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Citizens Inc. Class A ($1.00 Par) (CIA-4.10%) has filed its annual 10-K report for the fiscal year ended December 31, 2024. The filing is available for review filing.
The report details the company's financial performance, including total revenues of $245 million, an increase from $240.7 million in 2023. This increase was driven by a rise in direct premium revenue, marking the first time since 2017 that total premium revenue has grown.
Net income before federal income tax decreased to $15 million in 2024 from $26.2 million in 2023. The decrease was attributed to a $3.4 million reduction in investment gains, legal fees from a lawsuit, and increased insurance benefits.
Citizens Inc. operates two business segments: Life Insurance and Home Service Insurance. The Life Insurance segment reported $22.9 million in income before federal income tax, down from $28.6 million in 2023. The Home Service Insurance segment reported $2.5 million, down from $3 million.
The Life Insurance segment saw a significant increase in first-year premiums, driven by new product offerings and expanded domestic distribution. Total direct first-year premiums increased by 71% to $33 million.
The Home Service Insurance segment experienced a decline in premiums, attributed to strategic actions to improve sales quality and persistency, as well as economic pressures such as inflation.
Investment income remained stable at $69.7 million, with fixed maturity securities constituting 88% of the investment portfolio. The company recorded a $2.6 million investment-related loss, primarily due to a write-down of a BlackRock investment.
The report also highlights the company's strategic initiatives, including the expansion of distribution channels and the introduction of new products. Citizens Inc. issued $1.1 billion in new insurance in 2024, the highest in its history.
Citizens Inc. continues to face challenges, including regulatory compliance, competition in international markets, and potential liquidity risks from policyholder behavior. The company maintains a prudent investment strategy to manage these risks.
The filing includes detailed information on the company's financial condition, including total assets of $1.7 billion and total investments of $1.4 billion. The company had no debt as of December 31, 2024.
Citizens Inc. acknowledges ongoing legal proceedings, including an appeal related to a trade secret lawsuit, which could impact future financial results.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Citizens Inc. Class A ($1.00 Par) annual 10-K report dated March 13, 2025. To report an error, please email earnings@qz.com.