Citizens, Inc. Reports Second Quarter 2025 Financial Results
Rhea-AI Summary
Citizens, Inc. (NYSE: CIA) reported strong Q2 2025 financial results, marking significant growth across key metrics. The company achieved total revenues of $65.1 million, up from $62.1 million in Q2 2024, and net income of $6.5 million ($0.13 per share), increasing from $4.0 million ($0.08 per share) year-over-year.
Notable achievements include a record-high total direct insurance in force of $5.35 billion, up 4.4% year-over-year, and a 53% increase in producing agents since June 30, 2024. The company's book value per Class A share reached $4.56, an 18% increase from the previous year. Citizens maintained its streak of positive net cash from operations since 2004, with $4.2 million generated in H1 2025.
Positive
- Total revenues increased to $65.1 million in Q2 2025, up from $62.1 million in Q2 2024
- Net income grew 62.5% to $6.5 million in Q2 2025 from $4.0 million in Q2 2024
- Record-high total direct insurance in force of $5.35 billion, up 4.4% year-over-year
- Global network of producing agents increased 53% year-over-year
- Book value per Class A share grew 18% to $4.56
- Direct first year life and A&H premiums increased 20% year-over-year
- Maintained positive net cash from operations since 2004
Negative
- Net investment income decreased to $17.2 million from $17.5 million year-over-year
- Average pre-tax yield on investment portfolio declined to 4.50% from 4.60% year-over-year
- Adjusted income before federal income tax decreased to $4.5 million from $7.1 million in Q2 2024
- $2.3 million increase in insurance benefits paid due to increased matured endowments
News Market Reaction 1 Alert
On the day this news was published, CIA gained 6.76%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- Record number of agents: increased global network of producing agents, up
53% since June 30, 2024, and up28% from 2024 year-end - Highest-ever total direct insurance in force of
$5.35 billion - Total revenues of
$65.1 million in Q2 2025, from$62.1 million in Q2 2024 - Net income in Q2 2025 of
$6.5 million , or$0.13 income per fully diluted Class A share, increased from$4.0 million net income, or$0.08 income per fully diluted Class A share, in Q2 2024 - Book value per Class A share of
$4.56 on June 30, 2025 increased18% from June 30, 2024
Austin, Texas--(Newsfile Corp. - August 7, 2025) - 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, 2025.
"The critical steps in our strategic roadmap to accelerate growth are delivering tangible results. For eleven consecutive quarters, Citizens has driven year-over-year growth in first year premiums. The expansion of our product offerings and distribution channels led to our highest-ever total direct insurance in force of
"As we look ahead to 2026, we expect revenue and profit growth for the full year 2026. 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. Our competitive advantages in expanding niche markets globally, rapid sales force expansion, and expertise in profitable product development reinforce our positive outlook," concluded Stenberg.
Recent Business Highlights
Record setting results and highlight accomplishments for Citizens, including:
- Highest-ever amount of total direct insurance in force -
$5.35 billion of total direct insurance in force at June 30, 2025, up4.4% compared to the same period in 2024, from sales of new products both domestically and internationally. - Direct first year life and A&H premiums increased
20% in Q2 2025 compared to year-ago quarter. First year premiums have increased year-over-year for eleven consecutive quarters. - Renewal premium growth in Q2 2025, driven by strong first year sales in 2024 leading to higher number of policies paying renewal premiums in the second quarter of 2025.
- Record number of agents - increased global network of producing agents, up
53% since June 30, 2024 and up28% since December 31, 2024.
Second Quarter 2025 Financial Results
- Income before federal income tax of
$6.9 million in Q2 2025, from$3.3 million in the year-ago quarter. Items that drove this increase were:- Increased revenues due to higher life insurance premiums and
$2.7 million increase in investment related gains in Q2 2025 compared to the prior year quarter. - Lower general expenses due to legal fee accrual of
$3.5 million in prior year quarter; no comparable expense in current quarter. - The above gains were partially offset by
$2.3 million increase in insurance benefits paid or provided due primarily to expected increased matured endowments in the international business and increase in expenses related to restricted stock unit grants.
- Increased revenues due to higher life insurance premiums and
- Adjusted income before federal income tax of
$4.5 million in Q2 2025, from$7.1 million in Q2 2024. Adjusted income before federal income tax excludes investment related gains (losses), legal fee accrual in Q2 2024 and loss from ceased property insurance business. - Total assets of
$1.7 billion , cash and cash equivalents of$22.7 million and no debt at June 30, 2025. - Book value per Class A share of
$4.56 on June 30, 2025 increased18% over the year-ago period. Book value per Class A share excluding accumulated other comprehensive income (loss) (AOCI) of$6.22 on June 30, 2025 increased3% over the year-ago period. The Company has achieved ten consecutive quarters of book value per Class A share growth.
Total revenues of
Total benefits and expenses decreased to
Income before federal income tax of
Net income for the second quarter of 2025 was
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 fixed maturity securities investment portfolio at June 30, 2025 was
Cash Flow
Positive net cash provided by operating activities was
Upcoming Conference
Emerging Growth Virtual Conference on September 24, 2025
Citizens management plans to present at the Emerging Growth Virtual Conference on September 24 at 1:45 ET. The live, interactive webcast and slide presentation will be accessible on the Company's Investor Relations website under the Events tab HERE. The webcast will be archived on the website for future viewing.
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 coast region. 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 improves understanding of the underlying business trends. Adjustments to GAAP measures generally apply to discrete events and items not indicative to our operating trends.
Adjusted Revenues is a non-GAAP measure that excludes investment related gains (losses) from total revenues. Management believes the adjusted 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 After-Tax Operating 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.
Adjusted Earnings Per Share of Class A Common Stock Basic and Diluted is a non-GAAP measure that is defined as adjusted earnings 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 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 ended | Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| (In thousands, except per share data) | 2025 | 2024 | 2025 | 2024 | |||||
| Balance sheet data | |||||||||
| Total assets | $ | 1,712,500 | 1,662,473 | 1,712,500 | 1,662,473 | ||||
| Total liabilities | 1,483,474 | 1,471,004 | 1,483,474 | 1,471,004 | |||||
| Total stockholders' equity | 229,026 | 191,469 | 229,026 | 191,469 | |||||
| Total direct insurance in force | 5,347,041 | 5,119,934 | 5,347,041 | 5,119,934 | |||||
| Operating items | |||||||||
| Insurance premiums | $ | 43,388 | 42,559 | 83,185 | 81,232 | ||||
| Net investment income | 17,169 | 17,540 | 34,546 | 35,027 | |||||
| Investment related gains (losses), net | 2,408 | (253) | (486) | 710 | |||||
| Total revenues | 65,086 | 62,084 | 120,738 | 119,796 | |||||
| Claims and surrenders | 40,220 | 34,530 | 80,318 | 67,643 | |||||
| Other general expenses | 13,459 | 16,639 | 26,152 | 27,977 | |||||
| Total benefits and expenses | 58,172 | 58,782 | 115,611 | 111,569 | |||||
| Income (loss) before federal income tax | 6,914 | 3,302 | 5,127 | 8,227 | |||||
| Federal income tax expense (benefit) | 455 | (657) | 291 | (274) | |||||
| Net income (loss) | 6,459 | 3,959 | 4,836 | 8,501 | |||||
| Per share data | |||||||||
| Book value per share | $ | 4.56 | 3.85 | 4.56 | 3.85 | ||||
| Diluted income (loss) per Class A share | 0.13 | 0.08 | 0.10 | 0.17 | |||||
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 – Internationally, our Life 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. 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. All our products in this segment are sold through independent agents.
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 ended | Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| (In thousands) | 2025 | 2024 | 2025 | 2024 | |||||
| LIFE INSURANCE SEGMENT | |||||||||
| Balance sheet data | |||||||||
| Total assets | $ | 1,311,093 | 1,263,544 | 1,311,093 | 1,263,544 | ||||
| Operating items | |||||||||
| Insurance premiums | $ | 32,643 | 31,605 | 61,797 | 59,466 | ||||
| Net investment income | 13,400 | 13,812 | 26,912 | 27,498 | |||||
| Investment related gains (losses), net | 2,625 | (279) | (122) | 807 | |||||
| Total revenues | 50,789 | 47,356 | 92,080 | 90,495 | |||||
| Claims and surrenders | 35,223 | 29,169 | 69,365 | 56,533 | |||||
| Total benefits and expenses | 42,641 | 39,884 | 83,689 | 77,223 | |||||
| Income (loss) before federal income tax | 8,148 | 7,472 | 8,391 | 13,272 | |||||
| HOME SERVICE INSURANCE SEGMENT | |||||||||
| Balance sheet data | |||||||||
| Total assets | $ | 365,405 | 357,731 | 365,405 | 357,731 | ||||
| Operating items | |||||||||
| Insurance premiums | 10,745 | 10,954 | 21,388 | 21,766 | |||||
| Net investment income | 3,595 | 3,529 | 7,273 | 7,066 | |||||
| Investment related gains (losses), net | (218) | 23 | (366) | (68) | |||||
| Total revenues | 14,122 | 14,526 | 28,295 | 28,784 | |||||
| Claims and surrenders | 4,997 | 5,361 | 10,953 | 11,110 | |||||
| Total benefits and expenses | 12,515 | 13,115 | 26,568 | 26,750 | |||||
| Income (loss) before federal income tax | 1,607 | 1,411 | 1,727 | 2,034 | |||||
GAAP to Non-GAAP Reconciliations
| Reconciliation of Adjusted Total Revenues | |||||||||
| For the periods ended | Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| Unaudited (In thousands) | 2025 | 2024 | 2025 | 2024 | |||||
| Total revenues | $ | 65,086 | 62,084 | 120,738 | 119,796 | ||||
| Less: | |||||||||
| Investment related gains (losses) | 2,408 | (253) | (486) | 710 | |||||
| Adjusted total revenues | $ | 62,678 | 62,337 | 121,224 | 119,086 | ||||
| Reconciliation of Adjusted Income Before Federal Income Tax | ||||||||
| For the periods ended | Three Months Ended June 30, | Six Months Ended June 30, | ||||||
| Unaudited (In thousands) | 2025 | 2024 | 2025 | 2024 | ||||
| Income (loss) before federal income tax | $ | 6,914 | 3,302 | 5,127 | 8,227 | |||
| Less: | ||||||||
| Investment related gains (losses) | 2,408 | (253) | (486) | 710 | ||||
| Property insurance business income (loss) | — | (76) | — | (71) | ||||
| Legal fee accrual | — | (3,500) | — | (3,500) | ||||
| Adjusted income before federal income tax | $ | 4,506 | 7,131 | 5,613 | 11,088 | |||
| Reconciliation of Adjusted After-Tax Operating Income | |||||||||
| For the periods ended | Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| Unaudited (In thousands) | 2025 | 2024 | 2025 | 2024 | |||||
| Net income (loss) | $ | 6,459 | 3,959 | 4,836 | 8,501 | ||||
| Less: | |||||||||
| Investment related gains (losses) | 2,408 | (253) | (486) | 710 | |||||
| Property insurance business income (loss) | — | (76) | — | (71) | |||||
| Legal fee accrual | — | (3,500) | — | (3,500) | |||||
| Income tax impact | (158) | (762) | 108 | (836) | |||||
| Adjusted after-tax operating income | $ | 4,209 | 8,550 | 5,214 | 12,198 | ||||
| Reconciliation of Adjusted Earnings Per Share of Class A Common Stock | |||||||||
| For the periods ended | Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| Unaudited (In thousands) | 2025 | 2024 | 2025 | 2024 | |||||
| Basic and diluted adjusted earnings per share: | |||||||||
| Numerator: | |||||||||
| Adjusted after-tax operating income | $ | 4,209 | 8,550 | 5,214 | 12,198 | ||||
| Adjusted after-tax operating income allocated to Class A common stock | $ | 4,209 | 8,550 | 5,214 | 12,198 | ||||
| Denominator: | |||||||||
| Weighted average shares of Class A outstanding - basic | 50,112 | 49,639 | 50,024 | 49,606 | |||||
| Weighted average shares of Class A outstanding - diluted | 50,985 | 50,809 | 50,897 | 50,775 | |||||
| Basic adjusted earnings per share of Class A common stock | $ | 0.08 | 0.17 | 0.10 | 0.25 | ||||
| Diluted adjusted earnings per share of Class A common stock | $ | 0.08 | 0.17 | 0.10 | 0.24 | ||||
| Reconciliation of Stockholders' Equity and Book Value per Class A Common Share | ||||||
| As of June 30, | ||||||
| Unaudited (In thousands, except per share data) | 2025 | 2024 | ||||
| Stockholders' equity, end of period | $ | 229,026 | 191,469 | |||
| Less: Accumulated other comprehensive income (loss) (AOCI) | (83,655) | (107,924) | ||||
| Stockholders' equity, end of period, excluding AOCI | $ | 312,681 | 299,393 | |||
| Book value per Class A common share - diluted | $ | 4.56 | 3.85 | |||
| Less: Per share impact of AOCI | (1.66) | (2.17) | ||||
| Book value per Class A common share - diluted, excluding AOCI | $ | 6.22 | 6.02 | |||
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/261675
FAQ
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