Schedule II - Financial Statements (Tables)

12 Months Ended

Dec. 31, 2021

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheet

Schedule II Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Balance Sheets
December 31, (In thousands)	2021		2020
Assets
Investment in subsidiaries (1)	$	271,639	231,992
Fixed maturity securities available-for-sale, at fair value	33,724		42,202
Equity securities, at fair value	1,466		1,347
Mortgage loans on real estate	1,000		—
Real estate held-for-sale	—		2,571
Other long-term investments	—		8,790
Cash	3,399		3,102
Accrued investment income	439		471
Accounts receivable from subsidiaries (1)	5,832		4,911
Property and equipment, net	11,564		12,666
Other assets	3,049		3,183
Total assets	$	332,112	311,235
Liabilities and Stockholders' Equity
Liabilities:
Accrued expense and other liabilities	$	11,541	10,290
Total liabilities	$	11,541	10,290
Stockholders' equity:
Common stock:
Class A	$	265,561	262,869
Class B	3,184		3,184
Accumulated deficit	(45,565)		(82,352)
Unrealized investment gains (losses) on securities held by parent and subsidiaries, net of tax	117,492		128,255
Treasury stock	(20,101)		(11,011)
Total stockholders' equity	320,571		300,945
Total liabilities and stockholders' equity	$	332,112	311,235

 (1) Eliminated in consolidation.

Note to Schedule II:

Citizens, Inc.'s investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The Company includes in its Statement of Operations and Comprehensive Income (Loss) dividends from its subsidiaries and equity in income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.

Condensed Income Statement

Schedule II, Continued Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Statements of Operations and Comprehensive Income (Loss)
Years ended December 31, (In thousands)	2021		2020	2019
Comprehensive income (loss):
Revenues:
Management service fees (1)	$	33,311	32,828	43,694
Investment income	1,063		11,253	1,685
Other	(37)		3	2
Investment related gains (losses), net	1,197		(62)	(3,013)
Total revenues	35,534		44,022	42,368
Expenses:
General expenses	37,977		49,747	46,020
Taxes, licenses and fees	198		189	146
Total expenses	38,175		49,936	46,166
Income (loss) before federal income tax expense (benefit) and equity in income (loss) of consolidated subsidiaries	(2,641)		(5,914)	(3,798)
Federal income tax expense (benefit)	(1,661)		(5,583)	(4,491)
Income (loss) before equity in income (loss) of consolidated subsidiaries	(980)		(331)	693
Equity in income (loss) of consolidated subsidiaries	37,767		(10,657)	(2,063)
Net income (loss)	36,787		(10,988)	(1,370)
Other comprehensive income (loss)	(10,763)		51,138	71,751
Total comprehensive income	$	26,024	40,150	70,381

 (1) Eliminated in consolidation.

Note to Schedule II:

Citizens, Inc.'s investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The Company includes in its Statement of Operations and Comprehensive Income (Loss) dividends from its subsidiaries and equity in income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.

Condensed Cash Flow Statement

Schedule II, Continued Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Statements of Cash Flows
Years ended December 31, (In thousands)	2021		2020	2019
Cash flows from operating activities:
Net income (loss)	$	36,787	(10,988)	(1,370)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Investment related gains (losses), net	(1,197)		62	3,013
Equity in loss (income) of consolidated subsidiaries	(37,767)		10,657	2,063
Change in accrued expenses and other liabilities	(11,458)		11,629	(6,530)
Change in federal income tax payable	(2,683)		(17,647)	—
Deferred federal income tax expense (benefit)	227		79	—
Amortization of premiums and discounts on investments	473		535	496
Depreciation	239		133	267
Change in accrued investment income	32		64	(5)
Stock-based compensation	646		2,223	2,099
Decrease (increase) in receivable from subsidiaries and other assets	(921)		(141)	1,101
Other, net	151		(3,896)	(248)
Net cash provided by (used in) operating activities	(15,471)		(7,290)	886
Cash flows from investing activities:
Purchases of fixed maturity securities, available-for-sale	(2,678)		(4,628)	(12,970)
Maturities and calls of fixed maturity securities, available-for-sale	7,548		7,114	691
Purchase of equity securities	—		(250)	—
Sales of fixed maturity securities, available-for-sale	6,952		5,735	4,268
Sales of property and equipment	14		11	14
Sale of other long-term investments	8,790		—	—
Sale of real estate	3,552		—	—
Funding of mortgage loans	(1,000)		—	—
Purchases of other long-term investments	—		(8,790)	—
Purchases of property and equipment	(119)		(60)	(85)
Purchases of short-term investments	—		—	(2,456)
Maturities of short-term investments	—		1,300	9,090
Net cash provided by (used in) investing activities	23,059		432	(1,448)
Cash flows from financing activities:
Issuance of common stock	2,255		—	—
Acquisition of treasury stock	(9,090)		—	—
Other	(456)		(869)	(377)
Net cash provided by (used in) financing activities	(7,291)		(869)	(377)
Net increase (decrease) in cash	297		(7,727)	(939)
Cash at beginning of year	3,102		10,829	11,768
Cash at end of year	$	3,399	3,102	10,829

Note to Schedule II:

Citizens, Inc.'s investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The Company includes in its Statement of Operations and Comprehensive Income (Loss) dividends from its subsidiaries and equity in income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.