On Nov 12, 2014, shares of FBL Financial Group, Inc. (FFG) reached a new 52 week high of $52.59. Stock price of this company soared owing to robust third-quarter 2014 earnings, 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.
The shares gained 23% in the one-year period to close at $52.35 in the last trading session. Moreover, FBL Financial’s one-year return of 19.57% was higher than the S&P 500’s return of 15.10% and that of the other industry players like Kansas City Life Insurance Company (KCLI), Torchmark Corporation (TMK) and Citizens Inc. (CIA) that recorded returns of 7.21%, -79.45% and -16.19%, respectively.
Earlier this month, FBL Financial reported third-quarter earnings that not only surpassed the Zacks Consensus Estimate but also improved year over year. Notably, this multiline insurer delivered positive earnings surprises in three of the last four quarters with an average beat of 10.89%.
FBL Financial is largely focused on the Farm Bureau niche market and generating growth in the book of business. Moreover, despite the low interest rate environment, the company has posted stable results, thanks to the balanced life and annuity in force business.
Additionally, FBL Financial has succeeded in cost control that led to a decline in expenses in the reported quarter. Moreover, the company’s sound financial position helped it to deploy $2.8 million toward share buybacks. All these positive developments were reflected in its third-quarter earnings and drove bullish sentiment, as evident from a 4.3% rise in the company’s share price since it reported earnings results.
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