AUSTIN, Texas, Aug. 7 /PRNewswire-FirstCall/ -- Citizens, Inc. (NYSE: CIA)
reported net income of $5.7 million or $0.11 per share of Class A common stock
for the six months ended June 30, 2008, compared to net income of $6.0
million, or $0.12 per share of Class A common stock, for the same period in
2007. The decrease in earnings was due primarily to an increase in death
claims and property claims, coupled with an increase in the amortization of
deferred policy acquisition costs.
Total revenues increased 5.2% in the first six months of 2008 to $83.2
million, compared to the same period of 2007 when revenues were $79.1 million.
Total revenues from our Life Insurance segment increased to $56.3 million
compared to $52.8 million. Premium income was $67.9 million for the first
half of 2008, a 5.2% increase over the same period of 2007 when premiums were
$64.5 million. The increase resulted primarily from renewal premiums in our
Life Insurance segment, which continues to experience strong persistency. Net
investment income increased 5.8% during the first half of 2008 to $14.9
million from $14.1 million in 2007, the increase fueled by the growth in our
investment portfolio. Underwriting and insurance expenses decreased from
$14.2 million in 2007 to $13.9 million in 2008, due primarily to lower costs
associated with the Company's 2008 Annual Shareholders Meeting and the absence
of insurance department examination expenses incurred during 2007.
For the three months ended June 30, 2008, the Company earned net income of
$3.0 million or $0.06 per share of Class A common stock, compared to $3.5
million or $0.07 per share of Class A common stock for the same period in
2007. The decrease in the second quarter income resulted primarily from
increased death claims and property claims.
Assets at June 30, 2008 totaled $801.0 million, compared to $787.9 million
at December 31, 2007. Stockholders' equity at June 30, 2008 was $174.9
million compared to $176.2 million at December 31, 2007. The decrease was a
result of an increase in unrealized investment losses of $6.3 million during
the period, plus amortization of discounts and deferred issuance costs of
$668,000 for our Series A Preferred Stock, net of income earned during the
period.
Citizens, Inc. will hold a conference call to discuss its second quarter
2008 operating results at 10:00 a.m. Central Daylight Time on Friday,
August 8, 2008, to be hosted by Rick D. Riley, Vice Chairman and President,
Tom Kopetic, Chief Financial Officer and other members of the Citizens, Inc.
management team.
To participate in the Citizens, Inc. conference call on Friday, August 8,
2008, dial (888) 742-8686 and when prompted enter confirmation code #8442219.
It is recommended you dial in 3-5 minutes before the call is scheduled to
begin.
About Citizens, Inc.
Citizens, Inc. is a financial services company listed on the New York
Stock Exchange under the symbol CIA. The Company plans to achieve $1 billion
in assets, $250 million in revenues and $10 billion of life insurance in force
by 2010, via the worldwide sale of U.S. dollar denominated whole life cash
value insurance policies, coupled with the acquisition of other life insurance
companies. Citizens' Class A common stock closed at $7.40 on August 7, 2008.
Information herein 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" or
"continue" or comparable words. 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. Readers are encouraged to read the SEC reports of the Company,
particularly its Form 10-K for the fiscal year ended December 31, 2007, its
quarterly reports on Form 10-Q and its current reports on Form 8-K, for the
meaningful cautionary language disclosing why actual results may vary
materially from those anticipated by management. 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. 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.
COMPARATIVE CONSOLIDATED FINANCIAL HIGHLIGHTS
(In thousands, except per share amounts)
OPERATING STATEMENTS
(Unaudited) (Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
2008 2007 2008 2007
Revenues
Premiums $67,874 64,543 35,204 33,102
Net investment income 14,944 14,131 7,480 7,064
Realized gains (losses), net 16 (132) - (119)
Decrease (increase) in fair
value of warrants (191) (196) 312 231
Other income 564 785 285 433
Total revenues 83,207 79,131 43,281 40,711
Benefits and Expenses
Insurance benefits paid or
provided:
Claims and surrenders 27,808 25,204 14,730 12,024
Increase in future policy
benefit reserves 14,730 15,324 7,733 8,389
Policyholders' dividends 2,954 2,652 1,577 1,422
Total insurance benefits paid
or provided 45,492 43,180 24,040 21,835
Commissions 17,087 17,386 9,376 8,997
Other underwriting,
acquisition and
insurance expenses 13,931 14,224 7,020 7,324
Capitalization of deferred
policy acquisition costs (11,164) (12,906) (6,309) (6,782)
Amortization of deferred
policy acquisition costs 7,668 6,480 4,106 3,329
Amortization of cost of
customer relationships
acquired and other
intangibles 1,479 1,667 715 826
Total benefits and expenses 74,493 70,031 38,948 35,529
Income before Federal income tax 8,714 9,100 4,333 5,182
Federal income tax expense 2,987 3,134 1,341 1,655
Net income $5,727 5,966 2,992 3,527
Net income applicable to
common stock $4,716 4,952 2,493 3,016
Basic and diluted earnings per
share of Class A common stock $0.11 0.12 0.06 0.07
Basic and diluted earnings per
share of Class B common stock $0.05 0.06 0.03 0.04
BALANCE SHEETS
(Unaudited)
June 30, 2008 December 31, 2007
Total assets $800,955 787,909
Total invested assets 577,997 585,296
Stockholders' equity 174,948 176,157
For further information contact:
Randall H. Riley
Vice President, Investor Relations
(512) 837-7100
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