Citizens, Inc. (NYSE: CIA)

Citizens, Inc. is an insurance holding company incorporated in Colorado and headquartered in Austin Texas. The company provides life insurance and related financial products to individuals in the United States and to residents of many foreign countries. It operates through two insurance subsidiaries that issue policies in US dollars for international clients and in local currency for domestic clients. Citizens, Inc. focuses on niche markets where it believes it can achieve competitive advantages through product design and distribution.

The company generates revenue primarily from life insurance premiums collected from policyholders and from net investment income earned on the investment of those premiums. Premiums are paid on whole life endowment and final expense policies and are invested mainly in available for sale fixed maturity securities such as corporate bonds municipal bonds and government obligation bonds. Investment returns help cover future claims policyholder dividends and operating expenses while contributing to profitability. In addition to premium income the company earns fees from administrative services and from its stock investment plan that allows policyholders to purchase Class A common stock.

The company operates through the following segments: International Insurance and Domestic Insurance.

• International Insurance issues US dollar denominated life insurance endowment and other financial products to non US residents mainly in Latin America and the Pacific Rim through its subsidiary CICA International. Policies often include guaranteed cash values living benefit options and participating features that may pay annual dividends or premium credits. Distribution relies on independent marketing agencies and consultants who are contracted to sell and service the policies and who receive commissions and override payments. The segment generated sixty four percent of total consolidated direct premiums in 2025 with the largest amounts of premiums coming from Colombia Taiwan Ecuador Venezuela and Argentina. A competitive advantage of this segment is the use of US dollars which protects policyholders from local currency devaluation and hyperinflation and provides a stable store of value.

• Domestic Insurance provides life insurance and other financial products in the United States through subsidiaries CLOA SPLIC and Magnolia. The segment emphasizes final expense whole life policies that are often sold as simplified issue products requiring limited underwriting and no medical exam. Average face amounts for policies issued in 2025 were approximately seven thousand five hundred dollars for CLOA and thirteen thousand two hundred dollars for SPLIC. Distribution relies on a network of independent licensed agents and brokers who are supported by independent marketing organizations brokerage general agencies and other intermediaries. In 2025 the domestic segment contributed thirty six percent of total consolidated direct premiums and experienced a twenty three percent increase in first year premiums driven by growth in the final expense market. A competitive advantage of this segment is its white label approach that allows agents to offer products tailored to local needs while maintaining strong distributor relationships.

The company holds a niche position in the life insurance market by targeting customers who seek US dollar denominated coverage abroad and affordable final expense protection at home. Internationally it competes with other life insurers and financial institutions that offer similar products but believes its dollar based policies give it an edge in markets with volatile currencies. Domestically it faces competition from large national carriers and regional insurers that also sell final expense and simplified issue life insurance but differentiates itself through its white label model strong agent relationships and focus on small face amount policies. The company’s competitive advantages include its expertise in pricing and underwriting its long standing distribution network its investment expertise and its ability to generate stable returns from its investment portfolio. It also benefits from having no debt and a disciplined expense approach which supports its pursuit of profitable growth.

The company’s International Insurance segment serves non US residents who are generally middle to upper middle class individuals seeking protection against currency devaluation and inflation in their home countries. The largest concentrations of policyholders are found in Colombia Taiwan Ecuador Venezuela and Argentina. The Domestic Insurance segment primarily serves lower to middle income individuals in the United States who purchase final expense policies to cover funeral burial and related expenses. These customers are often reached through independent agents funeral homes and other community based distributors. No individual customer names are disclosed in the filing.