Citizens, Inc. Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Citizens (NYSE: CIA) reported Q2 2026 total revenues of $60.4 million, down from $65.1 million a year earlier, and a net loss of $0.4 million versus $6.5 million net income in Q2 2025. Adjusted total revenues were $61.9 million, and adjusted net income was $0.8 million.
Direct insurance premiums rose to $48.1 million from $46.4 million, marking the fifteenth consecutive quarter of year-over-year direct first year premium growth, supported by a 6% larger global agent network. Book value per Class A share increased to $4.64 and adjusted book value to $6.44, both up year-over-year for the fourteenth consecutive quarter. Total assets reached $1.8 billion, with $17.0 million in cash and no debt, and net cash provided by operating activities was $1.7 million.
Positive
- Direct insurance premiums up to $48.1 million in Q2 2026 from $46.4 million in Q2 2025
- 15 consecutive quarters of year-over-year direct first year premium growth
- Book value per Class A share rose to $4.64 from $4.56 year-over-year
- Adjusted book value per share increased to $6.44 from $6.22 year-over-year
- Cash and cash equivalents of $17.0 million and no debt at June 30, 2026
- Net cash from operating activities of $1.7 million in Q2 2026; positive annually since 2004
Negative
- Total revenues fell to $60.4 million from $65.1 million year-over-year
- Net result swung to a $0.4 million loss from $6.5 million income in Q2 2025
- Adjusted net income declined to $0.8 million from $4.2 million year-over-year
- Investment related gains (losses) moved to a $1.5 million loss from $2.4 million gain
- Total benefits and expenses increased to $60.9 million from $58.2 million, driven by higher future policy benefit reserves
News Explained
Premiums grew, but reserve growth and market-related investment losses outweighed that operating progress in reported Q2 earnings.
The completed second-quarter report identifies two main pressures on Citizens' current earnings: investment-market fluctuations and a higher future-policy-benefit reserve charge tied mainly to Domestic Insurance growth.
Its adjusted revenue measure removes investment-related gains and losses, so the reported
Benefits and expenses rose to
The next quarterly report's future policy benefit reserves and claims-and-surrenders line items will indicate whether the reserve increase and declining matured-endowment payments described here persist.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Austin, Texas--(Newsfile Corp. - August 6, 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 second quarter ended June 30, 2026.
"Our underlying indicators of future growth continued to advance. We achieved our fifteenth consecutive quarter of year-over-year direct first year premium growth driven by our expanding sales force and increased direct renewal premiums. Book value per Class A share also increased year-over-year for the fourteenth consecutive quarter, and we've generated positive net cash provided by operating activities every year since 2004. These achievements demonstrate continued execution against our strategic roadmap," said Jon Stenberg, President and Chief Executive Officer. "Our second-quarter results were affected by investment-market fluctuations and increase in future policy benefit reserves mainly due to growth in our Domestic Insurance segment and the comparatively large amount of reserves released in the prior year period as we paid out matured endowment and released the corresponding reserves."
"Targeted investments in our strategic roadmap reinforce our leadership and are designed to drive clear growth of premiums and adjusted book value per share, and deliver long-term value for both our customers and shareholders," concluded Stenberg.
Recent Business Highlights
- Increased global network of producing agents, up
6% since June 30, 2025. - Direct insurance premiums of
$48.1 million in Q2 2026, up from$46.4 million in Q2 2025, driven by sales of our newer product offerings and expanded distribution in our Domestic Insurance segment. - Direct renewal premiums growth in Q2 2026, driven by strong sales in prior periods leading to a higher number of policies paying renewal premiums.
- Direct first year premiums have increased year-over-year for fifteen consecutive quarters.
Second Quarter 2026 Financial Results
- Total revenues of
$60.4 million in Q2 2026, from$65.1 million in the year-ago quarter. Adjusted total revenues, which excludes investment related gains (losses), of$61.9 million in Q2 2026, from$62.7 million in the year-ago quarter. - Net loss of
$0.4 million in Q2 2026, from$6.5 million net income in Q2 2025. Adjusted net income of$0.8 million in Q2 2026, from$4.2 million adjusted net income in Q2 2025. - Total assets of
$1.8 billion , cash and cash equivalents of$17.0 million and no debt at June 30, 2026. - Book value per Class A share of
$4.64 on June 30, 2026, increased from$4.56 on June 30, 2025. Adjusted book value per Class A share, which excludes accumulated other comprehensive income (loss) (AOCI), of$6.44 on June 30, 2026, increased from$6.22 on June 30, 2025. The Company has achieved fourteen consecutive quarters of book value per Class A share year-over-year growth.
Total premium revenue increased in Q2 2026 driven by an expanding sales force and our newer product offerings, marking the fifteenth consecutive quarter of year-over-year gains in direct first year premiums. Direct renewal premiums also grew in Q2 2026, driven by strong first year sales in prior periods leading to a higher number of policies paying renewal premiums in the current period. Premium growth was constrained by unfavorable persistency in our Domestic Insurance segment, while the high level of surrenders and matured endowments in our International Insurance segment during the last few years has reduced the number of policies remaining in force and paying renewal premiums. Despite increases in premium revenue, total revenues of
Total benefits and expenses increased to
Accordingly, we had a net loss of
Investments
Total investment income was
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 new 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 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) 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 June 30, | Six Months Ended June 30, | ||||||||||
| (In thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Balance sheet data | ||||||||||||
| Total assets | $ | 1,752,060 | 1,712,500 | 1,752,060 | 1,712,500 | |||||||
| Total liabilities | 1,516,896 | 1,483,474 | 1,516,896 | 1,483,474 | ||||||||
| Total stockholders' equity | 235,164 | 229,026 | 235,164 | 229,026 | ||||||||
| Total direct insurance in force | 5,539,881 | 5,347,041 | 5,539,881 | 5,347,041 | ||||||||
| Operating items | ||||||||||||
| Direct insurance premiums | $ | 48,105 | 46,401 | 92,037 | 88,751 | |||||||
| Insurance premiums | 43,703 | 43,388 | 83,641 | 83,185 | ||||||||
| Net investment income | 17,031 | 17,169 | 34,335 | 34,546 | ||||||||
| Investment related gains (losses), net | (1,494 | ) | 2,408 | (510 | ) | (486 | ) | |||||
| Total revenues | 60,408 | 65,086 | 120,128 | 120,738 | ||||||||
| Claims and surrenders | 33,751 | 40,220 | 73,404 | 80,318 | ||||||||
| Other general expenses | 14,090 | 13,459 | 27,462 | 26,152 | ||||||||
| Total benefits and expenses | 60,937 | 58,172 | 118,283 | 115,611 | ||||||||
| Income (loss) before federal income tax | (529 | ) | 6,914 | 1,845 | 5,127 | |||||||
| Federal income tax expense (benefit) | (104 | ) | 455 | 2 | 291 | |||||||
| Net income (loss) | (425 | ) | 6,459 | 1,843 | 4,836 | |||||||
| Per share data | ||||||||||||
| Book value per share | $ | 4.64 | 4.56 | 4.64 | 4.56 | |||||||
| Diluted income (loss) per Class A share | (0.01 | ) | 0.13 | 0.04 | 0.10 | |||||||
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 June 30, | Six Months Ended June 30, | ||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||
| INTERNATIONAL INSURANCE | ||||||||||||
| Balance sheet data | ||||||||||||
| Total assets | $ | 1,184,117 | 1,164,274 | 1,184,117 | 1,164,274 | |||||||
| Operating items | ||||||||||||
| Direct insurance premiums | $ | 28,885 | 29,306 | 54,467 | 55,385 | |||||||
| Insurance premiums | 28,369 | 28,878 | 53,567 | 54,486 | ||||||||
| Net investment income | 11,725 | 12,076 | 23,729 | 24,207 | ||||||||
| Investment related gains (losses), net | (1,559 | ) | 2,834 | (225 | ) | 68 | ||||||
| Total revenues | 39,696 | 45,901 | 79,719 | 82,239 | ||||||||
| Claims and surrenders | 25,907 | 34,399 | 58,018 | 67,433 | ||||||||
| Total benefits and expenses | 38,572 | 38,774 | 74,990 | 75,307 | ||||||||
| Income (loss) before federal income tax | 1,124 | 7,127 | 4,729 | 6,932 | ||||||||
| DOMESTIC INSURANCE | ||||||||||||
| Balance sheet data | ||||||||||||
| Total assets | $ | 535,227 | 512,224 | 535,227 | 512,224 | |||||||
| Operating items | ||||||||||||
| Direct insurance premiums | 19,220 | 17,095 | 37,570 | 33,366 | ||||||||
| Insurance premiums | 15,334 | 14,510 | 30,074 | 28,699 | ||||||||
| Net investment income | 5,102 | 4,919 | 10,215 | 9,978 | ||||||||
| Investment related gains (losses), net | 67 | (427 | ) | (278 | ) | (556 | ) | |||||
| Total revenues | 20,510 | 19,010 | 40,025 | 38,136 | ||||||||
| Claims and surrenders | 7,844 | 5,821 | 15,386 | 12,885 | ||||||||
| Total benefits and expenses | 18,896 | 16,382 | 37,160 | 34,950 | ||||||||
| Income (loss) before federal income tax | 1,614 | 2,628 | 2,865 | 3,186 | ||||||||
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) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Total revenues | $ | 60,408 | 65,086 | 120,128 | 120,738 | |||||||
| Less: | ||||||||||||
| Investment related gains (losses) | (1,494 | ) | 2,408 | (510 | ) | (486 | ) | |||||
| Adjusted total revenues | $ | 61,902 | 62,678 | 120,638 | 121,224 | |||||||
| 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) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Income (loss) before federal income tax | $ | (529 | ) | 6,914 | 1,845 | 5,127 | ||||||
| Less: | ||||||||||||
| Investment related gains (losses) | (1,494 | ) | 2,408 | (510 | ) | (486 | ) | |||||
| Adjusted income before federal income tax | $ | 965 | 4,506 | 2,355 | 5,613 | |||||||
| Reconciliation of Adjusted Net Income | ||||||||||||
| For the periods ended | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| Unaudited (In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net income (loss) | $ | (425 | ) | 6,459 | 1,843 | 4,836 | ||||||
| Less: | ||||||||||||
| Investment related gains (losses) | (1,494 | ) | 2,408 | (510 | ) | (486 | ) | |||||
| Income tax impact | 294 | (158 | ) | 250 | 108 | |||||||
| Adjusted net income | $ | 775 | 4,209 | 2,103 | 5,214 | |||||||
| Reconciliation of Adjusted Income Per Share of Class A Common Stock | ||||||||||||
| For the periods ended | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| Unaudited (In thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Basic and diluted adjusted income per share: | ||||||||||||
| Adjusted net income | $ | 775 | 4,209 | 2,103 | 5,214 | |||||||
| Weighted average shares of Class A outstanding - basic | 50,521 | 50,112 | 50,426 | 50,024 | ||||||||
| Weighted average shares of Class A outstanding - diluted | 51,824 | 50,985 | 51,714 | 50,897 | ||||||||
| Basic adjusted income per share of Class A common stock | $ | 0.02 | 0.08 | 0.04 | 0.10 | |||||||
| Diluted adjusted income per share of Class A common stock | $ | 0.01 | 0.08 | 0.04 | 0.10 | |||||||
| Reconciliation of Stockholders' Equity and Book Value per Class A Common Share | ||||||
| As of June 30, | ||||||
| Unaudited (In thousands, except per share data) | 2026 | 2025 | ||||
| Stockholders' equity, end of period | $ | 235,164 | 229,026 | |||
| Less: Accumulated other comprehensive income (loss) (AOCI) | (91,095 | ) | (83,655 | ) | ||
| Stockholders' equity, end of period, excluding AOCI | $ | 326,259 | 312,681 | |||
| Book value per Class A common share - diluted | $ | 4.64 | 4.56 | |||
| Less: Per share impact of AOCI | (1.80 | ) | (1.66 | ) | ||
| Book value per Class A common share - diluted, excluding AOCI | $ | 6.44 | 6.22 | |||
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/308418