Citizens (CIA) investor relations material

Executive summary

• Net loss before federal income tax of $0.5 million for Q2 2026, down from $6.9 million income in Q2 2025, mainly due to a $3.9 million decline in investment-related gains and higher insurance benefits paid or provided.

• Net income before federal income tax for the first half of 2026 was $1.8 million, down from $5.1 million in the prior year, driven by increased insurance benefits and operating expenses.

• Achieved fifteenth consecutive quarter of year-over-year direct first year premium growth, supported by an expanding sales force and new product offerings.

• Book value per Class A share increased year-over-year for the fourteenth consecutive quarter, reaching $4.64; adjusted book value per share was $6.44.

• The Venezuela earthquakes in June 2026 led to a $0.5 million death claim liability, with ongoing monitoring for further impacts.

Financial highlights

• Total revenues for Q2 2026 were $60.4 million, down from $65.1 million in Q2 2025; six-month revenues were $120.1 million, slightly down from $120.7 million year-over-year.

• Premiums increased slightly to $43.7 million in Q2 2026; first-year direct premiums rose 3% year-over-year.

• Net investment income was $17.0 million for Q2 2026, with an annualized yield of 4.41% on average invested assets.

• Investment-related losses of $1.5 million in Q2 2026, compared to gains of $2.4 million in Q2 2025, mainly due to limited partnership fair value changes.

• Total assets stood at $1.8 billion, with $1.4 billion in investments and no debt as of June 30, 2026.

Outlook and guidance

• Persistency and product mix trends are expected to continue impacting profitability, with a shift toward lower-margin whole life products.

• Management expects continued positive net cash from operating activities for the remainder of 2026 as matured endowment benefit payments decline.

• Strategic investments are aimed at driving premium and adjusted book value growth and delivering long-term value.

• The company anticipates continued growth in the Domestic Insurance segment and ongoing monitoring of international markets, especially Venezuela.

• No material changes to risk factors or legal proceedings were reported for the quarter.