On Dec 30, FBL Financial Group Inc. (FFG) reached a new 52-week high of $58.28 per share, driven by rating upgradation. With about 0.06 million shares exchanging hands in the last trading session, the stock closed at $57.80, gaining 1.42%.
The year-to-date return from the stock came in at 29.1%, which was well ahead of the S&P’s return of 12.6%.
Rating affirmations or upgrades from credit rating agencies play an important part in retaining investor faith in the stock as well as in maintaining credit worthiness in the market. FBL Financial scores strongly in this respect. Recently, the credit rating agency A. M. Best upgraded the financial strength rating of FBL Financial’s subsidiary Farm Bureau Life Insurance Company to A (Excellent) from A- (Excellent).
This rating upgradation reflects outstanding financial results, solid capital position, strong risk-adjusted capitalization, high credit quality of invested assets and strong statutory return on equity ratios of the company. In particular, this is an indication of Farm Bureau Financial Services’ commitment to provide services to its customers and members thereby fulfilling its purpose of protecting livelihoods and futures.
With respect to earnings performance, the multiline insurer successfully delivered positive surprises in three out of the last four quarters with an average beat of 10.89%. In the last reported quarter, FBL Financial reported operating income of $1.18 per share surpassing the Zacks Consensus Estimate by 22.9% and improving year over year by 15.7%. The upside was primarily attributable to higher-than-expected bond prepayments, favorable mortality results, expense management, increased equity income from investments in low income housing tax credit partnerships and investment companies, share repurchases and a strong business portfolio.
This Zacks Rank #1 (Strong Buy) stock has been witnessing upward revisions in the Zacks Consensus Estimate over the last 60 days. For 2014, the Zacks Consensus Estimate moved north by 2.8% to $4.01 per share as 1 out of 2 estimates was raised. For 2015 it edged up 0.5% to $4.05 as 1 out of 2 estimates rose.
Other Stocks to Consider
Investors might be interested in stocks like CNO Financial Group, Inc. (CNO), Ping An Insurance (Group) Company of China, Ltd. (PNGAY) and American International Group, Inc. (AIG). While CNO Financial and Ping An Insurance hold the same Zacks Rank as FBL Financial, American International holds a Zacks Rank #2 (Buy).
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