Citizens, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenues increased 3.5% year-over-year to $65 million in Q3 2026 from $62.8 million in Q3 2025, driven by a $1.5 million increase in premium revenue and a $2.6 million increase in investment-related gains.
• Adjusted total revenues decreased 0.8% to $63.6 million in Q3 2026 from $64.1 million in Q3 2025, as higher premium revenue was offset by lower net investment income and other income.
• Net loss was $0.4 million ($0.01 per fully diluted Class A share) in Q3 2026, compared to net income of $2.4 million ($0.04 per fully diluted Class A share) in Q3 2025.
• Adjusted net income was $1 thousand ($0.00 per fully diluted Class A share) in Q3 2026, down from $3.4 million ($0.07 per fully diluted Class A share) in Q3 2025.
• Direct insurance premiums grew 7% to $50 million in Q3 2026 from $46.6 million in Q3 2025.
• Net investment income decreased to $18.1 million in Q3 2026 from $19.1 million in Q3 2025, primarily due to a $1.7 million discrete dividend recognized in the prior year and higher investment expenses.
• Total assets were $1.7 billion at September 30, 2026, down from $1.74 billion at September 30, 2025.
• Book value per Class A share was $4.37 at September 30, 2026, compared to $4.49 at September 30, 2025.
• Adjusted book value per Class A share (excluding AOCI) increased to $6.44 at September 30, 2026, from $6.26 at September 30, 2025.
• Cash and cash equivalents were $17.6 million with no debt at September 30, 2026.
• Net cash provided by operating activities was $13 million in Q3 2026.

Business Segments and Product Lines:

• The Domestic Insurance segment drove premium growth, with direct premiums increasing 7% to $50 million, led by a 9% increase in direct first-year premiums.
• Direct first-year premiums have increased year-over-year for sixteen consecutive quarters.
• The Domestic Insurance segment experienced unfavorable persistency, which constrained growth.
• The International Insurance segment was constrained by high levels of surrenders and matured endowments, reducing the number of policies remaining in force.
• The network of domestic producing agents increased 12% since September 30, 2025.
• Total benefits and expenses increased to $64.9 million in Q3 2026 from $58.3 million in Q3 2025.
• Claims and surrenders decreased $13.2 million in Q3 2026 due to expected contractual decreases in matured endowments.
• Future policy benefit reserves increased $16.3 million in Q3 2026, reflecting additional reserves for the growing in-force business in the Domestic Insurance segment and lower reserve releases from matured endowments compared to the prior year.
• A $1.7 million decrease in the ceded reserve credit resulted from a change in accounting estimate to utilize enhanced data sources.

Other Key Points:

• The company announced an investment in a modern technology ecosystem, moving to third-party, cloud-based platforms to strengthen insurance processing, underwriting, and policy administration capabilities.
• Management expects endowment maturities to become a smaller factor over time as fewer contracts expire in 2026 and subsequent years.
• Citizens plans to participate in the Sidoti Virtual Conference on December 9 and 10, 2026, including a fireside chat webcast on December 9.
• The company has reported positive annual net cash provided by operating activities every year since 2004.
• The company operates two primary segments: International Insurance (U.S. dollar-denominated life insurance in Latin America and the Pacific Rim) and Domestic Insurance (final expense and living benefits products in the U.S.).