AUSTIN, Texas, Aug. 7 /PRNewswire-FirstCall/ -- Citizens, Inc. (NYSE: CIA) reported net income of $5.7 million or $0.11 per share of Class A common stock for the six months ended June 30, 2008, compared to net income of $6.0 million, or $0.12 per share of Class A common stock, for the same period in 2007. The decrease in earnings was due primarily to an increase in death claims and property claims, coupled with an increase in the amortization of deferred policy acquisition costs.

Total revenues increased 5.2% in the first six months of 2008 to $83.2 million, compared to the same period of 2007 when revenues were $79.1 million. Total revenues from our Life Insurance segment increased to $56.3 million compared to $52.8 million. Premium income was $67.9 million for the first half of 2008, a 5.2% increase over the same period of 2007 when premiums were $64.5 million. The increase resulted primarily from renewal premiums in our Life Insurance segment, which continues to experience strong persistency. Net investment income increased 5.8% during the first half of 2008 to $14.9 million from $14.1 million in 2007, the increase fueled by the growth in our investment portfolio. Underwriting and insurance expenses decreased from $14.2 million in 2007 to $13.9 million in 2008, due primarily to lower costs associated with the Company's 2008 Annual Shareholders Meeting and the absence of insurance department examination expenses incurred during 2007.

For the three months ended June 30, 2008, the Company earned net income of $3.0 million or $0.06 per share of Class A common stock, compared to $3.5 million or $0.07 per share of Class A common stock for the same period in 2007. The decrease in the second quarter income resulted primarily from increased death claims and property claims.

Assets at June 30, 2008 totaled $801.0 million, compared to $787.9 million at December 31, 2007. Stockholders' equity at June 30, 2008 was $174.9 million compared to $176.2 million at December 31, 2007.