June 18, 2009

RE: EquiTrust Life’s Financial Strength

Our goal at EquiTrust Life Insurance Company is to support our agents and clients with quality fixed annuity products. With that goal in mind, we are focused on capital strength and profitability, consistent with our standards of integrity and operational excellence.

Although EquiTrust Life currently is rated B+ by A.M. Best, we manage EquiTrust Life to have, at a minimum, A levels of capital based on rating agency capital models. Our March 31, 2009 calculations indicate that EquiTrust Life held capital at an A.M. Best rating level of A+. We believe this capital level is prudent in running our business and we continue to target these levels.

According to our most recent estimated BCAR (Best’s Capital Adequacy Ratio) calculations, EquiTrust Life has approximately $40 million of capital in excess of what is needed for an A.M. Best A rating. This capital level is several times the amount required by the insurance regulators in the states where we do business. We remain committed to maintaining the capital levels necessary for A ratings from A.M. Best.

In addition, FBL Financial Group, the parent company of EquiTrust Life, maintains a well diversified investment portfolio with invested assets of $10.9 billion as of March 31, 2009. These investments are well diversified by individual issue, industry and asset class. FBL Financial Group manages credit exposure on an enterprise-wide basis and has limits in place for each credit exposure. Over 95% of the portfolio's fixed maturity securities are investment grade.

EquiTrust Life is positioned for long-term success. We will continue to manage prudently and maintain solid capital levels, good ratings and a strong balance sheet.

Sincerely,

Tom May
Vice President – EquiTrust Life

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