Citizens (CIA) investor relations material

Executive summary

• Q3 revenue rose to $65.0m from $62.8m YoY, while pre-tax income fell to $0.1m from $4.5m and net income was a $0.4m loss versus $2.4m income.

• Nine-month pre-tax income was $2.0m versus $9.6m; net income was $1.4m versus $7.3m.

• Direct premiums rose 7% to $50.0m, supported by 9% growth in direct first-year premiums.

Financial highlights

• Adjusted revenue, excluding investment-related gains and losses, was $63.6m versus $64.1m.

• Q3 premiums were $44.8m versus $43.3m; direct premiums were $50.0m, up 7%.

• Net investment income declined to $18.1m from $19.1m; net investment gains were $1.4m versus a $1.3m loss.

• Claims and surrenders fell to $31.1m from $44.3m, while reserve increases shifted to $9.5m from a $6.8m decrease; benefits and expenses rose to $64.9m from $58.3m.

• Adjusted net income was $1 thousand, or $0.00 per diluted Class A share, versus $3.363m, or $0.07 per share; reported diluted EPS was $(0.01) versus $0.04.

Outlook and guidance

• 2025 was the peak year for matured endowments; lower maturity benefits are expected in 2026 and over the next few years.

• Newer International whole-life sales are expected to replace endowment volume at lower margins; Domestic Insurance growth is expected to continue raising claims and benefit reserves.

• Priorities include expanding products, markets and distribution, growing first-year premiums, and investing in technology; operating cash flow and capital resources are expected to meet funding needs.

• ~18% of endowments in force mature over the next five years, representing ~5% of in-force business at September 30, 2026.