FBL Financial Group Reports Fourth Quarter and Full Year 2017 Results
Financial Highlights | ||||||||
(Dollars in thousands, except per share data) |
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Three months ended |
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2017 | 2016 | |||||||
Net income attributable to |
$ | 108,499 | $ | 26,880 | ||||
Non-GAAP operating income(1) | 24,804 | 25,575 | ||||||
Earnings per common share (assuming dilution): | ||||||||
Net income | 4.33 | 1.07 | ||||||
Non-GAAP operating income(1) | 0.99 | 1.02 | ||||||
- A one-time benefit from the Tax Cuts and Jobs Act of 2017 (Tax Act) enacted
December 22, 2017 of$85.8 million ($3.42 per share) - The benefit of other investment-related income of
$0.13 per share - Unfavorable mortality results in the Life Insurance and Corporate & Other segments
- Lower interest sensitive product charges and higher benefit reserves totaling
$0.10 per share due to the correction of product charges on a closed block of life insurance business
Non-GAAP operating income differs from the GAAP measure, net income attributable to
"Fourth quarter 2017 earnings results cap off a year in which
Taxes. Fourth quarter 2017 results include an
Product Revenues. Premiums and product charges for the fourth quarter of 2017 totaled
Investment Income. Net investment income in the fourth quarter of 2017 totaled
Benefits and Expenses. Benefits and expenses totaled
Net Realized Gains/Losses on Investments. In the fourth quarter of 2017,
Stock Repurchases. During the fourth quarter of 2017,
Capital and Book Value. As of
Further Financial Information. Further information on
Conference Call.
Certain statements in this release concerning
- FINANCIAL INFORMATION AND NOTES FOLLOW -
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Consolidated Statements of Operations (Unaudited) | ||||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
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2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Interest sensitive product charges | $ | 26,275 | $ | 28,939 | $ | 112,936 | $ | 111,928 | ||||||||||||
Traditional life insurance premiums | 49,547 | 49,489 | 195,330 | 196,914 | ||||||||||||||||
Net investment income | 107,347 | 101,549 | 415,199 | 404,170 | ||||||||||||||||
Net realized capital gains on sales of investments | — | 3,139 | 599 | 3,106 | ||||||||||||||||
Total other-than-temporary impairment losses | (3,853 | ) | (3,551 | ) | (3,986 | ) | (7,320 | ) | ||||||||||||
Non-credit portion in other comprehensive income | — | 929 | — | 2,451 | ||||||||||||||||
Net impairment losses recognized in earnings | (3,853 | ) | (2,622 | ) | (3,986 | ) | (4,869 | ) | ||||||||||||
Other income | 3,689 | 3,685 | 15,400 | 15,165 | ||||||||||||||||
Total revenues | 183,005 | 184,179 | 735,478 | 726,414 | ||||||||||||||||
Benefits and expenses: | ||||||||||||||||||||
Interest sensitive product benefits | 63,661 | 59,726 | 251,878 | 238,586 | ||||||||||||||||
Traditional life insurance benefits | 44,826 | 47,623 | 173,023 | 177,682 | ||||||||||||||||
Policyholder dividends | 2,543 | 2,560 | 10,140 | 10,574 | ||||||||||||||||
Underwriting, acquisition and insurance expenses | 36,649 | 33,530 | 134,878 | 135,967 | ||||||||||||||||
Interest expense | 1,212 | 1,212 | 4,850 | 4,850 | ||||||||||||||||
Other expenses | 4,520 | 4,319 | 18,382 | 16,966 | ||||||||||||||||
Total benefits and expenses | 153,411 | 148,970 | 593,151 | 584,625 | ||||||||||||||||
29,594 | 35,209 | 142,327 | 141,789 | |||||||||||||||||
Income tax benefit (expense) | 76,573 | (11,373 | ) | 40,729 | (46,010 | ) | ||||||||||||||
Equity income, net of related income taxes | 2,340 | 3,047 | 11,299 | 11,440 | ||||||||||||||||
Net income | 108,507 | 26,883 | 194,355 | 107,219 | ||||||||||||||||
Net loss (income) attributable to noncontrolling interest | (8 | ) | (3 | ) | (28 | ) | 4 | |||||||||||||
Net income attributable to |
$ | 108,499 | $ | 26,880 | $ | 194,327 | $ | 107,223 | ||||||||||||
Earnings per common share - assuming dilution | $ | 4.33 | $ | 1.07 | $ | 7.75 | $ | 4.28 | ||||||||||||
Weighted average common shares | 25,039,449 | 25,007,438 | 25,038,334 | 24,985,400 | ||||||||||||||||
Effect of dilutive securities | 17,087 | 32,662 | 19,111 | 43,683 | ||||||||||||||||
Weighted average common shares - diluted | 25,056,536 | 25,040,100 | 25,057,445 | 25,029,083 | ||||||||||||||||
(1) Reconciliation of Net Income Attributable to
In addition to net income,
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2017 | 2016 | 2017 | 2016 | |||||||||||||||||
(Dollars in thousands, |
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Net income attributable to |
$ | 108,499 | $ | 26,880 | $ | 194,327 | $ | 107,223 | ||||||||||||
Adjustments: | ||||||||||||||||||||
Initial impact of the Tax Act | (85,797 | ) | — | (85,797 | ) | — | ||||||||||||||
Net realized gains/losses on investments (a) | 2,578 | (429 | ) | 2,381 | 713 | |||||||||||||||
Change in net unrealized gains/losses on derivatives(a) | (476 | ) | (876 | ) | (2,549 | ) | (1,485 | ) | ||||||||||||
Non-GAAP operating income | $ | 24,804 | $ | 25,575 | $ | 108,362 | $ | 106,451 | ||||||||||||
Non-GAAP operating income per common share - assuming dilution | $ | 0.99 | $ | 1.02 | $ | 4.32 | $ | 4.25 | ||||||||||||
(a) Net of adjustments, as applicable, to amortization of unearned revenue reserves, deferred acquisition costs, value of insurance in force acquired, interest sensitive policy reserves and income taxes attributable to these items. |
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(2) Premiums Collected - Net statutory premiums collected is a non-GAAP measure and includes premiums collected from annuities and universal life-type products. It is a useful metric for investors as it is a measure of sales production. For GAAP reporting, these premiums received are not reported as revenues.
(3) Reconciliation of Book Value Per Share Excluding Accumulated Other Comprehensive Income - Unaudited
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2016 |
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Book value per share | $ | 55.59 | $ | 47.61 | ||||
Less: Per share impact of accumulated other comprehensive income | 9.50 | 6.01 | ||||||
Book value per share, excluding accumulated other comprehensive income | $ | 46.09 | $ | 41.60 | ||||
Book value per share excluding accumulated other comprehensive income is a non-GAAP financial measure. Accumulated other comprehensive income totaled
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Condensed Consolidated Balance Sheets (Unaudited) | ||||||||
(Dollars in thousands) | ||||||||
2017 |
2016 |
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Assets | ||||||||
Investments | $ | 8,620,243 | $ | 8,174,660 | ||||
Cash and cash equivalents | 52,696 | 33,583 | ||||||
Deferred acquisition costs | 302,611 | 330,324 | ||||||
Other assets | 439,100 | 430,495 | ||||||
Assets held in separate accounts | 651,963 | 597,072 | ||||||
Total assets | $ | 10,066,613 | $ | 9,566,134 | ||||
Liabilities and stockholders' equity | ||||||||
Liabilities | ||||||||
Future policy benefits | $ | 7,050,465 | $ | 6,799,417 | ||||
Other policy funds, claims and benefits | 634,128 | 638,848 | ||||||
Debt | 97,000 | 97,000 | ||||||
Other liabilities | 244,207 | 245,539 | ||||||
Liabilities related to separate accounts | 651,963 | 597,072 | ||||||
Total liabilities | 8,677,763 | 8,377,876 | ||||||
Stockholders' equity | ||||||||
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Preferred stock | 3,000 | 3,000 | ||||||
Class A common stock | 153,589 | 152,903 | ||||||
Class B common stock | 72 | 72 | ||||||
Accumulated other comprehensive income | 236,757 | 149,555 | ||||||
Retained earnings | 995,374 | 882,672 | ||||||
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1,388,792 | 1,188,202 | ||||||
Noncontrolling interest | 58 | 56 | ||||||
Total stockholders' equity | 1,388,850 | 1,188,258 | ||||||
Total liabilities and stockholders' equity | $ | 10,066,613 | $ | 9,566,134 | ||||
Common shares outstanding | 24,930,526 | 24,893,955 | ||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20180208006202/en/
V.P. Corporate & Investor Relations
[email protected]
Source:
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