8-K

UNITED STATES
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 6, 2008

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)

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

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))

SECTION 2 – FINANCIAL INFORMATION

Item 2.02 Results of Operations and Financial Condition.

On November 6, 2008, Citizens, Inc. (“Citizens”) issued a news release (the “Release”) reporting, among other things, results for the third quarter and nine months ended September 30, 2008. A copy of the Release is included as Exhibit 99.8 to this Current Report on Form 8-K and incorporated herein by reference. Citizens also announced that it would hold a conference call to discuss its financial results at 10:00 a.m. Central Standard Time on Friday November 7, 2008.

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.

SECTION 5 — CORPORATE GOVERNANCE AND MANAGEMENT

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers

In accordance with the Citizens Bylaws and the Colorado Business Corporation Act, the Harold E. Riley Trust, the sole Class B shareholder, by and through Harold E. Riley, Trustee, appointed Dottie S. Riley to replace Geoffrey M. Kolander as a Class B Director effective November 6, 2008. Mr. Kolander will continue to serve Citizens in his capacity as Vice President, General Counsel and Corporate Secretary. Mr. Riley commends Mr. Kolander for his faithful service to the Citizens Board of Directors.

SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits:

99.8 News Release issued by Citizens, Inc. on November 6, 2008.

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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, Vice Chairman and President
Date: November 10, 2008

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EXHIBIT INDEX

Exhibit No.	Description
99.8	News Release issued by Citizens, Inc. on November 6, 2008.

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EX-99.8

Exhibit 99.8

For further information contact:
Randall H. Riley
Vice President, Investor Relations
(512) 837-7100

FOR IMMEDIATE RELEASE
November 6, 2008

CITIZENS, INC. ANNOUNCES THIRD QUARTER RESULTS

Austin, Texas — November 6, 2008 — Citizens, Inc. (NYSE: CIA) reported net income of $4.9 million or $0.07 per share of Class A common stock for the nine months ended September 30, 2008, compared to net income of $10.6 million, or $0.22 per share of Class A common stock, for the same period in 2007. The decrease in earnings was due primarily to higher property claims from Hurricanes Gustav and Ike as well as expense related to the increase in the fair value of warrants associated with the Company’s Series A Preferred Stock.

Total revenues increased 2.1% in the first nine months of 2008 to $123.4 million compared to $120.9 million in the same period of 2007. The increase resulted primarily from renewal premiums in the Life Insurance segment. Total revenues from the Life Insurance segment increased 4.6% to $85.1 million compared to $81.4 million. Premium income was $101.9 million for the first nine months of 2008, a 3.2% increase over the same period of 2007, when premiums equaled $98.8 million. Net investment income increased 4.7% during the first nine months of 2008 to $22.5 million from $21.5 million in 2007 resulting from growth in the investment portfolio during 2008. Claims and surrenders increased to $41.7 million for the nine months ended September 30, 2008 from $37.9 million during the same period in 2007, impacted primarily from an increase in death claims, property claims from Hurricanes Gustav and Ike and an increase in endowment benefits.

For the three months ended September 30, 2008, the Company incurred a net loss of $814,000 or $0.04 per Class A common stock share, compared to net income $4.7 million or $0.10 per Class A common stock share for the same period in 2007. The decrease resulted primarily from claims and additional reinsurance expenses related to Hurricanes Gustav and Ike, which hit Louisiana in the third quarter of 2008, expenses related to the increase in the fair value of warrants from our Series A Preferred Stock and higher operating expenses. Total revenues decreased 3.8% to $40.2 million, compared to the same quarter of 2007 when revenues were $41.7 million. Premium income was $34.0 million for the quarter, a slight decrease over the same period in 2007 when premiums equaled $34.3 million. Net investment income increased slightly in the quarter to $7.5 million from $7.4 million in the third quarter of 2007. Claims and surrenders increased to $13.9 million in the third quarter of 2008 from $12.7 million during the same period in 2007. Hurricanes accounted for premium decreases of $478,000 due to additional required reinsurance payments and $635,000 in increased claims and reserves.

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P.O. Box 149151 · Austin, Texas 78714-9151 · Phone 512 837-7100 · Fax: 512-836-9334
email: PR@citizensinc.com · web site: www.citizensinc.com

Assets increased to $812.9 million at September 30, 2008, compared to $787.9 million at December 31, 2007. Stockholders’ equity decreased from $176.2 million at December 31, 2007 to $164.9 million at September 30, 2008, largely due to an increase in unrealized losses on investments which exceeded income earned during the period. Although the quarter included significant unrealized losses due to the volatile stock market, the Company has no material permanent impairments and has the ability and intent to hold temporarily impaired securities until recovery.

Citizens, Inc. will hold a conference call to discuss its third quarter 2008 operating results at 10:00 a.m. Central Standard Time on Friday, November 7, 2008, to be hosted by Rick D. Riley, Vice Chairman and President, Tom Kopetic, Chief Financial Officer and other members of the Citizens, Inc. management team. To participate in the conference call, dial (888) 742-8686 and when prompted enter confirmation code #8442219. It is recommended you dial in 3-5 minutes before the call is scheduled to begin.

About Citizens, Inc.

Citizens, Inc. is a financial services 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 $8.22 on November 5, 2008.

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 year ended December 31, 2007, 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)						(Unaudited)
	Nine Months Ended						Three Months Ended
	September 30,						September 30,
	2008			2007			2008			2007
Revenues
Premiums	$	101,915			98,803			34,041			34,260
Net investment income		22,487			21,485			7,543			7,354
Realized gains (losses), net		(210	)		(90	)		(226	)		42
Increase in fair value of warrants		(1,674	)		(496	)		(1,483	)		(300	)
Other income		852			1,167			288			382
Total revenues		123,370			120,869			40,163			41,738
Benefits and Expenses
Insurance benefits paid or provided:
Claims and surrenders		41,663			37,900			13,855			12,696
Increase in future policy benefit reserves		24,944			23,980			10,214			8,656
Policyholders’ dividends		4,590			4,334			1,636			1,682
Total insurance benefits paid or provided		71,197			66,214			25,705			23,034
Commissions		25,906			26,292			8,819			8,906
Other underwriting, acquisition and insurance expenses		21,243			20,952			7,312			6,728
Capitalization of deferred policy acquisition costs		(16,876	)		(19,482	)		(5,712	)		(6,576	)
Amortization of deferred policy acquisition costs		11,529			9,490			3,861			3,010
Amortization of cost of customer relationships acquired and other intangibles		2,155			2,477			676			810
Total benefits and expenses		115,154			105,943			40,661			35,912
Income (loss) before Federal income tax		8,216			14,926			(498	)		5,826
Federal income tax expense		3,303			4,303			316			1,169
Net income (loss)	$	4,913			10,623			(814	)		4,657
Net income (loss) applicable to common stock	$	3,112			9,106			(1,604	)		4,154
Basic and diluted earnings (loss) per share of           Class A common stock	$	0.07			0.22			(0.04	)		0.10
Basic and diluted earnings (loss) per share of           Class B common stock	$	0.04			0.11			(0.02	)		0.05

BALANCE SHEETS

	(Unaudited)
	September 30,		December 31,
	2008		2007
Total assets	$	812,896		787,909
Total invested assets		577,913		585,296
Stockholders’ equity		164,904		176,157