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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): August 6, 2024
COMMISSION FILE NUMBER: 000-16509
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CITIZENS, INC.
(Exact name of registrant as specified in its charter)

Colorado84-0755371
(State or other jurisdiction of incorporation)
(I.R.S. Employer Identification No.)
11815 Alterra Pkwy, Suite 1500, Austin, TX 78758
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number: (512) 837-7100
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Class A Common StockCIANew York Stock Exchange
(Title of each class)(Trading Symbol)(Name of each exchange on which registered)
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
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. ☐  




Item 2.02     Results of Operations and Financial Condition.

On August 6, 2024, the Company issued a press release regarding its financial results for the quarter ended June 30, 2024. A copy of the Company’s press release is attached hereto as Exhibit 99.1.

The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01Financial Statements and Exhibits
(d)Exhibits
104Inline XBRL for the cover page of this Current Report on Form 8-K



SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


CITIZENS, INC.
By:
/s/ Jon Stenberg
President & Chief Executive Officer
Date: August 6, 2024


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EXHIBIT 99.1
Citizens, Inc. Reports Second Quarter 2024 Financial Results

AUSTIN, TX – August 6, 2024 – Citizens, Inc. (NYSE: CIA), a leading diversified financial services company specializing in life, living benefits and final expense insurance, today reported results for the second quarter ended June 30, 2024.

“We are excited to report strong sales momentum and exceptional execution in the second quarter. Our strategic roadmap is designed to deliver improved operating results and sustainable growth in book value per share. Insurance issued increased 86% in Q2 2024, a great example of a leading indicator for our revenue as these sales transition to renewals. First year premiums have increased year-over-year for seven consecutive quarters,” said Jon Stenberg, President and Chief Executive Officer. “We remain fully committed to persistent and profitable growth, as evidenced by our positive net cash from operations annually since 2004.”

“As we look ahead, we expect continued sales growth in 2024 leading to strong profit growth in the full year 2025. We believe we’re well positioned to drive long-term value creation for our shareholders, supported by our robust global business model. Our strong performance in the first half of this year, combined with our competitive advantages in expanding niche markets globally, rapid sales force expansion, and expertise in profitable product development, reinforces great confidence in our outlook,” concluded Stenberg.

Key Second Quarter and Recent Business Highlights
Record setting results and highlight accomplishments for Citizens, including:
•Highest amount of insurance issued ever in a quarter – insurance issued was $295.2 million in Q2 2024, an 86% increase compared to the same period in 2023, primarily from sales of our new products and an increase in producing agents. This comes on the heels of a record-setting first quarter - insurance issued increased 61% in Q1 2024 compared to the same period in 2023.
•Record insurance in force - over $5.1 billion of direct insurance in force at June 30, 2024.
•Record number of agents - increased global network of producing agents, up 45% since December 31, 2023, up 20% in Q1 2024 and up 21% in Q2 2024.
•First analyst research reports published on Citizens. Reports issued by Sidoti & Company and Singular Research.

Second Quarter 2024 Financial Highlights
•Total revenues increased 6% to $62.1 million in Q2 2024, from $58.5 million in the year-ago quarter.
•Direct first year life and A&H premiums increased 85% in Q2 2024, the seventh consecutive quarter of year-over-year growth in first year premiums, driven by new domestic growth and new products.
•Income before federal income tax of $3.3 million in Q2 2024, from $6.0 million in Q2 2023. Adjusted income before federal income tax of $7.1 million in Q2 2024 from $6.4 million in Q2 2023.
•Net income of $4.0 million, $0.08 per fully diluted Class A share, in Q2 2024, from $6.1 million, $0.12 in Q2 2023.
•Positive net cash provided by operating activities of $4.6 million in Q2 2024. The Company has had positive net cash provided by operating activities annually since 2004.
•Cash and cash equivalents of $26.3 million and no debt at June 30, 2024.
•Book value per Class A share of $3.85 increased 30% over the year-ago quarter. Book value per Class A share excluding accumulated other comprehensive income (loss) (AOCI) of $6.02 increased 8% over the year-ago quarter.

2024 Milestones
For 2024, the Company has set the following milestones:
•Increase first year premium revenues at least 25%

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EXHIBIT 99.1
•Expand global network of producing agents at least 20%
•Introduce 2 to 3 new products or major product enhancements. Citizens delivered a new product in Q1 2024

Second Quarter 2024 Performance and Highlights

Total revenues increased 6% to $62.1 million in Q2 2024, from $58.5 million in the year-ago quarter with significant growth in the Life Insurance segment, where direct first year premiums increased by 132% from second quarter 2023. Direct first year life and A&H premiums increased 85% to $7.9 million in Q2 2024 compared to the same year-ago period, driven by new products including new domestic final expense insurance products, and an increased number of producing agents. Direct renewal life and A&H premiums were flat in the second quarter of 2024 compared to the same year-ago period.

Total benefits and expenses increased by $6.3 million to $58.8 million in the second quarter of 2024, from $52.5 million in the same year-ago period. The increase was primarily due to higher matured endowments and a $3.5 million increase in general expenses due to accrual of legal fees awarded to certain defendants in the trade secret lawsuit.

Because of the increase in total benefits and expenses, income before federal income tax of $3.3 million decreased in Q2 2024, from $6.0 million in Q2 2023. Adjusted income before federal income tax of $7.1 million increased in Q2 2024, from $6.4 million in Q2 2023. Adjusted income before federal income tax adjusts for discrete items. Adjusted income before federal income tax is a financial measure not presented in accordance with generally accepted accounting principles (“GAAP”) (a “non-GAAP Financial Measure”). Please see the table “GAAP to Non-GAAP Reconciliation” in this news release.

As a result of the higher benefits and expenses and accrued legal fees, net income for the second quarter of 2024 was $4.0 million, or $0.08 per fully diluted Class A share, a decrease from net income of $6.1 million, or $0.12 per fully diluted Class A share, in the prior year quarter.

Investments
Net investment income for the second quarter of 2024 increased to $17.5 million compared to $17.2 million in the prior year period, driven by higher income from fixed maturity securities resulting from rising interest rates and growth in the Company’s limited partnership asset base. The average pre-tax yield on the investment portfolio was 4.6% in the second quarter of 2024, an increase of 8 basis points compared to the prior year same period.

The carrying value of the Company’s fixed maturity securities investment portfolio at June 30, 2024 was $1.2 billion, the same as December 31, 2023.

Cash Flow/Capital/Share Repurchase
Positive net cash provided by operating activities was $4.6 million in Q2 2024. The Company has had positive net cash provided by operating activities annually since 2004 reflecting the strength and consistency of the Company’s liquidity. The Company had cash and cash equivalents of $26.3 million and no debt at June 30, 2024.

About Citizens, Inc.
Citizens, Inc. (NYSE: CIA) is a diversified financial services company providing life, living benefits and final expense insurance and other financial products to individuals and small businesses in the U.S., Latin America, and Asia. Through its customer-centric growth strategy, Citizens offers innovative products to address the evolving needs of its customers in their native languages of English, Spanish, Portuguese, and Mandarin. The Company operates two primary segments: Life Insurance, where internationally the Company is a market leader in U.S. Dollar denominated life insurance and where it is growing in niche markets in the United States through its final expense products distributed through white-label and established distribution channels, and Home Service Insurance, which operates primarily in the U.S. Gulf

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EXHIBIT 99.1
coast region. For more information about Citizens, please visit the website at www.citizensinc.com and LinkedIn.

Explanatory Notes on Use of Non-GAAP Measures

Adjusted Operating Income
Adjusted Operating Income is a non-GAAP measure that is computed as pre-tax GAAP operating income with discrete adjustments that exclude net investment related gains (losses), income (loss) from ceased businesses and other special items not indicative of operating trends. Management believes this metric is meaningful, as it allows investors to evaluate underlying profitability and enhances comparability across periods, by excluding items that are heavily impacted by investment market fluctuations and other economic factors and are not indicative of operating trends. Management believes the pre-tax metric is a more useful comparison than the post-tax metric, as the Company’s effective tax rate can fluctuate significantly from quarter-to-quarter.

Adjusted Book Value Per Class A Common Share
Adjusted book value per Class A common share is a non-GAAP measure that is calculated by dividing actual Class A common stockholders’ equity, excluding AOCI, by the number of Class A common shares outstanding at the end of the period. Management believes this metric is meaningful, as it allows investors to evaluate underlying book value growth by excluding the impact of interest rate volatility.

Selected Consolidated Financial Data
As of and for the periods endedThree Months Ended
June 30,		Six Months Ended
June 30,
(In thousands, except per share data)2024202320242023
Balance sheet data
Total assets$1,662,473 1,623,994 1,662,473 1,623,994 
Total liabilities1,471,004 1,477,148 1,471,004 1,477,148 
Total stockholders' equity191,469 146,846 191,469 146,846 
Life insurance in force, net4,449,826 4,347,683 4,449,826 4,347,683 
Operating items
Insurance premiums$42,559 39,726 81,232 77,975 
Net investment income17,540 17,241 35,027 34,315 
Investment related gains (losses), net(253)703 710 415 
Total revenues62,084 58,527 119,796 114,441 
Claims and surrenders34,530 32,776 67,643 63,075 
Other general expenses16,639 12,268 27,977 23,528 
Total benefits and expenses58,782 52,483 111,569 101,682 
Income before federal income tax
3,302 6,044 8,227 12,759 
Federal income tax expense
(657)(82)(274)1,761 
Net income
3,959 6,126 8,501 10,998 
Per share data
Book value per share$3.85 2.96 3.85 2.96 
Diluted income per Class A share
0.08 0.12 0.17 0.22 

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EXHIBIT 99.1

Definition of Reported Segments
The Company is comprised of two operating business segments and other non-insurance enterprises as detailed below. The insurance operations are the Company's primary focus and are the lead income generators of the business.

Life Insurance – The Life Insurance segment primarily issues U.S. dollar-denominated ordinary whole life insurance and endowment policies predominantly sold to non-U.S. residents located principally in Latin America and the Pacific Rim. Domestically, we are licensed in 41 U.S. states and sell whole life final expense insurance and life insurance with living benefits and critical illness products. These products are sold primarily through independent marketing organizations.

Home Service Insurance – The Home Service Insurance segment provides final expense life insurance policies marketed to middle- and lower-income households, and whole life products with higher allowable face values in Louisiana, Mississippi, and Arkansas. These products are sold through independent agents and funeral homes.

Selected Segment Financial Data
As of and for the periods endedThree Months Ended
June 30,		Six Months Ended
June 30,
(In thousands)2024202320242023
LIFE INSURANCE SEGMENT
Balance sheet data
Total assets$1,263,544 1,227,459 1,263,544 1,227,459 
Operating items
Insurance premiums$31,605 28,773 59,466 54,980 
Net investment income13,812 13,498 27,498 26,809 
Investment related gains (losses), net(279)738 807 301 
Total revenues47,356 43,865 90,495 83,825 
Claims and surrenders29,169 26,968 56,533 51,407 
Total benefits and expenses39,884 36,392 77,223 69,980 
Income before federal income tax
7,472 7,473 13,272 13,845 
HOME SERVICE INSURANCE SEGMENT
Balance sheet data
Total assets$357,731 347,417 357,731 347,417 
Operating items
Insurance premiums$10,954 10,953 21,766 22,995 
Net investment income3,529 3,450 7,066 6,920 
Investment related gains (losses), net23 (12)(68)87 
Total revenues14,526 14,392 28,784 30,003 
Claims and surrenders5,361 5,808 11,110 11,668 
Total benefits and expenses13,115 13,768 26,750 28,046 
Income before federal income tax
1,411 624 2,034 1,957 


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EXHIBIT 99.1
GAAP to Non-GAAP Reconciliation

Reconciliation of Adjusted Income Before Federal Income Tax
For the periods endedThree Months Ended
June 30,		Six Months Ended
June 30,
Unaudited (In thousands)2024202320242023
Income before federal income tax$3,302 6,044 8,227 12,759 
Less:
Investment related gains (losses)(253)703 710 415 
Property insurance business income (loss)(76)(1,059)(71)(1,004)
Legal fee accrual
(3,500)— (3,500)— 
Adjusted income before federal income tax$7,131 6,400 11,088 13,348 


Reconciliation of Stockholders' Equity and Book Value per Class A Common Share
As of June 30,
Unaudited (In thousands, except per share data)20242023
Stockholders' equity, end of period$191,469 146,846 
Less: Accumulated other comprehensive income (loss) (AOCI)(107,924)(128,363)
Stockholders' equity, end of period, excluding AOCI$299,393 275,209 
Book value per Class A common share - diluted$3.85 2.96 
Less: Per share impact of AOCI(2.17)(2.59)
Book value per Class A common share - diluted, excluding AOCI $6.02 5.55 

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "may," "will," "expect," "anticipate", “believe”, “project”, "intends," "continue" or comparable words. Such forward-looking statements may relate to the Company’s expectations regarding its business performance, operational strategy, capital expenditures, technological changes, regulatory actions, and other financial and operational measures. In addition, all statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements. Such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward-looking statements. The risks, uncertainties and assumptions that are involved in our forward-looking statements include, but are not limited to the risk factors discussed in our most recently filed periodic reports on Form 10-K and Form 10-Q. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in the Company's expectations. Accordingly, you should not unduly rely on these forward-looking statements. The Company also disclaims any duty to comment upon or correct information that may be contained in reports published by the investment community.

Citizens, Inc. Investor Relations Contacts
Darrow Associates Investor Relations
Jeff Christensen and Matt Kreps
Email: CIA@darrowir.com (Jeff and Matt)
Phone: 703-297-6917 (Jeff) and 214-597-8200 (Matt)

v3.24.2.u1
Cover
Aug. 06, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Aug. 06, 2024
Entity File Number 000-16509
Entity Registrant Name CITIZENS, INC.
Entity Incorporation, State or Country Code CO
Entity Tax Identification Number 84-0755371
Entity Address, Address Line One 11815 Alterra Pkwy, Suite 1500
Entity Address, City or Town Austin
Entity Address, State or Province TX
Entity Address, Postal Zip Code 78758
City Area Code 512
Local Phone Number 837-7100
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock
Trading Symbol CIA
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000024090
Amendment Flag false
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