Financial Performance - Total revenues increased by 6% to $62.1 million in Q2 2024, up from $58.5 million in the same quarter last year[3] - Net income for Q2 2024 was $4.0 million, or $0.08 per fully diluted Class A share, down from $6.1 million, or $0.12 per share in Q2 2023[6] - Adjusted income before federal income tax for the three months ended June 2024 was $7,131,000, compared to $6,400,000 for the same period in 2023, representing an increase of 11.5%[17] - The total income before federal income tax for the six months ended June 2024 was $8,227,000, down from $12,759,000 for the same period in 2023, a decrease of 35.5%[17] Insurance and Premiums - Insurance issued reached a record $295.2 million in Q2 2024, an 86% increase compared to Q2 2023, driven by new products and an increase in producing agents[2] - Direct first year life and A&H premiums increased by 85% to $7.9 million in Q2 2024, marking the seventh consecutive quarter of year-over-year growth[3] - The company aims to increase first year premium revenues by at least 25% and expand its global network of producing agents by at least 20% in 2024[4] Assets and Equity - Cash and cash equivalents stood at $26.3 million with no debt as of June 30, 2024[8] - Stockholders' equity, excluding accumulated other comprehensive income (AOCI), increased to $299,393,000 as of June 2024, up from $275,209,000 as of March 2023, reflecting a growth of 8.5%[18] - Book value per Class A share increased by 30% to $3.85 compared to the same quarter last year[3] - Book value per Class A common share, diluted, excluding AOCI, rose to $6.02 as of June 2024, compared to $5.55 as of March 2023, indicating an increase of 8.5%[18] Expenses and Losses - Total benefits and expenses increased by $6.3 million to $58.8 million in Q2 2024, primarily due to higher matured endowments and increased general expenses[5] - The company reported a loss of $3,500,000 related to legal fee accrual for the three months ended June 2024[17] - Investment-related losses for the three months ended June 2024 were $(253,000), compared to gains of $703,000 for the same period in 2023[17] Operational Strategy and Future Outlook - The company anticipates continued growth in operational strategy and capital expenditures, although specific future performance is subject to risks and uncertainties[19] - The company has not provided specific guidance for future earnings but emphasizes the importance of monitoring market conditions and regulatory changes[19] - The company has no obligation to update forward-looking statements, which may involve risks and uncertainties that could affect actual outcomes[19] Agent Network - The global network of producing agents increased by 45% since December 31, 2023, with a 21% increase in Q2 2024 alone[2] - The accumulated other comprehensive income (loss) decreased from $(128,363,000) as of March 2023 to $(107,924,000) as of June 2024, indicating an improvement in comprehensive income[18]

Financial Performance - Total assets reached $1.7 billion, with total investments of $1.4 billion, and fixed maturity securities comprised 88% of total investments [123]. - Net income before federal income taxes decreased to $3.3 million for the three months ended June 30, 2024, down from $6.0 million in the same period of 2023 [121]. - Total revenues increased to $62,084,000 for the three months ended June 30, 2024, up from $58,527,000 in the prior year, and $119,796,000 for the six months ended June 30, 2024, compared to $114,441,000 [128]. - The company reported a net income per share of Class A common stock of $0.08 and $0.17 for the three and six months ended June 30, 2024, respectively [123]. - Total income before federal income tax for the three months ended June 30, 2024, was $3.3 million, a decrease from $6.0 million in the same period of 2023 [143]. Insurance Segment Performance - First year premiums in the Life Insurance segment more than doubled quarter-over-quarter and almost doubled year-to-date compared to 2023 [113]. - Total insurance issued increased by 73% in the six months ended June 30, 2024, compared to the prior year period, driven by new products and expanded distribution channels [125]. - Life Insurance segment growth driven by strong sales of new domestic final expense products, accounting for over 50% of insurance issued through June 30, 2024 [126]. - Life Insurance segment premiums increased by 10% to $31.6 million for the three months ended June 30, 2024, compared to $28.8 million in 2023, driven by a 103% increase in first-year premiums [146]. - International whole life product sales represented 65% of total insurance issued internationally in the Life Insurance segment for the six months ended June 30, 2024 [126]. Investment Income - Net investment income increased by 2% for both the three and six months ended June 30, 2024, reaching $18 million and $36 million respectively [117]. - Net investment income for the three months ended June 30, 2024, was $17,540,000, compared to $17,241,000 in the prior year, and $35,027,000 for the six months ended June 30, 2024, compared to $34,315,000 [131]. - Net investment income rose by 2% to $13.8 million for the three months ended June 30, 2024, compared to $13.5 million in the same period of 2023 [149]. Claims and Benefits - Claims and surrenders expenses included a $1.8 million increase in benefits paid due to higher matured endowments reaching their contractual maturity dates [121]. - Total insurance benefits paid increased to $36,029,000 for the three months ended June 30, 2024, from $34,049,000 in the prior year, and $71,149,000 for the six months ended June 30, 2024, compared to $65,358,000 [133]. - Claims and surrenders totaled $34,530,000 for the three months ended June 30, 2024, compared to $32,776,000 in the prior year, and $67,643,000 for the six months ended June 30, 2024, compared to $63,075,000 [134]. - Death benefit payments increased in the first half of 2024 due to a significant rise in insurance issued, while surrender benefits slightly decreased [180]. - The company reported a decrease in death claim benefits to $1.2 million for the three months ended June 30, 2024, from $1.4 million in 2023 [151]. Operating Expenses - Operating expenses increased due to the accrual of $3.5 million in legal fees related to a trade secret lawsuit [119]. - The company experienced a slight decline in renewal premiums for the six months ended June 30, 2024, due to high surrenders and matured endowments [146]. Reinsurance and Risk Management - The company entered into a coinsurance agreement with RGA Reinsurance Company to reinsure 50% of its newly written final expense business [113]. - Reinsurance ceded premiums increased due to a new coinsurance agreement with RGA entered in the second quarter of 2024 [130]. - The company is closely monitoring policyholder behavior patterns to manage liquidity risks associated with commission advances and policy surrenders [182]. Capital and Liquidity - The company has no debt as of June 30, 2024, and liquidity is primarily derived from cash flow from operations and marketable securities [172]. - The company renewed its Credit Facility with Regions Bank on May 3, 2024, providing additional liquidity for short-term or long-term needs [176]. - Citizens may need to contribute capital to CICA Domestic to maintain the required RBC ratio if growth exceeds current resources, impacting overall liquidity [185]. - Approximately 18% of endowments, representing about 6% of in-force business, are set to mature within the next five years, posing potential liquidity risks if policyholders opt for lump sum distributions [181]. Investment Portfolio - The carrying value of fixed maturity securities was $1.21 billion as of June 30, 2024, down from $1.24 billion at December 31, 2023, indicating a slight reduction in investment portfolio size [161]. - Cash and cash equivalents decreased to $26.34 million as of June 30, 2024, from $26.99 million at December 31, 2023, reflecting fluctuations due to operating and investing activities [162]. - Other long-term investments increased by $9.4 million as of June 30, 2024, attributed to additional funding and increases in fair market value of limited partnership investments [162]. - The Company’s municipal bond portfolio included $277.2 million in obligations of states and political subdivisions as of June 30, 2024, down from $287.2 million at December 31, 2023 [163]. - The total fair value of the company's municipal bonds in Texas was $61,564,000, while in California it was $42,406,000 as of June 30, 2024 [168][169].

Revenue and Growth - Insurance issued increased 61% to $274.5 million in Q1 2024 compared to the same period in 2023, driven by new products and an increase in producing agents[4] - Total revenues increased 3% to $57.7 million in Q1 2024, up from $55.9 million in the year-ago quarter[5] - First year life and A&H premiums increased 42% to $5.9 million in Q1 2024, marking the sixth consecutive quarter of year-over-year growth[4] - The global network of producing agents increased by 20% at the end of Q1 2024 compared to December 31, 2023[4] - Citizens plans to introduce 2 to 3 new products or major product enhancements in 2024[4] Financial Performance - Net income for Q1 2024 was $4.5 million, or $0.09 per fully diluted Class A share, down from $4.9 million, or $0.10 per share in Q1 2023[7] - Cash and cash equivalents stood at $23.2 million with no debt as of March 31, 2024[10] - Book value per Class A share increased 28% to $3.94 compared to the year-ago quarter[4] - Positive net cash provided by operating activities was $6.8 million in Q1 2024, continuing a trend of positive cash flow since 2004[10] Investment Performance - The average pre-tax yield on the investment portfolio was 4.6% in Q1 2024, an increase of 9 basis points from the prior year[8]

Premium revenues consist of all money deposited by customers into new and existing insurance policies. We believe sales statistics are meaningful to gaining an understanding of, among other things, the attractiveness of our new products, how expansion of our distribution channels affects our revenue, customer retention and the performance of our business from period-to-period. Throughout the MD&A, we describe the actions and initiatives that we are taking to increase sales and improve retention, sales perfo ...

Citizens, Inc. Reports Fourth Quarter and Full Year 2023 Financial Results "We achieved another quarter of significant progress on our strategic roadmap, designed to deliver sustainable increased book value per share and enhanced operating results, and that progress has continued into 2024. The quarter capped a year of customers in large and underserved markets embracing our innovative new products on their path toward financial security. First year premiums have increased year-over-year for five consecutiv ...

• USA Patriot Act and the Bank Secrecy Act, which require us to institute certain measures to detect and prevent money laundering; • Foreign Corrupt Practices Act, which makes it unlawful to bribe foreign officials for the purpose of obtaining or retaining business; • Gramm-Leach-Bliley Act, which requires us to explain our information-sharing practices to our customers and to safeguard sensitive data; • Securities Act, Securities Exchange Act and Sarbanes-Oxley Act, which establish various requirements for ...

Emerging Growth Virtual Conference on March 6, 2024Singular Research "Spring Select" Virtual Conference on May 22, 2024Austin, Texas--(Newsfile Corp. - March 5, 2024) - Citizens, Inc. (NYSE: CIA), a leading diversified financial services company specializing in life, living benefits, and final expense insurance, today announced management's plan for participation in upcoming investor conferences.Emerging Growth Virtual Conference on March 6, 2024Citizens plans to present at the Emerging Growth Virtual Conf ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to COMMISSION FILE NUMBER: 000-16509 CITIZENS, INC. (Exact name of registrant as specified in its charter) Colorado 84-0755371 (State or other jurisdiction of incorp ...

The Company's municipal bond portfolio includes third-party guarantees. Detailed below is a presentation by the Nationally Recognized Statistical Rating Organization ("NRSRO") rating of these holdings by funding type as of June 30, 2023. The Company's municipal bond portfolio is spread across many states, however, municipal bonds from Texas and California comprise the most significant concentration of the total municipal bond portfolio as of June 30, 2023. The Company holds 22% and 14% of its municipal bond ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to COMMISSION FILE NUMBER: 000-16509 CITIZENS, INC. (Exact name of registrant as specified in its charter) Colorado 84-0755371 (State or other jurisdiction of incorporat ...