AUSTIN, Texas, May 8 /PRNewswire-FirstCall/ -- Citizens, Inc. (NYSE: CIA)reported net income of $2.7 million or $0.05 per share of Class A common stockfor the quarter ended March 31, 2008, a 12.1% increase over net income of$2.4 million or $0.05 per share of Class A common stock during the same periodin 2007. The increase was primarily due to higher premium income, fueled bycontinued strong renewal life insurance premiums as well as an increase in netinvestment income.
Total revenues for the first three months of 2008 were $39.9 millioncompared to $38.4 million in 2007, an increase of 3.9%. Continued growth inpremium income in the international life business, as well as the increase innet investment income were the primary reasons for the increase in revenues.Premiums for the first quarter of 2008 increased 4.0% to $32.7 million from$31.4 million in the first quarter of 2007, due to continued persistency inthe international life and home service segments. Net investment incomeincreased 5.6% during the first quarter of 2008 to $7.5 million compared to$7.1 million in the first quarter 2007. The increase was due primarily fromthe growth in the investment portfolio during 2007 and the first part of 2008.
Claims and surrenders decreased slightly to $13.1 million in the firstquarter 2008 compared to $13.2 million in the first quarter of 2007, dueprimarily to favorable death claim experience comparatively between quarters.
Underwriting, acquisition and insurance expense were unchanged in thefirst quarter of 2008 from 2007 at $6.9 million, largely related tointegration of our Home Service segment into Citizens' back office operations.
Assets at March 31, 2008 totaled $794.2 million, compared to $787.9million at December 31, 2007. Stockholders' equity at March 31, 2008 was$176.3 million compared to $176.2 million at December 31, 2007.
Citizens, Inc. will host a conference call to discuss its first quarter2008 operating results at 10:00 a.m. Central Daylight Time on Friday, May 9,2008, and will be hosted by Rick D. Riley, Vice Chairman and President, TomKopetic, Chief Financial Officer and other members of the Citizens, Inc.management team.
To participate in the Citizens, Inc. conference call on Friday, May 9,2008, please dial (888) 742-8686 and when prompted enter confirmation code#8442219. It is recommended you dial in 3-5 minutes before the call isscheduled to begin.
About Citizens, Inc.
Citizens, Inc. is a financial services company listed on the New YorkStock Exchange under the symbol CIA. The Company plans to achieve $1 billionin assets, $250 million in revenues and $10 billion of life insurance in forceby 2010, via the worldwide sale of U.S. dollar denominated whole life cashvalue insurance policies, coupled with the acquisition of other life insurancecompanies. Citizens' Class A common stock closed at $6.30 on May 7, 2008.
Additional information is available about the Company on its web site:http://www.citizensinc.com.
Information herein contains forward-looking statements within the meaningof the Private Securities Litigation Reform Act of 1995, which can beidentified by words such as 'may,' 'will,' 'expect,' 'anticipate' or'continue' or comparable words. In addition, all statements other thanstatements of historical facts that address activities that the Companyexpects or anticipates will or may occur in the future are forward-lookingstatements. Readers are encouraged to read the SEC reports of the Company,particularly its Form 10-K for the fiscal year ended December 31, 2007, itsquarterly reports on Form 10-Q and its current reports on Form 8-K, for themeaningful cautionary language disclosing why actual results may varymaterially from those anticipated by management. The Company undertakes noduty or obligation to update any forward-looking statements contained in thisrelease as a result of new information, future events or changes in theCompany's expectations. The Company also disclaims any duty to comment uponor correct information that may be contained in reports published by theinvestment community.
CITIZENS, INC. COMPARATIVE CONSOLIDATED FINANCIAL HIGHLIGHTS (In thousands, except per share amounts)
OPERATING STATEMENTS
(Unaudited) Three Months Ended March 31, 2008 2007 Revenues Premiums $32,670 $31,441 Net investment income 7,464 7,067 Realized gains (losses), net 16 (13) Increase in fair value of warrants (503) (427) Other income 279 352 Total revenues 39,926 38,420
Benefits and Expenses Insurance benefits paid or provided: Claims and surrenders 13,078 13,180 Increase in future policy benefit reserves 6,997 6,935 Policyholders' dividends 1,377 1,230
Total insurance benefits paid or provided 21,452 21,345
Commissions 7,711 8,389 Other underwriting, acquisition and insurance expenses 6,911 6,900 Capitalization of deferred policy acquisition costs (4,855) (6,124) Amortization of deferred policy acquisition costs 3,562 3,151 Amortization of cost of customer relationships acquired and other intangibles 764 841 Total benefits and expenses 35,545 34,502 Income before Federal income tax 4,381 3,918
Federal income tax expense 1,646 1,479
Net income $2,735 $2,439
Net income applicable to common stock $2,223 $1,936
Basic and diluted earnings per share of Class A common stock $0.05 $0.05
Basic and diluted earnings per share of Class B common stock $0.03 $0.02
BALANCE SHEETS
(Unaudited) March December 31, 31, 2008 2007 Total assets $794,209 $787,909 Total invested assets 591,212 585,296 Stockholders' equity 176,289 176,157
For further information contact: Randall H. Riley Vice President, Investor Relations Phone 512-837-7100 Fax: 512-836-9334 email: PR@citizensinc.com web site: www.citizensinc.com
SOURCE Citizens, Inc.
