8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 8, 2007

CITIZENS, INC.

(Exact name of registrant as specified in its charter)

COLORADO	0-16509	84-0755371
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

400 East Anderson Lane
Austin, Texas 78752
(Address of principal executive offices) (Zip Code)

(512) 837-7100
(Registrant’s telephone number, including area code )

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On November 8, 2007, Citizens, Inc. (“Citizens”) issued a news release (the “Release”) reporting, among other things, results for the third quarter ended September 30, 2007. A copy of the Release is included as Exhibit 99.6 to this Current Report on Form 8-K and incorporated herein by reference. The Company also announced that it would hold a conference call to discuss its financial results at 10:00 a.m. Eastern Time on Monday, November 12, 2007.

The information in this report is being furnished, not filed, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and pursuant to Item 2.02 of Form 8-K will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

Item 9.01 Financial Statements and Exhibits

(d)	Exhibits:
99.6	News Release issued by Citizens, Inc. on November 8, 2007.

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SIGNATURE

     Pursuant to the requirement of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CITIZENS, INC
By:	/s/ Rick D. Riley
	Rick D. Riley, President

Date: November 9, 2007

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EXHIBIT INDEX

Exhibit No.		Description
	99.6	News Release issued by Citizens, Inc. on November 8, 2007.

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EX-99.6

EXHIBIT 99.6

News Release

For further information contact:

Rick D. Riley, President
Investor Relations and Public Relations

FOR IMMEDIATE RELEASE

CITIZENS, INC. ANNOUNCES INCREASED EARNINGS IN THIRD QUARTER

Austin, Texas — November 8, 2007 — Citizens, Inc. (NYSE: CIA) reported net income of $10.6 million or $0.22 per share of Class A common stock for the nine months ended September 30, 2007, compared to net income of $4.6 million, or $0.08 per share of Class A common stock, for the same period in 2006. The increase resulted primarily from higher premiums, lower hurricane-related casualty claims, and the release of a valuation allowance against deferred tax assets.

Total revenues increased 9.1% in the first nine months of 2007 to $123.8 million compared to $113.5 million in the same period of 2006. The increase was due to an increase in new international life insurance premiums, and continued strong persistency in that market. Premium income was $101.8 million for the first nine months of 2007, an 11.7% increase over the same period of 2006, when premiums equaled $91.1 million. Total premiums from the Company’s international market rose to $72.2 million from $62.7 million during the period, an increase of 15.2%. Net investment income increased 7.2% during the first nine months of 2007 to $21.5 million from $20.0 million in 2006. Claims and surrenders decreased from $41.3 million to $40.9 million primarily due to a decrease in claims from Hurricane Katrina somewhat offset by an increase in endowment benefits.

For the three months ended September 30, 2007, the Company earned net income of $4.7 million or $0.10 per share of Class A common stock, compared to $2.8 million or $0.06 per share of Class A common stock for the same period in 2006. The increase in the third quarter income was due primarily to higher premium income and a decrease in hurricane-related casualty claims compared to 2006. Total revenues increased 10.9% to $42.8 million, compared to the same quarter of 2006 when revenues were $38.6 million. Premium income was $35.3 million for the quarter, a 12.3% increase over the same period in 2006 when premiums equaled $31.5 million. Net investment income increased 4.5% in the quarter to $7.4 million from $7.0 million in the third quarter of 2006. Claims and surrenders increased to $13.8 million from $13.1 million.

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     Assets increased to $740.2 million at September 30, 2007, compared to $711.2 million at December 31, 2006. The increase reflected the growth in total investments to $549.3 million at September 30, 2007 compared to $515.1 million at December 31, 2006. Stockholders’ equity increased from $139.6 million at December 31, 2006 to $150.9 million at September 30, 2007, due to income earned during the period as well as a decrease in net unrealized losses

in the Company’s bond and stock portfolio. The Company has no direct subprime mortgage or securities risk, as well as no collateralized debt obligations.

Citizens, Inc. will host a conference call to discuss its third quarter and nine-month 2007 operating results. The conference call will be held at 10:00 a.m. Eastern Time on Monday, November 12, 2007, and will be hosted by Rick D. Riley, Vice Chairman and President, and Tom Kopetic, Chief Financial Officer, along with other members of the Citizens, Inc. team.

To participate in the Citizens, Inc. conference call on Monday, November 12, 2007 at 10:00 a.m. Eastern Time, please dial (888) 742-8686 and give confirmation code #9445556. Please call 5-7 minutes before the call is to begin.

About Citizens, Inc.

Citizens, Inc., parent of Citizens, Inc. Financial Group of Companies, is an insurance holding company listed on the New York Stock Exchange under the symbol CIA. The Company plans to achieve $1 billion in assets, $250 million in revenues and $10 billion of life insurance in force by 2010, via the worldwide sale of U.S. dollar denominated whole life cash value insurance policies, coupled with the acquisition of other life insurance companies. Citizens’ Class A common stock closed at $7.35 on November 7, 2007.

Additional information is available about the Company on its web site: www.citizensinc.com.

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Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as “may,” “will,” “expect,” “anticipate” or “continue” or comparable words. In addition, all statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of the Company, particularly its Form 10-K for the fiscal year ended December 31, 2006 and its current reports on Form 8-K, for the meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in the Company’s expectations. The Company also disclaims any duty to comment upon or correct information that may be contained in reports published by the investment community.

CITIZENS, INC.

COMPARATIVE CONSOLIDATED FINANCIAL HIGHLIGHTS
(In thousands except per share amounts)

OPERATING STATEMENTS

	(Unaudited)						(Unaudited)
	Nine Months Ended						Three Months Ended
	September 30,						September 30,
	2007			2006			2007			2006
Revenues
Premiums	$	101,770			91,107			35,329			31,460
Net investment income		21,485			20,034			7,354			7,040
Realized gains (losses), net		(90	)		1,173			42			40
Decrease (increase) in fair value of warrants		(496	)		74			(300	)		(291	)
Other income		1,167			1,068			382			351
Total revenues		123,836			113,456			42,807			38,600
Benefits and Expenses
Insurance benefits paid or provided:
Claims and surrenders		40,867			41,314			13,765			13,111
Increase in future policy benefit reserves		23,980			21,953			8,656			7,444
Policyholders’ dividends		4,334			3,822			1,682			1,494
Total insurance benefits paid or provided		69,181			67,089			24,103			22,049
Commissions		26,292			25,820			8,906			8,189
Other underwriting, acquisition and insurance expenses		20,952			21,329			6,728			6,020
Capitalization of deferred policy acquisition costs		(19,482	)		(19,126	)		(6,576	)		(6,112	)
Amortization of deferred policy acquisition costs		9,490			8,914			3,010			3,240
Amortization of cost of customer relationships acquired and other intangibles		2,477			2,720			810			889
Total benefits and expenses		108,910			106,746			36,981			34,275
Income before Federal income tax		14,926			6,710			5,826			4,325
Federal income tax expense		4,303			2,114			1,169			1,498
Net income	$	10,623			4,596			4,657			2,827
Net income applicable to common stock	$	9,106			3,074			4,154			2,319
Basic and diluted earnings per share of Class A common stock	$	0.22			0.08			0.10			0.06
Basic and diluted earnings per share of Class B common stock	$	0.11			0.04			0.05			0.03

BALANCE SHEETS

	(Unaudited)		December 31,
	September 30,		2006
	2007
Total assets	$	740,205		711,184
Total invested assets	$	549,316		515,055
Stockholders’ equity	$	150,870		139,611