Citizens(US:CIA)2020-08-05 20:56Revenue and Income - Total revenues for the three months ended June 30, 2020, were $58,341,000, an increase from $56,866,000 in the same period of 2019, representing a growth of 2.6%[31] - Net income for the six months ended June 30, 2020, was a loss of $4,611,000, compared to a loss of $8,367,000 in the same period of 2019, indicating an improvement of 45.5%[31] - The company reported a total comprehensive income of $73,620,000 for the three months ended June 30, 2020, compared to $24,411,000 in the same period of 2019, an increase of 201.0%[31] - Total revenue for the three months ended June 30, 2020, was $58.341 million, with Life Insurance contributing $42.280 million and Home Service Insurance contributing $15.614 million[65] - For the six months ended June 30, 2020, total revenue reached $114.063 million, with Life Insurance at $84.838 million and Home Service Insurance at $28.745 million[66] - The Company reported net investment income of $30.084 million for the six months ended June 30, 2020, with Life Insurance contributing $22.825 million and Home Service Insurance contributing $6.588 million[66] - The company reported a net loss of $1,027,000 for the three months ended June 30, 2020, compared to a net loss of $4,565,000 for the same period in 2019[75] - Basic and diluted loss per share of Class A common stock was $(0.02) for the three months ended June 30, 2020, an improvement from $(0.09) in the same period of 2019[73] Assets and Liabilities - Total assets increased to $1,812,936,000 as of June 30, 2020, compared to $1,744,936,000 at the end of 2019, reflecting a growth of 3.9%[27] - The company’s total liabilities increased to $1,523,143,000 as of June 30, 2020, compared to $1,485,100,000 at the end of 2019, an increase of 2.6%[30] - Total policy liabilities rose to $1,416,574,000 as of June 30, 2020, from $1,394,732,000 at the end of 2019, an increase of 1.6%[30] - The company’s stockholders' equity increased to $289,793,000 as of June 30, 2020, from $259,836,000 at the end of 2019, reflecting an increase of 11.5%[30] - Total cash and invested assets as of June 30, 2020, amounted to $1,586,584,000, with fixed maturity securities making up 89.2% of this total[81] Investment Performance - Unrealized gains on fixed maturity securities for the three months ended June 30, 2020, were $80,421,000, compared to $31,139,000 in 2019, a significant increase of 158.0%[31] - The company recognized unrealized investment gains of $74,647,000 for the three months ended March 31, 2020, compared to unrealized losses of $40,070,000 in the previous quarter[36] - The company recognized realized investment gains of $1.448 million for the three months ended June 30, 2020[65] - The company reported gross realized gains of $123,000 and gross realized losses of $19,000 for the three months ended June 30, 2020[106] - The company does not intend to sell investments in unrealized loss positions, indicating a long-term holding strategy[102] Insurance Operations - Life insurance premiums decreased to $40,185,000 for the three months ended June 30, 2020, down from $42,313,000 in 2019, a decline of 5.0%[31] - Insurance benefits paid or provided totaled $74.472 million for the six months ended June 30, 2020, with claims and surrenders amounting to $54.203 million[66] - Claims in the Home Service Insurance segment increased by 32% in Q2 2020 compared to the same period in 2019, attributed to the demographics of policyholders and the impact of COVID-19[170] - Death claims increased by 18.6% in Q2 2020 compared to Q2 2019, reflecting socioeconomic impacts related to COVID-19[198] - The Life Insurance segment reported premiums of $30.062 million for the three months ended June 30, 2020, while Home Service Insurance reported $11.434 million[65] Operational Changes and Challenges - The company implemented virtual sales training and adopted new practices to serve customers remotely, including new payment methods[175] - The company continues to monitor the impact of the COVID-19 pandemic and may implement additional operational changes as necessary[185] - The company began operating its Home Service Insurance segment through independent agents starting August 2020, transitioning from employee agents[164] - The company experienced a decline in net investment income during Q2 2020 due to historically low treasury yields amid the COVID-19 pandemic[171] Tax and Regulatory Matters - Federal income tax expense for the six months ended June 30, 2020, was $2,814,000, compared to $7,052,000 for the same period in 2019[140] - The estimated liability related to tax withholding and information reporting failures was approximately $10.0 million as of June 30, 2020, with a range of $7.4 million to $52.5 million[133] - The effective tax rate for the six months ended June 30, 2020, was significantly impacted by prior year gains, resulting in rates of (156.7)%[204] Future Outlook - The company is focused on growth initiatives and building new capabilities to create business opportunities aligned with its essential purpose[166] - The company has maintained discussions with the Bermuda Monetary Authority regarding its capital requirements and financial performance[80]