Citizens(CIA)2024-11-07 21:14Financial Performance - Total revenues for the three months ended September 30, 2024, increased to 59,390,000 in the same period of 2023, representing a growth of 3.8%[22] - Net income for the three months ended September 30, 2024, was 2,698,000 in the same period of 2023, indicating a growth of 3.4%[22] - Total revenues for the nine months ended September 30, 2024, reached 173,831 thousand in the same period of 2023, representing a growth of approximately 4.0%[130] - Life insurance premiums for the nine months ended September 30, 2024, were 86,128 thousand for the same period in 2023, reflecting a growth of about 6.0%[130] - The net investment income for the nine months ended September 30, 2024, was 51,687 thousand in the prior year, indicating a slight increase of approximately 1.4%[130] Assets and Liabilities - Total assets as of September 30, 2024, amounted to 1,668,928,000 at the end of 2023, marking a growth of 4.0%[21] - Total liabilities increased to 1,496,799,000 at the end of 2023, reflecting a rise of 2.1%[21] - The company’s retained earnings increased to 42,150,000 at the end of 2023, indicating a growth of 26.8%[21] Investments - The company reported a total of 1,402,347,000 in 2023, which is an increase of 3.0%[20] - Fixed maturity securities accounted for 86.2% of total cash and invested assets, totaling 1,477,491 thousand as of September 30, 2024, compared to 34,763,000, compared to 156,431 thousand, an increase from 5 million in potential liabilities related to a trade secret lawsuit, pending the outcome of an appeal[111] Insurance Operations - The Life Insurance segment issued endowment contracts and ordinary whole life insurance, while the Home Service Insurance segment focused on middle- and lower-income markets[123][124] - The company entered into a coinsurance agreement with RGA Reinsurance Company, allowing RGA to reinsure 50% of its newly written final expense business, enhancing capacity for growth[101] - The Home Service Insurance segment reported a loss of 443,000 in the same period of 2023[190] Policy Benefits and Reserves - The present value of expected future policy benefits for the Life Insurance segment was 1,168,472 at the beginning of the year, indicating an increase of about 5%[84] - The total life insurance reserves increased to 1,147,601,000 in the previous year, marking an increase of approximately 7.8%[89] - Future policy benefit reserves increased due to higher sales and persistency, reflecting the liability for expected future policy benefits[183] Cash Flow and Operating Activities - The company reported a net cash provided by operating activities of 15,444 thousand in the prior year, marking a growth of 36.1%[26] - The company experienced a net cash used in investing activities of 18,471 thousand in 2023, showing a reduction of 27.8%[27] Market and Growth Strategies - The company continues to focus on expanding its market presence and enhancing its product offerings to drive future growth[88] - First-year premiums in the Life Insurance segment nearly doubled quarter-over-quarter and year-to-date compared to 2023, driven by the expansion of domestic distribution[148] - The Life Insurance segment growth was driven by new domestic final expense products, which accounted for over 50% of insurance issued, and international whole life products, which made up 68% of total international insurance issued[170]