plan. This
supplemental plan together with the basic defined benefit retirement plan
provides employees 70% of average monthly compensation after age 55 with 30
years of service. Because total contributions to the basic retirement plan, the
supplemental early retirement plan, and the Plan would likely exceed the 25% of
taxable compensation limitation, the Companies discontinued pre-tax
contributions to the 401(k) plan effective January 1, 1994 and implemented a
401(m) amendment to the plan. The 401(m) amendment will only allow after-tax
dollar contributions.
On termination of service, the participant may elect to receive either a
lump-sum amount equal to the value of the account or equal installment payments
over a period of time not to exceed the life expectancy of the participant.
The foregoing description of the Plan provides only general information. A more
complete description of the Plan's provisions may be obtained from the plan
administrator.
3. INVESTMENTS
Contributions are invested in the mutual funds, flexible premium deferred
annuities sponsored by or offered by the Companies or common stock of FBL
Financial Group, Inc. Participants may elect which portfolios of the mutual
funds to invest their contributions. The portfolios invest primarily in common
stock, fixed income, high quality corporate bonds, debt securities of the United
States Government and short-term money markets. Participants electing to have
contributions deposited into the Flexible Premium Deferred Annuities receive
interest at a rate determined by the Board of Directors of Farm Bureau Life
Insurance Company, with a guaranteed rate of 3%. These rates vary based upon the
investment experience of the general account of Farm Bureau Life Insurance
Company. During the years ended December 31, 1996 and 1995, the interest rate
credited to these contributions ranged from 6.25% to 6.85% and 6.60% to 7.10%,
respectively. During the years ended December 31, 1996 and 1995, the average
yield on the Flexible Premium Deferred Annuities was 6.65% and 6.84%,
respectively. Participants who elect to purchase stock in the Company do so at
the closing market price on the trade date.
Changes in net assets available for plan benefits for each investment option are
as follows:
<TABLE>
<CAPTION>
HIGH GRADE HIGH YIELD MONEY
BOND BOND MANAGED MARKET BLUE CHIP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
Net assets available for plan
benefits at January 1, 1995 $ 185,448 $ 229,548 $ 622,588 $ 56,870 $ 384,796
Interest and dividend income 12,910 19,065 38,250 2,281 4,046
Net unrealized and realized
gains on investments 11,408 8,147 118,477 -- 121,697
Contributions:
Employees 8,835 16,258 82,854 7,328 38,453
Rollovers from other plans 341 751 3,434 1,330 751
Benefits paid to participants (2,527) (18,708) (25,378) (525) (18,218)
Transfers between funds 9,117 (8,707) (15,042) (1,287) (15,505)
--------- --------- --------- --------- ---------
Net assets available for plan
benefits at December 31, 1995 225,532 246,354 825,183 65,997 516,020
</TABLE>
<TABLE>
<CAPTION>
HIGH GRADE HIGH YIELD MONEY
BOND BOND MANAGED MARKET BLUE CHIP
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Interest and dividend income $ 13,289 $ 17,907 $ 29,356 $ 2,037 $ 3,529
Net unrealized and realized
gains (losses) on investments (1,860) 9,748 106,246 -- 109,081
Contributions:
Employees 13,883 18,650 93,830 7,631 53,842
Employer 1,922 9,692 67,123 -- 83,182
Rollovers from other plans 1,212 774 33,410 3,462 18,209
Benefits paid to participants (5,586) (3,559) (30,159) (5,221) (23,266)
Transfers between funds (36,533) (60,832) (119,904) (22,258) (38,371)
----------- ----------- ----------- ----------- -----------
Net assets available for plan
benefits at December 31, 1996 $ 211,859 $ 238,734 $ 1,005,085 $ 51,648 $ 722,226
=========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
FBL
GROWTH FLEXIBLE FINANCIAL NOTES
COMMON FBL MONEY PREMIUM GROUP, INC. RECEIVABLE
STOCK MARKET FUND, DEFERRED COMMON FROM
PORTFOLIO INC. ANNUITIES STOCK PARTICIPANTS TOTALS
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net assets available for plan
benefits at January 1, 1995 $ 1,620,314 $ 69,154 $ 3,918,338 $ -- $ 498,506 $ 7,585,562
Interest and dividend income 97,744 3,110 280,358 -- 33,933 491,697
Net unrealized and realized
gains on investments 368,765 -- -- -- -- 628,494
Contributions:
Employees 161,425 11,276 174,604 -- -- 501,033
Rollovers from other plans 5,056 -- 3,635 -- -- 15,298
Benefits paid to participants (79,269) (2,139) (118,430) -- -- (265,194)
Loans made to participants -- -- (353,300) -- 353,300 --
Loan repayments -- -- 306,160 -- (306,160) --
Transfers between funds (19,610) (11,045) 62,079 -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Net assets available for plan
benefits at December 31, 1995 2,154,425 70,356 4,273,444 -- 579,579 8,956,890
</TABLE>
<TABLE>
<CAPTION>
FBL
GROWTH FLEXIBLE FINANCIAL NOTES
COMMON FBL MONEY PREMIUM GROUP, INC. RECEIVABLE
STOCK MARKET FUND, DEFERRED COMMON FROM
PORTFOLIO INC. ANNUITIES STOCK PARTICIPANTS TOTALS
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
Interest and dividend income $ 27,671 $ 2,540 $ 268,960 $ 5,638 $ 38,196 $ 409,123
Net unrealized and realized
gains on investments 384,965 -- -- 604,843 -- 1,213,023
Contributions:
Employees 173,441 11,670 159,267 16,071 -- 548,285
Employer 76,094 -- 59,660 8,331 -- 306,004
Rollovers from other plans 17,746 -- 65,721 2,070 -- 142,604
Benefits paid to participants (77,415) (2,755) (200,295) -- -- (348,256)
Loans made to participants -- -- (412,000) -- 412,000 --
Loan repayments -- -- 437,030 -- (437,030) --
Transfers between funds (206,674) (23,996) (876,958) 1,385,526 -- --
------------ ------------ ------------ ------------ ------------ ------------
Net assets available for plan
benefits at December 31, 1996 $ 2,550,253 $ 57,815 $ 3,774,829 $ 2,022,479 $ 592,745 $ 11,227,673
============ ============ ============ ============ ============ ============
</TABLE>
The fair values of individual investments that represent 5% or more of the
Plan's net assets are as follows:
DECEMBER 31
1996 1995
---------- -----------
FBL Series Fund, Inc.:
Managed Portfolio (75,798 shares in 1996 and
64,217 shares in 1995) $1,005,085 $ 825,183
Blue Chip Portfolio (24,700 shares in 1996 and
20,908 shares in 1995) 722,226 516,020
Growth Common Stock Portfolio (173,369 shares
in 1996 and 152,796 shares in 1995) 2,550,253 2,154,425
Flexible premium deferred annuities 3,774,829 4,273,444
Common stock of FBL Financial Group, Inc.
(80,957 shares in 1996) 2,022,479 -
Notes receivable from participants 592,745 579,579
4. INCOME TAX STATUS
The Plan has received a determination letter from the Internal Revenue Service
dated November 18, 1994, stating that the Plan is qualified under Section 401(a)
of the Internal Revenue Code of 1986 (the "Code") and, therefore, is exempt from
taxation. Once qualified, the Plan is required to operate in conformity with the
Code and ERISA to maintain its tax-exempt status. The administrator is not aware
of any course of action or series of events that have occurred that might
adversely affect the Plan's qualified status.
5. ADMINISTRATIVE AND OPERATING EXPENSES
The Companies pay all administrative and operating expenses of the Plan.
SCHEDULES
<TABLE>
<CAPTION>
Iowa Farm Bureau Federation and Affiliated
Companies 401(k) Savings Plan
Assets Held for Investment
December 31, 1996
IDENTITY OF ISSUER, DESCRIPTION OF INVESTMENT
BORROWER, INCLUDING MATURITY DATE, CURRENT
OR SIMILAR PARTY RATE OF INTEREST COST* VALUE
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
FBL Series Fund, Inc. Investments in mutual fund as
follows:
High Grade Bond Portfolio $ 211,859 $ 211,859
High Yield Bond Portfolio 238,734 238,734
Managed Portfolio 1,005,085 1,005,085
Money Market Portfolio 51,648 51,648
Blue Chip Portfolio 722,226 722,226
Growth Common Stock Portfolio 2,550,253 2,550,253
FBL Money Market Fund, Inc. Money market mutual fund 57,815 57,815
Farm Bureau Life Insurance Company Flexible premium deferred annuities 3,774,829 3,774,829
FBL Financial Group, Inc. Class A common stock 2,022,479 2,022,479
Various participants Notes receivable, 7.75% to 10.25%,
due through December 2000 592,745 592,745
----------- -----------
Total investments $11,227,673 $11,227,673
=========== ===========
The issuers of all of the investments above are considered as
parties-in-interest to the Plan.
* Cost is assumed to equal current value as historical cost information is
not available for all types of investments.
</TABLE>
<TABLE>
<CAPTION>
Iowa Farm Bureau Federation and Affiliated
Companies 401(k) Savings Plan
Transactions or Series of Transactions in Excess
of 5% of the Current Value of Plan Assets
Year ended December 31, 1996
NUMBER OF
TRANSACTIONS IDENTITY OF PARTY INVOLVED DESCRIPTION OF ASSET
- -----------------------------------------------------------------------------------------------------
CATEGORY (i) - ANY SINGLE SECURITY TRANSACTION WHICH EXCEEDS 5% OF THE PLAN
ASSETS.
For purposes of schedule presentation, category (i) transactions have been
aggregated and included under the category (iii) heading.
CATEGORY (iii) - ANY TRANSACTIONS INVOLVING SECURITIES OF THE SAME ISSUE, WHEN
AGGREGATED, EXCEEDS 5% OF PLAN ASSETS.
<S> <C> <C>
55 FBL Series Fund, Inc.* Purchases of Growth Common Stock Portfolio
125 FBL Series Fund, Inc.* Sales of Growth Common Stock Portfolio
76 Farm Bureau Life Insurance Company* Purchases of Flexible Premium Deferred
Annuity
289 Farm Bureau Life Insurance Company* Sales of Flexible Premium Deferred Annuity
414 FBL Financial Group, Inc.* Purchases of FBL Financial Group common
stock
101 Various participants* Issuance of notes receivable
12 Various participants* Repayments (net of interest) of notes
receivable
THERE WERE NO CATEGORY (ii) OR (iv) TRANSACTIONS DURING THE YEAR ENDED DECEMBER
31, 1996.
* Indicates party-in-interest to the Plan.
Cost information is not available. Purchases include expenditures for securities
and realized and unrealized gains/losses during the year. Sales represent
proceeds received upon sale of securities.
</TABLE>
CURRENT VALUE NET GAIN
PURCHASE PRICE SELLING PRICE COST OF ASSET OF ASSET (LOSS)
- -------------------------------------------------------------------------------
$ 729,459 $ -- $ 729,459 $ 729,459 $ --
-- 333,631 333,631 333,631 --
1,106,915 -- 1,106,915 1,106,915 --
-- 1,605,530 1,605,530 1,605,530 --
2,022,479 -- 2,022,479 2,022,479 --
450,196 -- 450,196 450,196 --
-- 437,030 437,030 437,030 --
Exhibit 2
Consent of Independent Auditors
We consent to the incorporation by reference in the Registration Statement (Form
S-8 No. 333-17007) pertaining to the Iowa Farm Bureau Federation and Affiliated
Companies 401(k) Savings Plan of our report dated May 19, 1997, with respect to
the financial statements and schedules of the Iowa Farm Bureau Federation and
Affiliated Companies 401(k) Savings Plan included in this Annual Report (Form
11-K) for the year ended December 31, 1996.
/s/ Ernst & Young LLP
Des Moines, Iowa
June 23, 1997
