Citizens, Inc. Reports Mixed Q3 and Nine-Month Results, with Revenue Growth and Strategic Developments Amid Increased Expenses and Claims

Citizens, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing notable changes in revenue, profitability, and strategic developments compared to the same periods in 2023.

For the third quarter of 2024, total revenues increased to $61.7 million from $59.4 million in Q3 2023. Life insurance premiums rose to $42.5 million, up from $41.8 million, while net investment income remained stable at $17.4 million. However, net income before federal income tax decreased to $3.0 million from $4.6 million in the prior year, primarily due to increased operating expenses, including a $3.5 million accrual for legal fees related to a trade secret lawsuit.

For the nine months ended September 30, 2024, total revenues reached $181.5 million, compared to $173.8 million in the same period of 2023. Life insurance premiums for the nine months increased to $122.8 million from $118.0 million. However, net income for the nine-month period fell to $11.3 million from $13.7 million in 2023, reflecting higher claims and operating costs.

The company’s total assets as of September 30, 2024, were $1.7 billion, up from $1.7 billion at the end of 2023. Total investments increased to $1.4 billion, with fixed maturity securities comprising 86% of this total. Cash and cash equivalents also rose to $32.4 million from $27.0 million at year-end 2023.

Strategically, Citizens, Inc. has made significant moves, including the merger of CICA Domestic with Citizens National Life Insurance Company in July 2023, which focuses on ordinary whole life and final expense products. The company also initiated a "white label" program to expand distribution and entered a coinsurance agreement with RGA Reinsurance Company, ceding 50% of premiums and benefits in newly written final expense business.

The Life Insurance segment reported a 74% increase in total insurance issued for the nine months ended September 30, 2024, driven by strong sales of new domestic final expense products. However, the Home Service Insurance segment experienced a decline in insurance issued due to strategic actions aimed at improving sales quality and persistency, alongside inflationary pressures affecting new sales.

Overall, while Citizens, Inc. demonstrated growth in revenues and premiums, profitability was impacted by increased operating expenses and claims, necessitating ongoing strategic adjustments to enhance performance.