Operating income equals net income adjusted to eliminate the impact of realized/unrealized gains and losses on investments and the change in net unrealized gains and losses on derivatives. FBL Financial Group has consistently utilized operating income, a non-GAAP financial measure commonly used in the life insurance industry, as a primary economic measure to evaluate its financial performance. FBL uses operating income, in addition to net income, to measure its performance since realized/unrealized gains and losses on investments and the change in net unrealized gains and losses on derivatives can fluctuate greatly from quarter to quarter. These fluctuations make it difficult to analyze core operating trends. In addition, for derivatives not designated as hedges, there is a mismatch between the valuation of the asset and liability when deriving net income. This non-GAAP measure is used for goal setting, determining short term incentive compensation and evaluating performance on a basis comparable to that used by many in the investment community. FBL believes the combined presentation and evaluation of operating income, together with net income, provides information that may enhance an investor's understanding of FBL's underlying results and profitability.
For each of the 14 states in our Farm Bureau Life marketing territory, we have the exclusive right to use the 'Farm Bureau' name and 'FB' logo for marketing life insurance and investment products in those states. All of the state Farm Bureau federations in our Farm Bureau Life marketing area are associated with the American Farm Bureau, the nation's largest grass roots farm and ranch organization with approximately 6.1 million member families. The primary goal of the American Farm Bureau is to improve the financial well being and quality of life of farmers and ranchers through education and representation with respect to public policy issues. Our relationship with Farm Bureau provides a number of advantages. Farm Bureau organizations in our current territory tend to be well known and long established, have active memberships and provide a number of member benefits other than financial services. The strength of these organizations provides enhanced prestige and brand awareness for our products and increased access to Farm Bureau members.
Prior to March 31, 1998, FBL had a property-casualty subsidiary, Utah Farm Bureau Insurance Company. This subsidiary was sold in 1998 to a related party, Farm Bureau Mutual Insurance Company. Today FBL continues to manage this business along with the property-casualty business in seven other states. FBL receives a management fee from two property-casualty companies, which do business in eight states. Property-casualty underwriting results do not impact FBL's results from continuing operations.
The phone number for FBL Investor Relations is (515) 226-6780. You may contact FBL Investor Relations via e-mail at Investor.Relations@FBLFinancial.com or via fax at (515) 226-6966. The FBL mailing address is:
FBL Financial Group, Inc.
5400 University Ave.
West Des Moines, IA 50266-5958
You may also contact us through our online investor information request form.