FBL Financial Group, Inc.
May 17, 2006 Annual Meeting

Thank you Mr. Chairman and good morning to you - the shareholders, directors, employees and friends of FBL Financial Group. I am pleased to be here today at what is, and this is really hard to believe, our 10th annual meeting of FBL as a public company. Actually, coming up on July 19th, FBL will celebrate its 10th anniversary as a public company. So, today I want to briefly review FBL's achievements over the past ten years and, of course, in particular those of 2005.

Our successes are detailed in our 2005 annual report to shareholders - copies of which are available for you here today. This slide shows the cover of our 2005 annual report, which has the theme, "Balanced Growth." We chose this theme because of the balance that comes from our two strong brand identities -- Farm Bureau Financial Services and EquiTrust Financial Services.

They provide FBL with complementary, yet diverse, distribution channels, one with exclusive agents and the other with independent agents, who serve customer bases with different characteristics and in different geographies. Both growth and earnings are balanced, as well; as our record earnings in 2005 resulted from profitability from both life insurance and annuity products. We continue to build upon FBL's foundation - our Farm Bureau marketplace - and that growth is now complemented by EquiTrust Life's independent agents.

I am pleased to report that 2005 was an outstanding year for FBL Financial Group. For the year, we achieved records in both operating income and net income per share. In addition, we set a record in collected premiums. These records were rewarded by the marketplace with a 15% increase in our stock price.

We were able to accomplish these results because of our balanced growth. The framework for our balanced growth is in our long-held growth strategies of: 1) growth through our traditional Farm Bureau distribution system, 2) growth in EquiTrust Life through independent agents and other distribution channels, and 3) acquisitions or consolidations.

Our first strategy is growth through our traditional Farm Bureau distribution system. Through Farm Bureau Life, we market a wide array of individual life insurance and annuity products that are relatively straightforward in nature. These products are sold primarily, but far from exclusively, in small towns and rural markets. This has been, and continues to be, a very stable market for us. The Farm Bureau distribution channel is growing and in 2005 reached a milestone when our agent count exceeded 2,000 for the first time.

Farm Bureau Life is focused on being as efficient as possible in order to meet its objective of generating consistent, predictable and sustainable growth and profits. Future growth in Farm Bureau Life will result from continuing to build our agency strength, especially in more urban marketplaces.

Our second strategy is growth in EquiTrust Life through independent agents and other distribution channels. In EquiTrust Life, we have our fast growing annuity business, two closed blocks of coinsured business and four variable product alliances.

From its beginning in late 2003, our EquiTrust Life independent agent distribution channel has been successful in further diversifying and balancing the growth profile of FBL. Working through independent marketing organizations, broker/dealers and banks, this channel also reached a milestone in 2005 when its agent count first exceeded 10,000. By the end of the first quarter of 2006, our agent count had grown to nearly 12,000.

Driven predominately by the sale of indexed annuities, 2005 premiums collected were over $902 million, a 91 percent increase over 2004. We expect this channel to continue to grow, as we have set our 2006 premium target at $1.2 billion. While the bottom line from this business was about "breakeven" for 2005, it improved steadily throughout the year, adding $0.02 per share to earnings in the fourth quarter. More recently, it added $0.03 per share to earnings in the first quarter of 2006 and that is expected to continue to grow going forward.

Our third growth strategy is acquisitions and consolidations, particularly in the Farm Bureau network of companies. We have been successful in this area by completing a number of transactions over the last 20 years; however, this is a long-term strategy. We are ready to capitalize on appropriate opportunities, if and when they arise, either within or outside of the Farm Bureau network.

These growth strategies have made us the company we are today. We have two strong and growing life insurance companies and we also manage Farm Bureau property-casualty operations in eight states - through Farm Bureau Mutual Insurance Company and Western Agricultural Insurance Company. We do not, however, bear any underwriting risks from our property-casualty operations in FBL.

With the growth of our businesses, we have become a substantial organization.

Life insurance premiums have been growing steadily and totaled over $236 million in 2005.

We have seen significant annuity volume over the last several years, particularly from EquiTrust Life. As you can see, premiums in 2005 were over ten times those in 2000 and prior years.

Total premiums collected were a record $1.4 billion for 2005. Over the time shown here, we have realized a compound annual growth rate of 20% with most of that coming in the past five years.

Our life insurance in force is approaching $36 billion, which is more than double the level of ten years ago. This is a pretty good growth profile for a mature business.

From an asset standpoint, statutory assets of Farm Bureau Life and EquiTrust Life are over $9 billion, more than triple the level of ten years ago.

The statutory net worth of our life companies has grown to $612 million. Note that the drop in 1999 was due to a $75 million stock repurchase.

The balance sheet for FBL Financial Group continues to grow. At the end of 2005, we reached another milestone when our GAAP assets exceeded $10 billion for the first time. This chart and others that I've shared with you this morning demonstrate that our company is strong, profitable and growing.

We are very pleased with what we have accomplished during our short ten year history as a public company. We have grown from a regional life insurer with a single brand to a company that is national in scope with two strong brand identities. We are excited about our potential for the years ahead, as we continue to grow and create value for you, our shareholders.

Now, I will turn it over to Jim Noyce, our Chief Financial Officer, who will discuss our 2005 financial results in more detail. We'll be happy to answer any questions you may have at the conclusion of his presentation. Jim.

Thanks Bill and Good Morning. It's a real pleasure to see all of you here today and to be a part of FBL's 10th annual shareholders meeting. I feel honored to have had the opportunity to present our financial results at all ten of FBL's annual shareholder meetings.

As Bill stated, 2005 was a very positive year for FBL. The first item that I will comment on is the most widely viewed indicator of performance - our stock price. As you can see, since FBL went public in July of 1996, our stock price has increased by more than 259%. During that time, FBL has substantially outperformed the S&P Insurance Index and the Dow Jones Industrial Average. And this tremendous result does not even include the competitive dividend that FBL pays each quarter. Adding in the dividend increases FBL's total return to 319%.

In addition to our stock price, other performance indicators for FBL Financial Group were also positive. 2005 net income totaled a record $2.47 per common share and operating income was also a record at $2.49 per share. As a reminder, operating income differs from net income in that it excludes the impact of unrealized/realized gains and losses on investments and the change in net unrealized gains and losses on derivatives.

There are several key factors that drove these record earnings:

• First, as Bill described, we had record premiums collected and continue to see strong sales from Farm Bureau Life and our growing EquiTrust Life independent channel.
• Results were positively impacted by investment fee income, which includes income from bond calls, tender offers and mortgage loan prepayments. This accounts for approximately $0.17 per share of 2005 results. This fee income tends to be quite volatile, and we expect substantially lower prepayment fee income in 2006.
• Within Farm Bureau Life we have been focused on generating consistent and sustainable growth, and profits, and improving our ROE. In order to do this, in 2005 we took several actions related to product pricing and expenses. One of the most significant actions was the closing of a life processing unit in Kansas. Decisions like this that affect our people are always difficult, but this is the right thing for us to do from an efficiency standpoint. As a result of this closure and certain workforce reductions, we incurred a charge of $0.05 per share in 2005. We did this in order to streamline operations, improve efficiencies and save significant costs in Farm Bureau Life going forward. As a result, we expect to achieve pre-tax savings of roughly $1.0 million a quarter, some of which began to emerge in the 4th quarter of 2005.
• Also, as Bill mentioned, our EquiTrust Life independent channel broke even in 2005 after an investment of $0.08 per share during 2004. We expect this unit to add to earnings going forward and it did in the first quarter of 2006, contributing $0.03 per share to operating income.

Just a few weeks ago we announced first quarter 2006 earnings. In the first quarter of 2006 net income was particularly strong at $0.93 per share, and operating income was $0.59 per share. The significant increase in net income was primarily attributable to a gain on the sale of shares of American Equity Investment Life Holding Company common stock, which totaled $13.5 million pre-tax, or $0.29 per share on an after-tax basis.

As of March 31, 2006, we had total invested assets of $8.3 billion. We take great pride in our investment portfolio and the internal personnel who manage it. We have a high quality portfolio and have experienced a low default rate. 95% of our investments are in investment grade securities and for the first quarter we had an annualized investment yield of 6.10%. During the last several years, our focus has been on investing new money in corporate bonds and to decrease our allocation to mortgage-backed securities and related interest rate risk. We focus on investing funds to maximize our risk-adjusted investment return while maintaining a diversified portfolio, and as a result the portfolio is well diversified by individual issue, industry and asset class.

From a capital perspective, FBL Financial Group is well capitalized with total capitalization of $1.0 billion. At the end of December we redeemed the final portion of our Series C preferred stock and currently have a debt to total capitalization ratio of 21.8%. We don't see a need for a near-term capital issuance of debt, however, we have room for additional debt if the opportunity arises and, in particular, if we need to fund for future growth in EquiTrust Life.

Our companies continue to hold high ratings with Farm Bureau Life and EquiTrust Life receiving A (Excellent) ratings from A.M. Best and A counterparty credit and financial strength ratings from Standard & Poor's.

Our book value per share, excluding accumulated other comprehensive income, increased to $26.78 at March 31, 2006. Growing book value over time is important to all of us as it demonstrates the growth of our company and has a strong correlation to growth in our stock price. I'm pleased to say that we have steadily and consistently increased FBL's book value per share since going public.

I continue to believe FBL is well positioned for the future.

• We have a commitment to compliance and always doing what's right. One of my roles at FBL is Chief Compliance Officer and chair of our Corporate Compliance Committee, where we oversee all areas of compliance throughout our companies and receive regular reports from the operating areas as to their compliance activities. Our commitment to compliance goes back not just to ten years ago when we went public, but to the foundation of our companies - built on honesty, integrity and fair dealing.
• Our board is also committed to strong corporate governance, demonstrated in the past years by adopting several best practices, and committees that are continuing to strive to maintain a high level of corporate governance.
• We have proven growth strategies with our solid base in the Farm Bureau marketplace and our growing EquiTrust Life independent distribution channel.
• With these and our capital strength, we are well positioned for continued long term earnings performance.

That concludes my remarks. Thank you for your attention. Now, I'll turn it over to Craig.