Citizens, Inc. Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Citizens (NYSE:CIA) reported Q1 2026 results: total revenues $59.7M (up 7% vs Q1 2025), net income $2.3M versus a $1.6M loss a year earlier, and adjusted net income $1.3M. Book value per Class A share was $4.74 on March 31, 2026, and adjusted book value per share was $6.48.
Total assets were $1.7B, cash and cash equivalents $18.5M, and the company reported no debt at quarter end. Management reiterated full-year 2026 expectations for revenue and profit growth and highlighted growth initiatives for premiums and agent expansion.
Positive
- Total revenues of $59.7M in Q1 2026, up 7% year-over-year
- Net income of $2.3M in Q1 2026, improving from a $1.6M loss in Q1 2025
- No debt and $18.5M cash and cash equivalents at March 31, 2026
Negative
- Net cash used in operating activities of $0.3M in Q1 2026 versus $0.7M provided in Q1 2025
- General expenses rose in Q1 2026 due to continued investments supporting business growth
- Matured endowment benefit payments remained elevated in Q1 2026, pressuring cash flows
Key Figures
Market Reality Check
Peers on Argus
CIA’s pre-news gain of 2.18% contrasts with mixed peers: ABL up 0.59%, XHG up 7.56%, JRVR down 3.82%, while others are flat. Momentum scans only flag BHF moving down, suggesting stock-specific drivers rather than a broad life insurance move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 12 | Full-year 2025 earnings | Positive | -6.5% | Record 2025 revenues and higher book value per share versus 2024. |
| Nov 06 | Q3 2025 earnings | Positive | +5.7% | Revenue growth, higher adjusted earnings, more producing agents, no debt. |
| Aug 07 | Q2 2025 earnings | Positive | +6.8% | Higher revenues, stronger net income, record direct insurance in force. |
| May 08 | Q1 2025 earnings | Neutral | -5.7% | Mixed quarter with lower revenues but higher adjusted revenues and growth in force. |
| Mar 13 | Full-year 2024 earnings | Positive | +4.0% | Revenue growth, record issuance, higher book value, strong cash from operations. |
Earnings releases have generally been positive on fundamentals, but price reactions have been mixed, including one notable selloff on strong full-year 2025 results.
Across the last five earnings-related releases since March 2024, Citizens has repeatedly highlighted growing total revenues, expanding producing agent networks, and rising book value per Class A share. Recent quarters also emphasized record direct insurance in force, no debt, and consistent positive operating cash flow. Today’s Q1 2026 report continues that narrative with higher revenues, a swing to net income, and further growth in both reported and adjusted book value per share.
Historical Comparison
Prior earnings headlines produced an average move of about 0.85%, with reactions ranging from selloffs on strong full-year results to solid gains on quarterly beats.
Earnings updates over 2024–2025 show a progression of rising total revenues, expanding direct insurance in force, larger producing-agent networks, and steadily increasing book value per Class A share, with management repeatedly guiding to continued revenue and profit growth.
Market Pulse Summary
This announcement highlights continued progress in Citizens’ financial profile, with Q1 2026 revenues of $59.7M, net income of $2.3M, and rising reported and adjusted book value per share. Direct premiums and the global agent network both expanded, while the balance sheet stayed debt-free with $18.5M in cash. Investors may watch subsequent quarters for trends in operating cash flow, investment income quality, and sustained premium growth against prior-year comps.
Key Terms
accumulated other comprehensive income (loss) financial
AOCI financial
non-GAAP financial
GAAP financial
AI-generated analysis. Not financial advice.
- Total revenues of
$59.7 million in Q1 2026, up7% from$55.7 million in Q1 2025.
Adjusted total revenues of
- Net income of
$2.3 million in Q1 2026, from$1.6 million loss in Q1 2025.
Adjusted net income of
- Book value per Class A share of
$4.74 on March 31, 2026 increased from$4.37 on March 31, 2025.
Adjusted book value per Class A share of
Austin, Texas--(Newsfile Corp. - May 7, 2026) - Citizens, Inc. (NYSE: CIA), a leading diversified financial services company specializing in life, living benefits, and final expense insurance, today reported results for the first quarter ended March 31, 2026.
"We delivered another quarter of strong revenue and net income performance, demonstrating consistent and repeatable execution against our strategic roadmap. This is the fourteenth consecutive quarter of year-over-year growth in first year premiums, driven by our expanding sales force and innovative products," said Jon Stenberg, President and Chief Executive Officer. "Targeted investments in our strategic roadmap reinforce our leadership and are designed to deliver clear growth of premiums and adjusted book value per share. Additionally, we remain fully committed to sustainable profitable growth and capital management, as evidenced by our positive annual net cash from operations every year since 2004, and remain committed to extending this track record."
"Looking ahead, we expect revenue and profit growth for the full year 2026. As our recurring revenue base continues to scale, we expect long-term EPS expansion through revenue growth and operating leverage. We have strengthened every element of our value proposition. We believe we're well positioned to drive long-term value creation for both our customers and shareholders, supported by our robust global business model, disciplined execution, and favorable demographic tailwinds worldwide. Our competitive advantages in expanding niche markets worldwide, rapidly growing our sales force, and expertise in profitable product development reinforce our positive outlook," concluded Stenberg.
Recent Business Highlights
- Increased global network of producing agents, up
5% since March 31, 2025. - Direct insurance premiums of
$43.9 million in Q1 2026, up from$42.4 million in Q1 2025, driven by sales of our new product offerings and expanded distribution in our Domestic Insurance segment. - Direct renewal premiums growth in Q1 2026, driven by strong first year sales in prior years leading to a higher number of policies paying renewal premiums in the first quarter of 2026.
- First year premiums have increased year-over-year for fourteen consecutive quarters.
First Quarter 2026 Financial Results
- Total revenues of
$59.7 million in Q1 2026, up7% from$55.7 million in the year-ago quarter. Adjusted total revenues, which excludes investment related gains (losses), of$58.7 million in Q1 2026, increased from$58.5 million in the year-ago quarter. - Net income of
$2.3 million in Q1 2026, increased from$1.6 million loss in Q1 2025. Adjusted net income of$1.3 million in Q1 2026, from$1.0 million adjusted net income in Q1 2025. - Total assets of
$1.7 billion , cash and cash equivalents of$18.5 million and no debt at March 31, 2026. - Book value per Class A share of
$4.74 on March 31, 2026, increased8% over the year-ago period. Book value per Class A share excluding accumulated other comprehensive income (loss) (AOCI) of$6.48 on March 31, 2026 increased6% over the year-ago period. The Company has achieved thirteen consecutive quarters of book value per Class A share growth.
Total revenues of
Total benefits and expenses decreased to
Net income of
The definitions of Non-GAAP information and comparable GAAP information is included in the Explanatory Notes on Use of Non-GAAP Measures section and defines and reconciles measures not presented in accordance with generally accepted accounting principles ("GAAP") (a "non-GAAP Financial Measure").
Investments
Net investment income of
The carrying value of the Company's total investment portfolio was
Cash Position
The Company had cash and cash equivalents of
Key Growth Initiatives
Citizens' strategic roadmap is designed to deliver sustainable growth in premiums, adjusted net income, and adjusted book value per share. Citizens' key growth initiatives:
- Increase first year premium revenues
- Increase penetration in new and existing countries served
- Introduce products or major product enhancements
- Enhance agent and client servicing platforms that drive efficiency
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: International Insurance, where the Company is a market leader in U.S. Dollar denominated life insurance, and Domestic Insurance, where it is growing in niche markets in the United States through its final expense products distributed through white-label and established distribution channels. Citizens' stock is included in the Russell 2000® and Russell 3000® indexes. For more information about Citizens, please visit the website at www.citizensinc.com and LinkedIn.
Explanatory Notes on Use of Non-GAAP Measures
In addition to the financial information prepared in conformity with accounting U.S. generally accepted accounting principles ("GAAP"), in this press release, the Company provides certain non-GAAP financial measures that we believe improve understanding the underlying business trends. Adjustments to GAAP measures generally apply to discrete events and items not indicative of our operating trends.
Adjusted Total Revenues is a non-GAAP measure that excludes investment related gains (losses) from total revenues. Management believes the adjusted total revenues metric is meaningful, as it allows investors to evaluate revenues generated by core business activities excluding items that are heavily impacted by investment market fluctuations.
Adjusted Income Before Federal Income Tax is a non-GAAP measure that is computed as pre-tax GAAP operating income with discrete adjustments that exclude 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 that are not indicative of operating trends.
Adjusted Net Income is a non-GAAP measure that is derived by excluding the tax effected Adjusted Income Before Federal Income Tax adjustments described above. The provision for income tax related to adjusted after-tax income is calculated using our effective tax rate excluding discrete items.
Adjusted Income Per Share of Class A Common Stock Basic and Diluted is a non-GAAP measure that is defined as adjusted net income for the period divided by the weighted average number of basic and fully diluted shares of common stock outstanding for the period.
Adjusted Book Value Per Share of Class A Common Stock 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 ended | Three Months Ended March 31, | |||||
| (In thousands, except per share data) | 2026 | 2025 | ||||
| Balance sheet data | ||||||
| Total assets | $ | 1,739,500 | 1,702,204 | |||
| Total liabilities | 1,500,832 | 1,484,065 | ||||
| Total stockholders' equity | 238,668 | 218,139 | ||||
| Total direct insurance in force | 5,454,754 | 5,282,585 | ||||
| Operating items | ||||||
| Direct insurance premiums | $ | 43,932 | 42,350 | |||
| Insurance premiums | 39,938 | 39,797 | ||||
| Net investment income | 17,304 | 17,377 | ||||
| Investment related gains (losses), net | 984 | (2,894) | ||||
| Total revenues | 59,720 | 55,652 | ||||
| Claims and surrenders | 39,653 | 40,098 | ||||
| Other general expenses | 13,372 | 12,693 | ||||
| Total benefits and expenses | 57,346 | 57,439 | ||||
| Income (loss) before federal income tax | 2,374 | (1,787) | ||||
| Federal income tax expense (benefit) | 106 | (164) | ||||
| Net income (loss) | 2,268 | (1,623) | ||||
| Per share data | ||||||
| Book value per share | $ | 4.74 | 4.37 | |||
| Diluted income (loss) per Class A share | 0.04 | (0.03) | ||||
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.
International Insurance – Our International Insurance segment issues U.S. dollar-denominated ordinary whole life insurance and endowment policies predominantly to non-U.S. residents located principally in Latin America and the Pacific Rim. Our products in this segment are sold through independent agents.
Domestic Insurance – Domestically, we are licensed in 43 U.S. states and sell whole life final expense insurance and life insurance with living benefits and critical illness products. The Domestic Insurance segment provides life insurance policies marketed to middle- and lower-income households. These products are sold through independent agents and funeral homes.
| Selected Segment Financial Data | ||||||
| As of and for the periods ended | Three Months Ended March 31, | |||||
| (In thousands) | 2026 | 2025 | ||||
| INTERNATIONAL INSURANCE | ||||||
| Balance sheet data | ||||||
| Total assets | $ | 1,178,768 | 1,159,996 | |||
| Operating items | ||||||
| Direct insurance premiums | $ | 25,582 | 26,079 | |||
| Insurance premiums | 25,198 | 25,608 | ||||
| Net investment income | 12,004 | 12,131 | ||||
| Investment related gains (losses), net | 1,334 | (2,766) | ||||
| Total revenues | 40,023 | 36,338 | ||||
| Claims and surrenders | 32,111 | 33,034 | ||||
| Total benefits and expenses | 36,418 | 36,533 | ||||
| Income (loss) before federal income tax | 3,605 | (195) | ||||
| DOMESTIC INSURANCE | ||||||
| Balance sheet data | ||||||
| Total assets | $ | 529,478 | 507,208 | |||
| Operating items | ||||||
| Direct insurance premiums | 18,350 | 16,271 | ||||
| Insurance premiums | 14,740 | 14,189 | ||||
| Net investment income | 5,113 | 5,059 | ||||
| Investment related gains (losses), net | (345) | (129) | ||||
| Total revenues | 19,515 | 19,126 | ||||
| Claims and surrenders | 7,542 | 7,064 | ||||
| Total benefits and expenses | 18,264 | 18,568 | ||||
| Income (loss) before federal income tax | 1,251 | 558 | ||||
GAAP to Non-GAAP Reconciliations
| Reconciliation of Adjusted Total Revenues | ||||||
| For the periods ended | Three Months Ended March 31, | |||||
| Unaudited (In thousands) | 2026 | 2025 | ||||
| Total revenues | $ | 59,720 | 55,652 | |||
| Less: | ||||||
| Investment related gains (losses) | 984 | (2,894) | ||||
| Adjusted total revenues | $ | 58,736 | 58,546 | |||
| Reconciliation of Adjusted Income Before Federal Income Tax | ||||||
| For the periods ended | Three Months Ended March 31, | |||||
| Unaudited (In thousands) | 2026 | 2025 | ||||
| Income (loss) before federal income tax | $ | 2,374 | (1,787) | |||
| Less: | ||||||
| Investment related gains (losses) | 984 | (2,894) | ||||
| Adjusted income before federal income tax | $ | 1,390 | 1,107 | |||
| Reconciliation of Adjusted Net Income | ||||||
| For the periods ended | Three Months Ended March 31, | |||||
| Unaudited (In thousands) | 2026 | 2025 | ||||
| Net income (loss) | $ | 2,268 | (1,623) | |||
| Less: | ||||||
| Investment related gains (losses) | 984 | (2,894) | ||||
| Income tax impact | (44) | 266 | ||||
| Adjusted net income | $ | 1,328 | 1,005 | |||
| Reconciliation of Adjusted Income Per Share of Class A Common Stock | ||||||
| For the periods ended | Three Months Ended March 31, | |||||
| Unaudited (In thousands, except per share amounts) | 2026 | 2025 | ||||
| Basic and diluted adjusted income per share: | ||||||
| Adjusted net income | $ | 1,328 | 1,005 | |||
| Weighted average shares of Class A outstanding - basic | 50,308 | 49,908 | ||||
| Weighted average shares of Class A outstanding - diluted | 51,580 | 50,912 | ||||
| Basic adjusted income per share of Class A common stock | $ | 0.03 | 0.02 | |||
| Diluted adjusted income per share of Class A common stock | $ | 0.03 | 0.02 | |||
| Reconciliation of Stockholders' Equity and Book Value per Class A Common Share | ||||||
| As of March 31, | ||||||
| Unaudited (In thousands, except per share data) | 2026 | 2025 | ||||
| Stockholders' equity, end of period | $ | 238,668 | 218,139 | |||
| Less: Accumulated other comprehensive income (loss) (AOCI) | (87,483) | (87,074) | ||||
| Stockholders' equity, end of period, excluding AOCI | $ | 326,151 | 305,213 | |||
| Book value per Class A common share - diluted | $ | 4.74 | 4.37 | |||
| Less: Per share impact of AOCI | (1.74) | (1.75) | ||||
| Book value per Class A common share - diluted, excluding AOCI | $ | 6.48 | 6.12 | |||
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)
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/296499