Citizens, Inc. Reports Third Quarter 2024 Financial Results
Citizens, Inc. (NYSE: CIA) reported its Q3 2024 financial results, highlighting significant achievements and growth. The company saw a 75% increase in insurance issued, amounting to $307.6 million, marking its fourth consecutive record quarter. Total revenues rose by 4% to $61.7 million, and direct first-year life and A&H premiums surged by 70%. Despite these gains, income before federal income tax fell to $3.0 million from $4.6 million in Q3 2023, with adjusted income before federal income tax decreasing to $2.2 million from $5.7 million. Net income was $2.8 million or $0.05 per share, up from $2.7 million or $0.05 per share in Q3 2023. The company maintained positive net cash from operations, totaling $9.7 million, and reported cash and cash equivalents of $32.4 million with no debt. Book value per Class A share increased by 35% to $4.16. Citizens expanded its licensing to 42 states and Washington, D.C. and grew its network of agents by 86% since December 2023.
Citizens, Inc. (NYSE: CIA) ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando importanti successi e crescita. L'azienda ha registrato un aumento del 75% nelle polizze emesse, raggiungendo i 307,6 milioni di dollari, segnando il quarto trimestre consecutivo con un record. I ricavi totali sono aumentati del 4% a 61,7 milioni di dollari, e i premi diretti per la vita e A&H del primo anno sono aumentati del 70%. Nonostante questi guadagni, il reddito prima delle imposte federali è sceso a 3,0 milioni di dollari rispetto a 4,6 milioni di dollari nel terzo trimestre del 2023, con un reddito rettificato prima delle imposte federali diminuito a 2,2 milioni di dollari rispetto a 5,7 milioni. Il reddito netto è stato di 2,8 milioni di dollari, ovvero 0,05 dollari per azione, in aumento rispetto a 2,7 milioni di dollari o 0,05 dollari per azione nel terzo trimestre del 2023. L'azienda ha mantenuto un positivo flusso di cassa netto dalle operazioni, per un totale di 9,7 milioni di dollari, e ha riportato liquidità e liquidità equivalente di 32,4 milioni di dollari senza debiti. Il valore contabile per azione di Classe A è aumentato del 35% a 4,16 dollari. Citizens ha espanso le sue licenze a 42 stati e Washington D.C. e ha aumentato la sua rete di agenti dell'86% dal dicembre 2023.
Citizens, Inc. (NYSE: CIA) ha reportado sus resultados financieros del tercer trimestre de 2024, destacando logros significativos y crecimiento. La empresa vio un aumento del 75% en pólizas emitidas, alcanzando los 307,6 millones de dólares, marcando su cuarto trimestre consecutivo con récord. Los ingresos totales aumentaron un 4% a 61,7 millones de dólares, y las primas directas de vida y A&H del primer año se dispararon un 70%. A pesar de estas ganancias, el ingreso antes de impuestos federales cayó a 3,0 millones de dólares desde 4,6 millones de dólares en el tercer trimestre de 2023, con un ingreso ajustado antes de impuestos federales disminuyendo a 2,2 millones de dólares desde 5,7 millones. El ingreso neto fue de 2,8 millones de dólares o 0,05 dólares por acción, en comparación con 2,7 millones de dólares o 0,05 dólares por acción en el tercer trimestre de 2023. La empresa mantuvo un flujo de efectivo neto positivo de las operaciones, totalizando 9,7 millones de dólares, y reportó efectivo y equivalentes de efectivo de 32,4 millones de dólares sin deuda. El valor en libros por acción de Clase A aumentó un 35% a 4,16 dólares. Citizens amplió su licencia a 42 estados y Washington D.C. y creció su red de agentes en un 86% desde diciembre de 2023.
Citizens, Inc. (NYSE: CIA)는 2024년 3분기 재무 결과를 발표하며 중요한 성과와 성장을 강조했습니다. 이 회사는 보험 발행량이 75% 증가하여 3억 760만 달러에 이르렀고, 이는 네 번째 연속 분기 기록입니다. 총 수익은 4% 증가하여 6170만 달러에 달했으며, 직접적인 첫 해 생명보험 및 A&H 프리미엄이 70% 급증했습니다. 이러한 이익에도 불구하고, 연방 소득세 전 수익은 2023년 3분기 460만 달러에서 300만 달러로 감소했으며, 연방 소득세 조정 후 수익은 570만 달러에서 220만 달러로 줄었습니다. 순이익은 280만 달러, 즉 주당 0.05 달러로 2023년 3분기의 270만 달러 또는 주당 0.05 달러에서 증가했습니다. 이 회사는 운영에서 긍정적인 순 현금 흐름을 유지하며 총 970만 달러를 기록했으며, 부채 없이 3240만 달러의 현금 및 현금 등가물을 보고했습니다. 클래스 A 주식당 장부 가치는 35% 증가하여 4.16 달러가 되었습니다. Citizens는 42개 주와 워싱턴 D.C.로 라이센스를 확대했으며 2023년 12월 이후 86% 증가한 에이전트 네트워크를 구축했습니다.
Citizens, Inc. (NYSE: CIA) a publié ses résultats financiers du troisième trimestre 2024, mettant en avant des réalisations significatives et une croissance. L'entreprise a constaté une augmentation de 75 % des assurances émises, atteignant 307,6 millions de dollars, marquant son quatrième trimestre consécutif de record. Les revenus totaux ont augmenté de 4 % pour atteindre 61,7 millions de dollars, et les primes directes pour l'assurance-vie et A&H pour la première année ont bondi de 70 %. Malgré ces gains, le revenu avant impôt fédéral est tombé à 3,0 millions de dollars, contre 4,6 millions de dollars au troisième trimestre 2023, avec un revenu ajusté avant impôt fédéral diminuant à 2,2 millions de dollars contre 5,7 millions de dollars. Le revenu net s'élevait à 2,8 millions de dollars, soit 0,05 dollar par action, en hausse par rapport à 2,7 millions de dollars ou 0,05 dollar par action fin 2023. L'entreprise a maintenu des flux de trésorerie nets positifs provenant des opérations, totalisant 9,7 millions de dollars, et a rapporté des liquidités et équivalents de liquidités de 32,4 millions de dollars, sans dettes. La valeur comptable par action de Classe A a augmenté de 35 % à 4,16 dollars. Citizens a élargi ses licences à 42 États et Washington D.C. et a augmenté son réseau d'agents de 86 % depuis décembre 2023.
Citizens, Inc. (NYSE: CIA) hat die Finanzergebnisse für das dritte Quartal 2024 veröffentlicht und dabei bedeutende Erfolge und Wachstumsleistungen hervorgehoben. Das Unternehmen verzeichnete einen Anstieg der ausgegebenen Versicherungen um 75% auf 307,6 Millionen Dollar und damit das vierte aufeinanderfolgende Rekordquartal. Die Gesamteinnahmen stiegen um 4% auf 61,7 Millionen Dollar, und die direkten Prämien für Lebens- und A&H-Versicherungen im ersten Jahr erhöhten sich um 70%. Trotz dieser Gewinne sank das Einkommen vor der Bundessteuer auf 3,0 Millionen Dollar von 4,6 Millionen Dollar im dritten Quartal 2023, während das angepasste Einkommen vor der Bundessteuer auf 2,2 Millionen Dollar von 5,7 Millionen Dollar fiel. Der Nettogewinn betrug 2,8 Millionen Dollar oder 0,05 Dollar pro Aktie, ein Anstieg von 2,7 Millionen Dollar oder 0,05 Dollar pro Aktie im dritten Quartal 2023. Das Unternehmen konnte einen positiven Netto-Cashflow aus dem Betrieb in Höhe von 9,7 Millionen Dollar aufrechterhalten und berichtete über Zahlungsmittel und Zahlungsmitteläquivalente in Höhe von 32,4 Millionen Dollar ohne Schulden. Der Buchwert pro Aktie der Klasse A stieg um 35% auf 4,16 Dollar. Citizens hat seine Lizenzierung auf 42 Bundesstaaten und Washington, D.C. erweitert und sein Netzwerk von Agenten seit Dezember 2023 um 86% vergrößert.
- 75% increase in insurance issued to $307.6 million.
- 4% revenue growth to $61.7 million.
- 70% increase in direct first-year life and A&H premiums.
- Positive net cash from operations of $9.7 million.
- 35% increase in book value per Class A share to $4.16.
- Expanded licensing to 42 states and Washington, D.C.
- 86% increase in global network of producing agents.
- Income before federal income tax decreased to $3.0 million from $4.6 million.
- Adjusted income before federal income tax fell to $2.2 million from $5.7 million.
- Total benefits and expenses increased by $3.9 million.
Austin, Texas--(Newsfile Corp. - November 7, 2024) - 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, 2024.
"We are thrilled to report strong sales momentum and exceptional execution in the third quarter and throughout 2024 with several significant developments. Our strategic roadmap is designed to deliver improved operating results and sustainable growth in book value per share. First year premiums have increased year-over-year for eight consecutive quarters. Insurance issued increased
"As we look ahead, we enter the fourth quarter with momentum and expect continued sales growth leading to profit and revenue growth in the full year 2025. We believe we're well positioned to drive long-term value creation for our shareholders, supported by our robust global business model. Our strong performance in the first nine months of this year, combined with our competitive advantages in expanding niche markets globally, rapid sales force expansion, and expertise in profitable product development, reinforces great confidence in our outlook," concluded Stenberg.
Recent Business Highlights
Record setting results and highlight accomplishments for Citizens, including:
- Highest amount of insurance issued ever in a quarter - insurance issued was
$307.6 million in Q3 2024, a75% increase compared to the same period in 2023, primarily from sales of our new products and an increase in producing agents. This comes on the heels of record-setting insurance issued in the fourth quarter of 2023 and the first and second quarters of 2024. - Record total direct insurance in force -
$5.2 billion of total direct insurance in force at September 30, 2024. - Record number of agents - increased global network of producing agents, up
86% since December 31, 2023 and up57% since March 31, 2024. - Licensed in 42 U.S. states and Washington, D.C., up from 32 at December 31, 2022.
Third Quarter 2024 Financial Highlights
- Total revenues increased
4% to$61.7 million in Q3 2024, from$59.4 million in the year-ago quarter. - Direct first year life and A&H premiums increased
70% in Q3 2024, the eighth consecutive quarter of year-over-year growth in first year premiums, driven by new domestic growth and new products. - Income before federal income tax of
$3.0 million in Q3 2024, from$4.6 million in Q3 2023. Adjusted income before federal income tax of$2.2 million in Q3 2024 from$5.7 million in Q3 2023. - Net income of
$2.8 million or$0.05 per fully diluted Class A share, in Q3 2024, from$2.7 million or$0.05 in Q3 2023. - Positive net cash provided by operating activities of
$9.7 million in Q3 2024. The Company has had positive net cash provided by operating activities annually since 2004. - Cash and cash equivalents of
$32.4 million and no debt at September 30, 2024. - Book value per Class A share of
$4.16 increased35% over the year-ago quarter. Book value per Class A share excluding accumulated other comprehensive income (loss) (AOCI) of$6.06 increased8% over the year-ago quarter.
2024 Milestones
For 2024, the Company has set the following milestones:
- Increase first year premium revenues at least
25%
Status YTD through 9/30/24: Increased66% - Expand global network of producing agents at least
20%
Status YTD through 9/30/24: Increased86% - Introduce 2 to 3 new products or major product enhancements.
Status YTD through 9/30/24: Product enhancement in Q1 and new product in Q3.
Third Quarter 2024 Performance and Highlights
Total revenues increased
Total benefits and expenses increased by
Because of the increase in total benefits and expenses, income before federal income tax of
As a result of lower federal income tax, net income for the third quarter of 2024 was
Investments
Net investment income of
The carrying value of the Company's fixed maturity securities investment portfolio at September 30, 2024 was
Cash Flow
Positive net cash provided by operating activities was
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. For more information about Citizens, please visit the website at www.citizensinc.com and LinkedIn.
Explanatory Notes on Use of Non-GAAP Measures
Adjusted Operating Income
Adjusted Operating Income is a non-GAAP measure that is computed as pre-tax GAAP operating income with discrete adjustments that exclude net 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 and are not indicative of operating trends. Management believes the pre-tax metric is a more useful comparison than the post-tax metric, as the Company's effective tax rate can fluctuate significantly from quarter-to-quarter.
Adjusted Book Value Per Class A Common Share
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 September 30, | Nine Months Ended September 30, | ||||||||||
| (In thousands, except per share data) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Balance sheet data | ||||||||||||
| Total assets | $ | 1,735,809 | 1,564,640 | 1,735,809 | 1,564,640 | |||||||
| Total liabilities | 1,528,236 | 1,411,893 | 1,528,236 | 1,411,893 | ||||||||
| Total stockholders' equity | 207,573 | 152,747 | 207,573 | 152,747 | ||||||||
| Total direct insurance in force | 5,189,523 | 4,848,205 | 5,189,523 | 4,848,205 | ||||||||
| Operating items | ||||||||||||
| Insurance premiums | $ | 42,897 | 42,026 | 124,129 | 120,001 | |||||||
| Net investment income | 17,377 | 17,372 | 52,404 | 51,687 | ||||||||
| Investment related gains (losses), net | 827 | (892) | 1,537 | (477) | ||||||||
| Total revenues | 61,731 | 59,390 | 181,527 | 173,831 | ||||||||
| Claims and surrenders | 36,478 | 37,723 | 104,121 | 100,798 | ||||||||
| Other general expenses | 12,095 | 11,949 | 40,072 | 35,477 | ||||||||
| Total benefits and expenses | 58,694 | 54,749 | 170,263 | 156,431 | ||||||||
| Income before federal income tax | 3,037 | 4,641 | 11,264 | 17,400 | ||||||||
| Federal income tax expense (benefit) | 247 | 1,943 | (27) | 3,704 | ||||||||
| Net income | 2,790 | 2,698 | 11,291 | 13,696 | ||||||||
| Per share data | ||||||||||||
| Book value per share | $ | 4.16 | 3.08 | 4.16 | 3.08 | |||||||
| Diluted income per Class A share | 0.05 | 0.05 | 0.22 | 0.27 | ||||||||
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 - The Life Insurance segment primarily issues U.S. dollar-denominated ordinary whole life insurance and endowment policies predominantly sold to non-U.S. residents located principally in Latin America and the Pacific Rim. Domestically, we are licensed in 42 U.S. states and sell whole life final expense insurance and life insurance with living benefits and critical illness products. These products are sold primarily through independent marketing organizations.
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 September 30, | Nine Months Ended September 30, | |||||||||
| (In thousands) | 2024 | 2023 | 2024 | 2023 | |||||||
| LIFE INSURANCE SEGMENT | |||||||||||
| Balance sheet data | |||||||||||
| Total assets | $ | 1,325,855 | 1,189,470 | 1,325,855 | 1,189,470 | ||||||
| Operating items | |||||||||||
| Insurance premiums | $ | 32,201 | 31,148 | 91,667 | 86,128 | ||||||
| Net investment income | 13,578 | 13,661 | 41,076 | 40,470 | |||||||
| Investment related gains (losses), net | 936 | (424) | 1,743 | (123) | |||||||
| Total revenues | 47,345 | 45,269 | 137,840 | 129,094 | |||||||
| Claims and surrenders | 30,083 | 32,419 | 86,616 | 83,826 | |||||||
| Total benefits and expenses | 42,929 | 38,719 | 120,152 | 108,699 | |||||||
| Income (loss) before federal income tax | 4,416 | 6,550 | 17,688 | 20,395 | |||||||
| HOME SERVICE INSURANCE SEGMENT | |||||||||||
| Balance sheet data | |||||||||||
| Total assets | $ | 372,362 | 333,957 | 372,362 | 333,957 | ||||||
| Operating items | |||||||||||
| Insurance premiums | $ | 10,696 | 10,878 | 32,462 | 33,873 | ||||||
| Net investment income | 3,552 | 3,459 | 10,618 | 10,379 | |||||||
| Investment related gains (losses), net | (111) | (370) | (179) | (283) | |||||||
| Total revenues | 14,137 | 13,967 | 42,921 | 43,970 | |||||||
| Claims and surrenders | 6,395 | 5,304 | 17,505 | 16,972 | |||||||
| Total benefits and expenses | 14,217 | 14,410 | 40,967 | 42,456 | |||||||
| Income (loss) before federal income tax | (80) | (443) | 1,954 | 1,514 | |||||||
GAAP to Non-GAAP Reconciliation
| Reconciliation of Adjusted Income Before Federal Income Tax | ||||||
| For the periods ended | Three Months Ended September 30, | Nine Months Ended September 30, | ||||
| Unaudited (In thousands) | 2024 | 2023 | 2024 | 2023 | ||
| Income before federal income tax | $ | 3,037 | 4,641 | 11,264 | 17,400 | |
| Less: | ||||||
| Investment related gains (losses) | 827 | (892) | 1,537 | (477) | ||
| Property insurance business income (loss) | (3) | (159) | (74) | (1,164) | ||
| Legal fee accrual | — | — | (3,500) | — | ||
| Adjusted income before federal income tax | $ | 2,213 | 5,692 | 13,301 | 19,041 | |
| Reconciliation of Stockholders' Equity and Book Value per Class A Common Share | ||||
| As of September 30, | ||||
| Unaudited (In thousands, except per share data) | 2024 | 2023 | ||
| Stockholders' equity, end of period | $ | 207,573 | 152,747 | |
| Less: Accumulated other comprehensive income (loss) (AOCI) | (94,683) | (126,667) | ||
| Stockholders' equity, end of period, excluding AOCI | $ | 302,256 | 279,414 | |
| Book value per Class A common share - diluted | $ | 4.16 | 3.08 | |
| Less: Per share impact of AOCI | (1.90) | (2.55) | ||
| Book value per Class A common share - diluted, excluding AOCI | $ | 6.06 | 5.63 | |
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/229182
FAQ
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