0000024090-26-000011
SEC filingCitizens, Inc. reported total revenue of $255.6 million for fiscal year 2025, driven primarily by premiums of $176.4 million and net investment income of $72.0 million. The company achieved net income of $14.6 million and total comprehensive income of $22.1 million. Key expenses included total insurance benefits paid or provided of $158.3 million and total benefits and expenses of $238.1 million. The balance sheet shows total assets of $1.75 billion, with investments totaling $1.44 billion, and total stockholders' equity of $235.0 million. Cash flow from operations was $18.0 million, while investing activities used $19.7 million, resulting in a net decrease in cash of $6.3 million. The company specializes in individual whole life insurance, endowment products, and final expense insurance through its International and Domestic Insurance segments.
Citizens, Inc. reported total revenue of $255.6 million for fiscal year 2025, consisting of premiums ($176.4 million), net investment income ($72.0 million), investment related gains ($140,000), and other income ($7.1 million). The company achieved net income of $14.6 million and total comprehensive income of $22.1 million, which includes other comprehensive income of $7.5 million. Total benefits and expenses were $238.1 million, resulting in income before federal income tax of $17.5 million. The company's total assets stood at $1.75 billion as of December 31, 2025, with total liabilities of $1.52 billion and stockholders' equity of $235.0 million.
The company's revenue is derived principally from two sources: life insurance premiums earned from insurance coverages provided in its two operating segments (International Insurance and Domestic Insurance) and net investment income. Premiums accounted for $176.4 million (69% of total revenue), while net investment income contributed $72.0 million (28% of total revenue). The document states that the company specializes in offering primarily individual whole life insurance, endowment products and final expense insurance in niche markets where it can optimize its competitive position. No specific segment revenue breakdown or geographic mix is provided in the available data.
The company's income before federal income tax was $17.5 million on total revenue of $255.6 million, representing a pre-tax margin of 6.8%. After federal income tax expense of $2.9 million, net income margin was 5.7%. Major expense components included claims and surrenders ($165.0 million), commissions ($47.3 million), other general expenses ($53.0 million), and amortization of deferred policy acquisition costs ($18.9 million). The total insurance benefits paid or provided were $158.3 million, which includes claims and surrenders adjusted for changes in future policy benefit reserves and policyholder liability remeasurement.
Operating activities generated $18.0 million in cash flow, primarily from net income of $14.6 million adjusted for various non-cash items including net deferred policy acquisition costs ($20.9 million) and stock-based compensation ($2.8 million). Investing activities used $19.7 million, with purchases of fixed maturities ($170.4 million) exceeding sales and maturities ($135.3 million). Financing activities resulted in a net cash outflow of $4.6 million. The balance sheet shows total investments of $1.44 billion, including fixed maturity securities ($1.29 billion), policy loans ($67.5 million), and other long-term investments ($85.4 million). Total policy liabilities were $1.46 billion, consisting primarily of future policy benefit reserves ($1.19 billion) and total policyholder funds ($272.7 million).
The document indicates that the company has been fulfilling policyholder needs for over 55 years by providing insurance products that offer both living and death benefits. Management discusses how industry developments and economic circumstances (e.g., interest rate environment) affect financial performance. The company renewed its Credit Facility with Regions Bank on May 3, 2024 for an additional three years. Regulatory requirements limit dividends that can be paid from insurance subsidiaries to the holding company. The company offers a Stock Investment Plan that allows direct stock purchases from newly issued or treasury stock, providing a potential capital raising mechanism. No specific forward-looking guidance or quantitative outlook is provided in the available data.