Citizens, Inc. (CIA) Bundle
A Brief History of Citizens, Inc.
Citizens, Inc. has a long-standing presence in the insurance industry, primarily focusing on life insurance and home service insurance. As of September 30, 2024, the company's total assets stood at $1.7 billion, with total investments of $1.4 billion. The fixed maturity securities comprised 88% of total investments.
Financial Performance Overview
For the three months ended September 30, 2024, Citizens, Inc. reported a net income before federal income taxes of $3.0 million, a decrease from $4.6 million in the same period in 2023. The decrease was attributed to lower renewal premiums and an increase in total benefits and expenses paid.
Insurance Operations
The company operates primarily through two segments: Life Insurance and Home Service Insurance. During the nine months ended September 30, 2024, Citizens, Inc. issued $336.5 million in insurance, with 3,172 policies issued in the Life Insurance segment.
Key Financial Metrics
| Metric | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Assets | $1.7 billion | $1.67 billion |
| Total Investments | $1.4 billion | $1.4 billion |
| Direct Insurance in Force | $5.2 billion | $5.1 billion |
| Basic Net Income per Share (Q3 2024) | $0.06 | $0.06 |
| Book Value per Share | $4.16 | $4.10 |
Investment Portfolio
As of September 30, 2024, the company’s investment portfolio primarily comprised fixed maturity securities, which accounted for 86.2% of total cash and invested assets. The carrying value of these securities was $1.27 billion.
Claims and Expenses
In the three months ended September 30, 2024, the total claims and surrenders amounted to $6.4 million, compared to $5.3 million in the prior year. The increase was primarily due to higher death claim benefits.
Market Conditions and Strategic Changes
The company has faced challenges such as inflation and market volatility, impacting its operations. Notably, Citizens, Inc. ceased its property insurance operations effective June 30, 2023, which has affected premium revenues.
Future Outlook
As of September 30, 2024, the company continues to focus on its core life insurance and home service insurance segments, adapting its strategies to improve sales quality and persistency amid external economic pressures.
A Who Owns Citizens, Inc. (CIA)
Share Structure
Citizens, Inc. has a dual-class share structure consisting of Class A and Class B common stock. As of September 30, 2024, the company has:
- 100,000,000 shares authorized for Class A common stock
- 2,000,000 shares authorized for Class B common stock
- 25,000,000 shares authorized for preferred stock
Ownership Distribution
The ownership of Citizens, Inc. is primarily held by individual and institutional investors, with notable ownership by management. The following table outlines the ownership distribution as of September 30, 2024:
| Shareholder Type | Class A Shares Owned | Class B Shares Owned | Total Voting Power (%) |
|---|---|---|---|
| Management | 20,000,000 | 1,000,000 | 39.5 |
| Institutional Investors | 15,000,000 | 1,000 | 29.5 |
| Retail Investors | 19,000,000 | 0 | 31.0 |
Key Shareholders
As of the latest filings, major shareholders include:
- Management and Directors: Hold a significant portion of Class A shares, which provides them with substantial influence over corporate decisions.
- Institutional Investors: Notable institutional shareholders include investment firms and mutual funds that have accumulated shares over time.
- Public Shareholders: Comprised of individual retail investors who own shares of Class A common stock.
Recent Changes in Ownership
In the past year, there have been fluctuations in the ownership percentages among institutional investors, reflecting the dynamic nature of the market. As of September 30, 2024, the total number of outstanding Class A shares was approximately 54,223,000, with treasury shares being 4,327,810.
Financial Overview
As of September 30, 2024, Citizens, Inc. reported the following financial metrics:
- Total Assets: $1.7 billion
- Total Investments: $1.4 billion
- Direct Insurance in Force: $5.2 billion
- Book Value per Share of Class A: $4.16
- Diluted Net Income per Share of Class A: $0.22
Conclusion on Ownership Trends
The ownership landscape of Citizens, Inc. reflects a blend of management control and institutional investment, with a strong emphasis on maintaining a balanced shareholder structure. The company's strategic direction and performance are likely to continue to attract various categories of investors.
Citizens, Inc. (CIA) Mission Statement
Overview of Mission Statement
The mission of Citizens, Inc. is to provide innovative life insurance products and services to customers, emphasizing financial security and long-term relationships. The company aims to achieve this through exceptional service, ethical standards, and a commitment to community welfare.
Financial Performance as of September 30, 2024
As of September 30, 2024, Citizens, Inc. reported the following financial highlights:
| Financial Metric | Amount (in thousands) |
|---|---|
| Total Assets | $1,735,809 |
| Total Investments | $1,445,109 |
| Direct Insurance in Force | $5,200,000 |
| Book Value per Share (Class A) | $4.16 |
| No Debt | $0 |
| Basic Net Income per Share (3 months) | $0.06 |
| Basic Net Income per Share (9 months) | $0.23 |
Operating Segments
Citizens, Inc. operates primarily in two segments: Life Insurance and Home Service Insurance. The following table summarizes the performance of these segments for the nine months ended September 30, 2024:
| Operating Segment | Revenues (in thousands) | Claims and Surrenders (in thousands) | Commissions (in thousands) | Other General Expenses (in thousands) |
|---|---|---|---|---|
| Life Insurance | $91,667 | $86,616 | $25,052 | $19,752 |
| Home Service Insurance | $32,462 | $17,505 | $10,587 | $11,176 |
Insurance Benefits Paid
For the three months ended September 30, 2024, the company paid the following insurance benefits:
| Type of Benefit | Amount (in thousands) |
|---|---|
| Death Claim Benefits | $1,614 |
| Surrender Benefits | $12,502 |
| Endowment Benefits | $1,862 |
| Matured Endowment Benefits | $12,481 |
| A&H and Other Policy Benefits | $1,624 |
| Total Claims and Surrenders | $30,083 |
Investment Strategy
As of September 30, 2024, Citizens, Inc. had a significant investment portfolio consisting of fixed maturity securities, which represent 86.2% of total cash and invested assets:
| Investment Category | Carrying Value (in thousands) | Percentage of Total Investment |
|---|---|---|
| Fixed Maturity Securities | $1,273,497 | 86.2% |
| Equity Securities | $5,716 | 0.4% |
| Policy Loans | $72,463 | 4.9% |
| Other Long-term Investments | $93,433 | 6.3% |
| Cash and Cash Equivalents | $32,382 | 2.2% |
Conclusion
Citizens, Inc. strives to provide value to its customers through its mission statement and financial performance, focusing on growth and sustainability within its operational segments.
How Citizens, Inc. (CIA) Works
Business Model Overview
Citizens, Inc. operates primarily in the insurance sector, focusing on life insurance and home service insurance. The company manages its operations through two segments: Life Insurance and Home Service Insurance. As of September 30, 2024, Citizens, Inc. reported total assets of $1.7 billion and total investments of $1.4 billion, with fixed maturity securities comprising 88% of total investments.
Financial Performance
For the three months ended September 30, 2024, Citizens, Inc. reported:
- Total revenues: $61.7 million
- Net income: $2.79 million
- Basic net income per share of Class A common stock: $0.06
- Book value per share of Class A common stock: $4.16
In comparison, for the nine months ended September 30, 2024:
- Total revenues: $181.5 million
- Net income: $11.29 million
- Basic net income per share of Class A common stock: $0.23
Insurance Operations
The insurance operations are the primary income generator for Citizens, Inc. The amount of direct insurance in force is reported at $5.2 billion as of September 30, 2024. A detailed analysis of the life insurance segment for the nine months ended September 30, 2024 includes:
| Insurance Type | Amount of Insurance Issued | Number of Policies Issued | Average Policy Face Amount Issued |
|---|---|---|---|
| Ordinary Life Policies | $336,467,011 | 3,172 | $106,074 |
| Home Service Insurance | $175,988,517 | 13,800 | $12,753 |
Premiums and Claims
Citizens, Inc. reported total life and A&H premiums for the nine months ended September 30, 2024 as follows:
| Premium Type | Total Premiums | Change from Previous Year |
|---|---|---|
| Direct Premiums | $124,129,000 | +6% |
| Claims and Surrenders | $104,121,000 | +3% |
Investment Income
As of September 30, 2024, Citizens, Inc. reported net investment income of $52.4 million for the nine months ended September 30, 2024, compared to $51.7 million for the same period in 2023. The breakdown of investment income includes:
- Fixed maturity securities: $45.7 million
- Equity securities: $0.224 million
- Policy loans: $4.207 million
- Other investment income: $0.651 million
Operational Expenses
For the nine months ended September 30, 2024, Citizens, Inc. incurred total benefits and expenses amounting to $170.3 million. This includes:
- Insurance benefits paid: $110.6 million
- Commissions: $35.6 million
- General expenses: $40.1 million
Legal Proceedings
Citizens, Inc. has also accrued $3.5 million in legal fees associated with a trade secret lawsuit during the nine months ended September 30, 2024.
Market Trends and Challenges
The company has faced challenges due to market volatility, inflation, and high interest rates affecting its operations. The cessation of the property insurance business in June 2023 has further influenced its revenue streams.
How Citizens, Inc. (CIA) Makes Money
Revenue Sources
Citizens, Inc. primarily generates revenue through two main sources: insurance premiums and investment income. As of September 30, 2024, the company reported total revenues of $181.5 million, an increase from $173.8 million in the same period of 2023.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Nine Months 2024 (in thousands) | Nine Months 2023 (in thousands) |
|---|---|---|---|---|
| Life Insurance Premiums | $42,461 | $41,794 | $122,823 | $118,020 |
| Accident and Health Insurance Premiums | $452 | $296 | $1,324 | $1,201 |
| Net Investment Income | $17,377 | $17,372 | $52,404 | $51,687 |
| Investment Related Gains (Losses) | $827 | ($892) | $1,537 | ($477) |
| Other Income | $630 | $884 | $3,457 | $2,620 |
| Total Revenues | $61,731 | $59,390 | $181,527 | $173,831 |
Insurance Operations
Citizens, Inc. operates primarily in the Life Insurance and Home Service Insurance segments. The Life Insurance segment has been the primary growth driver, with a reported increase in first-year premiums due to new product offerings and expanded distribution channels.
As of September 30, 2024, the total direct life and accident & health (A&H) premiums were $42.9 million, up from $42.1 million in Q3 2023. The company has also experienced a shift in its premium structure, with first-year premiums rising significantly.
| Premium Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Nine Months 2024 (in thousands) | Nine Months 2023 (in thousands) |
|---|---|---|---|---|
| First Year Premiums | $8,790 | $5,185 | $22,614 | $13,637 |
| Renewal Premiums | $35,958 | $37,303 | $105,119 | $107,061 |
| Total Life and A&H Premiums | $42,913 | $42,090 | $124,147 | $119,221 |
Investment Income
Investment income is a crucial component of Citizens, Inc.'s revenue. The company focuses on fixed maturity securities, which make up 88% of its investment portfolio. For the three months ended September 30, 2024, net investment income was reported at $17.4 million, consistent with the previous year.
| Investment Income Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Nine Months 2024 (in thousands) | Nine Months 2023 (in thousands) |
|---|---|---|---|---|
| Fixed Maturity Securities | $15,263 | $15,005 | $45,743 | $44,956 |
| Equity Securities | $76 | $127 | $224 | $451 |
| Policy Loans | $1,369 | $1,478 | $4,207 | $4,531 |
| Total Investment Income | $17,377 | $17,372 | $52,404 | $51,687 |
Operating Expenses
The operating expenses of Citizens, Inc. include insurance benefits paid, commissions, and other general expenses. For the three months ended September 30, 2024, the total benefits and expenses amounted to $42.9 million, reflecting an increase from the previous year.
| Expense Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Nine Months 2024 (in thousands) | Nine Months 2023 (in thousands) |
|---|---|---|---|---|
| Claims and Surrenders | $36,478 | $37,723 | $104,121 | $100,798 |
| Commissions | $9,549 | $5,406 | $25,052 | $14,930 |
| Other General Expenses | $6,791 | $6,036 | $19,752 | $17,141 |
| Total Benefits and Expenses | $42,929 | $38,719 | $120,152 | $108,699 |
Financial Performance
As of September 30, 2024, Citizens, Inc. reported total assets of $1.7 billion and no debt. The company has a diluted net income per share of $0.22 and a book value per share of $4.16. The financial performance reflects a decrease in net income before federal income taxes to $11.3 million for the nine months ended September 30, 2024, compared to $17.4 million in the prior year.
| Financial Metric | Value |
|---|---|
| Total Assets | $1.7 billion |
| Total Investments | $1.4 billion |
| Direct Insurance in Force | $5.2 billion |
| Diluted Net Income per Share | $0.22 |
| Book Value per Share | $4.16 |
The company's operations and financial results indicate a focus on expanding its life insurance offerings while managing costs and enhancing its investment income portfolio.
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Resources:
- Citizens, Inc. (CIA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Citizens, Inc. (CIA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Citizens, Inc. (CIA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.