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): March 13, 2008

CITIZENS, INC.

(Exact name of registrant as specified in its charter)

COLORADO	0-16509	84-0755371
(State or other	(Commission	(IRS Employer
jurisdiction of incorporation)	File Number)	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))

TABLE OF CONTENTS	Page
Item 2.02 Results of Operations and Financial Condition		1
Item 9.01 Financial Statements and Exhibits		1
Signature		2
Exhibit Index		3
Ex - 99.1 News Release issued by Citizens, Inc. on March 13, 2008

SECTION 2 — FINANCIAL INFORMATION

Item 2.02 Results of Operations and Financial Condition.

On March 13, 2008, Citizens, Inc. (“Citizens”) issued a news release (the “Release”) reporting, among other things, results for the three months ended December 31, 2007 and the year ended December 31, 2007. A copy of the Release is included as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

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:
99.1	News Release issued by Citizens, Inc. on March 13, 2008.

1

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, Vice Chairman and
	President

Date: March 18, 2008

2

EXHIBIT INDEX

EXHIBIT INDEX

Exhibit No.	Description
99.1	News Release of the Company dated March 13, 2008

3

EX-99.1

EXHIBIT 99.1

News Release

For further information contact:

Randall H. Riley

Vice President, Investor Relations

FOR IMMEDIATE RELEASE

CITIZENS, INC. REPORTS 90.8 % INCREASE IN NET INCOME

Austin, Texas – March 13, 2008 – Citizens, Inc. (NYSE: CIA) reported net income of $16.6 million or $0.35 per share of Class A common stock for the year ended December 31, 2007, an increase of 90.8% compared to net income of $8.7 million or $0.16 per share of Class A common stock in 2006. The increase was largely attributed to growth in premium and investment income and a decline in property claims, being more in line with historical levels, as well as economies of scale achieved in the integration of the Security Plan acquisition. Revenue increased 10.0% from $158.1 million in 2006 to $173.8 million in 2007, primarily due to an increase in premium income as a result of persistency in the international business, as well as a significant increase in net investment income.

Premium income grew 9.7% to $140.9 million in 2007, compared to $128.5 million in 2006. The increase was attributable primarily to the new business written over the past several years in the Company’s Life Insurance segment, which had $101.4 million of premium revenue during the year, a 12.1% increase from $90.5 million in 2006. The Company’s Home Service Insurance segment generated $39.5 million in premium income in 2007 compared to $38.0 million in 2006.

Net investment income increased 14.0% in 2007 to $30.7 million compared to $27.0 million in 2006, due primarily to growth in the Company’s asset base and to distributions received on the Company’s mutual funds in late 2007. Claims and surrenders decreased 2.7% from $56.3 million for 2006 to $54.7 million for 2007, due primarily to property claims expense being more in line with historical experience after the Company experienced abnormally high claims in Louisiana in 2006 and 2005 as a result of Hurricanes Katrina and Rita. Underwriting, acquisition and insurance expense were unchanged in 2007 from 2006 at $27.6 million, largely because of integration of our Home Service segment into Citizens’ back office operations.

For the three months ended December 31, 2007, the Company’s net income was $5.9 million or $0.13 per share of Class A common stock, compared to $4.1 million or $0.08 per share of Class A common stock for the same period in 2006. Total revenues for the three months ended December 31, 2007 increased 12.0% to $50.0 million from $44.6 million for the same period in 2006. Life insurance premium production contributed to a 4.7% increase in premium income during the three months ended December 31, 2007 to $39.1 million, from $37.4 million during the fourth quarter of 2006.

Assets increased to $787.9 million at December 31, 2007, compared to $711.2 million at December 31, 2006, due primarily to growth in life insurance, as well as a registered direct public offering of Class A common stock that resulted $17.1 million in net proceeds. Stockholders’ equity increased to $176.2 million at December 31, 2007, from $139.6 million at December 31, 2006, due to income earned in 2007, a decrease in unrealized gains, as well as an increase due to the registered direct public offering.

The Sarbanes-Oxley Act of 2002 requires public companies to assess their internal controls over financial reporting. Management assessed the Company’s internal control over financial reporting based on criteria that was established by the Committee of Sponsoring Organizations of the Treadway Commission. Based upon this assessment, management concluded that the Company maintained effective internal control over the financial reporting process as of December 31, 2007.

About Citizens, Inc.

Citizens, Inc., is a financial services insurance holding company listed on the New York Stock Exchange, trading symbol CIA. It 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 $6.24 on March 12, 2008.

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

– More –

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/A for the fiscal year ended December 31, 2006, its quarterly reports on Form 10-Q 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)
	Years ended						Three-Months ended
	December 31,						December 31,
	2007			2006			2007			2006
Revenues
Premium income	$	140,905			128,496			39,135			37,389
Net investment income		30,743			26,975			9,258			6,941
Realized gains (losses), net		(94	)		1,286			(4	)		113
Decrease (increase) in fair value of warrants		828			(244	)		1,324			(318	)
Other income		1,412			1,546			245			478
Total revenues		173,794			158,059			49,958			44,603
Benefits and Expenses
Insurance benefits paid or provided:
Claims and surrenders		54,728			56,261			13,861			14,947
Increase in future policy benefit reserves		36,420			30,719			12,440			8,766
Policyholders’ dividends		6,401			5,384			2,067			1,562
Total insurance benefits paid or provided		97,549			92,364			28,368			25,275
Commissions		35,641			35,691			9,349			9,871
Other underwriting, acquisition and insurance expenses		27,583			27,607			6,631			6,628
Capitalization of deferred policy acquisition costs		(26,210	)		(26,986	)		(6,728	)		(7,860	)
Amortization of deferred policy acquisition costs		12,530			11,391			3,040			2,477
Amortization of cost of customer relationships acquired and other intangibles		3,203			4,650			726			1,580
Total benefits and expenses		150,296			144,717			41,386			37,971
Income before Federal income tax		23,498			13,342			8,572			6,632
Federal income tax expense		6,941			4,665			2,638			2,551
Net income	$	16,557			8,677			5,934			4,081
Net income applicable to common stock	$	14,555			6,654			5,449			3,580
Basic earnings per share of Class A common stock	$	0.35			0.16			0.13			0.08
Diluted earnings per share of Class A common stock	$	0.35			0.16			0.10			0.08

BALANCE SHEETS

	December 31,		December 31,
	2007		2006
Total assets	$	787,909		711,184
Total invested assets		585,296		515,055
Stockholders’ equity		176,157		139,611