Citizens(US:CIA)2024-11-07 21:14Financial Performance - Total revenues for the three months ended September 30, 2024, increased to $61,731,000, up from $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 $2,790,000, slightly up from $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 $181,527 thousand, an increase from $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 $91,667 thousand, compared to $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 $52,404 thousand, up from $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 $1,735,809,000, an increase from $1,668,928,000 at the end of 2023, marking a growth of 4.0%[21] - Total liabilities increased to $1,528,236,000 as of September 30, 2024, compared to $1,496,799,000 at the end of 2023, reflecting a rise of 2.1%[21] - The company’s retained earnings increased to $53,441,000 as of September 30, 2024, up from $42,150,000 at the end of 2023, indicating a growth of 26.8%[21] Investments - The company reported a total of $1,445,109,000 in total investments as of September 30, 2024, up from $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 $1,273,497 thousand as of September 30, 2024[42] - The total cash and invested assets increased to $1,477,491 thousand as of September 30, 2024, compared to $1,429,344 thousand at the end of 2023[42] Income and Expenses - The total comprehensive income for the nine months ended September 30, 2024, was $34,763,000, compared to $24,073,000 in 2023, reflecting an increase of 44.1%[22] - The total benefits and expenses for the nine months ended September 30, 2024, were $156,431 thousand, an increase from $154,431 thousand in the same period of 2023[130] - The company accrued approximately $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 $80,000 for the three months ended September 30, 2024, compared to 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 $1,226,514 at the end of the period, compared to $1,168,472 at the beginning of the year, indicating an increase of about 5%[84] - The total life insurance reserves increased to $1,236,873,000 as of September 30, 2024, from $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 $21,092 thousand for the nine months ended September 30, 2024, an increase from $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 $13,334 thousand for the nine months ended September 30, 2024, compared to $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]