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): May 7, 2009

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 8 – OTHER EVENTS

Item 8.01 Other Events.

On May 7, 2009, Citizens, Inc. (“Citizens”) issued a news release (the “Release”) reporting, among other things, results for its first quarter 2009 earnings. 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 May 8, 2009.

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:

99.8 News Release issued by Citizens, Inc. on May 7, 2009.

SIGNATURE

Pursuant to the requirements 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: May 7, 2009

EXHIBIT INDEX

Exhibit No.	Description
99.8	News Release issued by Citizens, Inc. on May 7, 2009

EX-99.8

Exhibit 99.8

FOR IMMEDIATE RELEASE
May 7, 2009

For further information contact:

Randall H. Riley
Vice President, Investor Relations
(512) 837-7100
PR@citizensinc.com

CITIZENS, INC. FIRST QUARTER EARNINGS INCREASE

Austin, Texas — May 7, 2009 — Citizens, Inc. (NYSE: CIA) reported net income of $4.4 million or $0.07 per basic and $0.03 per diluted share of Class A common stock for the quarter ended March 31, 2009, compared to net income of $2.7 million or $0.05 per basic and diluted share of Class A common stock during the same period in 2008. Net income included a $2.1 million increase on the change in fair value of warrants for the three months ended March 31, 2009 compared to a loss of $503,000 in 2008. The increase in net income was also due to higher premium income, fueled by continued strong renewal life insurance premiums as well as an increase in net investment income.

Total revenues for the first quarter of 2009 were $44.7 million compared to $39.9 million in 2008, an increase of 11.9%, due primarily from an increase in life insurance premiums and the $2.1 million positive adjustment in fair value of the Company’s stock warrants.

First quarter 2009 premiums increased 4.8% to $34.2 million from $32.7 million in 2008 primarily due to renewal premiums representing continued persistency in the international life and home service segments. Additionally, the 2009 first quarter included premium income of $0.7 million relating to the recent acquisitions of Integrity Capital Insurance Company and Ozark National Life Insurance Company (ONLIC).

Net investment income increased 3.7% during the first quarter of 2009 to $7.7 million compared to $7.5 million in the first quarter of 2008. The increase was due primarily to growth in the investment portfolio and from equity securities acquired in the ONLIC acquisition.

Claims and surrenders increased to $14.8 million in the first quarter of 2009 compared to $13.1 million in the first quarter of 2008, due to less favorable death claim experience comparatively between quarters. Underwriting, acquisition and insurance expenses increased to $7.3 million during the first three months of 2009 compared to $6.9 million in 2008, largely related to increased staff due to the addition of an internal audit function and expanded systems support in the Austin office.

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Assets increased to $853.3 million at March 31, 2009, compared to $832.3 million at December 31, 2008. Stockholders’ equity also increased 3.9% from $171.5 million at December 31, 2008 to $178.2 million at March 31, 2009.

Citizens, Inc. will host a conference call to discuss its first quarter 2009 operating results at 10:00 a.m. Central Daylight Time on Friday, May 8, 2009, hosted by Rick D. Riley, Vice Chairman and President, Kay Osbourn, Chief Financial Officer and other members of the Citizens, Inc. management team.

To participate in the Citizens, Inc. conference call on Friday, May 8, 2009, please 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, by selling U.S. dollar denominated whole life cash value insurance policies worldwide, coupled with acquisitions of other life insurance companies. Citizens’ Class A common stock closed at $6.59 on May 7, 2009.

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, 2008, 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.

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CITIZENS, INC.

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

OPERATING STATEMENTS

	(Unaudited)
	Three Months Ended
	March 31,
	2009			2008
Revenues
Premiums	$	34,227		$	32,670
Net investment income		7,742			7,464
Realized gains, net		301			16
Decrease (increase) in fair value of warrants		2,105			(503	)
Other income		283			279
Total revenues		44,658			39,926
Benefits and Expenses
Insurance benefits paid or provided:
Claims and surrenders		14,807			13,078
Increase in future policy benefit reserves		7,758			6,997
Policyholders’ dividends		1,462			1,377
Total insurance benefits paid or provided		24,027			21,452
Commissions		8,035			7,711
Other underwriting, acquisition and insurance expenses		7,309			6,911
Capitalization of deferred policy acquisition costs		(5,057	)		(4,855	)
Amortization of deferred policy acquisition costs		3,692			3,562
Amortization of cost of customer relationships acquired and other intangibles		866			764
Total benefits and expenses		38,872			35,545
Income before Federal income tax		5,786			4,381
Federal income tax expense		1,409			1,646
Net income	$	4,377		$	2,735
Net income applicable to common stock	$	3,199		$	2,223
Basic earnings per share of Class A common stock	$	0.07		$	0.05
Diluted earnings per share of Class A common stock	$	0.03		$	0.05
Weighted average shares of Class A outstanding - basic and diluted		46,112			43,070
Book value per share	$	3.71		$	4.00

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BALANCE SHEETS

	(Unaudited)
	March 31,		December 31,
	2009		2008
Total assets	$	853,304	$	832,276
Total invested assets		588,412		569,252
Stockholders’ equity		178,171		171,541

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