FBL Financial Announces Variable Product Portfolio Enhancements; Simplified Issue Whole Life and Disability Income Product Changes Also Announced.

Business Editors

WEST DES MOINES, Iowa--(BUSINESS WIRE)--Feb. 10, 2000

FBL Financial Group, Inc. (NYSE: FFG) today announced several additions to its product portfolio, leveraging its variable product expertise and enhancing the array of products available to its agents and customers.

Variable Settlement Options and Last Survivor Variable Universal Life Product to be Offered.

Effective May 1, 2000, FBL Financial Group will add variable settlement options and a last survivor variable universal life insurance product to its variable product portfolio. These products will be available for sale by FBL's core distribution of Farm Bureau agents in 14 states. In addition, several of FBL's variable alliance partners have expressed interest in these portfolio enhancements. To date, FBL variable alliance partners American Equity, Berthel Fisher, Country Life, Farm Bureau Life of Missouri, Kansas Farm Bureau Life, National Travelers Life and United Farm Family Life have committed to offering variable settlement options. Country Life, Kansas Farm Bureau Life and United Farm Family Life have signed letters of intent for the sale of the last survivor variable universal life insurance product. As with FBL's existing variable alliance agreements with its insurance company partners, the risks, costs and profits of this business will be shared.

JoAnn Rumelhart, Executive Vice President of FBL Financial Group stated, &uot;Our variable product changes and enhancements are designed to leverage our variable product expertise while serving the needs of the aging baby boomer population. We are introducing variable settlement options, for example, to capture more of the growing annuitization market. Additionally, as a variable alliance partner to eight companies, we are committed to offering our partners state-of-the-art variable products and features.&uot;

United Farm Family Life to Add Variable Universal Life.

Effective October 1, 2000, United Farm Family Life, the Farm Bureau affiliate in Indiana, will expand its variable alliance with FBL to include variable universal life insurance. United Farm Family Life originally entered into a variable annuity alliance with FBL in 1998 and its agents began selling variable annuities at the beginning of 1999. Profits from the variable universal life business will be shared equally.

&uot;We have enjoyed considerable success to date with our jointly developed variable annuity. The product has been well received by our customers and agents and FBL has provided excellent service,&uot; stated Carl Shepherd, Senior Vice President of United Farm Family Life. &uot;Based on our experience with the variable annuities, it was only natural for us to expand our alliance with FBL and create a jointly developed variable universal life product.&uot;

FBL to Develop Simplified Issue Whole Life Insurance Product with United Farm Family Life.

United Farm Family Life currently underwrites an express issue whole life insurance product and is using its expertise in this area to assist FBL in developing this type of product, which will be available for sale by FBL's core distribution. This product is being designed with the goals of speed and convenience for the customer in mind. The customer will be asked a few simple questions regarding his or her health and the policy will be issued within days, without any long application forms or doctors' appointments. The risks, costs and profits of the business will be shared equally between FBL and United Farm Family Life.

FBL to Sell Disability Income Product through Country Life.

Effective August 1, 2000, FBL's core distribution force will begin selling disability income insurance underwritten by Country Life, which is part of the Country Companies Insurance Group. Country Life will retain all the risks and profits associated with this product and will pay FBL a fee for the business written. This is similar to FBL's current relationship with Country Life where FBL's agents sell Country Life's long-term care product.

FBL currently underwrites its own disability income products, but going forward all new business will be underwritten by Country Life. This will allow FBL to focus on its variable product expertise. In addition, FBL views the disability income line as being more volatile in the long term. FBL is reviewing alternatives for its existing block of disability income insurance, which had premiums totaling $13.4 million for 1999.

&uot;Today's announcement demonstrates two things. First, we are committed to maintaining a competitive product portfolio so that our multi-line Farm Bureau agents are able to serve the lifetime insurance and financial needs of our customers,&uot; stated Bill Oddy, incoming Chief Executive Officer of FBL Financial Group. &uot;Secondly, we believe in leveraging the expertise of the different Farm Bureau companies. We expect further resource- sharing to continue within the Farm Bureau network of companies because it improves efficiencies and economies of scale, and all parties involved benefit.&uot;

The statements in this release concerning FBL's prospects for the future are forward-looking statements that involve certain risks and uncertainties, including the continued acceptance of FBL's insurance products by customers, the continued success of FBL's marketing efforts and the marketing success of FBL's alliance partners. These forward-looking statements are based on assumptions, which FBL Financial Group believes to be reasonable. No assurance can be given that the assumptions will prove to be correct, and the difference between assumptions and actual results could be material.

FBL Financial Group (www.fblfinancial.com) is a holding company whose primary operating subsidiaries include Farm Bureau Life Insurance Company and EquiTrust Life Insurance Company. FBL Financial Group underwrites, markets and distributes life insurance, annuities and mutual funds to individuals and small businesses. FBL Financial Group's three-pronged growth strategy includes (1) internal growth within its traditional Farm Bureau distribution network in 14 midwestern and western states, (2) alliances and consolidations with other Farm Bureau companies and (3) alternative distribution - opportunities beyond the boundaries of the Farm Bureau network.