A.M. Best Assigns Indicative Ratings to FBL Financial Group Inc's Shelf Registration

A.M. Best Co. has assigned indicative debt ratings of "bb" to senior unsecured debt, "bb-" to subordinated debt and "b+" to preferred stock of FBL Financial Group Inc (FBL) (headquartered in West Des Moines, IA) [NYSE:FFG], which may be issued under its recently filed shelf registration statement. Additionally, A.M. Best has assigned an indicative rating of "b+" to the shelf trust preferred securities of FBL Financial Group Capital Trust II. The outlook assigned to all ratings is negative. FBL's financial strength, issuer credit and existing debt ratings are unchanged.

The proceeds from the offerings may be added to FBL's general funds and used for general corporate purposes, unless specified in subsequent debt issuances. A.M. Best will monitor the company's ability to generate earnings to adequately cover any additional interest expense incurred from debt instruments issued under the shelf.

The ratings reflect the limited, although improved, financial flexibility and sizable unrealized loss position of FBL, although this unrealized loss position has improved through second quarter 2009. In addition, A.M. Best believes that spread management will continue to be a challenge for FBL.

For Best's Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings.

The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

SOURCE: A.M. Best Co.

A.M. Best 
Analysts: 
Kenneth Monahan, 908-439-2200, ext. 5342 
kenneth.monahan@ambest.com 
Richard McMillan, 908-439-2200, ext. 5615 
richard.mcmillan@ambest.com 
or 
Public Relations: 
Jim Peavy, 908-439-2200, ext. 5644 
james.peavy@ambest.com 
Rachelle Morrow, 908-439-2200, ext. 5378 
rachelle.morrow@ambest.com