SEC Form 10-Q filed by Citizens Inc.

5/7/24 4:37:10 PM ET

$CIA

Life Insurance

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cia-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from to

COMMISSION FILE NUMBER: 000-16509


CITIZENS, INC.
(Exact name of registrant as specified in its charter)


Colorado			84-0755371
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)

11815 Alterra Pkwy, Floor 15, Austin, TX 78758

(Current Address)

Registrant's telephone number, including area code: (512) 837-7100


Securities registered pursuant to Section 12(b) of the Act

Class A Common Stock	CIA	NYSE
(Title of each class)	(Trading symbol(s))	(Name of each exchange on which registered)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large accelerated filer

☐

Accelerated filer

☒

Non-accelerated filer

☐

Smaller reporting company

☒

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes x No

As of May 1, 2024, the Registrant had 49,633,705 shares of Class A common stock outstanding.

THIS PAGE INTENTIONALLY LEFT BLANK

TABLE OF CONTENTS


			Page Number
Part I. FINANCIAL INFORMATION

	Item 1.	Financial Statements

		Consolidated Balance Sheets, March 31, 2024 (Unaudited) and December 31, 2023	2

		Consolidated Statements of Operations and Comprehensive Income (Loss), Three Months Ended March 31, 2024 and 2023 (Unaudited)	4

		Consolidated Statements of Stockholders' Equity, Three Months Ended March 31, 2024 and 2023 (Unaudited)	5

		Consolidated Statements of Cash Flows, Three Months Ended March 31, 2024 and 2023 (Unaudited)	6

		Notes to Consolidated Financial Statements (Unaudited)	8

	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	32

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	52

	Item 4.	Controls and Procedures	52

Part II. OTHER INFORMATION

	Item 1.	Legal Proceedings	53

	Item 1A.	Risk Factors	53

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	53

	Item 3.	Defaults Upon Senior Securities	53

	Item 4.	Mine Safety Disclosures	53

	Item 5.	Other Information	54

	Item 6.	Exhibits	54

March 31, 2024 | 10-Q 1




(In thousands)	March 31, 2024		December 31, 2023
	(Unaudited)
Assets:
Investments:
Fixed maturity securities available-for-sale, at fair value (amortized cost: $1,397,074 and $1,389,038 in 2024 and 2023, respectively)	$	1,234,048	1,238,981

Equity securities, at fair value	5,419		5,282

Policy loans	75,274		75,359


Other long-term investments (portion measured at fair value $84,853 and $82,460 in 2024 and 2023, respectively)	85,118		82,725

Total investments	1,399,859		1,402,347
Cash and cash equivalents	23,242		26,997
Accrued investment income	17,290		17,360

Reinsurance recoverable	4,208		3,991
Deferred policy acquisition costs	180,061		175,768
Cost of insurance acquired	9,871		10,043
Current federal income tax receivable	192		1,546

Property and equipment, net	11,408		11,809
Due premiums	9,880		11,264

Other assets (less allowance for losses of $431 and $408 in 2024 and 2023, respectively)	9,652		7,803
Total assets	$	1,665,663	1,668,928




(In thousands, except share amounts)	March 31, 2024		December 31, 2023
	(Unaudited)
Liabilities and Stockholders' Equity:
Liabilities:
Policy liabilities:
Future policy benefit reserves:
Life insurance	$	1,195,430	1,229,253
Accident and health insurance	844		889
Total future policy benefit reserves	1,196,274		1,230,142
Policyholders' funds:
Annuities	136,965		133,216
Dividend accumulations	45,760		44,960
Premiums paid in advance	32,391		32,446
Policy claims payable	7,983		6,637
Other policyholders' funds	7,402		7,363
Total policyholders' funds	230,501		224,622
Total policy liabilities	1,426,775		1,454,764
Commissions payable	2,919		3,445

Deferred federal income tax liability	3,601		1,102
Payable for securities in process of settlement	1,350		—
Other liabilities	35,835		37,488
Total liabilities	1,470,480		1,496,799
Commitments and contingencies (Note 7)
Stockholders' Equity:
Common stock:
Class A, no par value, 100,000,000 shares authorized, 53,900,208 and 53,882,661 shares issued and outstanding in 2024 and 2023, respectively, including shares in treasury of 4,327,810 in 2024 and 2023	268,802		268,675
Class B, no par value, 2,000,000 shares authorized, 1,001,714 shares issued and outstanding in 2024 and 2023, including shares in treasury of 1,001,714 in 2024 and 2023	3,184		3,184
Retained earnings	46,692		42,150
Accumulated other comprehensive income (loss)	(99,770)		(118,155)
Treasury stock, at cost	(23,725)		(23,725)
Total stockholders' equity	195,183		172,129
Total liabilities and stockholders' equity	$	1,665,663	1,668,928



	Three Months Ended
	March 31,
(In thousands, except per share amounts)		2024		2023
Revenues:
Premiums:
Life insurance		$	38,261	36,934
Accident and health insurance		414		358
Property insurance		(2)		957
Net investment income		17,487		17,074
Investment related gains (losses), net		963		(288)
Other income		589		879
Total revenues		57,712		55,914
Benefits and Expenses:
Insurance benefits paid or provided:
Claims and surrenders		33,113		30,299
Increase (decrease) in future policy benefit reserves		451		(978)
Policyholder liability remeasurement (gain) loss		319		880
Policyholders' dividends		1,237		1,108
Total insurance benefits paid or provided		35,120		31,309

Commissions		10,450		9,013
Other general expenses		11,338		11,260
Capitalization of deferred policy acquisition costs		(8,331)		(6,358)
Amortization of deferred policy acquisition costs		4,038		3,814
Amortization of cost of insurance acquired		172		161
Total benefits and expenses		52,787		49,199
Income before federal income tax		4,925		6,715
Federal income tax expense		383		1,843
Net income		4,542		4,872

Per Share Amounts:
Basic and diluted earnings per share of Class A common stock		0.09		0.10


Other Comprehensive Income (Loss):

Unrealized gains (losses) on fixed maturity securities:
Unrealized holding gains (losses) arising during period		(13,416)		43,436
Reclassification adjustment for losses (gains) included in net income		448		38
Unrealized gains (losses) on fixed maturity securities, net		(12,968)		43,474
Change in current discount rate for liability for future policy benefits		33,995		(20,480)
Income tax expense (benefit) on other comprehensive income items		2,642		1,415
Other comprehensive income (loss)		18,385		21,579
Total comprehensive income (loss)		$	22,927	26,451







Balance at December 31, 2023	$	268,675	3,184	42,150	(118,155)	(23,725)	172,129
Comprehensive income (loss):
Net income	—		—	4,542	—	—	4,542
Other comprehensive income (loss)	—		—	—	18,385	—	18,385
Total comprehensive income (loss)	—		—	4,542	18,385	—	22,927

Stock-based compensation	127		—	—	—	—	127
Balance at March 31, 2024	$	268,802	3,184	46,692	(99,770)	(23,725)	195,183










Balance at December 31, 2022	$	268,147	3,184	16,309	(137,044)	(22,806)	127,790
Comprehensive income (loss):
Net income	—		—	4,872	—	—	4,872
Other comprehensive income (loss)	—		—	—	21,579	—	21,579
Total comprehensive income (loss)	—		—	4,872	21,579	—	26,451

Stock-based compensation	50		—	—	—	—	50
Balance at March 31, 2023	$	268,197	3,184	21,181	(115,465)	(22,806)	154,291


Three Months Ended March 31, (In thousands)	2024		2023
Cash flows from operating activities:
Net income	$	4,542	4,872
Adjustments to reconcile net income to net cash provided by operating activities:
Investment related (gains) losses on sale of investments and other assets, net	(963)		288
Net deferred policy acquisition costs	(4,293)		(2,544)
Amortization of cost of insurance acquired	172		161
Depreciation	144		122
Amortization of premiums and discounts on investments	1,291		1,203
Stock-based compensation	154		70
Deferred federal income tax expense (benefit)	(143)		706
Change in:
Accrued investment income	70		173
Reinsurance recoverable	(217)		237
Due premiums	1,384		2,648
Future policy benefit reserves	128		(125)
Other policyholders' liabilities	6,929		1,582
Federal income tax payable	1,353		1,138
Commissions payable and other liabilities	(1,863)		(2,673)
Other, net	(1,900)		(504)
Net cash provided by operating activities	6,788		7,354
Cash flows from investing activities:
Purchases of fixed maturity securities, available-for-sale	(23,271)		(25,114)
Sales of fixed maturity securities, available-for-sale	2,508		2,865
Maturities and calls of fixed maturity securities, available-for-sale	12,366		14,426


Principal payments on mortgage loans	3		2

(Increase) decrease in policy loans, net	85		114
Sales of other long-term investments	82		249
Purchases of other long-term investments	(1,181)		(3,495)

Purchases of property and equipment	(58)		(73)




Net cash used in investing activities	(9,466)		(11,026)

See accompanying Notes to Consolidated Financial Statements.


CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
Consolidated Statements of Cash Flows, Continued
(Unaudited)

Three Months Ended March 31, (In thousands)	2024		2023
Cash flows from financing activities:
Annuity deposits	$	1,600	2,008
Annuity withdrawals	(2,650)		(2,365)


Other	(27)		(20)
Net cash used in financing activities	(1,077)		(377)
Net decrease in cash and cash equivalents	(3,755)		(4,049)
Cash and cash equivalents at beginning of year	26,997		22,973
Cash and cash equivalents at end of period	$	23,242	18,924


Carrying Value (In thousands, except for %)	March 31, 2024				December 31, 2023
	Amount		%		Amount	%

Cash and invested assets:
Fixed maturity securities	$	1,234,048	86.7	%	1,238,981	86.7	%
Equity securities	5,419		0.4		5,282	0.4
Policy loans	75,274		5.3		75,359	5.3
Other long-term investments	85,118		6.0		82,725	5.8

Cash and cash equivalents	23,242		1.6		26,997	1.8

Total cash and invested assets	$	1,423,101	100.0	%	1,429,344	100.0	%


	Amortized Cost		Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
March 31, 2024
(In thousands)

Fixed maturity securities:
Available-for-sale:
U.S. Treasury securities	$	5,972	76	74	5,974
U.S. Government-sponsored enterprises	3,396		201	1	3,596
States and political subdivisions	313,364		1,718	30,027	285,055
Corporate:
Financial	273,436		1,701	32,459	242,678
Consumer	252,953		1,321	39,615	214,659
Utilities	127,577		369	21,576	106,370
Energy	72,733		27	8,576	64,184
Communications	73,354		247	9,843	63,758
All other	111,641		444	14,289	97,796
Commercial mortgage-backed	276		1	5	272
Residential mortgage-backed	106,977		7	12,136	94,848
Asset-backed	55,395		511	1,048	54,858

Total fixed maturity securities	$	1,397,074	6,623	169,649	1,234,048


Fair Value (In thousands)	March 31, 2024		December 31, 2023

Equity securities:

Bond mutual funds	$	739	740
Common stock	664		665
Non-redeemable preferred stock	7		7
Non-redeemable preferred stock fund	4,009		3,870
Total equity securities	$	5,419	5,282


December 31, 2023	Less than 12 months				Greater than 12 months			Total
(In thousands, except for # of securities)	Fair Value		Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities	Fair Value	Unrealized Losses	# of Securities

Fixed maturity securities:
Available-for-sale securities:
U.S. Treasury securities	$	1,203	40	5	65	8	2	1,268	48	7
U.S. Government-sponsored enterprises	221		1	1	—	—	—	221	1	1
States and political subdivisions	19,540		357	35	164,264	28,775	192	183,804	29,132	227
Corporate:
Financial	12,584		383	19	176,521	30,872	217	189,105	31,255	236
Consumer	10,175		265	16	176,725	36,829	223	186,900	37,094	239
Utilities	3,596		66	20	85,169	20,187	137	88,765	20,253	157
Energy	3,291		57	1	59,392	7,992	76	62,683	8,049	77
Communications	5,784		153	5	56,108	8,739	69	61,892	8,892	74
All Other	2,080		32	5	85,757	12,407	100	87,837	12,439	105

Residential mortgage-backed	849		38	5	95,806	10,022	86	96,655	10,060	91
Asset-backed	4,757		111	8	32,764	1,405	40	37,521	1,516	48
Total fixed maturity securities	$	64,080	1,503	120	932,571	157,236	1,142	996,651	158,739	1,262


March 31, 2024	Amortized Cost		Fair Value
(In thousands)
Fixed maturity securities:
Due in one year or less	$	15,247	15,156
Due after one year through five years	127,682		125,714
Due after five years through ten years	300,002		291,665
Due after ten years	954,143		801,513
Total fixed maturity securities	$	1,397,074	1,234,048


		March 31, 2024				December 31, 2023
(In thousands, except for years)		Fair Value Using NAV Per Share		Unfunded Commit- ments	Range (In years)	Fair Value Using NAV Per Share		Unfunded Commit- ments	Range (In years)
	Description
Limited partnerships:
Middle market	Investments in privately-originated, performing senior secured debt primarily in North America-based companies	$	35,648	3,452	3	$	34,858	3,452	4
Global equity fund	Investments in common stocks of U.S., international developed and emerging markets with a focus on long-term capital growth	11,056		—	0	10,345		—	0

Late-stage growth	Investments in private late-stage, established companies seeking capital to accelerate growth prior to an IPO or sale	21,116		12,861	4 to 6	20,524		14,271	4 to 6
Infrastructure	Investments in climate infrastructure assets, focusing on renewable power generation in wind and solar energy	17,033		9,367	9 to 11	16,733		9,576	10
Total limited partnerships		$	84,853	25,680		$	82,460	27,299


	Three Months Ended March 31, 2024
(In thousands)	Permanent		Permanent Limited Pay	Other Business	Total
Life Insurance:
Balance, beginning of year	$	105,552	14,075	1,213	120,840
Capitalizations	5,976		766	74	6,816
Amortization expense	(3,076)		(227)	(55)	(3,358)

Balance, end of period	108,452		14,614	1,232	124,298

Home Service Insurance:
Balance, beginning of year	43,280		10,564	1,084	54,928
Capitalizations	1,174		271	70	1,515
Amortization expense	(554)		(105)	(21)	(680)

Balance, end of period	43,900		10,730	1,133	55,763

Consolidated:
Balance, beginning of year	148,832		24,639	2,297	175,768
Capitalizations	7,150		1,037	144	8,331
Amortization expense	(3,630)		(332)	(76)	(4,038)

Balance, end of period	$	152,352	25,344	2,365	180,061


March 31, 2024	Level 1		Level 2	Level 3	Total Fair Value
(In thousands)
Financial assets:
Fixed maturity securities, available-for-sale:
U.S. Treasury and U.S. Government-sponsored enterprises	$	5,974	3,596	—	9,570
States and political subdivisions	—		285,055	—	285,055
Corporate	46		789,399	—	789,445
Commercial mortgage-backed	—		272	—	272
Residential mortgage-backed	—		94,848	—	94,848
Asset-backed	—		54,858	—	54,858

Total fixed maturity securities, available-for-sale	6,020		1,228,028	—	1,234,048

Equity securities:

Bond mutual funds	739		—	—	739
Common stock	664		—	—	664
Non-redeemable preferred stock	7		—	—	7
Non-redeemable preferred stock fund	4,009		—	—	4,009
Total equity securities	5,419		—	—	5,419
Other long-term investments (1)	—		—	—	84,853
Total financial assets	$	11,439	1,228,028	—	1,324,320


Carrying Value (In thousands)	March 31, 2024		December 31, 2023
Other long-term investments:
Limited partnerships	$	84,853	82,460
FHLB common stock	204		202
Mortgage loans	39		42
All other investments	22		21
Total other long-term investments	$	85,118	82,725


	Three Months Ended March 31, 2023
(In thousands)	Permanent		Permanent Limited Pay	Other Business	Total
Life Insurance:
Balance, beginning of year	$	100,926	11,542	1,016	113,484
Capitalizations	3,453		822	85	4,360
Amortization expense	(2,918)		(186)	(58)	(3,162)

Balance, end of period	101,461		12,178	1,043	114,682

Home Service Insurance:
Balance, beginning of year	38,793		9,729	921	49,443
Capitalizations	1,615		331	52	1,998
Amortization expense	(492)		(95)	(65)	(652)

Balance, end of period	39,916		9,965	908	50,789

Consolidated:
Balance, beginning of year	139,719		21,271	1,937	162,927
Capitalizations	5,068		1,153	137	6,358
Amortization expense	(3,410)		(281)	(123)	(3,814)

Balance, end of period	$	141,377	22,143	1,951	165,471


March 31, 2024 (In thousands)	Life Insurance				Home Service Insurance
	Permanent		Permanent Limited Pay	Total		Permanent	Permanent Limited Pay	Total
Present Value of Expected Net Premiums:
Balance, beginning of year	$	244,917	13,260	258,177		98,831	14,926	113,757
Beginning balance at original discount rate	252,426		13,533	265,959		102,045	15,512	117,557

Effects of actual variances from expected experience	(1,772)		204	(1,568)		(1,703)	(1,078)	(2,781)
Adjusted beginning of year balance	250,654		13,737	264,391		100,342	14,434	114,776
Issuances	18,208		604	18,812		4,152	685	4,837
Interest accrual	2,550		117	2,667		1,057	132	1,189
Net premiums collected	(10,497)		(683)	(11,180)		(3,016)	80	(2,936)
Derecognition and other	(2,456)		47	(2,409)		74	7	81
Ending balance at original discount rate	258,459		13,822	272,281		102,609	15,338	117,947
Effect of changes in discount rates	(9,285)		(325)	(9,610)		(5,401)	(832)	(6,233)
Balance, end of period	$	249,174	13,497	262,671		97,208	14,506	111,714

Present Value of Expected Future Policy Benefits:
Balance, beginning of year	$	973,350	195,122	1,168,472		211,946	122,784	334,730
Beginning balance at original discount rate	995,962		202,755	1,198,717		217,524	123,941	341,465

Effects of actual variances from expected experience	(1,592)		1,094	(498)		(1,697)	(748)	(2,445)
Adjusted beginning of year balance	994,370		203,849	1,198,219		215,827	123,193	339,020
Issuances	18,424		649	19,073		4,153	683	4,836
Interest accrual	11,014		2,066	13,080		2,401	1,437	3,838
Benefit payments	(20,342)		(4,411)	(24,753)		(3,672)	(1,436)	(5,108)
Derecognition and other	(2,976)		2	(2,974)		73	7	80
Ending balance at original discount rate	1,000,490		202,155	1,202,645		218,782	123,884	342,666
Effect of changes in discount rates	(41,718)		(12,311)	(54,029)		(13,926)	(6,975)	(20,901)
Balance, end of period	$	958,772	189,844	1,148,616		204,856	116,909	321,765

Net liability for future policy benefits	$	709,598	176,347	885,945		107,648	102,403	210,051


March 31, 2023 (In thousands)	Life Insurance				Home Service Insurance
	Permanent		Permanent Limited Pay	Total		Permanent	Permanent Limited Pay	Total
Present Value of Expected Net Premiums:
Balance, beginning of year	$	235,228	10,209	245,437		93,508	13,255	106,763
Beginning balance at original discount rate	247,601		10,682	258,283		100,225	14,394	114,619

Effects of actual variances from expected experience	1,742		365	2,107		(1,371)	(809)	(2,180)
Adjusted beginning of year balance	249,343		11,047	260,390		98,854	13,585	112,439
Issuances	6,236		759	6,995		4,789	1,176	5,965
Interest accrual	2,272		72	2,344		986	114	1,100
Net premiums collected	(9,715)		(751)	(10,466)		(2,967)	467	(2,500)
Derecognition and other	153		38	191		132	46	178
Ending balance at original discount rate	248,289		11,165	259,454		101,794	15,388	117,182
Effect of changes in discount rates	(8,766)		(370)	(9,136)		(4,925)	(873)	(5,798)
Balance, end of period	$	239,523	10,795	250,318		96,869	14,515	111,384

Present Value of Expected Future Policy Benefits:
Balance, beginning of year	$	947,415	195,612	1,143,027		200,351	116,356	316,707
Beginning balance at original discount rate	996,169		208,051	1,204,220		214,188	121,908	336,096

Effects of actual variances from expected experience	2,538		1,045	3,583		(1,299)	25	(1,274)
Adjusted beginning of year balance	998,707		209,096	1,207,803		212,889	121,933	334,822
Issuances	6,375		785	7,160		4,789	1,176	5,965
Interest accrual	10,842		2,112	12,954		2,310	1,410	3,720
Benefit payments	(19,153)		(4,873)	(24,026)		(4,178)	(1,748)	(5,926)
Derecognition and other	14		12	26		132	45	177
Ending balance at original discount rate	996,785		207,132	1,203,917		215,942	122,816	338,758
Effect of changes in discount rates	(31,065)		(9,459)	(40,524)		(10,101)	(3,712)	(13,813)
Balance, end of period	$	965,720	197,673	1,163,393		205,841	119,104	324,945

Net liability for future policy benefits	$	726,197	186,878	913,075		108,972	104,589	213,561


	March 31, 2024				March 31, 2023
(In thousands)	Life Insurance		Home Service Insurance	Consolidated	Life Insurance	Home Service Insurance	Consolidated
Life Insurance:
Permanent	$	709,598	107,648	817,246	726,197	108,972	835,169
Permanent limited pay	176,347		102,403	278,750	186,878	104,589	291,467
Deferred profit liability	29,258		27,432	56,690	26,347	25,113	51,460
Other	28,818		13,926	42,744	26,474	13,725	40,199
Total life insurance	944,021		251,409	1,195,430	965,896	252,399	1,218,295
Accident & Health:

Other	514		330	844	599	249	848

Total future policy benefit reserves	$	944,535	251,739	1,196,274	966,495	252,648	1,219,143


	Three Months Ended March 31,
		2024			2023
(In thousands)			Gross Premiums		Interest Expense	Gross Premiums	Interest Expense
Life Insurance Segment:
Life Insurance:
Permanent			$	23,316	8,464	22,458	8,570
Permanent Limited Pay			3,646		2,263	4,168	2,336
Other			1,109		—	77	—
Less:
Reinsurance			373		—	648	—
Total, net of reinsurance			27,698		10,727	26,055	10,906
Accident & Health:

Other			164		—	152	—
Less:
Reinsurance			1		—	—	—
Total, net of reinsurance			163		—	152	—
Total			$	27,861	10,727	26,207	10,906

Home Service Insurance Segment:
Life Insurance:
Permanent			$	8,241	1,344	8,372	1,324
Permanent Limited Pay			2,040		1,626	2,154	1,586
Other			294		—	368	—
Less:
Reinsurance			12		—	15	—
Total, net of reinsurance			10,563		2,970	10,879	2,910
Accident & Health:

Other			251		—	206	—



Total			$	10,814	2,970	11,085	2,910


	March 31, 2024		March 31, 2023
(In years)	Life Insurance	Home Service Insurance	Life Insurance	Home Service Insurance
Permanent:
Duration at original discount rate	8.2	16.0	8.1	15.9
Duration at current discount rate	8.5	15.8	8.4	16.1
Permanent Limited Pay:
Duration at original discount rate	8.1	14.5	7.6	14.5
Duration at current discount rate	7.8	14.5	7.6	15.2


	At Guaranteed Minimum		1 Basis Point-50 Basis Points Above	51 Basis Points-150 Basis Points Above	Greater Than 150 Basis Points Above	Total
March 31, 2024 (In thousands)
Range of Guaranteed Minimum Crediting Rates:
0.00% - 1.49%	$	792	—	1,031	34,391	36,214
1.50% - 2.99%	22,353		531	37	11,622	34,543
3.00% - 4.49%	100,882		131	8,498	—	109,511
Greater or equal to 4.50%	31,447		—	—	—	31,447
Total	$	155,474	662	9,566	46,013	211,715


March 31, 2024 (In thousands, except for %)	Supplemental Contracts Without Life Contingencies			Fixed Annuity		Dividend Accumulations		Premiums Paid in Advance
Balance, beginning of year	$	44,569		87,134		44,960		31,039
Issuances	5,721			594		138		806
Premiums received	27			985		1,358		194

Interest credited	474			663		472		431

Less:
Surrenders and withdrawals	—			2,572		1,168		1,989
Benefit payments	2,121			—		—		—
Balance, end of period	$	48,670		86,804		45,760		30,481
Weighted-average crediting rates	3.96		%	3.57	%	3.28	%	2.93	%

Cash surrender value	$	48,670		86,804		45,760		30,481

SEC Form 10-Q filed by Citizens Inc.

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March 31, 2023 (In thousands, except for %)	Supplemental Contracts Without Life Contingencies			Fixed Annuity		Dividend Accumulations		Premiums Paid in Advance
Balance, beginning of year	$	32,995		86,807		41,663		34,603
Issuances	4,788			763		148		905
Premiums received	18			1,170		1,384		145

Interest credited	343			668		324		226

Less:
Surrenders and withdrawals	—			2,247		851		1,757
Benefit payments	2,309			—		—		—
Balance, end of period	$	35,835		87,161		42,668		34,122
Weighted-average crediting rates	4.05		%	3.57	%	3.05	%	2.98	%

Cash surrender value	$	35,835		87,161		42,668		34,122


As of March 31, (In thousands)	2024		2023
Annuities:
Supplemental contracts without life contingencies	$	48,670	35,835
Fixed annuity	86,804		87,161
Unearned revenue reserve	1,491		1,531
Other	—		1
Total annuities	$	136,965	124,528







Premiums Paid in Advance:
Premiums paid in advance	$	30,481	34,122
Other	1,910		2,575
Total premiums paid in advance	$	32,391	36,697


	Life Insurance		Home Service Insurance	Other Non-Insurance Enterprises	Consolidated
Three Months Ended March 31, 2024
(In thousands)

Revenues:
Premiums	$	27,861	10,812	—	38,673
Net investment income	13,686		3,537	264	17,487
Investment related gains (losses), net	1,086		(91)	(32)	963
Other income	506		—	83	589
Total revenues	43,139		14,258	315	57,712
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	27,364		5,749	—	33,113
Increase (decrease) in future policy benefit reserves	(1,193)		1,644	—	451
Policyholder liability remeasurement (gain) loss	373		(54)	—	319
Policyholders' dividends	1,231		6	—	1,237
Total insurance benefits paid or provided	27,775		7,345	—	35,120
Commissions	6,960		3,490	—	10,450
Other general expenses	6,036		3,489	1,813	11,338
Capitalization of deferred policy acquisition costs	(6,816)		(1,515)	—	(8,331)
Amortization of deferred policy acquisition costs	3,358		680	—	4,038
Amortization of cost of insurance acquired	26		146	—	172
Total benefits and expenses	37,339		13,635	1,813	52,787
Income (loss) before federal income tax	$	5,800	623	(1,498)	4,925


	Three Months Ended
	March 31,
(In thousands, except for %)		2024			2023

Gross investment income:
Fixed maturity securities		$	15,137		14,945
Equity securities		75			165
Policy loans		1,456			1,539
Long-term investments		1,224			921
Other investment income		236			124
Total investment income		18,128			17,694
Investment expenses		(641)			(620)
Net investment income		$	17,487		17,074



Net investment income, annualized		$	69,948		68,297
Average invested assets, at amortized cost		$	1,525,102		1,519,149
Annualized yield on average invested assets		4.59		%	4.50	%


Carrying Value	March 31, 2024				December 31, 2023
(In thousands, except for %)	Amount		%		Amount		%
Cash, cash equivalents and invested assets:
Fixed maturity securities:
U.S. Treasury and U.S. Government-sponsored enterprises	$	9,570	0.7	%	$	9,715	0.7	%
Corporate	789,445		55.4		787,607		55.1
States and political subdivisions (1)	285,055		20.0		287,231		20.1
Mortgage-backed (2)	95,120		6.7		97,294		6.8
Asset-backed	54,858		3.9		57,134		4.0

Total fixed maturity securities	1,234,048		86.7		1,238,981		86.7

Cash and cash equivalents	23,242		1.6		26,997		1.8
Other investments:
Policy loans	75,274		5.3		75,359		5.3
Equity securities	5,419		0.4		5,282		0.4

Other long-term investments	85,118		6.0		82,725		5.8
Total cash, cash equivalents and invested assets	$	1,423,101	100.0	%	$	1,429,344	100.0	%


	General Obligation			Special Revenue		Other		Total		% Based on Amortized Cost
(In thousands, except for %)	Fair Value		Amortized Cost	Fair Value	Amortized Cost	Fair Value	Amortized Cost	Fair Value	Amortized Cost
State and political subdivision fixed maturity securities including third-party guarantees:
AAA	$	13,911	13,913	6,638	6,890	—	—	20,549	20,803	6.6	%
AA	43,646		44,104	108,295	124,265	6,312	6,553	158,253	174,922	55.8
A	4,153		4,463	87,901	98,213	4,424	4,395	96,478	107,071	34.2
BBB	531		560	4,824	5,325	1,377	1,450	6,732	7,335	2.3
BB and other	2,974		3,163	69	70	—	—	3,043	3,233	1.1
Total	$	65,215	66,203	207,727	234,763	12,113	12,398	285,055	313,364	100.0	%

State and political subdivision fixed maturity securities excluding third-party guarantees:

AA	$	31,926	32,136	33,583	37,612	3,840	3,820	69,349	73,568	23.5	%
A	16,722		17,074	97,287	107,898	5,895	6,128	119,904	131,100	41.8
BBB	2,901		3,176	18,601	20,328	—	—	21,502	23,504	7.5
BB and other	13,666		13,817	58,256	68,925	2,378	2,450	74,300	85,192	27.2
Total	$	65,215	66,203	207,727	234,763	12,113	12,398	285,055	313,364	100.0	%


Exhibit Number						The following exhibits are filed herewith:

3.1						Restated and Amended Articles of Incorporation dated March 4, 2004 (incorporated herein by reference to Exhibit 3.1 to the Registrant's Annual Report on Form 10-K for the Year Ended December 31, 2003, filed on March 15, 2004)
3.2						Amended and Restated Bylaws dated June 2, 2021 (incorporated herein by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K, filed on June 7, 2021)
10.1†						Executive Employment Agreement, effective March 18, 2024, by and between the Company and Jon Stenberg (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed on March 18, 2024)
31.1*						Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act*
31.2*						Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act*
32.1*						Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act*
32.2*						Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act*
101*						Inline XBRL Document Set for the condensed consolidated financial statements and accompanying notes in Part I, Item 1, Financial Statements of this Quarterly Report on Form 10-Q*
104*						Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included in the Exhibit 101 Inline XBRL Document Set*


		CITIZENS, INC.


		By:	/s/ Gerald W. Shields
			Gerald W. Shields
			Chief Executive Officer


		By:	/s/ Jeffery P. Conklin
			Jeffery P. Conklin
			Vice President, Chief Financial Officer, Chief Investment Officer & Treasurer



Date:	May 7, 2024