Colorado | 84-0755371 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. employer identification no.) |
Securities registered pursuant to Section 12(b) of the Act | ||||||||
Class A Common Stock | CIA | New York Stock Exchange | ||||||
(Title of each class) | (Trading symbol(s)) | (Name of each exchange on which registered) |
Large accelerated filer | ☐ | Accelerated filer | ☒ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
Page | ||||||||
PART I | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 1B. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
PART II | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Item 7. | ||||||||
Item 7A. | ||||||||
Item 8. | ||||||||
Item 9. | ||||||||
Item 9A. | ||||||||
Item 9B. | ||||||||
PART III | ||||||||
Item 10. | ||||||||
Item 11. | ||||||||
Item 12. | ||||||||
Item 13. | ||||||||
Item 14. | ||||||||
PART IV | ||||||||
Item 15. | ||||||||
Item 5. | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
• | Class A Common Stock - | 86,270 | ||||||
• | Class B Common Stock - | — |
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||||||||||||||||||||
Citizens, Inc. | $ | 100.00 | 74.85 | 76.58 | 68.74 | 58.35 | 54.07 | ||||||||||||||||||||||||||||
NYSE Composite | $ | 100.00 | 118.73 | 108.10 | 135.68 | 145.16 | 175.18 | ||||||||||||||||||||||||||||
NASDAQ Insurance | $ | 100.00 | 113.68 | 102.76 | 136.99 | 137.65 | 158.73 |
Item 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Years Ended December 31, | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Amount of Insurance Issued | Number of Policies Issued | Average Policy Face Amount Issued | Amount of Insurance Issued | Number of Policies Issued | Average Policy Face Amount Issued | ||||||||||||||||||||||||||||||
Life Insurance | $ | 233,574,941 | 3,870 | $ | 60,355 | $ | 219,902,799 | 3,419 | $ | 64,318 | |||||||||||||||||||||||||
Home Service Insurance | 177,754,244 | 22,600 | 7,865 | 134,270,147 | 24,920 | 5,388 | |||||||||||||||||||||||||||||
Total | $ | 411,329,185 | 26,470 | $ | 354,172,946 | 28,339 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Revenues: | |||||||||||||||||
Premiums: | |||||||||||||||||
Life insurance | $ | 169,801 | 170,328 | 178,351 | |||||||||||||
Accident and health insurance | 1,250 | 1,019 | 1,383 | ||||||||||||||
Property insurance | 3,677 | 3,982 | 4,613 | ||||||||||||||
Net investment income | 61,495 | 60,197 | 59,531 | ||||||||||||||
Investment related gains (losses) | 10,991 | 1,502 | 5,249 | ||||||||||||||
Other income | 3,332 | 1,828 | 1,418 | ||||||||||||||
Total revenues | $ | 250,546 | 238,856 | 250,545 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Premiums: | |||||||||||||||||
First year | $ | 17,766 | 15,972 | 17,508 | |||||||||||||
Renewal | 156,962 | 159,357 | 166,839 | ||||||||||||||
Total premiums | $ | 174,728 | 175,329 | 184,347 |
Years ended December 31, (In thousands, except for %) | 2021 | 2020 | 2019 | ||||||||||||||
Gross investment income: | |||||||||||||||||
Fixed maturity securities | $ | 55,579 | 54,653 | 53,860 | |||||||||||||
Equity securities | 1,024 | 816 | 662 | ||||||||||||||
Policy loans | 6,420 | 6,605 | 6,451 | ||||||||||||||
Long-term investments | 809 | 238 | 13 | ||||||||||||||
Other | 54 | 97 | 374 | ||||||||||||||
Total investment income | 63,886 | 62,409 | 61,360 | ||||||||||||||
Less investment expenses | (2,391) | (2,212) | (1,829) | ||||||||||||||
Net investment income | $ | 61,495 | 60,197 | 59,531 | |||||||||||||
Average invested assets, at amortized cost | $ | 1,451,701 | 1,445,087 | 1,365,036 | |||||||||||||
Yield on average invested assets | 4.24 | % | 4.24 | % | 4.36 | % |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Investment related gains (losses): | |||||||||||||||||
Realized investment gains (losses) | $ | 2,977 | (94) | 7,392 | |||||||||||||
Change in fair value of equity securities | 376 | 1,596 | 962 | ||||||||||||||
Change in fair value of limited partnerships | 7,452 | — | — | ||||||||||||||
Change in credit loss allowance | 186 | — | — | ||||||||||||||
Other-than-temporary impairments ("OTTI") | — | — | (3,105) | ||||||||||||||
Investment related gains (losses), net | $ | 10,991 | 1,502 | 5,249 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Benefits and expenses: | |||||||||||||||||
Insurance benefits paid or provided: | |||||||||||||||||
Claims and surrenders | $ | 119,735 | 121,145 | 106,827 | |||||||||||||
Increase in future policy benefit reserves | 36,444 | 29,923 | 41,712 | ||||||||||||||
Policyholders' dividends | 6,180 | 5,587 | 6,040 | ||||||||||||||
Total insurance benefits paid or provided | 162,359 | 156,655 | 154,579 | ||||||||||||||
Commissions | 35,463 | 32,069 | 34,222 | ||||||||||||||
Other general expenses | 43,370 | 53,669 | 48,440 | ||||||||||||||
Capitalization of deferred policy acquisition costs | (22,740) | (20,475) | (22,255) | ||||||||||||||
Amortization of deferred policy acquisition costs | 24,952 | 27,439 | 28,268 | ||||||||||||||
Amortization of cost of insurance acquired | 1,206 | 1,816 | 1,546 | ||||||||||||||
Goodwill impairment | 12,624 | — | — | ||||||||||||||
Total benefits and expenses | $ | 257,234 | 251,173 | 244,800 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Claims and surrenders: | |||||||||||||||||
Death claim benefits | $ | 31,380 | 27,195 | 25,100 | |||||||||||||
Surrender benefits | 51,638 | 54,827 | 49,293 | ||||||||||||||
Endowment benefits | 9,572 | 11,026 | 12,247 | ||||||||||||||
Matured endowment benefits | 20,304 | 21,580 | 15,147 | ||||||||||||||
Property claims | 2,112 | 2,807 | 1,563 | ||||||||||||||
Accident and health benefits | 332 | 219 | 232 | ||||||||||||||
Other policy benefits | 4,397 | 3,491 | 3,245 | ||||||||||||||
Total claims and surrenders | $ | 119,735 | 121,145 | 106,827 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Income (loss) before federal income taxes: | |||||||||||||||||
Segments: | |||||||||||||||||
Life Insurance | $ | 918 | 9,894 | 11,795 | |||||||||||||
Home Service Insurance | (2,036) | (3,470) | 1,181 | ||||||||||||||
Total Segments | (1,118) | 6,424 | 12,976 | ||||||||||||||
Other Non-Insurance Enterprises | (5,570) | (18,741) | (7,231) | ||||||||||||||
Total income (loss) before federal income taxes | $ | (6,688) | (12,317) | 5,745 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Revenue: | |||||||||||||||||
Premiums | |||||||||||||||||
Life insurance | $ | 125,558 | 128,900 | 136,941 | |||||||||||||
Accident and health insurance | 500 | 301 | 725 | ||||||||||||||
Net investment income | 47,216 | 45,885 | 44,779 | ||||||||||||||
Investment related gains, net | 9,176 | 1,340 | 6,795 | ||||||||||||||
Other income | 3,362 | 1,806 | 1,412 | ||||||||||||||
Total revenue | 185,812 | 178,232 | 190,652 | ||||||||||||||
Benefits and expenses: | |||||||||||||||||
Insurance benefits paid or provided: | |||||||||||||||||
Claims and surrenders | 91,390 | 93,813 | 82,964 | ||||||||||||||
Increase in future policy benefit reserves | 29,407 | 25,825 | 39,873 | ||||||||||||||
Policyholders' dividends | 6,140 | 5,554 | 6,004 | ||||||||||||||
Total insurance benefits paid or provided | 126,937 | 125,192 | 128,841 | ||||||||||||||
Commissions | 18,747 | 17,944 | 20,128 | ||||||||||||||
Other general expenses | 20,846 | 16,323 | 23,012 | ||||||||||||||
Capitalization of deferred policy acquisition costs | (16,174) | (15,568) | (17,448) | ||||||||||||||
Amortization of deferred policy acquisition costs | 21,571 | 23,987 | 23,832 | ||||||||||||||
Amortization of cost of insurance acquired | 343 | 460 | 492 | ||||||||||||||
Goodwill impairment | 12,624 | — | — | ||||||||||||||
Total benefits and expenses | 184,894 | 168,338 | 178,857 | ||||||||||||||
Income (loss) before federal income taxes | $ | 918 | 9,894 | 11,795 |
2021 | 2020 | 2019 | |||||||||||||||
Premiums: | |||||||||||||||||
First year | $ | 11,420 | 10,397 | 11,692 | |||||||||||||
Renewal | 114,638 | 118,805 | 125,974 | ||||||||||||||
Total premium | $ | 126,058 | 129,202 | 137,666 |
Years ended December 31, (In thousands, except for %) | 2021 | 2020 | 2019 | ||||||||||||||||||||||||||||||||
Country: | |||||||||||||||||||||||||||||||||||
Colombia | $ | 24,829 | 20.2 | % | $ | 25,783 | 20.4 | % | $ | 26,768 | 20.1 | % | |||||||||||||||||||||||
Taiwan | 19,042 | 15.5 | 19,078 | 15.1 | 19,403 | 14.6 | |||||||||||||||||||||||||||||
Venezuela | 17,788 | 14.5 | 19,956 | 15.8 | 22,353 | 16.8 | |||||||||||||||||||||||||||||
Ecuador | 13,115 | 10.7 | 13,301 | 10.5 | 14,198 | 10.6 | |||||||||||||||||||||||||||||
Argentina | 9,160 | 7.5 | 9,175 | 7.3 | 10,069 | 7.6 | |||||||||||||||||||||||||||||
Other Non-U.S. | 38,871 | 31.6 | 38,992 | 30.9 | 40,562 | 30.3 | |||||||||||||||||||||||||||||
Total | $ | 122,805 | 100.0 | % | $ | 126,285 | 100.0 | % | $ | 133,353 | 100.0 | % |
Years ended December 31, (In thousands, except for %) | 2021 | 2020 | 2019 | ||||||||||||||
Net investment income | $ | 47,216 | 45,885 | 44,779 | |||||||||||||
Average invested assets, at amortized cost | 1,109,466 | 1,071,792 | 1,016,055 | ||||||||||||||
Annualized yield on average invested assets | 4.26 | % | 4.28 | % | 4.41 | % |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Claims and surrenders: | |||||||||||||||||
Death claim benefits | $ | 8,160 | 5,990 | 6,710 | |||||||||||||
Surrender benefits | 49,439 | 52,218 | 46,062 | ||||||||||||||
Endowment benefits | 9,565 | 11,016 | 12,233 | ||||||||||||||
Matured endowment benefits | 19,709 | 20,965 | 14,601 | ||||||||||||||
Accident and health benefits | 135 | 149 | 128 | ||||||||||||||
Other policy benefits | 4,382 | 3,475 | 3,230 | ||||||||||||||
Total claims and surrenders | $ | 91,390 | 93,813 | 82,964 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Revenue: | |||||||||||||||||
Premiums | |||||||||||||||||
Life insurance | $ | 44,243 | 41,428 | 41,410 | |||||||||||||
Accident and health insurance | 750 | 718 | 658 | ||||||||||||||
Property insurance | 3,677 | 3,982 | 4,613 | ||||||||||||||
Net investment income | 13,224 | 13,051 | 13,058 | ||||||||||||||
Investment related gains, net | 618 | 223 | 1,470 | ||||||||||||||
Other income | 7 | 19 | 4 | ||||||||||||||
Total revenue | 62,519 | 59,421 | 61,213 | ||||||||||||||
Benefits and expenses: | |||||||||||||||||
Insurance benefits paid or provided: | |||||||||||||||||
Claims and surrenders | 28,345 | 27,332 | 23,863 | ||||||||||||||
Increase in future policy benefit reserves | 7,037 | 4,098 | 1,839 | ||||||||||||||
Policyholders' dividends | 40 | 33 | 36 | ||||||||||||||
Total insurance benefits paid or provided | 35,422 | 31,463 | 25,738 | ||||||||||||||
Commissions | 16,716 | 14,125 | 14,094 | ||||||||||||||
Other general expenses | 14,739 | 17,402 | 19,517 | ||||||||||||||
Capitalization of deferred policy acquisition costs | (6,566) | (4,907) | (4,807) | ||||||||||||||
Amortization of deferred policy acquisition costs | 3,381 | 3,452 | 4,436 | ||||||||||||||
Amortization of cost of insurance acquired | 863 | 1,356 | 1,054 | ||||||||||||||
Total benefits and expenses | 64,555 | 62,891 | 60,032 | ||||||||||||||
Income (loss) before income tax expense | $ | (2,036) | (3,470) | 1,181 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Claims and surrenders: | |||||||||||||||||
Death claim benefits | $ | 23,220 | 21,205 | 18,390 | |||||||||||||
Surrender benefits | 2,199 | 2,609 | 3,231 | ||||||||||||||
Endowment benefits | 7 | 10 | 14 | ||||||||||||||
Matured endowment benefits | 595 | 615 | 546 | ||||||||||||||
Property claims | 2,112 | 2,807 | 1,563 | ||||||||||||||
Accident and health benefits | 197 | 70 | 104 | ||||||||||||||
Other policy benefits | 15 | 16 | 15 | ||||||||||||||
Total claims and surrenders | $ | 28,345 | 27,332 | 23,863 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Income (loss) before federal income tax | $ | (5,570) | (18,741) | (7,231) |
Year | Life Insurance | Home Service Insurance | Consolidated | |||||||||||||||||
2021 | 4.26 | % | 4.37 | % | 4.24 | % | ||||||||||||||
2020 | 4.28 | % | 4.37 | % | 4.24 | % | ||||||||||||||
2019 | 4.41 | % | 4.45 | % | 4.36 | % |
December 31, (In thousands, except for %) | 2021 | % | 2020 | % | |||||||||||||||||||
AAA | $ | 29,572 | 2.0 | % | $ | 31,990 | 2.1 | % | |||||||||||||||
AA | 425,996 | 29.0 | 449,934 | 30.3 | |||||||||||||||||||
A | 418,465 | 28.5 | 451,488 | 30.3 | |||||||||||||||||||
BBB | 565,923 | 38.5 | 532,993 | 35.8 | |||||||||||||||||||
BB and other | 30,661 | 2.0 | 22,978 | 1.5 | |||||||||||||||||||
Totals | $ | 1,470,617 | 100.0 | % | $ | 1,489,383 | 100.0 | % |
December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
General Obligation | Special Revenue | Other | Total | % Based on Amortized Cost | |||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except for %) | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | |||||||||||||||||||||||||||||||||||||||||||||
Municipal fixed maturity securities shown including third-party guarantees | |||||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | $ | 20,655 | 19,588 | 3,315 | 3,078 | — | — | 23,970 | 22,666 | 6.4 | % | ||||||||||||||||||||||||||||||||||||||||||
AA | 51,780 | 48,158 | 124,926 | 117,665 | 12,010 | 10,824 | 188,716 | 176,647 | 49.5 | ||||||||||||||||||||||||||||||||||||||||||||
A | 17,497 | 16,116 | 116,115 | 105,646 | 5,008 | 4,412 | 138,620 | 126,174 | 35.4 | ||||||||||||||||||||||||||||||||||||||||||||
BBB | 3,389 | 3,059 | 13,490 | 12,940 | 1,537 | 1,450 | 18,416 | 17,449 | 4.9 | ||||||||||||||||||||||||||||||||||||||||||||
BB and other | 4,703 | 4,413 | 9,533 | 9,245 | — | — | 14,236 | 13,658 | 3.8 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 98,024 | 91,334 | 267,379 | 248,574 | 18,555 | 16,686 | 383,958 | 356,594 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||
Municipal fixed maturity securities shown excluding third-party guarantees | |||||||||||||||||||||||||||||||||||||||||||||||||||||
AAA | $ | 2,568 | 2,526 | — | — | — | — | 2,568 | 2,526 | 0.7 | % | ||||||||||||||||||||||||||||||||||||||||||
AA | 35,200 | 33,377 | 49,088 | 45,885 | 7,380 | 6,526 | 91,668 | 85,788 | 24.1 | ||||||||||||||||||||||||||||||||||||||||||||
A | 28,849 | 26,902 | 141,759 | 130,001 | 7,941 | 7,141 | 178,549 | 164,044 | 46.0 | ||||||||||||||||||||||||||||||||||||||||||||
BBB | 6,727 | 6,047 | 35,720 | 33,863 | 57 | 55 | 42,504 | 39,965 | 11.2 | ||||||||||||||||||||||||||||||||||||||||||||
BB and other | 24,680 | 22,482 | 40,812 | 38,825 | 3,177 | 2,964 | 68,669 | 64,271 | 18.0 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 98,024 | 91,334 | 267,379 | 248,574 | 18,555 | 16,686 | 383,958 | 356,594 | 100.0 | % |
(In thousands, except for %) | Fair Value | Amortized Cost | % of Total Fair Value | |||||||||||||||||
Education | $ | 69,130 | 65,040 | 18.0 | % | |||||||||||||||
Utilities | 62,545 | 55,958 | 16.3 | % | ||||||||||||||||
Transportation | 44,210 | 42,569 | 11.5 | % | ||||||||||||||||
General Obligation | Special Revenue | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | |||||||||||||||||||||||||||||||||||||||
Texas securities including third-party guarantees | |||||||||||||||||||||||||||||||||||||||||||||||
AAA | $ | 20,082 | 19,080 | 3,315 | 3,078 | — | — | 23,397 | 22,158 | ||||||||||||||||||||||||||||||||||||||
AA | 21,535 | 20,821 | 13,660 | 12,777 | 57 | 55 | 35,252 | 33,653 | |||||||||||||||||||||||||||||||||||||||
A | — | — | 21,671 | 21,832 | — | — | 21,671 | 21,832 | |||||||||||||||||||||||||||||||||||||||
BBB | — | — | 1,959 | 1,825 | — | — | 1,959 | 1,825 | |||||||||||||||||||||||||||||||||||||||
BB and other | — | — | 534 | 505 | — | — | 534 | 505 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 41,617 | 39,901 | 41,139 | 40,017 | 57 | 55 | 82,813 | 79,973 | ||||||||||||||||||||||||||||||||||||||
Texas securities excluding third-party guarantees | |||||||||||||||||||||||||||||||||||||||||||||||
AAA | $ | 2,568 | 2,526 | — | — | — | — | 2,568 | 2,526 | ||||||||||||||||||||||||||||||||||||||
AA | 31,801 | 30,439 | 3,216 | 3,032 | — | — | 35,017 | 33,471 | |||||||||||||||||||||||||||||||||||||||
A | 6,034 | 5,788 | 29,369 | 28,993 | — | — | 35,403 | 34,781 | |||||||||||||||||||||||||||||||||||||||
BBB | 1,214 | 1,148 | 5,611 | 5,199 | 57 | 55 | 6,882 | 6,402 | |||||||||||||||||||||||||||||||||||||||
BB and other | — | — | 2,943 | 2,793 | — | — | 2,943 | 2,793 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 41,617 | 39,901 | 41,139 | 40,017 | 57 | 55 | 82,813 | 79,973 |
General Obligation | Special Revenue | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | Fair Value | Amortized Cost | |||||||||||||||||||||||||||||||||||||||
California securities including third-party guarantees | |||||||||||||||||||||||||||||||||||||||||||||||
AA | $ | — | — | 31,942 | 30,407 | 2,933 | 2,729 | 34,875 | 33,136 | ||||||||||||||||||||||||||||||||||||||
A | 1,705 | 1,650 | 8,354 | 8,113 | — | — | 10,059 | 9,763 | |||||||||||||||||||||||||||||||||||||||
BBB | — | — | 4,757 | 4,653 | — | — | 4,757 | 4,653 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 1,705 | 1,650 | 45,053 | 43,173 | 2,933 | 2,729 | 49,691 | 47,552 | ||||||||||||||||||||||||||||||||||||||
California securities excluding third-party guarantees | |||||||||||||||||||||||||||||||||||||||||||||||
AA | $ | — | — | 3,708 | 3,639 | — | — | 3,708 | 3,639 | ||||||||||||||||||||||||||||||||||||||
A | 1,705 | 1,650 | 16,076 | 15,463 | 2,933 | 2,729 | 20,714 | 19,842 | |||||||||||||||||||||||||||||||||||||||
BBB | — | — | 8,315 | 7,847 | — | — | 8,315 | 7,847 | |||||||||||||||||||||||||||||||||||||||
BB and other | — | — | 16,954 | 16,224 | — | — | 16,954 | 16,224 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 1,705 | 1,650 | 45,053 | 43,173 | 2,933 | 2,729 | 49,691 | 47,552 |
2021 | 2020 | 2019 | |||||||||||||||
Direct premiums | $ | 178,806 | 178,952 | 187,009 | |||||||||||||
Reinsurance assumed | 84 | 91 | 99 | ||||||||||||||
Reinsurance ceded | (4,162) | (3,714) | (2,761) | ||||||||||||||
Net premiums | $ | 174,728 | 175,329 | 184,347 |
Years ended December 31, (In millions) | 2021 | 2020 | 2019 | ||||||||||||||
Direct written life insurance in force | $ | 4,628 | 4,612 | 4,729 | |||||||||||||
Reinsurance assumed | 4 | 5 | 5 | ||||||||||||||
Reinsurance ceded | (466) | (475) | (487) | ||||||||||||||
Net life insurance in force | $ | 4,166 | 4,142 | 4,247 |
(In thousands, except for %) | 2021 | 2020 | |||||||||
Fixed maturity securities | $ | 1,470,617 | 1,489,383 | ||||||||
Cash and cash equivalents | 27,294 | 34,131 |
As of December 31, 2021 (In thousands) | Total | Less than 1 Year | 1 to 3 Years | 3 to 5 Years | More than 5 Years | |||||||||||||||||||||||||||
Contractual Obligations: | ||||||||||||||||||||||||||||||||
Investment commitments | $ | 39,824 | 21,459 | 18,365 | — | — | ||||||||||||||||||||||||||
Real estate and equipment leases | 10,827 | 1,015 | 2,134 | 2,377 | 5,301 | |||||||||||||||||||||||||||
Future policy benefit reserves | 1,472,829 | 36,906 | 104,454 | 136,757 | 1,194,712 | |||||||||||||||||||||||||||
Policy claims payable | 14,590 | 14,590 | — | — | — | |||||||||||||||||||||||||||
Total contractual obligations | $ | 1,538,070 | 73,970 | 124,953 | 139,134 | 1,200,013 |
Item 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||||||||||||||
(In thousands) | Amortized Cost | Fair Value | Net Unrealized Gains | Amortized Cost | Fair Value | Net Unrealized Gains | |||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 1,343,755 | 1,470,617 | 126,862 | 1,321,487 | 1,489,383 | 167,896 | ||||||||||||||||||||||||||||
Total equity securities | $ | 11,894 | 14,844 | 2,950 | 19,529 | 22,102 | 2,573 |
Fair Values of Fixed Maturity Investments | |||||||||||||||||||||||||||||
(In thousands) | -100 | 0 | +100 | +200 | +300 | ||||||||||||||||||||||||
Assumed fair value | $ | 1,642,973 | 1,470,617 | 1,351,490 | 1,234,374 | 1,132,442 |
Item 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Item 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
Item 9A. | CONTROLS AND PROCEDURES |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining for future issuance under equity compensation plans | |||||||||||||||||
Equity compensation plans approved by security holders | 212,747 | $ | 5.75 | 2,450,015 | ||||||||||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||||||||||
Total | 212,747 | $ | 5.75 | 2,450,015 |
Index to Consolidated Financial Statements and Financial Statement Schedules | Page Reference | ||||
Reports of Independent Registered Public Accounting Firm - Auditor Name: Grant Thornton LLP Auditor Firm ID: 248 Auditor Location: Miami, FL | |||||
Reports of Independent Registered Public Accounting Firm - Auditor Name: Deloitte & Touche LLP Audit Firm ID: 34 Auditor Location: Austin, TX | |||||
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Balance Sheets | ||||||||||||||
December 31, (In thousands) | 2021 | 2020 | ||||||||||||
Assets | ||||||||||||||
Investments: | ||||||||||||||
Fixed maturity securities available-for-sale, at fair value (amortized cost: $1,343,755 and $1,321,487 in 2021 and 2020, respectively) | $ | 1,470,617 | 1,489,383 | |||||||||||
Equity securities, at fair value | 14,844 | 22,102 | ||||||||||||
Policy loans | 80,307 | 83,318 | ||||||||||||
Real estate held-for-sale | — | 2,571 | ||||||||||||
Other long-term investments (portion measured at fair value $56,038 and $11,923 in 2021 and 2020, respectively; less allowance for losses of $— and $11 in 2021 and 2020, respectively) | 57,399 | 27,294 | ||||||||||||
Total investments | 1,623,167 | 1,624,668 | ||||||||||||
Cash and cash equivalents | 27,294 | 34,131 | ||||||||||||
Accrued investment income | 16,197 | 16,137 | ||||||||||||
Reinsurance recoverable | 5,539 | 5,753 | ||||||||||||
Deferred policy acquisition costs | 140,380 | 104,913 | ||||||||||||
Cost of insurance acquired | 10,611 | 11,541 | ||||||||||||
Goodwill and other intangible assets | 941 | 13,570 | ||||||||||||
Federal income tax receivable | 762 | — | ||||||||||||
Property and equipment, net | 14,074 | 16,312 | ||||||||||||
Due premiums | 10,748 | 11,309 | ||||||||||||
Other assets (less allowance for losses of $111 and $297 in 2021 and 2020, respectively) | 4,798 | 5,086 | ||||||||||||
Total assets | $ | 1,854,511 | 1,843,420 |
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Balance Sheets | ||||||||||||||
December 31, continued (In thousands, except share amounts) | 2021 | 2020 | ||||||||||||
Liabilities and Stockholders' Equity | ||||||||||||||
Liabilities: | ||||||||||||||
Policy liabilities: | ||||||||||||||
Future policy benefit reserves: | ||||||||||||||
Life insurance | $ | 1,278,987 | 1,246,423 | |||||||||||
Annuities | 83,918 | 78,304 | ||||||||||||
Accident and health | 784 | 761 | ||||||||||||
Dividend accumulations | 37,760 | 33,336 | ||||||||||||
Premiums paid in advance | 40,690 | 40,605 | ||||||||||||
Policy claims payable | 14,590 | 13,206 | ||||||||||||
Other policyholders' funds | 30,690 | 22,447 | ||||||||||||
Total policy liabilities | 1,487,419 | 1,435,082 | ||||||||||||
Commissions payable | 2,285 | 2,572 | ||||||||||||
Deferred federal income tax liability, net | 15,456 | 9,564 | ||||||||||||
Current federal income tax payable | — | 43,916 | ||||||||||||
Payable for securities in process of settlement | — | 5,265 | ||||||||||||
Other liabilities | 28,780 | 46,076 | ||||||||||||
Total liabilities | 1,533,940 | 1,542,475 | ||||||||||||
Commitments and contingencies (Notes 5 and 7) | ||||||||||||||
Stockholders' Equity: | ||||||||||||||
Common stock: | ||||||||||||||
Class A, no par value, 100,000,000 shares authorized, 53,170,413 and 52,654,016 shares issued and outstanding as of December 31, 2021 and 2020, respectively, including shares in treasury of 3,135,738 as of December 31, 2021 and 2020 | 265,561 | 262,869 | ||||||||||||
Class B, no par value, 2,000,000 shares authorized, 1,001,714 shares issued and outstanding as of December 31, 2021 and 2020, including shares in treasury of 1,001,714 as of December 31, 2021 | 3,184 | 3,184 | ||||||||||||
Accumulated deficit | (45,565) | (82,352) | ||||||||||||
Accumulated other comprehensive income: | ||||||||||||||
Net unrealized gains on fixed maturity securities, net of tax | 117,492 | 128,255 | ||||||||||||
Treasury stock, at cost | (20,101) | (11,011) | ||||||||||||
Total stockholders' equity | 320,571 | 300,945 | ||||||||||||
Total liabilities and stockholders' equity | $ | 1,854,511 | 1,843,420 |
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Operations and Comprehensive Income (Loss) | ||||||||||||||||||||
Years Ended December 31, (In thousands, except share amounts) | 2021 | 2020 | 2019 | |||||||||||||||||
Revenues: | ||||||||||||||||||||
Premiums | ||||||||||||||||||||
Life insurance | $ | 169,801 | 170,328 | 178,351 | ||||||||||||||||
Accident and health insurance | 1,250 | 1,019 | 1,383 | |||||||||||||||||
Property insurance | 3,677 | 3,982 | 4,613 | |||||||||||||||||
Net investment income | 61,495 | 60,197 | 59,531 | |||||||||||||||||
Investment related gains (losses), net | 10,991 | 1,502 | 5,249 | |||||||||||||||||
Other income | 3,332 | 1,828 | 1,418 | |||||||||||||||||
Total revenues | 250,546 | 238,856 | 250,545 | |||||||||||||||||
Benefits and Expenses: | ||||||||||||||||||||
Insurance benefits paid or provided: | ||||||||||||||||||||
Claims and surrenders | 119,735 | 121,145 | 106,827 | |||||||||||||||||
Increase in future policy benefit reserves | 36,444 | 29,923 | 41,712 | |||||||||||||||||
Policyholders' dividends | 6,180 | 5,587 | 6,040 | |||||||||||||||||
Total insurance benefits paid or provided | 162,359 | 156,655 | 154,579 | |||||||||||||||||
Commissions | 35,463 | 32,069 | 34,222 | |||||||||||||||||
Other general expenses | 43,370 | 53,669 | 48,440 | |||||||||||||||||
Capitalization of deferred policy acquisition costs | (22,740) | (20,475) | (22,255) | |||||||||||||||||
Amortization of deferred policy acquisition costs | 24,952 | 27,439 | 28,268 | |||||||||||||||||
Amortization of cost of insurance acquired | 1,206 | 1,816 | 1,546 | |||||||||||||||||
Goodwill impairment | 12,624 | — | — | |||||||||||||||||
Total benefits and expenses | 257,234 | 251,173 | 244,800 | |||||||||||||||||
Income (loss) before federal income tax | (6,688) | (12,317) | 5,745 | |||||||||||||||||
Federal income tax expense (benefit) | (43,475) | (1,329) | 7,115 | |||||||||||||||||
Net income (loss) | 36,787 | (10,988) | (1,370) | |||||||||||||||||
Basic Earnings Per Share: | ||||||||||||||||||||
Class A common stock | $ | 0.74 | (0.22) | (0.03) | ||||||||||||||||
Class B common stock | 0.37 | (0.11) | (0.01) | |||||||||||||||||
Diluted Earnings Per Share: | ||||||||||||||||||||
Class A common stock | 0.73 | (0.22) | (0.03) | |||||||||||||||||
Class B common stock | 0.36 | (0.11) | (0.01) | |||||||||||||||||
Other Comprehensive Income (Loss): | ||||||||||||||||||||
Unrealized gains (losses) on fixed maturity securities: | ||||||||||||||||||||
Unrealized holding gains (losses) arising during period | (5,055) | 48,642 | 78,825 | |||||||||||||||||
Reclassification adjustment for losses (gains) included in net income (loss) | (243) | 111 | (1,927) | |||||||||||||||||
Unrealized gains (losses) on fixed maturity securities, net | (5,298) | 48,753 | 76,898 | |||||||||||||||||
Income tax expense (benefit) on unrealized gains (losses) on fixed maturity securities | 5,465 | (2,385) | 5,147 | |||||||||||||||||
Other comprehensive income (loss) | (10,763) | 51,138 | 71,751 | |||||||||||||||||
Total comprehensive income (loss) | $ | 26,024 | 40,150 | 70,381 |
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Stockholders' Equity | |||||||||||||||||||||||||||||||||||
Common Stock | Accumulated deficit | Accumulated other comprehensive income (loss) | Treasury stock | Total Stock-holders' equity | |||||||||||||||||||||||||||||||
(In thousands) | Class A | Class B | |||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 259,793 | 3,184 | (69,599) | 5,366 | (11,011) | 187,733 | ||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | (1,370) | — | — | (1,370) | |||||||||||||||||||||||||||||
Unrealized investment gains (losses), net | — | — | — | 71,751 | — | 71,751 | |||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | (1,370) | 71,751 | — | 70,381 | |||||||||||||||||||||||||||||
Stock-based compensation | 1,722 | — | — | — | — | 1,722 | |||||||||||||||||||||||||||||
Balance at December 31, 2019 | 261,515 | 3,184 | (70,969) | 77,117 | (11,011) | 259,836 | |||||||||||||||||||||||||||||
Accounting standards adopted January 1, 2020(1) | — | — | (395) | — | — | (395) | |||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | (10,988) | — | — | (10,988) | |||||||||||||||||||||||||||||
Unrealized investment gains (losses), net | — | — | — | 51,138 | — | 51,138 | |||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | (10,988) | 51,138 | — | 40,150 | |||||||||||||||||||||||||||||
Stock-based compensation | 1,354 | — | — | — | — | 1,354 | |||||||||||||||||||||||||||||
Balance at December 31, 2020 | 262,869 | 3,184 | (82,352) | 128,255 | (11,011) | 300,945 | |||||||||||||||||||||||||||||
Comprehensive income (loss): | |||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | 36,787 | — | — | 36,787 | |||||||||||||||||||||||||||||
Unrealized investment gains (losses), net | — | — | — | (10,763) | — | (10,763) | |||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | 36,787 | (10,763) | — | 26,024 | |||||||||||||||||||||||||||||
Acquisition of treasury stock | — | — | — | — | (9,090) | (9,090) | |||||||||||||||||||||||||||||
Stock-based compensation | 2,692 | — | — | — | — | 2,692 | |||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 265,561 | 3,184 | (45,565) | 117,492 | (20,101) | 320,571 |
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Cash Flows | |||||||||||||||||
Years Ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||
Net income (loss) | $ | 36,787 | (10,988) | (1,370) | |||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Investment related gains (losses), net on sales of investments and other assets | (10,991) | (1,502) | (5,249) | ||||||||||||||
Net deferred policy acquisition costs | 2,212 | 6,964 | 6,013 | ||||||||||||||
Amortization of cost of insurance acquired | 1,206 | 1,816 | 1,546 | ||||||||||||||
Depreciation | 1,140 | 1,423 | 1,677 | ||||||||||||||
Amortization of premiums and discounts on investments | 5,568 | 8,061 | 12,859 | ||||||||||||||
Stock-based compensation | 646 | 2,223 | 2,099 | ||||||||||||||
Deferred federal income tax expense (benefit) | 427 | (402) | 1,573 | ||||||||||||||
Goodwill impairment | 12,624 | — | — | ||||||||||||||
Change in: | |||||||||||||||||
Accrued investment income | (60) | 1,316 | 1,014 | ||||||||||||||
Reinsurance recoverable | 214 | (2,057) | (32) | ||||||||||||||
Due premiums | 561 | 1,347 | 669 | ||||||||||||||
Future policy benefit reserves | 35,239 | 29,650 | 41,479 | ||||||||||||||
Other policyholders' liabilities | 14,136 | 11,030 | 5,387 | ||||||||||||||
Federal income tax payable | (44,678) | (706) | 3,341 | ||||||||||||||
Commissions payable and other liabilities | (15,450) | 3,702 | 2,924 | ||||||||||||||
Other, net | 874 | (3,043) | (1,707) | ||||||||||||||
Net cash provided by (used in) operating activities | 40,455 | 48,834 | 72,223 | ||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||
Sales of fixed maturity securities, available-for-sale | 8,238 | 20,537 | 66,900 | ||||||||||||||
Maturities and calls of fixed maturity securities, available-for-sale | 53,089 | 220,397 | 181,618 | ||||||||||||||
Purchases of fixed maturity securities, available-for-sale | (94,265) | (271,474) | (329,627) | ||||||||||||||
Purchases of equity securities | — | (4,473) | — | ||||||||||||||
Sales of equity securities | 7,383 | — | — | ||||||||||||||
Principal payments on mortgage loans | 10 | 9 | 9 | ||||||||||||||
Funding of mortgage loans | (1,000) | — | — | ||||||||||||||
Change in policy loans, net | 3,011 | (1,313) | (1,180) | ||||||||||||||
Sales of other long-term investments and real estate | 24,238 | 3,671 | 6,983 | ||||||||||||||
Purchases of other long-term investments | (40,788) | (30,256) | (187) | ||||||||||||||
Purchases of property and equipment | (1,007) | (221) | (511) | ||||||||||||||
Sales of property and equipment | 14 | 11 | 16 | ||||||||||||||
Maturities of short-term investments | — | 1,300 | 9,090 | ||||||||||||||
Purchases of short-term investments | — | — | (2,456) | ||||||||||||||
Net cash provided by (used in) investing activities | (41,077) | (61,812) | (69,345) | ||||||||||||||
See accompanying Notes to Consolidated Financial Statements. |
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Consolidated Statements of Cash Flows | |||||||||||||||||
Years Ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||
Annuity deposits | $ | 8,839 | 7,532 | 6,717 | |||||||||||||
Annuity withdrawals | (7,763) | (5,759) | (8,505) | ||||||||||||||
Issuance of common stock | 2,255 | — | — | ||||||||||||||
Acquisition of treasury stock | (9,090) | — | — | ||||||||||||||
Other | (456) | (869) | (377) | ||||||||||||||
Net cash provided by (used in) financing activities | (6,215) | 904 | (2,165) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents | (6,837) | (12,074) | 713 | ||||||||||||||
Cash and cash equivalents at beginning of year | 34,131 | 46,205 | 45,492 | ||||||||||||||
Cash and cash equivalents at end of year | $ | 27,294 | 34,131 | 46,205 | |||||||||||||
Supplemental Disclosure of Operating Activities: | |||||||||||||||||
Cash paid during the year for income taxes | $ | 1,198 | — | 2,200 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Balance at beginning of period | $ | 104,913 | 149,249 | 155,747 | |||||||||||||
Capitalization of deferred policy acquisition costs | 22,740 | 20,475 | 22,255 | ||||||||||||||
Amortization of deferred policy acquisition costs | (24,952) | (27,439) | (28,268) | ||||||||||||||
Effects of unrealized (gains) losses | 37,679 | (37,372) | (485) | ||||||||||||||
Balance at end of period | $ | 140,380 | 104,913 | 149,249 |
(In thousands) | 2021 | 2019 | ||||||||||||
Increase (Decrease) | ||||||||||||||
Consolidated Balance Sheets | ||||||||||||||
DAC | $ | (122) | (1,396) | |||||||||||
Future policy benefit reserves: | ||||||||||||||
Life insurance | (827) | (2,299) | ||||||||||||
Consolidated Statements of Operations and Comprehensive Income (Loss) | ||||||||||||||
Decrease in future policy benefit reserves | (827) | (2,299) | ||||||||||||
Amortization of deferred policy acquisition costs | 122 | 1,396 | ||||||||||||
Income before federal income tax | 705 | 903 | ||||||||||||
Federal income tax expense | 148 | 190 | ||||||||||||
Net income | $ | 557 | 713 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Balance at beginning of period | $ | 11,541 | 13,455 | 15,225 | |||||||||||||
Amortization | (1,206) | (1,816) | (1,546) | ||||||||||||||
Change in effects of unrealized (gains) losses on COIA | 276 | (98) | (224) | ||||||||||||||
Balance at end of period | $ | 10,611 | 11,541 | 13,455 |
(In thousands) | Amount | ||||
Cost of insurance acquired: | |||||
Year: | |||||
2022 | $ | 846 | |||
2023 | 762 | ||||
2024 | 693 | ||||
2025 | 633 | ||||
2026 | 577 | ||||
Thereafter | 7,308 | ||||
10,819 | |||||
Effects of unrealized (gains) losses on COIA | (208) | ||||
Total cost of insurance acquired | $ | 10,611 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Balance at beginning of period | $ | 12,624 | 12,624 | 12,624 | |||||||||||||
Impairment | 12,624 | — | — | ||||||||||||||
Balance at end of period | $ | — | 12,624 | 12,624 |
December 31, (In thousands) | 2021 | 2020 | |||||||||
Property and equipment: | |||||||||||
Home office, land and buildings | $ | 3,980 | 4,136 | ||||||||
Furniture and equipment | 1,236 | 1,618 | |||||||||
Electronic data processing equipment and computer software | 7,418 | 7,179 | |||||||||
Automobiles | — | 50 | |||||||||
10,827 | 11,973 | ||||||||||
Total property and equipment | 23,461 | 24,956 | |||||||||
Accumulated depreciation | (9,387) | (8,644) | |||||||||
Total property and equipment | $ | 14,074 | 16,312 |
Carrying Value as of December 31, (In thousands, except for %) | 2021 | % | 2020 | % | |||||||||||||||||||
Cash and invested assets | |||||||||||||||||||||||
Fixed maturity securities | $ | 1,470,617 | 89.0 | % | $ | 1,489,383 | 89.8 | % | |||||||||||||||
Equity securities | 14,844 | 0.9 | 22,102 | 1.3 | |||||||||||||||||||
Policy loans | 80,307 | 4.9 | 83,318 | 5.0 | |||||||||||||||||||
Real estate and other long-term investments | 57,399 | 3.5 | 29,865 | 1.8 | |||||||||||||||||||
Cash and cash equivalents | 27,294 | 1.7 | 34,131 | 2.1 | |||||||||||||||||||
Total cash and invested assets | $ | 1,650,461 | 100.0 | % | $ | 1,658,799 | 100.0 | % |
December 31, 2021 (In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||
U.S. Treasury securities | $ | 9,515 | 1,097 | 1 | 10,611 | ||||||||||||||||||
U.S. Government-sponsored enterprises | 3,463 | 996 | — | 4,459 | |||||||||||||||||||
States and political subdivisions | 356,594 | 28,056 | 692 | 383,958 | |||||||||||||||||||
Corporate | |||||||||||||||||||||||
Financial | 213,652 | 22,477 | 172 | 235,957 | |||||||||||||||||||
Consumer | 219,223 | 23,658 | 900 | 241,981 | |||||||||||||||||||
Energy | 76,989 | 7,334 | 68 | 84,255 | |||||||||||||||||||
All Other | 302,141 | 29,855 | 1,181 | 330,815 | |||||||||||||||||||
Residential mortgage-backed | 117,755 | 16,046 | 6 | 133,795 | |||||||||||||||||||
Asset-backed | 44,322 | 368 | 14 | 44,676 | |||||||||||||||||||
Foreign governments | 101 | 9 | — | 110 | |||||||||||||||||||
Total fixed maturity securities | $ | 1,343,755 | 129,896 | 3,034 | 1,470,617 |
December 31, 2020 (In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||
U.S. Treasury securities | $ | 9,529 | 1,797 | — | 11,326 | ||||||||||||||||||
U.S. Government-sponsored enterprises | 3,490 | 1,301 | — | 4,791 | |||||||||||||||||||
States and political subdivisions | 377,462 | 32,751 | 548 | 409,665 | |||||||||||||||||||
Corporate | |||||||||||||||||||||||
Financial | 204,160 | 31,000 | 13 | 235,147 | |||||||||||||||||||
Consumer | 196,648 | 30,116 | 245 | 226,519 | |||||||||||||||||||
Energy | 81,223 | 8,174 | 536 | 88,861 | |||||||||||||||||||
All Other | 284,209 | 42,554 | 82 | 326,681 | |||||||||||||||||||
Commercial mortgage-backed | 225 | — | 4 | 221 | |||||||||||||||||||
Residential mortgage-backed | 118,144 | 21,819 | — | 139,963 | |||||||||||||||||||
Asset-backed | 46,295 | 278 | 482 | 46,091 | |||||||||||||||||||
Foreign governments | 102 | 16 | — | 118 | |||||||||||||||||||
Total fixed maturity securities | $ | 1,321,487 | 169,806 | 1,910 | 1,489,383 |
Fair Value as of December 31, (In thousands) | 2021 | 2020 | |||||||||
Equity securities: | |||||||||||
Stock mutual funds | $ | 3,571 | 3,174 | ||||||||
Bond mutual funds | 5,060 | 12,354 | |||||||||
Common stock | 990 | 1,143 | |||||||||
Non-redeemable preferred stock | 161 | 281 | |||||||||
Non-redeemable preferred stock fund | 5,062 | 5,150 | |||||||||
Total equity securities | $ | 14,844 | 22,102 |
December 31, 2021 | Less than 12 months | Greater than 12 months | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except for # of securities) | Fair Value | Unrealized Losses | # of Securities | Fair Value | Unrealized Losses | # of Securities | Fair Value | Unrealized Losses | # of Securities | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 72 | 1 | 2 | — | — | — | 72 | 1 | 2 | |||||||||||||||||||||||||||||||||||||||||||
States and political subdivisions | 21,715 | 692 | 15 | — | — | — | 21,715 | 692 | 15 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial | 8,059 | 86 | 15 | 1,227 | 86 | 1 | 9,286 | 172 | 16 | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | 29,494 | 777 | 28 | 2,419 | 123 | 1 | 31,913 | 900 | 29 | ||||||||||||||||||||||||||||||||||||||||||||
Energy | 7,381 | 68 | 8 | — | — | — | 7,381 | 68 | 8 | ||||||||||||||||||||||||||||||||||||||||||||
All Other | 33,384 | 781 | 30 | 4,523 | 400 | 4 | 37,907 | 1,181 | 34 | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 1,084 | 6 | 6 | — | — | — | 1,084 | 6 | 6 | ||||||||||||||||||||||||||||||||||||||||||||
Asset-backed | 9,078 | 12 | 11 | 663 | 2 | 1 | 9,741 | 14 | 12 | ||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 110,267 | 2,423 | 115 | 8,832 | 611 | 7 | 119,099 | 3,034 | 122 |
December 31, 2020 | Less than 12 months | Greater than 12 months | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except for # of securities) | Fair Value | Unrealized Losses | # of Securities | Fair Value | Unrealized Losses | # of Securities | Fair Value | Unrealized Losses | # of Securities | ||||||||||||||||||||||||||||||||||||||||||||
Fixed maturity securities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
States and political subdivisions | $ | 32,487 | 548 | 27 | — | — | — | 32,487 | 548 | 27 | |||||||||||||||||||||||||||||||||||||||||||
Corporate | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial | 1,308 | 13 | 1 | — | — | — | 1,308 | 13 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Consumer | 10,740 | 230 | 5 | 1,667 | 15 | 1 | 12,407 | 245 | 6 | ||||||||||||||||||||||||||||||||||||||||||||
Energy | 6,350 | 536 | 8 | — | — | — | 6,350 | 536 | 8 | ||||||||||||||||||||||||||||||||||||||||||||
All Other | 9,418 | 82 | 11 | — | — | — | 9,418 | 82 | 11 | ||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage-backed | 221 | 4 | 1 | — | — | — | 221 | 4 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage-backed | 83 | — | 1 | — | — | — | 83 | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Asset-backed | 26,353 | 481 | 26 | 994 | 1 | 1 | 27,347 | 482 | 27 | ||||||||||||||||||||||||||||||||||||||||||||
Total fixed maturity securities | $ | 86,960 | 1,894 | 80 | 2,661 | 16 | 2 | 89,621 | 1,910 | 82 |
(In thousands) | Amortized Cost | Fair Value | |||||||||
Fixed maturity securities: | |||||||||||
Due in one year or less | $ | 40,017 | 40,752 | ||||||||
Due after one year through five years | 119,116 | 128,507 | |||||||||
Due after five years through ten years | 200,823 | 218,200 | |||||||||
Due after ten years | 983,799 | 1,083,158 | |||||||||
Total fixed maturity securities | $ | 1,343,755 | 1,470,617 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Gross investment income: | |||||||||||||||||
Fixed maturity securities | $ | 55,579 | 54,653 | 53,860 | |||||||||||||
Equity securities | 1,024 | 816 | 662 | ||||||||||||||
Policy loans | 6,420 | 6,605 | 6,451 | ||||||||||||||
Other long-term investments | 809 | 238 | 13 | ||||||||||||||
Other | 54 | 97 | 374 | ||||||||||||||
Total investment income | 63,886 | 62,409 | 61,360 | ||||||||||||||
Investment expenses | (2,391) | (2,212) | (1,829) | ||||||||||||||
Net investment income | $ | 61,495 | 60,197 | 59,531 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Fixed maturity securities: | |||||||||||||||||
Proceeds | $ | 8,238 | 20,537 | 66,900 | |||||||||||||
Gross realized gains | 189 | 239 | 2,538 | ||||||||||||||
Gross realized losses | 1 | 351 | 973 | ||||||||||||||
Equity securities: | |||||||||||||||||
Proceeds | $ | 7,383 | — | — | |||||||||||||
Gross realized gains | — | — | — | ||||||||||||||
Gross realized losses | 149 | — | — |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Investment related gains (losses): | |||||||||||||||||
Sales, calls and maturities: | |||||||||||||||||
Fixed maturity securities | $ | 243 | (112) | 1,927 | |||||||||||||
Equity securities | (152) | — | — | ||||||||||||||
Real estate | 981 | — | 5,513 | ||||||||||||||
Property and equipment | 13 | 9 | (48) | ||||||||||||||
Other long-term investments | 1,892 | 9 | — | ||||||||||||||
Realized investment gains (losses) | 2,977 | (94) | 7,392 | ||||||||||||||
Change in fair value of equity securities | 376 | 1,596 | 962 | ||||||||||||||
Change in fair value of limited partnerships | 7,452 | — | — | ||||||||||||||
Change in credit loss allowance | 186 | — | — | ||||||||||||||
Realized loss on OTTI - real estate held for sale | — | — | (3,105) | ||||||||||||||
Net investment related gains (losses) | $ | 10,991 | 1,502 | 5,249 |
December 31, 2021 (In thousands) | Level 1 | Level 2 | Level 3 | Total Fair Value | |||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Fixed maturity securities available-for-sale: | |||||||||||||||||||||||
U.S. Treasury and U.S. Government-sponsored enterprises | $ | 10,611 | 4,459 | — | 15,070 | ||||||||||||||||||
States and political subdivisions | — | 383,958 | — | 383,958 | |||||||||||||||||||
Corporate | 51 | 892,957 | — | 893,008 | |||||||||||||||||||
Residential mortgage-backed | — | 133,795 | — | 133,795 | |||||||||||||||||||
Asset-backed | — | 44,676 | — | 44,676 | |||||||||||||||||||
Foreign governments | — | 110 | — | 110 | |||||||||||||||||||
Total fixed maturity securities available-for-sale | 10,662 | 1,459,955 | — | 1,470,617 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||
Stock mutual funds | 3,571 | — | — | 3,571 | |||||||||||||||||||
Bond mutual funds | 5,060 | — | — | 5,060 | |||||||||||||||||||
Common stock | 990 | — | — | 990 | |||||||||||||||||||
Non-redeemable preferred stock | 161 | — | — | 161 | |||||||||||||||||||
Non-redeemable preferred stock fund | 5,062 | — | — | 5,062 | |||||||||||||||||||
Total equity securities | 14,844 | — | — | 14,844 | |||||||||||||||||||
Other long-term investments (1) | — | — | — | 56,038 | |||||||||||||||||||
Total financial assets | $ | 25,506 | 1,459,955 | — | 1,541,499 |
December 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||
(In thousands, except years) | Fair Value Using NAV Per Share | Unfunded Commit- ments | Remaining life (In years) | Fair Value Using NAV Per Share | Unfunded Commit- ments | Remaining life (In years) | ||||||||||||||||||||
Description | ||||||||||||||||||||||||||
Limited partnerships | ||||||||||||||||||||||||||
Middle market | Investments in privately-originated, performing senior secured debt primarily in North America-based companies | $ | 21,947 | 18,712 | 10 | $ | 10,542 | 29,783 | 10 | |||||||||||||||||
Global equity fund | Investments in common stocks of U.S., international developed and emerging markets with a focus on long-term capital growth | 10,607 | — | 0 | — | — | 0 | |||||||||||||||||||
Term liquidity facility | Investments in a facility established by the U.S. Federal Reserve that provides financing to U.S. company market participants for levered asset purchases with a focus on asset-backed, commercial mortgage and collateralized loan obligation markets | — | — | 0 | 1,381 | — | 3 | |||||||||||||||||||
Late-stage growth | Investments in private late-stage, established companies seeking capital to accelerate growth prior to an IPO or sale | 20,468 | 4,459 | 6 | — | 16,291 | 7 | |||||||||||||||||||
Infrastructure | Investments in climate infrastructure assets, focusing on renewable power generation in wind and solar energy | 3,016 | 16,653 | 12 | — | 17,497 | 12 | |||||||||||||||||||
Total limited partnerships | $ | 56,038 | 39,824 | $ | 11,923 | 63,571 |
December 31, 2021 | December 31, 2020 | ||||||||||||||||||||||
(In thousands) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
Financial assets: | |||||||||||||||||||||||
Policy loans | $ | 80,307 | 80,307 | 83,318 | 83,318 | ||||||||||||||||||
Commercial mortgage loan | 1,000 | 1,000 | — | — | |||||||||||||||||||
Residential mortgage loans | 148 | 169 | 157 | 195 | |||||||||||||||||||
Cash and cash equivalents | 27,294 | 27,294 | 34,131 | 34,131 | |||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||
Annuity - investment contracts | 64,384 | 72,352 | 60,861 | 71,547 |
As of December 31, (In thousands) | 2021 | 2020 | ||||||
Other long-term investments: | ||||||||
Limited partnerships | $ | 56,038 | 18,135 | |||||
FHLB common stock | 192 | 190 | ||||||
Mortgage loans | 1,148 | 157 | ||||||
All other investments | 21 | 8,811 | ||||||
Total other long-term investments | $ | 57,399 | 27,293 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Policy claims payable: | |||||||||||||||||
Balance at January 1 | $ | 13,206 | 8,059 | 7,614 | |||||||||||||
Less: reinsurance recoverable | 3,012 | 796 | 511 | ||||||||||||||
Net balance at January 1 | 10,194 | 7,263 | 7,103 | ||||||||||||||
Add claims incurred, related to: | |||||||||||||||||
Current year | 32,595 | 38,400 | 26,816 | ||||||||||||||
Prior years(1) | 1,052 | 195 | 543 | ||||||||||||||
33,647 | 38,595 | 27,359 | |||||||||||||||
Deduct claims paid, related to: | |||||||||||||||||
Current year | 23,369 | 29,767 | 20,629 | ||||||||||||||
Prior years | 8,351 | 5,897 | 6,570 | ||||||||||||||
31,720 | 35,664 | 27,199 | |||||||||||||||
Net balance December 31 | 12,121 | 10,194 | 7,263 | ||||||||||||||
Plus: reinsurance recoverable | 2,469 | 3,012 | 796 | ||||||||||||||
Balance at December 31 | $ | 14,590 | 13,206 | 8,059 | |||||||||||||
(1) This line is primarily impacted by the level of claim resolutions in the period compared to that which is expected by the reserve assumption. A positive number implies an unfavorable result where claim resolutions were less favorable than assumed while a negative number implies a favorable result compared to assumptions. Our claim assumptions will vary from actual experience in any one period, either favorably or unfavorably. |
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
(In thousands) | 2017 | 2018 | 2019 | 2020 | 2021 | ||||||||||||
Accident Year: | (Unaudited) | ||||||||||||||||
2017 | $ | 1,359 | 1,652 | 1,661 | 1,661 | 1,661 | |||||||||||
2018 | 1,507 | 1,618 | 1,623 | 1,623 | |||||||||||||
2019 | 1,328 | 1,254 | 1,274 | ||||||||||||||
2020 | 2,154 | 2,798 | |||||||||||||||
2021 | 1,442 | ||||||||||||||||
Total | $ | 8,798 | |||||||||||||||
All outstanding liabilities before 2017, net of reinsurance | $ | — | |||||||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ | 796 |
As of December 31, (In thousands) | 2021 | 2020 | |||||||||
Net outstanding liabilities: | |||||||||||
Special property | $ | 796 | 743 | ||||||||
Other short duration insurance lines | 253 | 214 | |||||||||
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | 1,049 | 957 | |||||||||
Reinsurance recoverable on unpaid claims: | |||||||||||
Special property | 2,083 | 2,955 | |||||||||
Other short duration insurance lines | 386 | 57 | |||||||||
Total reinsurance recoverable on unpaid claims | 2,469 | 3,012 | |||||||||
Insurance lines other than short duration | 11,072 | 9,237 | |||||||||
Total gross liability for unpaid claims and claim adjustment expense | $ | 14,590 | 13,206 |
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) | |||||||||||||||||
Years | 1 | 2 | 3 | 4 | 5 | ||||||||||||
Special property | 93.00 | % | 11.54 | % | 0.90 | % | — | % | — | % |
December 31, (In thousands) | 2021 | 2020 | |||||||||
Aggregate assumed life insurance in force | $ | 4,366 | 4,615 | ||||||||
Aggregate ceded life insurance in force | $ | 465,954 | 474,792 | ||||||||
Net life insurance in force | $ | 4,165,921 | 4,141,968 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Premiums from short-duration contracts: | |||||||||||||||||
Direct | $ | 7,631 | 6,448 | 6,804 | |||||||||||||
Assumed | — | — | — | ||||||||||||||
Ceded | (2,312) | (1,447) | (808) | ||||||||||||||
Net premiums earned | 5,319 | 5,001 | 5,996 | ||||||||||||||
Premiums from long-duration contracts: | |||||||||||||||||
Direct | 171,175 | 172,504 | 180,205 | ||||||||||||||
Assumed | 84 | 91 | 99 | ||||||||||||||
Ceded | (1,850) | (2,267) | (1,953) | ||||||||||||||
Net premiums earned | 169,409 | 170,328 | 178,351 | ||||||||||||||
Total premiums earned | $ | 174,728 | 175,329 | 184,347 | |||||||||||||
Claims and surrenders assumed | $ | 169 | 174 | 141 | |||||||||||||
Claims and surrenders ceded | $ | (11,764) | (1,575) | (940) |
(In thousands) | Common Stock | Treasury | |||||||||||||||
Class A | Class B | Stock | |||||||||||||||
Balance at December 31, 2018 | 52,216 | 1,002 | (3,136) | ||||||||||||||
Change | 149 | — | — | ||||||||||||||
Balance at December 31, 2019 | 52,365 | 1,002 | (3,136) | ||||||||||||||
Change | 289 | — | — | ||||||||||||||
Balance at December 31, 2020 | 52,654 | 1,002 | (3,136) | ||||||||||||||
Change | 516 | — | (1,002) | ||||||||||||||
Balance at December 31, 2021 | 53,170 | 1,002 | (4,138) |
Years ended December 31, (In thousands, except per share amounts) | 2021 | 2020 | 2019 | |||||||||||||||||
Net income (loss) | $ | 36,787 | (10,988) | (1,370) | ||||||||||||||||
Numerator for Basic Earnings Per Share: | ||||||||||||||||||||
Net income (loss) allocated to Class A common stock | $ | 36,673 | (10,878) | (1,356) | ||||||||||||||||
Net income (loss) allocated to Class B common stock | 114 | (110) | (14) | |||||||||||||||||
Net income (loss) | $ | 36,787 | (10,988) | (1,370) | ||||||||||||||||
Denominator for Basic Earnings Per Share: | ||||||||||||||||||||
Weighted average shares of Class A outstanding | 49,664 | 49,400 | 49,214 | |||||||||||||||||
Weighted average shares of Class B outstanding | 308 | 1,002 | 1,002 | |||||||||||||||||
Total weighted average shares outstanding | 49,972 | 50,402 | 50,216 | |||||||||||||||||
Basic earnings (loss) per share of Class A common stock | $ | 0.74 | (0.22) | (0.03) | ||||||||||||||||
Basic earnings (loss) per share of Class B common stock | 0.37 | (0.11) | (0.01) | |||||||||||||||||
Numerator for Diluted Earnings Per Share: | ||||||||||||||||||||
Net income (loss) allocated to Class A common stock | $ | 36,675 | (10,878) | (1,356) | ||||||||||||||||
Net income (loss) allocated to Class B common stock | 112 | (110) | (14) | |||||||||||||||||
Net income (loss) | $ | 36,787 | (10,988) | (1,370) | ||||||||||||||||
Denominator for Diluted Earnings Per Share: | ||||||||||||||||||||
Weighted average shares of Class A outstanding | 50,337 | 49,938 | 49,347 | |||||||||||||||||
Weighted average shares of Class B outstanding | 308 | 1,002 | 1,002 | |||||||||||||||||
Total weighted average shares outstanding | 50,645 | 50,940 | 50,349 | |||||||||||||||||
Diluted earnings (loss) per share of Class A common stock | $ | 0.73 | (0.22) | (0.03) | ||||||||||||||||
Diluted earnings (loss) per share of Class B common stock | 0.36 | (0.11) | (0.01) |
As of December 31, (In thousands) | 2021 | 2020 | |||||||||
Combined statutory capital and surplus | |||||||||||
Life insurance operations | $ | 43,138 | 39,633 | ||||||||
Property insurance operations | 5,298 | 4,810 | |||||||||
Total combined statutory capital and surplus | $ | 48,436 | 44,443 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Combined statutory net income (loss) | |||||||||||||||||
Life insurance operations | $ | 5,280 | 9,458 | (1,200) | |||||||||||||
Property insurance operations | (1,512) | (1,985) | (451) | ||||||||||||||
Total combined statutory net income (loss) | $ | 3,768 | 7,473 | (1,651) |
As of December 31, (In thousands) | 2021 | 2020 | |||||||||
CICA International capital and surplus | $ | 141,931 | 158,447 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
CICA International net income (loss) | $ | 14,029 | 9,000 | 7,649 |
(In thousands) | Operating Lease Payments | |||||||
Maturity of operating lease liabilities | ||||||||
2022 | $ | 1,272 | ||||||
2023 | 1,271 | |||||||
2024 | 1,303 | |||||||
2025 | 1,335 | |||||||
2026 | 1,368 | |||||||
After 2026 | 5,567 | |||||||
Total operating lease payments | 12,116 | |||||||
Interest expense | (1,290) | |||||||
$ | 10,826 |
Year ended December 31, 2021 (In thousands) | Life Insurance | Home Service Insurance | Other Non-Insurance Enterprises | Consolidated | |||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Premiums | |||||||||||||||||||||||
Life insurance | $ | 125,558 | 44,243 | — | 169,801 | ||||||||||||||||||
Accident and health insurance | 500 | 750 | — | 1,250 | |||||||||||||||||||
Property insurance | — | 3,677 | — | 3,677 | |||||||||||||||||||
Net investment income (loss) | 47,216 | 13,224 | 1,055 | 61,495 | |||||||||||||||||||
Investment related gains (losses), net | 9,176 | 618 | 1,197 | 10,991 | |||||||||||||||||||
Other income (loss) | 3,362 | 7 | (37) | 3,332 | |||||||||||||||||||
Total revenue | 185,812 | 62,519 | 2,215 | 250,546 | |||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||
Insurance benefits paid or provided: | |||||||||||||||||||||||
Claims and surrenders | 91,390 | 28,345 | — | 119,735 | |||||||||||||||||||
Increase in future policy benefit reserves | 29,407 | 7,037 | — | 36,444 | |||||||||||||||||||
Policyholders' dividends | 6,140 | 40 | — | 6,180 | |||||||||||||||||||
Total insurance benefits paid or provided | 126,937 | 35,422 | — | 162,359 | |||||||||||||||||||
Commissions | 18,747 | 16,716 | — | 35,463 | |||||||||||||||||||
Other general expenses | 20,846 | 14,739 | 7,785 | 43,370 | |||||||||||||||||||
Capitalization of deferred policy acquisition costs | (16,174) | (6,566) | — | (22,740) | |||||||||||||||||||
Amortization of deferred policy acquisition costs | 21,571 | 3,381 | — | 24,952 | |||||||||||||||||||
Amortization of cost of insurance acquired | 343 | 863 | — | 1,206 | |||||||||||||||||||
Goodwill impairment | 12,624 | — | — | 12,624 | |||||||||||||||||||
Total benefits and expenses | 184,894 | 64,555 | 7,785 | 257,234 | |||||||||||||||||||
Income (loss) before federal income tax | $ | 918 | (2,036) | (5,570) | (6,688) |
Year ended December 31, 2020 (In thousands) | Life Insurance | Home Service Insurance | Other Non-Insurance Enterprises | Consolidated | |||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Premiums | |||||||||||||||||||||||
Life insurance | $ | 128,900 | 41,428 | — | 170,328 | ||||||||||||||||||
Accident and health insurance | 301 | 718 | — | 1,019 | |||||||||||||||||||
Property insurance | — | 3,982 | — | 3,982 | |||||||||||||||||||
Net investment income (loss) | 45,885 | 13,051 | 1,261 | 60,197 | |||||||||||||||||||
Investment related gains (losses), net | 1,340 | 223 | (61) | 1,502 | |||||||||||||||||||
Other income (loss) | 1,806 | 19 | 3 | 1,828 | |||||||||||||||||||
Total revenue | 178,232 | 59,421 | 1,203 | 238,856 | |||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||
Insurance benefits paid or provided: | |||||||||||||||||||||||
Claims and surrenders | 93,813 | 27,332 | — | 121,145 | |||||||||||||||||||
Increase in future policy benefit reserves | 25,825 | 4,098 | — | 29,923 | |||||||||||||||||||
Policyholders' dividends | 5,554 | 33 | — | 5,587 | |||||||||||||||||||
Total insurance benefits paid or provided | 125,192 | 31,463 | — | 156,655 | |||||||||||||||||||
Commissions | 17,944 | 14,125 | — | 32,069 | |||||||||||||||||||
Other general expenses | 16,323 | 17,402 | 19,944 | 53,669 | |||||||||||||||||||
Capitalization of deferred policy acquisition costs | (15,568) | (4,907) | — | (20,475) | |||||||||||||||||||
Amortization of deferred policy acquisition costs | 23,987 | 3,452 | — | 27,439 | |||||||||||||||||||
Amortization of cost of insurance acquired | 460 | 1,356 | — | 1,816 | |||||||||||||||||||
Total benefits and expenses | 168,338 | 62,891 | 19,944 | 251,173 | |||||||||||||||||||
Income (loss) before federal income tax | $ | 9,894 | (3,470) | (18,741) | (12,317) |
Year ended December 31, 2019 (In thousands) | Life Insurance | Home Service Insurance | Other Non-Insurance Enterprises | Consolidated | |||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Premiums | |||||||||||||||||||||||
Life insurance | $ | 136,941 | 41,410 | — | 178,351 | ||||||||||||||||||
Accident and health insurance | 725 | 658 | — | 1,383 | |||||||||||||||||||
Property insurance | — | 4,613 | — | 4,613 | |||||||||||||||||||
Net investment income (loss) | 44,779 | 13,058 | 1,694 | 59,531 | |||||||||||||||||||
Investment related gains (losses), net | 6,795 | 1,470 | (3,016) | 5,249 | |||||||||||||||||||
Other income (loss) | 1,412 | 4 | 2 | 1,418 | |||||||||||||||||||
Total revenue | 190,652 | 61,213 | (1,320) | 250,545 | |||||||||||||||||||
Benefits and expenses: | |||||||||||||||||||||||
Insurance benefits paid or provided: | |||||||||||||||||||||||
Claims and surrenders | 82,964 | 23,863 | — | 106,827 | |||||||||||||||||||
Increase in future policy benefit reserves | 39,873 | 1,839 | — | 41,712 | |||||||||||||||||||
Policyholders' dividends | 6,004 | 36 | — | 6,040 | |||||||||||||||||||
Total insurance benefits paid or provided | 128,841 | 25,738 | — | 154,579 | |||||||||||||||||||
Commissions | 20,128 | 14,094 | — | 34,222 | |||||||||||||||||||
Other general expenses | 23,012 | 19,517 | 5,911 | 48,440 | |||||||||||||||||||
Capitalization of deferred policy acquisition costs | (17,448) | (4,807) | — | (22,255) | |||||||||||||||||||
Amortization of deferred policy acquisition costs | 23,832 | 4,436 | — | 28,268 | |||||||||||||||||||
Amortization of cost of insurance acquired | 492 | 1,054 | — | 1,546 | |||||||||||||||||||
Total benefits and expenses | 178,857 | 60,032 | 5,911 | 244,800 | |||||||||||||||||||
Income (loss) before federal income tax | $ | 11,795 | 1,181 | (7,231) | 5,745 |
December 31, (In thousands) | 2021 | 2020 | |||||||||
Assets: | |||||||||||
Life Insurance | $ | 1,390,392 | 1,381,723 | ||||||||
Home Service Insurance | 407,603 | 385,931 | |||||||||
Other Non-Insurance Enterprises | 56,516 | 75,766 | |||||||||
Total assets | $ | 1,854,511 | 1,843,420 |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Area: | |||||||||||||||||
United States | $ | 56,000 | 52,667 | 53,656 | |||||||||||||
Colombia | 24,829 | 25,783 | 26,768 | ||||||||||||||
Taiwan | 19,042 | 19,078 | 19,403 | ||||||||||||||
Venezuela | 17,788 | 19,956 | 22,353 | ||||||||||||||
Ecuador | 13,115 | 13,301 | 14,198 | ||||||||||||||
Argentina | 9,160 | 9,175 | 10,069 | ||||||||||||||
Other foreign countries | 38,871 | 38,993 | 40,562 | ||||||||||||||
Net reinsurance | (4,077) | (3,624) | (2,662) | ||||||||||||||
Total premiums | $ | 174,728 | 175,329 | 184,347 |
Years ended December 31, (In thousands, except for %) | 2021 | % | 2020 | % | 2019 | % | |||||||||||||||||||||||||||||
Expected tax expense (benefit) | $ | (1,404) | 21.0 | % | $ | (2,586) | 21.0 | % | $ | 1,186 | 21.0 | % | |||||||||||||||||||||||
Foreign income tax rate differential | (2,912) | 43.5 | (1,817) | 14.8 | (1,562) | (27.7) | |||||||||||||||||||||||||||||
Tax-exempt interest and dividends-received deduction | (114) | 1.7 | (146) | 1.2 | (145) | (2.6) | |||||||||||||||||||||||||||||
Adjustment of prior year taxes | (61) | 0.9 | 194 | (1.6) | (99) | (1.8) | |||||||||||||||||||||||||||||
Effect of uncertain tax position | (43,834) | 655.4 | 1 | — | 1,148 | 20.3 | |||||||||||||||||||||||||||||
Nondeductible costs to remediate tax compliance issue | (176) | 2.6 | (620) | 5.0 | (27) | (0.5) | |||||||||||||||||||||||||||||
Compensation limitation under 162(m) and 280(g) | (21) | 0.3 | 2,386 | (19.4) | 480 | 8.5 | |||||||||||||||||||||||||||||
Subpart F income | 2,102 | (31.4) | 2,217 | (18.0) | 5,853 | 103.6 | |||||||||||||||||||||||||||||
Rate differential on net operating loss carryback claim | 295 | (4.4) | (999) | 8.1 | — | — | |||||||||||||||||||||||||||||
Goodwill impairment | 2,651 | (39.6) | — | — | — | — | |||||||||||||||||||||||||||||
Other | (1) | — | 41 | (0.3) | 281 | 5.2 | |||||||||||||||||||||||||||||
Total federal income tax expense (benefit) | $ | (43,475) | 650.0 | % | $ | (1,329) | 10.8 | % | $ | 7,115 | 126.0 | % |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Income tax expense (benefit): | |||||||||||||||||
Current - normal operations | $ | (68) | (927) | 5,542 | |||||||||||||
Current - UTP release impact | (43,834) | — | — | ||||||||||||||
Deferred | 427 | (402) | 1,573 | ||||||||||||||
Total income tax expense (benefit) | $ | (43,475) | (1,329) | 7,115 |
December 31, (In thousands) | 2021 | 2020 | |||||||||
Deferred tax assets: | |||||||||||
Future policy benefit reserves | $ | 2,572 | 2,657 | ||||||||
Net operating and capital loss carryforwards | 1,545 | 1,395 | |||||||||
Accrued policyholder dividends and expenses | 115 | 124 | |||||||||
Investments | 218 | 147 | |||||||||
Deferred intercompany loss | 1,848 | 2,002 | |||||||||
Accrued compensation | 337 | 513 | |||||||||
Lease liability | 2,274 | 2,514 | |||||||||
Other | 236 | 584 | |||||||||
Total gross deferred tax assets | 9,145 | 9,936 | |||||||||
Deferred tax liabilities: | |||||||||||
DAC, COIA and intangible assets | (8,955) | (8,693) | |||||||||
Unrealized gains on investments available-for-sale | (10,350) | (4,522) | |||||||||
Tax reserves transition liability | (2,989) | (3,736) | |||||||||
Right-of-use lease asset | (2,274) | (2,514) | |||||||||
Other | (33) | (35) | |||||||||
Total gross deferred tax liabilities | (24,601) | (19,500) | |||||||||
Net deferred tax liability | $ | (15,456) | (9,564) |
December 31, (In thousands) | 2021 | 2020 | |||||||||
Deferred federal and state income taxes: | |||||||||||
Balance January 1, | $ | (9,564) | (12,428) | ||||||||
Deferred tax benefit (expense) | (427) | 402 | |||||||||
Investments available-for-sale | (5,709) | 2,774 | |||||||||
Effects of unrealized gains on DAC, COIA and reserves | 244 | (391) | |||||||||
Adoption of ASU 2016-13 | — | 79 | |||||||||
Balance December 31, | $ | (15,456) | (9,564) |
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Balance at January 1, | $ | 45,990 | 45,989 | 44,841 | |||||||||||||
Additions for tax positions of prior years | — | 1 | 1,148 | ||||||||||||||
Reductions for tax positions of prior years | (43,834) | — | — | ||||||||||||||
Balance December 31, | $ | 2,156 | 45,990 | 45,989 |
(In thousands) | Amount | Tax Effect | Total | ||||||||||||||
Year ended December 31, 2021 | |||||||||||||||||
Unrealized gains (losses): | |||||||||||||||||
Unrealized holding gains (losses) arising during the period | $ | (41,123) | 3,084 | (38,039) | |||||||||||||
Reclassification adjustment for (gains) losses included in net income | (243) | 51 | (192) | ||||||||||||||
Effects on DAC | 37,679 | (8,938) | 28,741 | ||||||||||||||
Effects on COIA | 276 | (58) | 218 | ||||||||||||||
Effects on unearned revenue reserves | (1,887) | 396 | (1,491) | ||||||||||||||
Other comprehensive income (loss) | $ | (5,298) | (5,465) | (10,763) | |||||||||||||
Year ended December 31, 2020 | |||||||||||||||||
Unrealized gains (losses): | |||||||||||||||||
Unrealized holding gains (losses) arising during the period | $ | 84,010 | (6,044) | 77,966 | |||||||||||||
Reclassification adjustment for (gains) losses included in net income | 111 | (23) | 88 | ||||||||||||||
Effects on DAC | (37,372) | 8,872 | (28,500) | ||||||||||||||
Effects on COIA | (98) | 21 | (77) | ||||||||||||||
Effects on unearned revenue reserves | 2,102 | (441) | 1,661 | ||||||||||||||
Other comprehensive income (loss) | $ | 48,753 | 2,385 | 51,138 | |||||||||||||
Year ended December 31, 2019 | |||||||||||||||||
Unrealized gains (losses): | |||||||||||||||||
Unrealized holding gains (losses) arising during the period | $ | 78,744 | (5,535) | 73,209 | |||||||||||||
Reclassification adjustment for (gains) losses included in net income | (1,927) | 405 | (1,522) | ||||||||||||||
Effects on DAC | (484) | 102 | (382) | ||||||||||||||
Effects on COIA | (224) | 47 | (177) | ||||||||||||||
Effects on unearned revenue reserves | 789 | (166) | 623 | ||||||||||||||
Other comprehensive income (loss) | $ | 76,898 | (5,147) | 71,751 |
Restricted Stock Units | Units | Weighted Average Grant Price | Weighted Average Remaining Contractual Life | Aggregate Fair Value (1) | |||||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||||||||
Outstanding at December 31, 2019 | 275 | $ | 7.09 | 0.50 | $ | 1,947 | |||||||||||||||||
Granted | 350 | 6.59 | 1,948 | ||||||||||||||||||||
Less: | |||||||||||||||||||||||
Vested | 435 | 6.65 | 2,753 | ||||||||||||||||||||
Forfeited | — | 7.18 | — | ||||||||||||||||||||
Outstanding at December 31, 2020 | 190 | 6.03 | 0.88 | 1,142 | |||||||||||||||||||
Granted | 178 | 5.83 | 1,040 | ||||||||||||||||||||
Less: | |||||||||||||||||||||||
Vested | 147 | 6.21 | 913 | ||||||||||||||||||||
Forfeited | 8 | 5.96 | 47 | ||||||||||||||||||||
Outstanding at December 31, 2021 | 213 | $ | 5.75 | 1.63 | $ | 1,222 |
(In thousands, except per share amounts) | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | |||||||||||||||||||
2021 | |||||||||||||||||||||||
Revenues | $ | 69,921 | 61,584 | 63,558 | 55,483 | ||||||||||||||||||
Benefits and expenses | 76,734 | 64,311 | 57,958 | 58,231 | |||||||||||||||||||
Federal income tax expense (benefit) | (44,950) | 72 | 578 | 825 | |||||||||||||||||||
Net income (loss) | 38,137 | (2,799) | 5,022 | (3,573) | |||||||||||||||||||
Net income (loss) available to common shareholders | 38,137 | (2,799) | 5,022 | (3,573) | |||||||||||||||||||
Basic earnings (losses) per share of Class A common stock | 0.77 | (0.06) | 0.10 | (0.07) | |||||||||||||||||||
Basic earnings (losses) per share of Class B common stock | 0.36 | — | 0.05 | (0.04) | |||||||||||||||||||
Diluted earnings (losses) per share of Class A common stock | 0.77 | (0.06) | 0.10 | (0.07) | |||||||||||||||||||
Diluted earnings (losses) per share of Class B common stock | 0.36 | — | 0.05 | (0.04) |
2020 | |||||||||||||||||||||||
Revenues | 64,968 | 59,825 | 58,341 | 55,722 | |||||||||||||||||||
Benefits and expenses | 67,317 | 67,996 | 57,903 | 57,957 | |||||||||||||||||||
Federal income tax expense (benefit) | (3,887) | (256) | 1,465 | 1,349 | |||||||||||||||||||
Net income (loss) | 1,538 | (7,915) | (1,027) | (3,584) | |||||||||||||||||||
Net income (loss) available to common shareholders | 1,538 | (7,915) | (1,027) | (3,584) | |||||||||||||||||||
Basic earnings (losses) per share of Class A common stock | 0.03 | (0.16) | (0.02) | (0.07) | |||||||||||||||||||
Basic earnings (losses) per share of Class B common stock | 0.01 | (0.07) | (0.01) | (0.04) | |||||||||||||||||||
Diluted earnings (losses) per share of Class A common stock | 0.03 | (0.16) | (0.02) | (0.07) | |||||||||||||||||||
Diluted earnings (losses) per share of Class B common stock | 0.01 | (0.07) | (0.01) | (0.04) |
Schedule II Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Balance Sheets | |||||||||||
December 31, (In thousands) | 2021 | 2020 | |||||||||
Assets | |||||||||||
Investment in subsidiaries (1) | $ | 271,639 | 231,992 | ||||||||
Fixed maturity securities available-for-sale, at fair value | 33,724 | 42,202 | |||||||||
Equity securities, at fair value | 1,466 | 1,347 | |||||||||
Mortgage loans on real estate | 1,000 | — | |||||||||
Real estate held-for-sale | — | 2,571 | |||||||||
Other long-term investments | — | 8,790 | |||||||||
Cash | 3,399 | 3,102 | |||||||||
Accrued investment income | 439 | 471 | |||||||||
Accounts receivable from subsidiaries (1) | 5,832 | 4,911 | |||||||||
Property and equipment, net | 11,564 | 12,666 | |||||||||
Other assets | 3,049 | 3,183 | |||||||||
Total assets | $ | 332,112 | 311,235 | ||||||||
Liabilities and Stockholders' Equity | |||||||||||
Liabilities: | |||||||||||
Accrued expense and other liabilities | $ | 11,541 | 10,290 | ||||||||
Total liabilities | $ | 11,541 | 10,290 | ||||||||
Stockholders' equity: | |||||||||||
Common stock: | |||||||||||
Class A | $ | 265,561 | 262,869 | ||||||||
Class B | 3,184 | 3,184 | |||||||||
Accumulated deficit | (45,565) | (82,352) | |||||||||
Unrealized investment gains (losses) on securities held by parent and subsidiaries, net of tax | 117,492 | 128,255 | |||||||||
Treasury stock | (20,101) | (11,011) | |||||||||
Total stockholders' equity | 320,571 | 300,945 | |||||||||
Total liabilities and stockholders' equity | $ | 332,112 | 311,235 |
Schedule II, Continued Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Statements of Operations and Comprehensive Income (Loss) | |||||||||||||||||
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Comprehensive income (loss): | |||||||||||||||||
Revenues: | |||||||||||||||||
Management service fees (1) | $ | 33,311 | 32,828 | 43,694 | |||||||||||||
Investment income | 1,063 | 11,253 | 1,685 | ||||||||||||||
Other | (37) | 3 | 2 | ||||||||||||||
Investment related gains (losses), net | 1,197 | (62) | (3,013) | ||||||||||||||
Total revenues | 35,534 | 44,022 | 42,368 | ||||||||||||||
Expenses: | |||||||||||||||||
General expenses | 37,977 | 49,747 | 46,020 | ||||||||||||||
Taxes, licenses and fees | 198 | 189 | 146 | ||||||||||||||
Total expenses | 38,175 | 49,936 | 46,166 | ||||||||||||||
Income (loss) before federal income tax expense (benefit) and equity in income (loss) of consolidated subsidiaries | (2,641) | (5,914) | (3,798) | ||||||||||||||
Federal income tax expense (benefit) | (1,661) | (5,583) | (4,491) | ||||||||||||||
Income (loss) before equity in income (loss) of consolidated subsidiaries | (980) | (331) | 693 | ||||||||||||||
Equity in income (loss) of consolidated subsidiaries | 37,767 | (10,657) | (2,063) | ||||||||||||||
Net income (loss) | 36,787 | (10,988) | (1,370) | ||||||||||||||
Other comprehensive income (loss) | (10,763) | 51,138 | 71,751 | ||||||||||||||
Total comprehensive income | $ | 26,024 | 40,150 | 70,381 |
Schedule II, Continued Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Statements of Cash Flows | |||||||||||||||||
Years ended December 31, (In thousands) | 2021 | 2020 | 2019 | ||||||||||||||
Cash flows from operating activities: | |||||||||||||||||
Net income (loss) | $ | 36,787 | (10,988) | (1,370) | |||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||||
Investment related gains (losses), net | (1,197) | 62 | 3,013 | ||||||||||||||
Equity in loss (income) of consolidated subsidiaries | (37,767) | 10,657 | 2,063 | ||||||||||||||
Change in accrued expenses and other liabilities | (11,458) | 11,629 | (6,530) | ||||||||||||||
Change in federal income tax payable | (2,683) | (17,647) | — | ||||||||||||||
Deferred federal income tax expense (benefit) | 227 | 79 | — | ||||||||||||||
Amortization of premiums and discounts on investments | 473 | 535 | 496 | ||||||||||||||
Depreciation | 239 | 133 | 267 | ||||||||||||||
Change in accrued investment income | 32 | 64 | (5) | ||||||||||||||
Stock-based compensation | 646 | 2,223 | 2,099 | ||||||||||||||
Decrease (increase) in receivable from subsidiaries and other assets | (921) | (141) | 1,101 | ||||||||||||||
Other, net | 151 | (3,896) | (248) | ||||||||||||||
Net cash provided by (used in) operating activities | (15,471) | (7,290) | 886 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||
Purchases of fixed maturity securities, available-for-sale | (2,678) | (4,628) | (12,970) | ||||||||||||||
Maturities and calls of fixed maturity securities, available-for-sale | 7,548 | 7,114 | 691 | ||||||||||||||
Purchase of equity securities | — | (250) | — | ||||||||||||||
Sales of fixed maturity securities, available-for-sale | 6,952 | 5,735 | 4,268 | ||||||||||||||
Sales of property and equipment | 14 | 11 | 14 | ||||||||||||||
Sale of other long-term investments | 8,790 | — | — | ||||||||||||||
Sale of real estate | 3,552 | — | — | ||||||||||||||
Funding of mortgage loans | (1,000) | — | — | ||||||||||||||
Purchases of other long-term investments | — | (8,790) | — | ||||||||||||||
Purchases of property and equipment | (119) | (60) | (85) | ||||||||||||||
Purchases of short-term investments | — | — | (2,456) | ||||||||||||||
Maturities of short-term investments | — | 1,300 | 9,090 | ||||||||||||||
Net cash provided by (used in) investing activities | 23,059 | 432 | (1,448) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||
Issuance of common stock | 2,255 | — | — | ||||||||||||||
Acquisition of treasury stock | (9,090) | — | — | ||||||||||||||
Other | (456) | (869) | (377) | ||||||||||||||
Net cash provided by (used in) financing activities | (7,291) | (869) | (377) | ||||||||||||||
Net increase (decrease) in cash | 297 | (7,727) | (939) | ||||||||||||||
Cash at beginning of year | 3,102 | 10,829 | 11,768 | ||||||||||||||
Cash at end of year | $ | 3,399 | 3,102 | 10,829 |
Schedule III Consolidated Supplementary Insurance Information | |||||||||||
Years ended December 31, (In thousands) | 2021 | 2020 | |||||||||
Deferred policy acquisition costs: | |||||||||||
Life Insurance | $ | 97,644 | 94,771 | ||||||||
Home Service Insurance | 42,736 | 10,142 | |||||||||
Total consolidated deferred policy acquisition costs | $ | 140,380 | 104,913 | ||||||||
Future policy benefit reserves and policy claims payable: | |||||||||||
Life Insurance | $ | 1,084,455 | 1,052,638 | ||||||||
Home Service Insurance | 293,824 | 286,056 | |||||||||
Total consolidated future policy benefit reserves and policy claims payable | $ | 1,378,279 | 1,338,694 | ||||||||
Unearned premiums: | |||||||||||
Life Insurance | $ | 1,471 | 1,446 | ||||||||
Home Service Insurance | 331 | 262 | |||||||||
Total consolidated unearned premiums | $ | 1,802 | 1,708 | ||||||||
Other policy claims and benefits payable: | |||||||||||
Life Insurance | $ | 105,310 | 92,758 | ||||||||
Home Service Insurance | 2,028 | 1,922 | |||||||||
Total consolidated other policy claims and benefits payable | $ | 107,338 | 94,680 |
Schedule IV Consolidated Statement of Reinsurance | |||||||||||||||||||||||||||||
(In thousands) | Direct Amount | Ceded to Other Companies | Assumed From Other Companies | Net Amount | % of Amount Assumed to Net | ||||||||||||||||||||||||
Year ended December 31, 2021 | |||||||||||||||||||||||||||||
Life insurance in force | $ | 4,627,509 | 465,954 | 4,366 | 4,165,921 | 0.1 | % | ||||||||||||||||||||||
Premiums: | |||||||||||||||||||||||||||||
Life insurance | 171,567 | 1,850 | 84 | 169,801 | |||||||||||||||||||||||||
Accident and health insurance | 1,255 | 5 | — | 1,250 | |||||||||||||||||||||||||
Property insurance | 5,984 | 2,307 | — | 3,677 | |||||||||||||||||||||||||
Total premiums | $ | 178,806 | 4,162 | 84 | 174,728 | — | % | ||||||||||||||||||||||
Year ended December 31, 2020 | |||||||||||||||||||||||||||||
Life insurance in force | $ | 4,612,145 | 474,792 | 4,615 | 4,141,968 | 0.1 | % | ||||||||||||||||||||||
Premiums: | |||||||||||||||||||||||||||||
Life insurance | 172,503 | 2,266 | 91 | 170,328 | |||||||||||||||||||||||||
Accident and health insurance | 1,033 | 14 | — | 1,019 | |||||||||||||||||||||||||
Property insurance | 5,416 | 1,434 | — | 3,982 | |||||||||||||||||||||||||
Total premiums | $ | 178,952 | 3,714 | 91 | 175,329 | 0.1 | % | ||||||||||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||||||||||||
Life insurance in force | $ | 4,728,826 | 486,937 | 4,892 | 4,246,781 | 0.1 | % | ||||||||||||||||||||||
Premiums: | |||||||||||||||||||||||||||||
Life insurance | 180,204 | 1,952 | 99 | 178,351 | |||||||||||||||||||||||||
Accident and health insurance | 1,400 | 17 | — | 1,383 | |||||||||||||||||||||||||
Property insurance | 5,405 | 792 | — | 4,613 | |||||||||||||||||||||||||
Total premiums | $ | 187,009 | 2,761 | 99 | 184,347 | 0.1 | % |
Exhibit No. | The following exhibits are filed herewith: | |||||||
101.INS | XBRL Instance Document | |||||||
101.SCH | XBRL Taxonomy Extension Schema | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |||||||
104 | Inline XBRL for the cover page of this Annual Report on Form 10-K for the year ended December 31, 2021, filed electronically herewith, included in the Exhibit 101 Inline XBRL Document Set. |
† | Indicates management contract or compensatory plan or arrangement. | ||||
* | Filed herewith. |
CITIZENS, INC. | ||||||||||||||
Date: | March 11, 2022 | By: | /s/ Gerald W. Shields | |||||||||||
Gerald W. Shields, | ||||||||||||||
Chief Executive Officer and President | ||||||||||||||
(Principal Executive Officer) | ||||||||||||||
By: | /s/ Jeffery P. Conklin | |||||||||||||
Jeffery P. Conklin, | ||||||||||||||
Vice President, Chief Financial Officer, Chief Investment Officer and Treasurer | ||||||||||||||
(Principal Financial and Accounting Officer) |
/s/ Christopher W. Claus | /s/ Dr. Terry S. Maness | |||||||
Christopher W. Claus, Director | Dr. Terry S. Maness, Director | |||||||
/s/ Jerry D. Davis, Jr. | /s/ Gerald W. Shields | |||||||
Jerry D. Davis, Jr., Chairman of the Board and Director | Gerald W. Shields, Vice Chairman of the Board and Director | |||||||
/s/ Dr. E. Dean Gage | /s/ Dr. Robert B. Sloan, Jr. | |||||||
Dr. E. Dean Gage, Director | Dr. Robert B. Sloan, Jr., Director | |||||||
/s/ Francis A. Keating II | /s/ Cynthia H. Davis | |||||||
Francis A. Keating II, Director | Cynthia H. Davis, Director | |||||||
/s/ J. Keith Morgan | /s/ Mary Taylor | |||||||
J. Keith Morgan, Director | Mary Taylor, Director |
Company Name | State or Country of Incorporation | Percentage Ownership | ||||||
CICA Life Insurance Company of America (CICA) | Colorado | 100% Direct | ||||||
CICA Life Ltd. (CICA Ltd.) | Bermuda | 100% Direct | ||||||
Citizens National Life Insurance Company (CNLIC) | Texas | 100% Indirect | ||||||
Computing Technology, Inc. (CTI) | Colorado | 100% Indirect | ||||||
Magnolia Guaranty Life Insurance Company (MGLIC) | Mississippi | 100% Indirect | ||||||
Security Plan Fire Insurance Company (SPFIC) | Louisiana | 100% Indirect | ||||||
Security Plan Life Insurance Company (SPLIC) | Louisiana | 100% Indirect |
Date: | March 11, 2022 | |||||||
Signature: | /s/ Gerald W. Shields | |||||||
Name: | Gerald W. Shields, | |||||||
Title: | Chief Executive Officer and President |
Date: | March 11, 2022 | |||||||
Signature: | /s/ Jeffery P. Conklin | |||||||
Name: | Jeffery P. Conklin, | |||||||
Title: | Vice President, Chief Financial Officer, Chief Investment Officer and Treasurer |
Signature: | /s/ Gerald W. Shields | |||||||
Name: | Gerald W. Shields, | |||||||
Title: | Chief Executive Officer and President | |||||||
Date: | March 11, 2022 |
Signature: | /s/ Jeffery P. Conklin | |||||||
Name: | Jeffery P. Conklin, | |||||||
Title: | Vice President, Chief Financial Officer, Chief Investment Officer and Treasurer | |||||||
Date: | March 11, 2022 |