FALSE000002409000000240902023-08-242023-08-24


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 24, 2023
COMMISSION FILE NUMBER: 000-16509
citizens_logoonly_cmyk.jpg
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). ☐
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

As previously reported in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the “2022 Form 10-K”), on January 1, 2023, Citizens, Inc. (the “Company”) adopted Accounting Standards Update No. 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts ("LDTI") on a modified retrospective basis with a transition date of January 1, 2021.

The Company is filing this Current Report on Form 8-K ("Current Report") to present certain previously reported financial statements and other related financial information on a basis consistent with LDTI (the "Recast Financial Supplement"). The Recast Financial Supplement, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference, is unaudited and provided by the Company voluntarily, and prior to the availability of the audited financial statements for the year ended December 31, 2023, to assist investors and other readers of the Company’s consolidated financial statements in evaluating LDTI’s impact on the Company’s financial position and results of operations for prior periods. It is possible that the financial statements in future filings with the U.S. Securities and Exchange Commission may differ, perhaps materially, from the information included in the Recast Financial Supplement and as such, investors and other readers should not place undue reliance on this information and should read it in conjunction with the financial information included in the Company’s 2022 Form 10-K. The Company undertakes no obligation to update or revise the information provided in the Recast Financial Supplement as a result of new information or otherwise, except as required by law.

The information in Item 2.02 and Exhibit 99.1 listed in Item 9.01 of this Current Report shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, nor shall it be deemed 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 9.01    Financial Statements and Exhibits

(d) Exhibits

Exhibit No.Description of Exhibit
104Cover Page Interactive Data File (embedded within the Inline XBRL document)




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/ Gerald W. Shields
Chief Executive Officer and President
Date: August 24, 2023







Exhibit 99.1
citizens_logoxcmykjpg.jpg





Financial Supplement

Fourth Quarter 2022

Recast for Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI) - Unaudited
Accounting Standards Update No. 2018-12







CITIZENS, INC.Exhibit 99.1
2022 NOTES TO FILING

Introductory note

Citizens, Inc., also referred to as “Citizens,” “we,” “our,” “its” or the “Company,” adopted Accounting Standards Update No. 2018-12 (“ASU 2018-12”), Targeted Improvements to the Accounting for Long-Duration Contracts (“LDTI”) on January 1, 2023, on a modified retrospective basis with a transition date of January 1, 2021. This Exhibit 99.1 to the Form 8-K is for informational purposes only and includes unaudited figures. The financial statements and related information included within are those management feels are most important and relevant for the users of the Company’s consolidated financial statements and should be read in conjunction with its Annual Report on Form 10-K for the year ended December 31, 2022, originally filed with the Securities and Exchange Commission (the "SEC") on March 10, 2023 (“2022 Form 10-K”). Certain quarterly information not typically included in the 2022 Form 10-K has been included herein for purposes of additional analysis.

Adoption of New Accounting Standard

Citizens has recast certain information contained in its 2022 Form 10-K to reflect the adoption of LDTI. In the first quarter of 2023, the Company adopted ASU 2018-12 which updated certain requirements for the accounting for long-duration insurance contracts and, in accordance with accounting principles generally accepted in the U.S., the Company is required to restate previously reported prior period balances in future financial statements for comparative purposes. The following is a discussion of the most significant impacts as a result of the adoption of LDTI.

•Cash flow assumptions and measuring liability for future policy benefits – ASU 2018-12 requires the Company to review its cash flow assumptions at least annually and update, when necessary, with the impact recognized in net income in the period of the change. Upon adoption, the Company recorded a charge of $0.1 million to retained earnings, net of tax, primarily from capping net premium ratios for certain policyholder benefit cohorts at 100%, increasing reserves for certain non-premium paying cohorts and flooring certain DAC cohorts at zero.
•Discount rate – The discount rate assumption is prescribed by ASU 2018-12 as an upper-medium (low credit risk) fixed-income yield and is required to be updated every quarter. The change in the liability as a result of updating the discount rate assumption is recognized in other comprehensive income (loss) (“OCI”). Upon adoption, there was a pretax decrease to accumulated other comprehensive income (loss) in the amount of $370.3 million as a result of remeasuring in force contract liabilities using current upper-medium grade fixed income instrument yields. The adjustment largely reflects the difference between discount rates locked-in at contract inception versus current discount rates at transition.
•Deferred policy acquisition costs and similar balances – Deferred policy acquisition costs (“DAC”) and other capitalized costs such as cost of insurance acquired (“COIA”) and unearned revenue are amortized on a constant level or straight-line basis over the expected term of the contracts. Upon adoption, the Company recorded a pretax decrease in the amount of $35.2 million to accumulated other comprehensive income (loss) for the removal of net cumulative adjustments to DAC, COIA and unearned revenue associated with unrealized gains and losses previously recorded in accumulated other comprehensive income (loss).
•Other comprehensive income ("OCI") was reduced by $316.8 million primarily due to the difference in the discount rate used prior to transition and the discount rate at January 1, 2021 and the elimination of the adjustments to DAC, COIA and unearned revenue associated with unrealized gains and losses described above after adjusting the changes for taxes.

Change in Balance Sheet Presentation

The Company revised the presentation of its future policy benefit reserves, annuity reserves, supplemental contracts without life contingency reserves and other policyholders’ funds in the consolidated balance sheet. Previously, annuity reserves were reported under future policy benefit reserves while supplemental contracts without life contingency reserves were reported in other policyholders’ funds in the consolidated balance sheet. The Company revised prior periods’ balance sheets to combine annuity reserves and supplemental contracts without life contingency reserves into the annuities financial statement line item under policyholders’ funds in the updated presentation.



CITIZENS, INC.Exhibit 99.1
FORWARD-LOOKING STATEMENTS
 
This exhibit 99.1 to the Form 8-K (the “Recast Financial Supplement”) contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this Recast Financial Supplement other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, our expected capital needs, and our objectives for future operations, are forward-looking statements. Forward-looking statements may be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission on March 10, 2023. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Recast Financial Supplement may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should read this Recast Financial Supplement completely and with the understanding that actual results may be materially different from expectations. All forward-looking statements made in this Recast Financial Supplement are qualified by these cautionary statements. These forward-looking statements are made only as of the date of this Recast Financial Supplement, and we do not undertake any obligation to update or revise any forward-looking statements to reflect the occurrences of events, unanticipated or otherwise, other than as may be required by law.



CITIZENS, INC.
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
Consolidated Balance Sheets (Recast for LDTI)
As of
(Unaudited, in thousands)
Dec. 31, 2022Dec. 31, 2021
Assets
Investments: 
Fixed maturity securities available-for-sale$1,179,619 1,470,617 
Equity securities11,590 14,844 
Policy loans78,773 80,307 
Other long-term investments69,558 57,399 
Short-term investments1,241 — 
Total investments1,340,781 1,623,167 
Cash and cash equivalents22,973 27,294 
Accrued investment income17,131 16,197 
Reinsurance recoverable4,560 5,539 
Deferred policy acquisition costs162,927 152,418 
Cost of insurance acquired10,647 11,268 
Federal income tax receivable601 762 
Deferred tax asset, net— 5,532 
Property and equipment, net12,926 14,074 
Due premiums11,829 10,748 
Other assets6,328 5,739 
Total assets$1,590,703 1,872,738 
Liabilities and Stockholders' Equity
Liabilities:
Policy liabilities:
Future policy benefit reserves:
Life insurance$1,198,647 1,531,711 
Accident and health767 784 
Future policy benefit reserves1,199,414 1,532,495 
Policyholders' funds:
Annuities121,422 109,441 
Dividend accumulations41,663 37,760 
Premiums paid in advance36,384 40,690 
Policy claims payable9,884 14,590 
Other policyholders' funds7,501 6,740 
Total policyholders' funds216,854 209,221 
Total policy liabilities1,416,268 1,741,716 
Commissions payable1,967 2,285 
Deferred federal income tax liability, net3,653 — 
Other liabilities41,025 28,780 
Total liabilities1,462,913 1,772,781 
Stockholders' Equity:
Class A common stock268,147 265,561 
Class B common stock3,184 3,184 
Accumulated deficit16,309 (9,698)
Accumulated other comprehensive income (loss):
Net unrealized gains (losses) on fixed maturity securities, net of tax(137,044)(138,989)
Treasury stock, at cost(22,806)(20,101)
Total stockholders' equity127,790 99,957 
Total liabilities and stockholders' equity$1,590,703 1,872,738 
Exhibit 99.1 | Citizens, Inc. 8-K 1


CITIZENS, INC.
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
Consolidated Balance Sheets, Continued
Quarterly Summary (Recast for LDTI)
As of
(Unaudited, in thousands)
Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022
Assets
Investments: 
Fixed maturity securities available-for-sale$1,179,619 1,161,048 1,237,004 1,355,410 
Equity securities11,590 11,789 12,711 13,902 
Policy loans78,773 78,085 78,586 79,345 
Other long-term investments69,558 62,717 66,002 63,927 
Short-term investments1,241 1,241 — — 
Total investments1,340,781 1,314,880 1,394,303 1,512,584 
Cash and cash equivalents22,973 21,007 22,407 21,298 
Accrued investment income17,131 16,615 16,497 15,755 
Reinsurance recoverable4,560 3,485 3,426 3,574 
Deferred policy acquisition costs162,927 159,104 156,356 153,640 
Cost of insurance acquired10,647 10,822 10,988 11,139 
Tax asset601 — 204 3,851 
Property and equipment, net12,926 13,310 13,689 14,088 
Due premiums11,829 10,551 9,538 8,971 
Other assets6,328 6,572 6,801 5,886 
Total assets1,590,703 1,556,346 1,634,209 1,750,786 
Liabilities and Stockholders' Equity
Liabilities:
Policy liabilities:
Future policy benefit reserves:
Life insurance$1,198,647 1,190,502 1,263,346 1,380,100 
Accident and health767 729 745 766 
Future policy benefit reserves1,199,414 1,191,231 1,264,091 1,380,866 
Policyholders' funds:
Annuities121,422 118,452 114,923 111,751 
Dividend accumulations41,663 40,483 39,622 38,575 
Premiums paid in advance36,384 38,437 39,636 40,433 
Policy claims payable9,884 7,979 8,475 9,659 
Other policyholders' funds7,501 7,235 7,286 7,088 
Total policyholders' funds216,854 212,586 209,942 207,506 
Total policy liabilities1,416,268 1,403,817 1,474,033 1,588,372 
Commissions payable1,967 1,772 1,917 1,816 
Deferred federal income tax liability, net3,653 1,992 — — 
Current federal income tax payable— 2,254 2,167 — 
Payable for securities in process of settlement— — 3,291 3,815 
Other liabilities41,025 35,466 29,477 31,307 
Total liabilities1,462,913 1,445,301 1,510,885 1,625,310 
Stockholders' Equity:
Class A common stock268,147 267,988 267,850 267,442 
Class B common stock3,184 3,184 3,184 3,184 
Accumulated deficit16,309 2,650 (757)(3,249)
Accumulated other comprehensive income (loss):
Net unrealized gains (losses) on fixed maturity securities, net of tax(137,044)(140,493)(125,552)(121,800)
Treasury stock, at cost(22,806)(22,284)(21,401)(20,101)
Total stockholders' equity127,790 111,045 123,324 125,476 
Total liabilities and stockholders' equity$1,590,703 1,556,346 1,634,209 1,750,786 
Exhibit 99.1 | Citizens, Inc. 8-K 2


CITIZENS, INC.
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Income (Loss) (Recast for LDTI)
For the Years Ended
(Unaudited, in thousands, except share amounts)
Dec. 31, 2022Dec. 31, 2021
Revenues:
Premiums:
Life insurance$167,586 169,801 
Accident and health insurance1,278 1,250 
Property insurance4,850 3,677 
Net investment income65,426 61,495 
Investment related gains (losses), net(10,291)10,991 
Other income3,675 3,332 
Total revenues232,524 250,546 
Benefits and Expenses: 
Insurance benefits paid or provided: 
Claims and surrenders119,935 119,735 
Increase in future policy benefit reserves5,290 9,782 
Policyholder liability remeasurement (gain) loss2,398 1,425 
Policyholders' dividends6,013 6,180 
Total insurance benefits paid or provided133,636 137,122 
Commissions36,222 35,463 
Other general expenses45,177 43,370 
Capitalization of deferred policy acquisition costs(24,899)(22,740)
Amortization of deferred policy acquisition costs14,390 13,445 
Amortization of cost of insurance acquired621 757 
Goodwill impairment— 12,624 
Total benefits and expenses205,147 220,041 
Income (loss) before federal income tax27,377 30,505 
Federal income tax expense (benefit)1,370 (42,201)
Net income (loss)26,007 72,706 
Basic Earnings Per Share: 
Class A common stock$0.52 1.46 
Class B common stock— 0.73 
Diluted Earnings Per Share:
Class A common stock0.51 1.44 
Class B common stock— 0.72 
Other Comprehensive Income (Loss):
Unrealized gains (losses) on fixed maturity securities:
Unrealized holding gains (losses) arising during period(328,673)(41,123)
Reclassification adjustment for losses (gains) included in net income (loss)104 (243)
Unrealized gains (losses) on fixed maturity securities, net(328,569)(41,366)
Change in current discount rate for liability for future policy benefits337,776 92,396 
Income tax expense (benefit) on unrealized gains (losses) on fixed maturity securities7,262 1,449 
Other comprehensive income (loss)1,945 49,581 
Total comprehensive income (loss)$27,952 122,287 

Exhibit 99.1 | Citizens, Inc. 8-K 3


CITIZENS, INC.
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
Consolidated Statements of Operations and Comprehensive Income (Loss), Continued
Quarterly Summary (Recast for LDTI)
For the Three Months Ended
(Unaudited, in thousands, except share amounts)
Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022
Revenues:
Premiums:
Life insurance$46,656 42,423 40,761 37,746 
Accident and health insurance413 299 280 286 
Property insurance1,182 1,153 1,183 1,332 
Net investment income17,443 16,604 15,892 15,487 
Investment related gains (losses), net298 (4,991)(5,016)(582)
Other income1,265 688 634 1,088 
Total revenues67,257 56,176 53,734 55,357 
Benefits and Expenses:
Insurance benefits paid or provided:
Claims and surrenders33,675 30,729 27,097 28,434 
Increase in future policy benefit reserves308 1,138 3,730 114 
Policyholder liability remeasurement (gain) loss1,152 (89)667 668 
Policyholders' dividends1,756 1,389 1,515 1,353 
Total insurance benefits paid or provided36,891 33,167 33,009 30,569 
Commissions10,415 9,210 8,924 7,673 
Other general expenses12,188 11,559 10,400 11,030 
Capitalization of deferred policy acquisition costs(7,562)(6,372)(6,184)(4,781)
Amortization of deferred policy acquisition costs3,739 3,624 3,468 3,559 
Amortization of cost of insurance acquired175 166 151 129 
Total benefits and expenses55,846 51,354 49,768 48,179 
Income (loss) before federal income tax11,411 4,822 3,966 7,178 
Federal income tax expense (benefit)(2,248)1,415 1,474 729 
Net income (loss)13,659 3,407 2,492 6,449 
Basic Earnings Per Share:
Class A common stock$0.27 0.07 0.05 0.13 
Diluted Earnings Per Share:
Class A common stock0.27 0.06 0.05 0.13 
Other Comprehensive Income (Loss):
Unrealized gains (losses) on fixed maturity securities:
Unrealized holding gains (losses) arising during period12,005 (88,382)(119,531)(132,765)
Reclassification adjustment for losses (gains) included in net income (loss)26 43 (24)59 
Unrealized gains (losses) on fixed maturity securities, net12,031 (88,339)(119,555)(132,706)
Change in current discount rate for liability for future policy benefits(7,482)73,214 120,437 151,607 
Income tax expense (benefit) on unrealized gains (losses) on fixed maturity securities1,100 (184)4,634 1,712 
Other comprehensive income (loss)3,449 (14,941)(3,752)17,189 
Total comprehensive income (loss)$17,108 (11,534)(1,260)23,638 

Exhibit 99.1 | Citizens, Inc. 8-K 4


CITIZENS, INC.
RELATED INFORMATION
(Recast for LDTI) (Unaudited)


EARNINGS PER SHARE

For the Three Months EndedFor the Years Ended
(In thousands, except per share amounts)
Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022Dec. 31, 2022Dec. 31, 2021
Net income (loss)$13,659 3,407 2,492 6,449 $26,007 72,706 
Numerator for Basic Earnings Per Share:  
Net income (loss) allocated to Class A common stock$13,659 3,407 2,492 6,449 $26,007 72,481 
Net income (loss) allocated to Class B common stock— — — — — 225 
Net income (loss)$13,659 3,407 2,492 6,449 $26,007 72,706 
Denominator for Basic Earnings Per Share:
Weighted average shares of Class A outstanding49,946 50,075 50,373 50,236 50,139 49,664 
Weighted average shares of Class B outstanding— — — — — 308 
Total weighted average shares outstanding49,946 50,075 50,373 50,236 50,139 49,972 
Basic earnings (loss) per share of Class A common stock$0.27 0.07 0.05 0.13 $0.52 1.46 
Basic earnings (loss) per share of Class B common stock— — — — — 0.73 
Numerator for Diluted Earnings Per Share:
Net income (loss) allocated to Class A common stock$13,659 3,407 2,492 6,449 $26,007 72,484 
Net income (loss) allocated to Class B common stock— — — — — 222 
Net income (loss)$13,659 3,407 2,492 6,449 $26,007 72,706 
Denominator for Diluted Earnings Per Share:  
Weighted average shares of Class A outstanding50,674 50,799 51,065 50,906 50,867 50,337 
Weighted average shares of Class B outstanding— — — — — 308 
Total weighted average shares outstanding50,674 50,799 51,065 50,906 50,867 50,645 
Diluted earnings (loss) per share of Class A common stock$0.27 0.06 0.05 0.13 $0.51 1.44 
Diluted earnings (loss) per share of Class B common stock— — — — — 0.72 

Exhibit 99.1 | Citizens, Inc. 8-K 5


CITIZENS, INC.
SEGMENT AND OTHER OPERATING INFORMATION

Life Insurance
For the Three Months EndedFor the Years Ended
(In thousands)
Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022Dec. 31, 2022Dec. 31, 2021
Revenues:   
Premiums$36,192 31,696 29,834 26,931 $124,653 126,058 
Net investment income (loss)13,556 12,806 12,347 11,971 50,680 47,216 
Investment related gains (losses), net(182)(4,367)(3,984)(293)(8,826)9,176 
Other income (loss)1,265 682 633 1,088 3,668 3,362 
Total revenues50,831 40,817 38,830 39,697 170,175 185,812 
Benefits and expenses: 
Insurance benefits paid or provided: 
Claims and surrenders27,808 24,742 21,568 21,458 95,576 91,390 
Increase in future policy benefit reserves(914)195 3,006 1,376 3,663 7,262 
Policyholder liability remeasurement (gain) loss1,179 (214)580 414 1,959 1,390 
Policyholders' dividends1,749 1,382 1,509 1,350 5,990 6,140 
Total insurance benefits paid or provided29,822 26,105 26,663 24,598 107,188 106,182 
Commissions6,330 5,103 4,792 3,806 20,031 18,747 
Other general expenses6,127 6,016 5,358 5,691 23,192 20,846 
Capitalization of deferred policy acquisition costs(5,737)(4,592)(4,307)(3,306)(17,942)(16,174)
Amortization of deferred policy acquisition costs3,109 3,081 2,950 3,020 12,160 11,536 
Amortization of cost of insurance acquired29 32 38 24 123 150 
Goodwill impairment— — — — — 12,624 
Total benefits and expenses39,680 35,745 35,494 33,833 144,752 153,911 
Income (loss) before federal income tax$11,151 5,072 3,336 5,864 $25,423 31,901 

Home Service Insurance
For the Three Months EndedFor the Years Ended
(In thousands)
Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022Dec. 31, 2022Dec. 31, 2021
Revenues:
Premiums$12,059 12,179 12,390 12,433 $49,061 48,670 
Net investment income (loss)3,578 3,527 3,283 3,244 13,632 13,224 
Investment related gains (losses), net352 (462)(925)(242)(1,277)618 
Other income (loss)— — 1 — 1 7 
Total revenues15,989 15,244 14,749 15,435 61,417 62,519 
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders5,867 5,987 5,529 6,976 24,359 28,345 
Increase in future policy benefit reserves1,222 943 724 (1,262)1,627 2,520 
Policyholder liability remeasurement (gain) loss(27)125 87 254 439 35 
Policyholders' dividends7 7 6 3 23 40 
Total insurance benefits paid or provided7,069 7,062 6,346 5,971 26,448 30,940 
Commissions4,085 4,107 4,132 3,867 16,191 16,716 
Other general expenses4,351 4,228 3,515 4,350 16,444 14,739 
Capitalization of deferred policy acquisition costs(1,825)(1,780)(1,877)(1,475)(6,957)(6,566)
Amortization of deferred policy acquisition costs630 543 518 539 2,230 1,909 
Amortization of cost of insurance acquired146 134 113 105 498 607 
Total benefits and expenses14,456 14,294 12,747 13,357 54,854 58,345 
Income (loss) before federal income tax$1,533 950 2,002 2,078 $6,563 4,174 

Exhibit 99.1 | Citizens, Inc. 8-K 6


CITIZENS, INC.
Other Non-Insurance Enterprises
For the Three Months EndedFor the Years Ended
(In thousands)
Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022Dec. 31, 2022Dec. 31, 2021
Revenues:
Premiums$— — — — $— — 
Net investment income (loss)309 271 262 272 1,114 1,055 
Investment related gains (losses), net128 (162)(107)(47)(188)1,197 
Other income (loss)— 6 — — 6 (37)
Total revenues437 115 155 225 932 2,215 
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders— — — — — — 
Increase in future policy benefit reserves— — — — — — 
Policyholder liability remeasurement (gain) loss— — — — — — 
Policyholders' dividends— — — — — — 
Total insurance benefits paid or provided— — — — — — 
Commissions— — — — — — 
Other general expenses1,710 1,315 1,527 989 5,541 7,785 
Capitalization of deferred policy acquisition costs— — — — — — 
Amortization of deferred policy acquisition costs— — — — — — 
Amortization of cost of insurance acquired— — — — — — 
Total benefits and expenses1,710 1,315 1,527 989 5,541 7,785 
Income (loss) before federal income tax$(1,273)(1,200)(1,372)(764)$(4,609)(5,570)

Consolidated
For the Three Months EndedFor the Years Ended
(In thousands)
Dec. 31, 2022Sep. 30, 2022Jun. 30, 2022Mar. 31, 2022Dec. 31, 2022Dec. 31, 2021
Revenues:
Premiums$48,251 43,875 42,224 39,364 $173,714 174,728 
Net investment income (loss)17,443 16,604 15,892 15,487 65,426 61,495 
Investment related gains (losses), net298 (4,991)(5,016)(582)(10,291)10,991 
Other income (loss)1,265 688 634 1,088 3,675 3,332 
Total revenues67,257 56,176 53,734 55,357 232,524 250,546 
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders33,675 30,729 27,097 28,434 119,935 119,735 
Increase in future policy benefit reserves308 1,138 3,730 114 5,290 9,782 
Policyholder liability remeasurement (gain) loss1,152 (89)667 668 2,398 1,425 
Policyholders' dividends1,756 1,389 1,515 1,353 6,013 6,180 
Total insurance benefits paid or provided36,891 33,167 33,009 30,569 133,636 137,122 
Commissions10,415 9,210 8,924 7,673 36,222 35,463 
Other general expenses12,188 11,559 10,400 11,030 45,177 43,370 
Capitalization of deferred policy acquisition costs(7,562)(6,372)(6,184)(4,781)(24,899)(22,740)
Amortization of deferred policy acquisition costs3,739 3,624 3,468 3,559 14,390 13,445 
Amortization of cost of insurance acquired175 166 151 129 621 757 
Goodwill impairment— — — — — 12,624 
Total benefits and expenses55,846 51,354 49,768 48,179 205,147 220,041 
Income (loss) before federal income tax$11,411 4,822 3,966 7,178 $27,377 30,505 

Exhibit 99.1 | Citizens, Inc. 8-K 7
v3.23.2
Cover
Aug. 24, 2023
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Aug. 24, 2023
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
Citizens (NYSE:CIA)
Historical Stock Chart
From Apr 2024 to May 2024 Click Here for more Citizens Charts.
Citizens (NYSE:CIA)
Historical Stock Chart
From May 2023 to May 2024 Click Here for more Citizens Charts.