FBL Financial Group, Inc. (NYSE:FFG) reported second-quarter operating earnings of $1.02 per share, which missed the Zacks Consensus Estimate of $1.03 by 1%. Earnings decreased 8.1% from the prior-year quarter attributable to an increase in benefits and expenses.
Revenues of $181.3 million beat the Zacks Consensus Estimate of $177 million by 2.4%. However, revenues dipped 1.1% year over year, mainly because of net realized capital losses in the quarter versus income in the prior year quarter.
Behind the Headlines
FBL Financial's total premiums collected were $186.9 million, up 18.2% year on year. Premiums and product charges increased 1.8% to $78.6 million in the second quarter. Interest sensitive products charges were up 2.7% year over year to $29 million, while traditional life insurance premiums rose 1.5% year over year to $49.6 million.
Investment income was $100.7 million in the second quarter compared with from $97.5 million in the prior-year quarter due to an increase in average invested assets. As of Jun 30, 2016, around 96% of fixed maturity securities in the company’s portfolio were investment grade debt securities.
Net realized capital loss of 2.3 million in the second quarter stemmed from realized gains on sales of $6.1 million and realized losses on sales of $8.4 million.
Other income declined 2.3% to $4.2 million.
Total benefits and expenses for the second quarter increased 4.5% to $149 million.
Financial Update
As of Jun 30, 2016, book value per share, including other comprehensive income (OCI), was $51.26 compared with $45.61 as of Dec 31, 2015. Excluding OCI, book value per share was $40.16 as against $40.99 in the prior-year quarter.
The company exited the quarter with total assets of $9.6 billion, up 5.5% year over year. Debt level declined 13.4% to $97 million.
Total investments inched up 6.5% to $8.2 billion in the second quarter.
Share Repurchases
The company purchased 9602 shares of Class A common stock. The insurer has $49.5 million remaining under its stock repurchase program.
Zacks Rank
FBL Financial currently carries a Zacks Rank #4 (Sell).
FBL FINL GRP-A Price, Consensus and EPS Surprise
FBL FINL GRP-A Price, Consensus and EPS Surprise | FBL FINL GRP-A Quote
Performance of Other Stocks
Among the other players in the insurance industry that have reported their second-quarter results so far, the bottom line at The Travelers Companies, Inc. (NYSE:TRV) and First American Financial Corporation (NYSE:FAF) beat their respective Zacks Consensus Estimate, while earnings of RLI Corp. (NYSE:RLI) missed the same.
FBL FINL GRP-A (FFG): Free Stock Analysis Report
RLI CORP (RLI): Free Stock Analysis Report
TRAVELERS COS (TRV): Free Stock Analysis Report
FIRST AMER FINL (FAF): Free Stock Analysis Report
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