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Citizens(CIA) - 2024 Q3 - Quarterly Results
CIACitizens(CIA)2024-11-07 21:12

Financial Performance - Total revenues increased 4% to 61.7millioninQ32024,comparedto61.7 million in Q3 2024, compared to 59.4 million in Q3 2023[4] - Net income for Q3 2024 was 2.8million,or2.8 million, or 0.05 per fully diluted Class A share, compared to 2.7million,or2.7 million, or 0.05 per share, in Q3 2023[9] - Income before federal income tax for the three months ended September 2024 was 3,037,000,downfrom3,037,000, down from 4,641,000 for the same period in 2023, representing a decrease of 34.5%[23] - Adjusted income before federal income tax for the nine months ended September 2024 was 13,301,000,comparedto13,301,000, compared to 19,041,000 for the same period in 2023, reflecting a decline of 30.4%[23] Insurance Metrics - Insurance issued reached a record 307.6millioninQ32024,a75307.6 million in Q3 2024, a 75% increase year-over-year, marking the fourth consecutive quarter of record insurance issued[3] - Direct first year life and A&H premiums increased 70% to 8.8 million in Q3 2024, continuing eight consecutive quarters of year-over-year growth[4] - Total direct insurance in force reached 5.2billionasofSeptember30,2024,upfrom5.2 billion as of September 30, 2024, up from 4.8 billion a year earlier[3] Agent Growth - The number of producing agents increased by 86% since December 31, 2023, and by 57% since March 31, 2024[3] Cash Flow and Equity - Positive net cash provided by operating activities was 9.7millioninQ32024,withthecompanymaintainingpositivecashflowsince2004[11]−Stockholders′equityasofSeptember2024was9.7 million in Q3 2024, with the company maintaining positive cash flow since 2004[11] - Stockholders' equity as of September 2024 was 207,573,000, an increase from 152,747,000asofSeptember2023,indicatingagrowthof36152,747,000 as of September 2023, indicating a growth of 36%[24] - The company’s stockholders' equity, excluding accumulated other comprehensive income (AOCI), was 302,256,000 as of September 2024, compared to 279,414,000inSeptember2023,reflectingagrowthof8.1279,414,000 in September 2023, reflecting a growth of 8.1%[24] Book Value - Book value per Class A share increased 35% to 4.16 compared to the same quarter last year[4] - Book value per Class A common share, diluted, excluding AOCI, increased to 6.06asofSeptember2024from6.06 as of September 2024 from 5.63 as of September 2023, marking an increase of 7.6%[24] Future Outlook - The company aims to increase first year premium revenues by at least 25% in 2024, with a year-to-date increase of 66% as of September 30, 2024[5] - The company anticipates continued operational strategy adjustments and capital expenditures in the upcoming quarters, although specific projections are not guaranteed[25] - The company has not provided specific guidance for future performance but acknowledges potential risks and uncertainties that may affect outcomes[25] Legal and Investment - Legal fee accruals for the nine months ended September 2024 included a charge of 3,500,000,whichwasnotpresentinthesameperiodin2023[23]−Thecompanyreportedinvestment−relatedgainsof3,500,000, which was not present in the same period in 2023[23] - The company reported investment-related gains of 1,537,000 for the nine months ended September 2024, compared to losses of 477,000forthesameperiodin2023[23]PropertyInsurancePerformance−Thecompany’spropertyinsurancebusinessreportedalossof477,000 for the same period in 2023[23] Property Insurance Performance - The company’s property insurance business reported a loss of 74,000 for the nine months ended September 2024, compared to a loss of $1,164,000 for the same period in 2023, indicating an improvement[23]