Citizens, Inc. Reports Third Quarter 2026 Financial Results
Nine-month net income fell to $1.421 million from $7.253 million despite higher revenue.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Citizens (NYSE: CIA) reported a third-quarter 2026 net loss of $422,000 as higher policy reserves outweighed premium growth and lower claims. The loss was $0.01 per diluted Class A share, versus income of $0.04 a year earlier. Revenue rose to $65.038 million from $62.808 million, while adjusted revenue, excluding investment gains and losses, fell to $63.649 million from $64.063 million.
Direct insurance premiums increased 7% to $50 million, led by domestic business. Future policy benefit reserves increased $16.3 million year over year, reflecting business growth and lower reserve releases from matured endowments. International insurance returned to quarterly pretax profit, while domestic insurance posted a pretax loss. At September 30, cash totaled $17.6 million with no debt. Book value per Class A share fell to $4.37 from $4.49; adjusted book value, excluding accumulated other comprehensive income or loss, rose to $6.44 from $6.26.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ3 direct insurance premiums increased 7% to $50 million from $46.6 million a year earlier.
- Moderate pointQ3 direct first-year premiums grew 9%, marking sixteen consecutive quarters of year-over-year increases.
- Moderate pointDomestic producing agents increased 12% since September 30, 2025.
- Moderate pointQ3 revenue increased to $65.038 million from $62.808 million a year earlier.
- Moderate pointQ3 claims and surrenders decreased $13.2 million year over year as matured endowments declined.
- Moderate pointInternational insurance Q3 pretax profit reached $3.497 million, versus a $122,000 year-earlier loss.
- Moderate pointNine-month revenue increased to $185.166 million from $183.546 million in 2025.
- Moderate pointNine-month direct insurance premiums increased to $142.083 million from $135.343 million in 2025.
- Moderate pointInternational nine-month pretax income increased to $8.226 million from $6.810 million in 2025.
- Moderate pointOperating activities generated $13 million in net cash.
- Moderate pointDirect insurance in force rose to $5.599 billion from $5.379 billion at September 30, 2025.
6 minor points
- Minor pointQ3 investment results improved to a $1.389 million gain from a $1.255 million year-earlier loss.
- Minor pointDomestic Q3 investment income increased to $5.350 million from $5.008 million a year earlier.
- Minor pointSeptember 30 cash totaled $17.6 million, with no debt.
- Minor pointAdjusted Class A book value rose to $6.44 from $6.26 at September 30, 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.Citizens plans third-party cloud platforms to upgrade insurance processing, underwriting and policy administration.
- Minor point. Forward-looking: it has not happened yet and may not happen.Citizens plans product additions and market expansion alongside new agent and client servicing platforms.
Negative
- Moderate pointQ3 net results fell to a $422,000 loss from $2.417 million income a year earlier.
- Moderate pointQ3 adjusted net income fell to $1,000 from $3.4 million a year earlier.
- Moderate pointQ3 future policy benefit reserves increased $16.3 million year over year, reflecting growth and lower maturity-related releases.
- Moderate pointQ3 other general expenses increased to $14.795 million from $13.291 million a year earlier.
- Moderate pointDomestic insurance Q3 pretax results fell to an $866,000 loss from $6.635 million income a year earlier.
- Moderate pointQ3 net investment income declined to $18.052 million from $19.117 million a year earlier.
- Moderate pointDomestic premium growth faced unfavorable policy retention; prior international surrenders and maturities reduced renewal-paying policies.
- Moderate pointNine-month net income fell to $1.421 million from $7.253 million in 2025.
- Moderate pointDomestic nine-month pretax income fell to $1.999 million from $9.821 million in 2025.
11 minor points
- Minor pointQ3 diluted Class A results fell to a $0.01 loss per share from $0.04 income a year earlier.
- Minor pointQ3 adjusted revenue declined to $63.649 million from $64.063 million a year earlier.
- Minor pointCeded reserve credit decreased $1.7 million following an accounting-estimate change using enhanced data sources.
- Minor point. Forward-looking: it has not happened yet and may not happen.Supplemental-contract income is expected to decline as matured-endowment obligations decrease.
- Minor pointNine-month diluted Class A income fell to $0.03 per share from $0.14 in 2025.
- Minor pointNine-month adjusted revenue declined to $184.287 million from $185.287 million in 2025.
- Minor pointNine-month net investment income declined to $52.387 million from $53.663 million in 2025.
- Minor pointInternational nine-month revenue declined to $123.767 million from $124.372 million in 2025.
- Minor pointSeptember 30 assets declined to $1.691 billion from $1.742 billion a year earlier.
- Minor pointSeptember 30 stockholders' equity declined to $221.504 million from $225.604 million a year earlier.
- Minor pointClass A book value fell to $4.37 from $4.49 at September 30, 2025.
News Explained
Citizens announced investment in third-party cloud platforms for insurance processing, underwriting and policy administration, a planned operating-platform shift that the company says is intended to strengthen those functions and support growth across products, markets and distribution.
Key Figures
- Direct insurance premiums
- $50 million, up 7%
- Q3 2026; $46.6 million a year earlier
- Total revenues
- $65 million
- Q3 2026; $62.8 million in the year-ago quarter
- Adjusted total revenues
- $63.6 million
- Q3 2026; $64.1 million in the year-ago quarter
- Net income (loss)
- $0.4 million net loss
- Q3 2026; compared with $2.4 million net income in Q3 2025
- Adjusted net income
- $1 thousand
- Q3 2026; compared with $3.4 million in Q3 2025
- Future policy benefit reserves
- $16.3 million increase
- Q3 2026; reserve increase more than offset lower claims and surrenders
- Book value per Class A share
- $4.37
- September 30, 2026; $4.49 a year earlier
- Adjusted book value per Class A share
- $6.44
- September 30, 2026; $6.26 a year earlier
Previous Earnings Reports
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Reported a net loss and lower revenue; the recorded price reaction was negative.
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Reported net income and revenue growth; the recorded price reaction was negative.
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Reported quarterly net income and direct insurance in-force figures used for comparison.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gaap financial
non-gaap financial
aoci financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Austin, Texas--(Newsfile Corp. - November 5, 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 third quarter ended September 30, 2026.
"Premium growth, distribution expansion, and cash generation all continued to strengthen. Our third-quarter results show the continued momentum of our domestic insurance business. Overall direct premiums grew
"Our announcement to invest in a modern technology ecosystem is an important step in Citizens' long-term growth strategy. By moving to third-party, cloud-based platforms, we are strengthening our insurance processing, underwriting, and policy administration capabilities. We are also building the foundation to grow premium revenue through expanded products, markets and distribution. We believe these opportunities are significant, and our targeted investments are designed to accelerate premium growth, increase adjusted book value per share and deliver long-term value for our policyholders and shareholders," concluded Stenberg.
Recent Business Highlights
- Increased network of domestic producing agents, up
12% since September 30, 2025. - Direct first year premiums have increased year-over-year for sixteen consecutive quarters.
- Direct insurance premiums increased
7% to$50 million in Q3 2026 from$46.6 million a year ago, primarily driven by our newer product offerings, expanded Domestic Insurance segment distribution, and higher renewal premiums.
Third Quarter 2026 Financial Results
- Total revenues of
$65 million in Q3 2026, from$62.8 million in the year-ago quarter. Adjusted total revenues, which exclude investment related gains (losses), of$63.6 million in Q3 2026, from$64.1 million in the year-ago quarter. - Net loss of
$0.4 million in Q3 2026, from$2.4 million net income in Q3 2025. Adjusted net income of$1 thousand in Q3 2026, from$3.4 million in Q3 2025. - Total assets of
$1.7 billion , cash and cash equivalents of$17.6 million and no debt at September 30, 2026. - Book value per Class A share of
$4.37 on September 30, 2026, from$4.49 on September 30, 2025. Adjusted book value per Class A share, which excludes accumulated other comprehensive income (loss) (AOCI), of$6.44 on September 30, 2026, increased from$6.26 on September 30, 2025.
Total revenues of
Total benefits and expenses increased to
Accordingly, we had a net loss of
Investments
Net investment income decreased to
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:
- Leverage modern technology to accelerate growth initiatives and expand market opportunities
- Increase first year premium revenues
- Increase penetration in new and existing countries served
- Introduce new products and product enhancements
- Deploy new agent and client servicing platforms that drive efficiency
Upcoming Investor Conference
Sidoti Virtual Conference on December 9 and 10, 2026
Citizens management plans to participate in the Sidoti Virtual Conference on December 9 and 10. Conference attendees are encouraged to register and request one-on-one meetings HERE.
Sidoti Virtual Conference will also host a fireside chat webcast with Citizens management on December 9 at 11:30 ET, moderated by a Sidoti research analyst. The live, interactive fireside chat webcast and slide presentation will be accessible on the Company's Investor Relations website under the Events tab at https://www.citizensinc.com/investors/. 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: 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 Net Income 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. The provision for income tax related to adjusted after-tax income is calculated using our effective tax rate excluding discrete items. 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 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 September 30, | Nine Months Ended September 30, | ||||||||||
| (In thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Balance sheet data | ||||||||||||
| Total assets | $ | 1,690,776 | 1,742,365 | 1,690,776 | 1,742,365 | |||||||
| Total liabilities | 1,469,272 | 1,516,761 | 1,469,272 | 1,516,761 | ||||||||
| Total stockholders' equity | 221,504 | 225,604 | 221,504 | 225,604 | ||||||||
| Total direct insurance in force | 5,598,826 | 5,379,220 | 5,598,826 | 5,379,220 | ||||||||
| Operating items | ||||||||||||
| Direct insurance premiums | $ | 50,046 | 46,592 | 142,083 | 135,343 | |||||||
| Insurance premiums | 44,803 | 43,303 | 128,444 | 126,488 | ||||||||
| Net investment income | 18,052 | 19,117 | 52,387 | 53,663 | ||||||||
| Investment related gains (losses), net | 1,389 | (1,255 | ) | 879 | (1,741 | ) | ||||||
| Total revenues | 65,038 | 62,808 | 185,166 | 183,546 | ||||||||
| Claims and surrenders | 31,066 | 44,276 | 104,470 | 124,594 | ||||||||
| Other general expenses | 14,795 | 13,291 | 42,257 | 39,443 | ||||||||
| Total benefits and expenses | 64,896 | 58,329 | 183,179 | 173,940 | ||||||||
| Income (loss) before federal income tax | 142 | 4,479 | 1,987 | 9,606 | ||||||||
| Federal income tax expense (benefit) | 564 | 2,062 | 566 | 2,353 | ||||||||
| Net income (loss) | (422 | ) | 2,417 | 1,421 | 7,253 | |||||||
| Per share data | ||||||||||||
| Book value per share | $ | 4.37 | 4.49 | 4.37 | 4.49 | |||||||
| Diluted income (loss) per Class A share | (0.01 | ) | 0.04 | 0.03 | 0.14 | |||||||
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 September 30, | Nine Months Ended September 30, | ||||||||||
| (In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||
| INTERNATIONAL INSURANCE | ||||||||||||
| Balance sheet data | ||||||||||||
| Total assets | $ | 1,144,449 | 1,181,127 | 1,144,449 | 1,181,127 | |||||||
| Operating items | ||||||||||||
| Direct insurance premiums | $ | 29,669 | 29,221 | 84,136 | 84,606 | |||||||
| Insurance premiums | 29,101 | 28,760 | 82,668 | 83,246 | ||||||||
| Net investment income | 12,519 | 13,915 | 36,248 | 38,122 | ||||||||
| Investment related gains (losses), net | 1,637 | (2,055 | ) | 1,412 | (1,987 | ) | ||||||
| Total revenues | 44,048 | 42,133 | 123,767 | 124,372 | ||||||||
| Claims and surrenders | 22,972 | 38,039 | 80,990 | 105,472 | ||||||||
| Total benefits and expenses | 40,551 | 42,255 | 115,541 | 117,562 | ||||||||
| Income (loss) before federal income tax | 3,497 | (122 | ) | 8,226 | 6,810 | |||||||
| DOMESTIC INSURANCE | ||||||||||||
| Balance sheet data | ||||||||||||
| Total assets | $ | 514,364 | 525,638 | 514,364 | 525,638 | |||||||
| Operating items | ||||||||||||
| Direct insurance premiums | 20,377 | 17,371 | 57,947 | 50,737 | ||||||||
| Insurance premiums | 15,702 | 14,543 | 45,776 | 43,242 | ||||||||
| Net investment income | 5,350 | 5,008 | 15,565 | 14,986 | ||||||||
| Investment related gains (losses), net | (256 | ) | 791 | (534 | ) | 235 | ||||||
| Total revenues | 20,799 | 20,347 | 60,824 | 58,483 | ||||||||
| Claims and surrenders | 8,094 | 6,237 | 23,480 | 19,122 | ||||||||
| Total benefits and expenses | 21,665 | 13,712 | 58,825 | 48,662 | ||||||||
| Income (loss) before federal income tax | (866 | ) | 6,635 | 1,999 | 9,821 | |||||||
GAAP to Non-GAAP Reconciliations
| Reconciliation of Adjusted Total Revenues | ||||||||||||
| For the periods ended | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| Unaudited (In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Total revenues | $ | 65,038 | 62,808 | 185,166 | 183,546 | |||||||
| Less: | ||||||||||||
| Investment related gains (losses) | 1,389 | (1,255 | ) | 879 | (1,741 | ) | ||||||
| Adjusted total revenues | $ | 63,649 | 64,063 | 184,287 | 185,287 | |||||||
| Reconciliation of Adjusted Net Income | ||||||||||||
| For the periods ended | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| Unaudited (In thousands) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Net income (loss) | $ | (422 | ) | 2,417 | 1,421 | 7,253 | ||||||
| Less: | ||||||||||||
| Investment related gains (losses) | 1,389 | (1,255 | ) | 879 | (1,741 | ) | ||||||
| Ceded reserve credit | (1,700 | ) | — | (1,700 | ) | — | ||||||
| Income tax impact | (112 | ) | 309 | 138 | 416 | |||||||
| Adjusted net income | $ | 1 | 3,363 | 2,104 | 8,578 | |||||||
| Reconciliation of Adjusted Income Per Share of Class A Common Stock | ||||||||||||
| For the periods ended | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
| Unaudited (In thousands, except per share amounts) | 2026 | 2025 | 2026 | 2025 | ||||||||
| Basic and diluted adjusted income per share: | ||||||||||||
| Adjusted net income | $ | 1 | 3,363 | 2,104 | 8,578 | |||||||
| Weighted average shares of Class A outstanding - basic | 50,669 | 50,265 | 50,502 | 50,099 | ||||||||
| Weighted average shares of Class A outstanding - diluted | 51,632 | 51,570 | 51,473 | 51,401 | ||||||||
| Basic and diluted adjusted income per share of Class A common stock | $ | — | 0.07 | 0.04 | 0.17 | |||||||
| Reconciliation of Stockholders' Equity and Book Value per Class A Common Share | ||||||
| As of September 30, | ||||||
| Unaudited (In thousands, except per share data) | 2026 | 2025 | ||||
| Stockholders' equity, end of period | $ | 221,504 | 225,604 | |||
| Less: Accumulated other comprehensive income (loss) (AOCI) | (104,769 | ) | (89,416 | ) | ||
| Stockholders' equity, end of period, excluding AOCI | $ | 326,273 | 315,020 | |||
| Book value per Class A common share - diluted | $ | 4.37 | 4.49 | |||
| Less: Per share impact of AOCI | (2.07 | ) | (1.77 | ) | ||
| Book value per Class A common share - diluted, excluding AOCI | $ | 6.44 | 6.26 | |||
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/322721
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Citizens CIA's third-quarter 2026 earnings?
Citizens recorded a $422,000 net loss, or $0.01 per diluted Class A share, versus net income of $2.417 million, or $0.04 per diluted Class A share, a year earlier. Adjusted net income was $1,000, compared with $3.4 million.
Why did Citizens CIA's net investment income decline in the third quarter of 2026?
Net investment income declined primarily because the prior-year quarter included a $1.7 million dividend from a limited partnership investment, while investment expenses were higher in the current quarter. Net investment income was $18.052 million, compared with $19.117 million a year earlier.
What does Citizens CIA expect for matured endowment payments?
Citizens expects lower endowment maturities in 2026 and over the next few years as fewer contracts expire. Maturities reached their highest level in 2025. These payments contributed to the year-over-year decline in third-quarter claims and surrenders.