Citizens (CIA) Sidoti Micro-Cap Virtual Conference summary

Company overview and market presence

• Operates internationally with 232 employees and policyholders in over 80 countries, supported by 4,000 independent agents.

• Holds $1.7 billion in assets and surpassed $5 billion in insurance in force, with 30% of premium revenue from the U.S. and the rest from international markets, notably Colombia, Taiwan, Venezuela, Ecuador, and Argentina.

• Life insurance segment targets upper middle class and high net worth individuals internationally, and the domestic segment focuses on the final expense market, which is the fastest-growing area.

• Home service segment operates regionally in Louisiana, Mississippi, and Arkansas, using neighborhood-embedded agents.

Growth strategy and execution

• Political and inflationary instability in Latin America drives demand for dollar-denominated products, fueling international growth.

• Domestic growth is driven by white-labeled products for agencies and expansion into 41 states, with significant premium and agent growth.

• Product development has accelerated, with more new products launched in the last two years than in the previous twenty.

• Streamlined sales processes and expanded agent network have led to dramatic first-year sales trends in 2024.

• Maintains a conservative balance sheet, no debt, and positive cash flow from operations since 2004.

Financial performance and capital position

• Record number of global producing agents, with a 21% increase in Q2 2024 over Q1.

• Seven consecutive quarters of year-over-year first-year sales growth and record insurance issued for three straight quarters.

• Book value per share has grown for four consecutive years, reaching $6.02 in Q2 2024; shareholders' equity (excluding AOCI) continues to rise.

• Investment portfolio is highly diversified, nearly all investment grade, with a 4.60% yield and an average S&P rating of A.

• Risk-based capital ratio at 488 (target 350) for domestic operations and 5.1 (target below 7) for Puerto Rico; holding company has $26 million in cash and investments and access to a $20 million credit line.