Citizens(CIA) - 2023 Q1 - Quarterly Report

Revenue and Premiums - Total revenues for the three months ended March 31, 2023, were $55.914 million, a slight increase from $55.357 million in the same period of 2022[136] - Life insurance premiums decreased by 2.7% to $26.207 million for the three months ended March 31, 2023, compared to $26.931 million in the prior year, primarily due to lower renewal premiums[149] - First-year premiums in the Life Insurance segment increased by 30.5% to $2.594 million for the three months ended March 31, 2023, driven by sales campaigns and a new international whole life product[149] - The Home Service Insurance segment experienced a 3.1% decline in total premium revenue for the three months ended March 31, 2023, despite a 15.1% increase in first-year premiums[159] - Total revenues for the three months ended March 31, 2023, were $15.611 million, an increase from $15.435 million in the same period of 2022, representing a growth of 1.14%[172] Investment Income and Assets - Net investment income rose to $17.074 million for the three months ended March 31, 2023, compared to $15.487 million in the same period of 2022, reflecting a 10.3% increase[137] - The annualized yield on average invested assets increased to 4.50% for the three months ended March 31, 2023, up from 4.20% in the prior year[138] - Net investment income increased by 11.2% to $3.470 million for the three months ended March 31, 2023, compared to $3.244 million in the prior year[167] - The carrying value of fixed maturity securities increased to $1.230 billion as of March 31, 2023, compared to $1.179 billion at December 31, 2022, reflecting a growth of 4.32%[176] - The Company’s total cash, cash equivalents, and invested assets reached $1.413 billion as of March 31, 2023, with 87.0% invested in fixed maturity securities[184] - Other long-term investments increased by $2.7 million as of March 31, 2023, due to additional funding of limited partnership investments[177] - Fixed maturity securities increased to $1,229.69 million as of March 31, 2023, from $1,179.62 million as of December 31, 2022[193] - The company holds 21.7% of its municipal bond portfolio in Texas and 14.3% in California as of March 31, 2023[189] - The municipal bond portfolio includes significant investments in Education ($48.49 million, 15.7% of total fair value) and Utilities ($46.42 million, 15.0% of total fair value) as of March 31, 2023[189] - The company did not record any credit valuation allowances on fixed maturity securities for the three months ended March 31, 2023, or 2022[207] Claims and Benefits - Total claims and surrenders increased to $30.299 million for the three months ended March 31, 2023, compared to $28.434 million in the same period of 2022[132] - Death claim benefits decreased by 23.3% to $748,000 for the three months ended March 31, 2023, compared to $990,000 in the prior year, due to a lower volume of reported claims[143] - Claims and surrenders in the Life Insurance segment decreased to $5.860 million for the three months ended March 31, 2023, down from $6.976 million in the same period of 2022, a reduction of 15.99%[172] - Total insurance benefits paid or provided increased to $6.773 million for the three months ended March 31, 2023, compared to $5.971 million in the same period of 2022, an increase of 13.45%[172] Income and Operations - The Life Insurance segment reported income before federal income tax of $6.372 million for the three months ended March 31, 2023, compared to $5.864 million in the prior year[147] - Income before federal income tax in the Home Service Insurance segment was $1.3 million for the three months ended March 31, 2023, down from $2.1 million in the prior year period[212] - The company reported a net cash of $7.4 million from operations for the three months ended March 31, 2023[209] Financial Position and Future Outlook - The Company’s cash and cash equivalents decreased to $18.924 million as of March 31, 2023, from $22.973 million at December 31, 2022, a decline of 17.83%[176] - The change in future policy benefit reserves decreased due to reserves released from higher matured endowment benefits[199] - The company anticipates meeting its short-term and long-term cash needs primarily through cash generated by its insurance operations and invested assets[209] - The company may raise capital through its Stock Investment Plan (SIP) and access its Credit Facility if needed[209]