EX-99.6 2 d51479exv99w6.htm NEWS RELEASE exv99w6
 

EXHIBIT 99.6
(G51479)
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