What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2026-03-12 compared with 2025-03-13 · 281 added, 383 removed, 1748 unchanged (28% of the section changed)

9 unchanged sentences

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management evaluated the design and operating effectiveness of internal control over financial reporting based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring

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Organizations of the Treadway Commission ("COSO").

Based on this evaluation, management concluded that our internal control over financial reporting as of December 31, 2025 was effective.

1 unchanged sentence

Their attestation report is included in Item 9A(c) of this Annual Report.

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(2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;

and (3) provide reasonable

and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may

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assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ GRANT THORNTON LLP

Miami, Florida

Fort Lauderdale, Florida

March 12, 2026

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Item 12 of this Annual Report on Form 10-K incorporates by reference the information in the section entitled "Stock Ownership Information" in our Proxy Statement.

SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS

The following table sets forth information regarding securities authorized for issuance under our equity compensation plan, the Citizens, Inc.

Omnibus Incentive Plan, as of December 31, 2024.

Stock Compensation in the notes to our consolidated financial statements for additional information regarding our Omnibus Incentive Plan.

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 1,141,015 $ 2.64 1,882,065

Equity compensation plans not approved by security holders — — —

Total 1,141,015 $ 2.64 1,882,065

Item 12 of this Annual Report on Form 10-K incorporates by reference the information in the sections entitled "Stock Ownership Information" and "Securities Authorized for Issuance under Equity Compensation Plans" in our Proxy Statement.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

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CITIZENS, INC.

on judgements that consider the Company’s historical experience, industry data and other factors.

on judgments that consider the Company’s historical experience, industry data and other factors.

We identified the updating of the mortality and lapse assumptions used in the estimation of the liability for future policy benefit reserves – life insurance as a critical audit matter.

6 unchanged sentences

We have served as the Company’s auditor since 2021.

Miami, Florida

Fort Lauderdale, Florida

March 12, 2026

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Cash and cash equivalents (restricted portion:

$ 1,554 and none in 2024 and 2023, respectively)

$ 1,554 in 2025 and 2024)

22,976 29,271

Accrued investment income 18,241 17,546

Receivable for securities 90 —

Reinsurance recoverable 10,874 6,941

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(In thousands, except share amounts)

Life insurance $ 171,561 164,609

Accident and health insurance 1,785 1,637

Property insurance ( 18 ) 793

$ 176,371 173,328

Net investment income 72,039 69,712

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Total comprehensive income (loss) — — 14,912 22,190 — 37,102

Acquisition of treasury stock — — — — ( 919 ) ( 919 )

Stock-based compensation 1,124 — — — — 1,124

— — 1,404 — — 1,404

Balance at December 31, 2024 269,799 3,184 57,062 ( 95,965 ) ( 23,725 ) 210,355

5 unchanged sentences

Balance at December 31, 2025 $ 272,294 3,184 71,653 ( 88,421 ) ( 23,725 ) 234,985

(1) See Note 11 in the Notes to Consolidated Financial Statements for more details.

See accompanying Notes to Consolidated Financial Statements.

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AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Cash Flows, Continued

Consolidated Statements of Cash Flows

Years Ended December 31,

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Purchases of fixed maturity securities, available-for-sale ( 170,432 ) ( 84,412 )

Purchases of equity securities ( 120 ) —

Sales of equity securities 4,482 —

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Purchases of property and equipment ( 447 ) ( 663 )

Maturities of short-term investments — 750

Sales of short-term investments

Net cash used in investing activities ( 19,672 ) ( 27,173 )

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Annuity withdrawals ( 6,750 ) ( 9,578 )

Acquisition of treasury stock — ( 919 )

Other share repurchases

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During 2025 and 2024, various fixed maturity issuers exchanged securities with book values of $ 16.0 million and $ 3.7 million, respectively, for securities of equal value.

The Company recognized right-of-use assets of $ 0.1 million in exchange for new operating lease liabilities during 2023 and none during 2024.

The Company had $ 0.1 million net unsettled security trades at December 31, 2025 and none at December 31, 2024.

The Company recognized $ 0.9 million right-of-use assets in exchange for new operating lease liabilities during 2025 and none during 2024.

See accompanying Notes to Consolidated Financial Statements.

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The consolidated financial statements include the accounts and operations of Citizens, Inc.

("Citizens" or the "Company"), a Colorado corporation, and its wholly-owned subsidiaries, CICA Life Insurance Company of America ("CICA Domestic"), CICA Life Ltd.

("Citizens" or the "Company"), a Colorado corporation, and its wholly-owned subsidiaries, CICA Life Insurance Company of America ("CLOA"), CICA Life Ltd.

("CICA Bermuda"), Security Plan Life Insurance Company ("SPLIC"), Security Plan Fire Insurance Company ("SPFIC"), Magnolia Guaranty Life Insurance Company ("MGLIC"), Computing Technology, Inc.

2 unchanged sentences

Citizens and its wholly-owned subsidiaries are collectively referred to as the "Company," "we," "it," "us," or "our".

Our Life Insurance segment operates through CICA Domestic and CICA International.

CICA Domestic.

Prior to July 1, 2023, our domestic life insurance business operated through CICA Domestic and Citizens National Life Insurance Company ("CNLIC").

CNLIC merged into CICA Domestic on July 1, 2023.

CICA Domestic issues primarily whole life, final expense and life products with living benefits throughout the U.S.

CICA International.

Until December 31, 2022, our international life insurance business operated through CICA Bermuda.

Beginning January 1, 2023, all new international policies are issued by CICA International and on August 31, 2023, CICA Bermuda transferred all of its insurance in force business to CICA International.

Reportable Segments and Reclassification of Prior Year Presentation

Effective December 31, 2025, the Company reorganized its insurance reporting structure, shifting from Life Insurance and Home Service Insurance segments to Domestic Insurance and International Insurance segments.

These changes align our segments with how we currently manage our business and better reflect the Company’s long-term growth strategy and optimize resource allocation across these segments.

The information that our chief operating decision maker is regularly provided and reviews for purposes of allocating resources and assessing performance reflects these segment changes.

Consequently, historical segment data has been recast to conform to the way we currently internally manage and monitor our business.

For further information, see Note 10 .

Segment and Other Operating Information .

The recast of prior period information had no impact on our consolidated balance sheets, consolidated statements of operations and comprehensive income (loss), or consolidated cash flows statements.

International Insurance.

All International policies are issued by CICA International.

CICA International offers U.S.

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NES provides services to policyholders of CICA International.

Our Home Service Insurance segment operates through our subsidiaries SPLIC and MGLIC, and focuses on the life insurance needs of the middle- and lower-income markets, primarily in Louisiana, Mississippi and Arkansas.

Our products in this segment consist primarily of small face amount whole life, industrial life and pre-need policies, which are designed to fund final expenses for the insured, primarily consisting of funeral and burial costs.

SPLIC also issues critical illness policies.

Domestic Insurance.

Our Domestic Insurance segment operates through our subsidiaries CLOA, which issues whole life, final expense and life products with living benefits throughout the U.S.

and SPLIC and MGLIC, which focus on the life insurance needs of the lower-income markets, primarily in Louisiana, Mississippi and Arkansas.

Prior to June 30, 2023, SPFIC issued dwelling and contents property insurance policies.

6 unchanged sentences

Fixed maturity securities are classified as HTM and carried at amortized cost when management has the positive intent and the Company has the ability to hold the securities to maturity.

Securities classified as AFS are carried at fair value, with the unrealized holding gains and losses, net of tax, reported in other comprehensive income (loss) and are not reported in earnings until realized.

Our fixed maturity securities consist primarily of bonds classified as AFS.

The Company does not classify any fixed maturity securities as trading or as HTM.

Equity securities are measured at fair value with the change in fair value recorded through the consolidated statements of operations and comprehensive income (loss).

Securities classified as AFS are carried at fair value, with the unrealized

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

holding gains and losses, net of tax, reported in other comprehensive income (loss) and are not reported in earnings until realized.

Our fixed maturity securities consist primarily of bonds classified as AFS.

The Company does not classify any fixed maturity securities as trading or as HTM.

Equity securities are measured at fair value with the change in fair value recorded through the consolidated statements of operations and comprehensive income (loss).

Unrealized gains (losses) of fixed maturity securities held as AFS are shown as a separate component of stockholders' equity, net of tax, and is a separate component of other comprehensive income (loss).

1 unchanged sentence

First, we assess whether we intend to sell, or it is more likely than not that we will be required to sell, the security before recovery of its amortized cost.

If either of the criteria is met, the security's amortized cost is written down to its fair value.

If either of the criteria is met, the security's amortized cost is reduced to its fair value.

For AFS fixed maturity securities that do not meet either criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors.

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The Company had restricted cash equivalents and fixed maturity securities with an aggregate fair value of $ 8.1 million and $ 7.9 million at December 31, 2025 and 2024, respectively, on deposit with various state regulatory authorities to fulfill statutory requirements.

SHORT-TERM INVESTMENTS

The Company considers investments maturing within one year at acquisition as short-term.

These securities are carried at fair value.

CASH AND CASH EQUIVALENTS

Cash consists of balances on hand and on deposit in banks and financial institutions.

Cash equivalents consists of securities whose duration does not exceed 90 days at the date of acquisition.

Cash equivalents consist of securities whose duration does not exceed 90 days at the date of acquisition.

Restricted cash represents amounts

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DAC is amortized on a constant level basis for the grouped contracts over the expected term of the related contracts to approximate straight-line amortization.

For the Life Insurance segment, the constant level basis used is policy count in force.

For the Home Service Insurance segment, the constant level basis used is face amount in force.

For the CICA International and the CLOA businesses, the constant level basis used is policy count in force.

For the SPLIC business, the constant level basis used is face amount in force.

The constant level bases used for amortization are projected using mortality and lapse assumptions that are based on the Company’s experience, industry data, and other factors at the end of each reporting period and are consistent with those used for the liability for future policy benefit life reserves.

11 unchanged sentences

GAAP purchase accounting as the difference between the reported value and the fair value of insurance contract liabilities, or comparable amounts determined in purchased insurance business combinations.

This intangible asset is referred to as the Cost of Insurance Acquired (“COIA”), which is amortized on a basis consistent with DAC, such that it is amortized in proportion to policies in force for the Life Insurance segment and face amount in force for the Home Service Insurance segment to approximate straight-line amortization.

This intangible asset is referred to as the Cost of Insurance Acquired (“COIA”), which is amortized on a basis consistent with DAC, such that it is amortized in proportion to policies in force for the CICA International and the CLOA business and face amount in force for the SPLIC business to approximate straight-line amortization.

A recoverability test that considers, among other things, actual experience and projected future experience is performed at least annually.

20 unchanged sentences

$ 9,835 10,574

The Company has several lease agreements for real estate and equipment, such as its corporate home office, Puerto Rico service center and several district office locations related to our Home Service Insurance segment.

The Company has several lease agreements for real estate and equipment, such as its corporate home office, Puerto Rico service center and several district office locations for SPLIC.

The Company recognizes these lease agreements on the consolidated balance sheets as a right-of-use asset and a corresponding lease liability.

3 unchanged sentences

The liability is estimated using current assumptions that include discount rate, mortality and lapses.

These current assumptions are based on judgements that consider the Company’s historical experience, industry data, and other factors.

These current assumptions are based on judgments that consider the Company’s historical experience, industry data, and other factors.

Our traditional and limited-payment contracts are grouped into cohorts by contract type and issue year.

2 unchanged sentences

The liability is adjusted for differences between actual and expected experience.

The Company reviews its historical cash flow assumptions quarterly and in the third quarter of the year, the Company reviews its future cash flow assumptions.

The Company reviews its historical cash flow assumptions quarterly during the third quarter of the year.

The net premium ratio used to calculate the liability is updated each quarter based on the current period's actual experience relative to expected experience.

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The Company determines the fair value of performance-based and restricted stock unit awards on the date of grant.

The fair value of time-based awards is recognized over the period during which an award holder is required to provide services in exchange for the award, know as the requisite service period, which is typically the vesting period using the straight-line method.

The fair value of time-based awards is recognized over the period during which an award holder is required to provide services in exchange for the award, known as the requisite service period, which is typically the vesting period using the straight-line method.

Performance-based share expense is recognized based on management’s estimate of the probability of meeting the metrics identified in the performance share award agreement, assigned to each service period as these estimates develop.

The Company records forfeitures and adjusts compensation expense on stock-based awards in the period they occur.

5 unchanged sentences

The Company releases stranded tax effects in accumulated other comprehensive income on an aggregate portfolio basis.

EARNINGS PER SHARE

Basic earnings per share are computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during each period.

Diluted earnings per share are

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1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

computed under the if-converted method for convertible securities and the treasury stock method for warrants, giving effect to all potential dilutive common stock, including options, warrants and convertible/redeemable preferred stock.

EARNINGS PER SHARE

Basic earnings per share are computed by dividing net income available to common stockholders by the weighted average number of shares of common stock outstanding during each period.

Diluted earnings per share are computed under the if-converted method for convertible securities and the treasury stock method for warrants, giving effect to all potential dilutive common stock, including options, warrants and convertible/redeemable preferred stock.

The basic and diluted earnings per share of Class B common stock are one half the earnings per share of the Class A common stock.

9 unchanged sentences

ACCOUNTING PRONOUNCEMENTS

ACCOUNTING STANDARDS ADOPTED

On November 27, 2023, the FASB issued ASU No.

2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

This amendment expands a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker, clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure requirements for entities with a single reportable segment, and requiring other new disclosures.

The amendments became effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024.

As this ASU only requires additional disclosures about the Company's operating segments, there was no material impact to the consolidated financial statements.

On December 14, 2023, the FASB issued ASU No.

2023-09, Income Taxes (Topic 740):

Improvements to Income Tax Disclosures, which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures.

The amendments in this ASU require a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories.

A public entity is also required to provide a qualitative description of the state and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions.

The amendments also remove certain disclosures that are no longer considered cost beneficial.

The amendments are effective prospectively for annual periods beginning after December 15, 2024 and early adoption and retrospective application are permitted.

The Company adopted this pronouncement at December 31, 2024 using the retrospective approach.

As this ASU only requires additional disclosures about the Company's taxes, there was no material impact to the consolidated financial statements.

ACCOUNTING STANDARDS NOT YET ADOPTED

5 unchanged sentences

While this ASU will impact only our disclosures and not our financial condition and results of operations, we are currently evaluating the impact of adopting this pronouncement on the consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

No other new accounting pronouncement issued or effective during 2025 had, or is expected to have, a material impact on our consolidated financial statements.

(2) INVESTMENTS

The Company invests primarily in fixed maturity securities, which totaled 86.0 % of total cash and invested assets at December 31, 2024.

The Company invests primarily in fixed maturity securities as shown below.

Carrying Value as of December 31,

8 unchanged sentences

Total cash and invested assets $ 1,465,087 100.0 % $ 1,420,499 100.0 %

The following tables represents the amortized cost, gross unrealized gains and losses and fair value of fixed maturity securities as of the dates indicated.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following tables represent the amortized cost, gross unrealized gains and losses and fair value of fixed maturity securities as of the dates indicated.

December 31, 2025

14 unchanged sentences

Total fixed maturity securities $ 1,432,454 9,748 154,341 1,287,861

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

14 unchanged sentences

Total fixed maturity securities $ 1,401,301 5,401 185,741 1,220,961

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company's investments in equity securities are shown below.

8 unchanged sentences

VALUATION OF INVESTMENTS

AFS fixed maturity securities are reported in the consolidated financial statements at fair value.

AFS fixed maturity securities are reported in the consolidated financial statements at fair value with the change in fair value recorded through other comprehensive income (loss).

Equity securities are measured at fair value with the change in fair value recorded through net income (loss).

The Company recognized net investment related gains of $ 0.2 million on equity securities held for the year ended December 31, 2024 and losses of $ 0.2 million on equity securities held for the year ended December 31, 2023.

The Company recognized net investment related losses of $ 0.1 million on equity securities held for the year ended December 31, 2025 and gains of $ 0.2 million on equity securities held for the year ended December 31, 2024.

The Company monitors all AFS fixed maturity securities on an on-going basis relative to changes in credit ratings, market prices, earnings trends and financial performance, in addition to specific region or industry reviews.

7 unchanged sentences

Qualitative factors include judgments related to business strategies, economic impacts on the issuer, overall judgment related to estimates and industry factors as well as the Company's intent to sell the security, or if it is more likely than not that the Company would be required to sell a security before recovery of its amortized cost.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company's best estimate of future cash flows involves assumptions including, but not limited to, various performance indicators, such as historical and projected default and recovery rates, credit ratings, and current delinquency rates.

These assumptions require the use of significant management judgement and include the probability of issuer default and estimates regarding timing and amount of expected recoveries, which may include estimating the underlying collateral value.

These assumptions require the use of significant management judgment and include the probability of issuer default and estimates regarding timing and amount of expected recoveries, which may include estimating the underlying collateral value.

In addition, projections of expected future fixed maturity security cash flows may change based upon new information regarding the performance of the issuer.

1 unchanged sentence

The Company recorded no credit valuation losses on fixed maturity securities for the years ended December 31, 2025 and 2024.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For fixed maturity security investments that have unrealized losses as of December 31, 2025 and 2024, the gross unrealized losses and related fair values that have been in a continuous unrealized loss position by timeframe are as follows.

19 unchanged sentences

Total fixed maturity securities $ 95,074 1,318 168 804,017 153,023 1,035 899,091 154,341 1,203

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024 Less than 12 months Greater than 12 months Total

7 unchanged sentences

Treasury securities $ 835 51 3 435 64 5 1,270 115 8

Government-sponsored enterprises 221 1 1 — — — 221 1 1

States and political subdivisions 42,583 1,484 63 147,534 32,058 177 190,117 33,542 240

5 unchanged sentences

All Other 25,208 1,237 38 68,756 15,131 87 93,964 16,368 125

Commercial mortgage-backed 100 — 1 89 5 1 189 5 2

Residential mortgage-backed 160 2 11 93,231 13,024 84 93,391 13,026 95

3 unchanged sentences

At December 31, 2025 and 2024, 98.7 % and 99.2 %, respectively, of the fair value of our fixed maturity securities portfolio was rated investment grade.

While the losses are currently unrealized, we continue to monitor all fixed maturity securities on an on-going basis as future information may become available which could result in an allowance being recorded.

While the losses are currently unrealized, we continue to monitor

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

all fixed maturity securities on an on-going basis as future information may become available which could result in an allowance being recorded.

The unrealized losses on fixed maturity securities detailed in the previous tables are due to noncredit-related factors, including widening credit spreads and rising interest rates since purchase, which have little bearing on the recoverability of our investments, hence they are not recognized as credit losses.

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There were no investments that were non-income producing for the years ended December 31, 2025 or 2024.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Major categories of net investment income are summarized as follows:

17 unchanged sentences

Gross realized losses $ 691 225

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Investment related gains and losses are as follows:

7 unchanged sentences

Investment related gains (losses)

613 ( 1,487 )

Change in fair value of equity securities ( 127 ) 164

Change in fair value of limited partnerships ( 429 ) ( 969 )

Change in fair value of structured note

Change in credit loss allowance ( 224 ) ( 334 )

4 unchanged sentences

We also report our equity securities and certain other long-term investments at fair value with changes in fair value reported through the consolidated statements of operations and comprehensive income (loss).

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Fair value measurements are generally based upon observable and unobservable inputs.

15 unchanged sentences

We have no investments in this category.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following tables set forth our assets that are measured at fair value on a recurring basis as of the dates indicated.

17 unchanged sentences

Non-redeemable preferred stock 7 — — 7

Non-redeemable preferred stock fund 3,891 — — 3,891

Total equity securities 1,356 — — 1,356

3 unchanged sentences

The fair value amounts presented in this table permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

22 unchanged sentences

The fair value amounts presented in this table permit reconciliation of the fair value hierarchy to the amounts presented in the consolidated balance sheet.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FINANCIAL INSTRUMENTS VALUATION

8 unchanged sentences

Our equity securities are classified as Level 1 assets as their fair values are based upon quoted market prices.

Structured note.

At December 31, 2025, the Company held an investment in a structured note, which includes components classified as fixed maturity securities and other long-term investments on the consolidated balance sheets.

The partner interest is included in other long-term investments and is measured at its net asset value ("NAV") of $ 2.6 million as a practical expedient, which approximates fair value.

The Company recognized investment related gains of $ 0.3 million for the year ended December 31, 2025.

These investments are included in Other Long-term Investments on the consolidated balance sheets.

As of December 31, 2025, we are committed to fund this investment up to $ 4.6 million over the next nine years .

Limited partnerships.

The Company considers the net asset value ("NAV") to represent the value of the investment fund and is measured by the total value of assets minus the total value of liabilities.

The Company considers the NAV to represent the value of the investment fund and is measured by the total value of assets minus the total value of liabilities.

The following table includes information related to our investments in limited partnerships that calculate NAV per share.

For these investments, which are measured at fair value on a recurring basis, we use the NAV per share to measure fair value.

The Company recognized net investment related losses of $ 1.0 million on limited partnerships held for the year ended

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024 and gains of $ 0.9 million for the year ended December 31, 2023.

The Company recognized net investment related losses of $ 0.4 million and $ 1.0 million on limited partnerships held for the year ended December 31, 2025 and 2024, respectively.

These investments are included in other long-term investments on the consolidated balance sheets.

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Total limited partnerships $ 82,592 6,284 $ 93,337 15,431

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The majority of our limited partnership investments are not redeemable because distributions from the funds will be received when the underlying investments of the funds are liquidated.

The life spans indicated above may be shortened or extended at the fund manager's discretion, typically in one or two-year increments.

The global equity fund is redeemable monthly.

FINANCIAL INSTRUMENTS NOT CARRIED AT FAIR VALUE

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Therefore, the fair value of policy loans approximates the carrying value reflected on the consolidated balance sheets and are considered Level 3 assets in the fair value hierarchy.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Residential mortgage loan.

1 unchanged sentence

The interest rate for this loan was 7.0 % at December 31, 2025 and 2024.

At December 31, 2024, the remaining loan matures in four years .

At December 31, 2025, the remaining loan matures in three years .

Management estimated the fair value using an annual interest rate of 6.25 % at both December 31, 2025 and 2024.

5 unchanged sentences

The fair value of liabilities under all insurance contracts are taken into consideration in the overall management of interest rate risk, which seeks to minimize exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Other long-term investments.

5 unchanged sentences

Limited partnerships $ 82,592 93,337

Structured note

FHLB common stock 222 212

Mortgage loans 33 42

All other investments

Total other long-term investments $ 85,439 93,604

We carried no limited partnership investments at cost at either December 31, 2024 or December 31, 2023.

We are a member of the FHLB of Dallas and such membership requires members to own stock in the FHLB.

4 unchanged sentences

Both reporting cohorts include whole life and endowment policies.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Year Ended December 31, 2025

1 unchanged sentence

Permanent Permanent Limited Pay Other Business Total

Life Insurance:

International Insurance:

Balance, beginning of year $ 108,742 16,370 572 125,684

3 unchanged sentences

113,915 18,585 538 133,038

Home Service Insurance:

Domestic Insurance:

Balance, beginning of year 61,639 11,169 1,143 73,951

9 unchanged sentences

$ 188,537 30,268 1,732 220,537

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Year Ended December 31, 2024

1 unchanged sentence

Permanent Permanent Limited Pay Other Business Total

Life Insurance:

International Insurance:

Balance, beginning of year $ 103,434 14,056 456 117,946

3 unchanged sentences

108,742 16,370 572 125,684

Home Service Insurance:

Domestic Insurance:

Balance, beginning of year 45,398 10,583 1,841 57,822

9 unchanged sentences

$ 170,381 27,539 1,715 199,635

DAC capitalization increased for the year ended December 31, 2024, compared to the same prior year period mainly from increased commissions from higher first year sales in our Life Insurance segment.

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CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Year Ended December 31, 2024

The Domestic Insurance segment is the only segment that recognizes COIA;

therefore, the balances for the years ended December 31, 2025 and 2024 on a consolidated basis by reporting cohort are shown below.

(In thousands)

Permanent Permanent Limited Pay Other Business Total

Life Insurance:

Balance, beginning of year $ 249 695 406 1,350

Amortization expense 350 ( 47 ) ( 406 ) ( 103 )

Balance, end of year

599 648 — 1,247

Home Service Insurance:

Balance, beginning of year 7,194 168 1,331 8,693

Amortization expense ( 369 ) ( 7 ) ( 118 ) ( 494 )

Balance, end of year

6,825 161 1,213 8,199

Consolidated:

Balance, beginning of year 7,443 863 1,737 10,043

Amortization expense ( 19 ) ( 54 ) ( 524 ) ( 597 )

Balance, end of year

$ 7,424 809 1,213 9,446

Year Ended December 31, 2025

(In thousands)

Permanent Permanent Limited Pay Other Business Total

Life Insurance:

Balance, beginning of year $ 7,424 809 1,213 9,446

1 unchanged sentence

Balance, end of year $ 7,036 764 1,195 8,995

249 695 406 1,350

Home Service Insurance:

Balance, beginning of year 7,583 176 1,427 9,186

Amortization expense ( 389 ) ( 8 ) ( 96 ) ( 493 )

Balance, end of year

7,194 168 1,331 8,693

Consolidated:

Year Ended December 31, 2024

Balance, beginning of year $ 7,443 863 1,737 10,043

1 unchanged sentence

Balance, end of year $ 7,424 809 1,213 9,446

$ 7,443 863 1,737 10,043

December 31, 2025 | 10-K 79

18 unchanged sentences

(In thousands)

Life Insurance

Home Service Insurance

International Insurance

Domestic Insurance

Permanent Permanent Limited Pay Total Permanent Permanent Limited Pay Total

31 unchanged sentences

Net liability for future policy benefits, after reinsurance recoverable $ 669,183 145,735 814,918 127,742 126,168 253,910

The Company performed its annual review of policy benefit reserves assumptions in the third quarter of 2024 and recorded the effects of changes in its cash flow assumptions, which resulted in a net increase in future policy benefit reserves, primarily from mortality and lapse assumptions that better reflect emerging experience for the new CICA Domestic block of business.

For the year ended December 31, 2025, the International Insurance segment had lower reserves compared to the same period in 2024, primarily due to matured endowments, which outpaced reserves added for new business sales and assumptions updates to reflect higher than anticipated persistency in later durations.

For the year ended

December 31, 2025 | 10-K 81

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the year ended December 31, 2024, the Life Insurance segment increased reserves compared to the same period in 2023 due to the unfavorable impact of actual versus expected experience related to mortality and lapses.

There was minimal impact to the Home Service Insurance segment resulting from actual to expected experience for the years ended December 31, 2024 and 2023.

December 31, 2025, the Domestic Insurance segment had higher reserves compared to the same period in 2024, primarily driven by high new business sales which were partially offset by favorable assumptions updates reflecting better mortality than previous assumptions.

December 31, 2024

(In thousands)

Life Insurance Home Service Insurance

International Insurance

Domestic Insurance

Permanent Permanent Limited Pay Total Permanent Permanent Limited Pay Total

28 unchanged sentences

Net liability for future policy benefits $ 676,209 143,652 819,861 124,780 126,213 250,993

Flooring impact 2 — 2 — — —

Reinsurance recoverable — — — 1,639 — 1,639

Net liability for future policy benefits, after flooring impact $ 676,211 143,652 819,863 123,141 126,213 249,354

December 31, 2025 | 10-K 82

4 unchanged sentences

December 31, 2024

(In thousands) Life

Insurance Home Service

Insurance Consolidated Life

Insurance Home Service

Insurance Consolidated

(In thousands) International

Consolidated International

Life Insurance:

9 unchanged sentences

December 31, 2025 December 31, 2024

(In thousands) Life

Insurance Home Service

Insurance Life

Insurance Home Service

(In thousands) International

International

Undiscounted:

13 unchanged sentences

The following tables summarize the amount of revenue and interest related to long-term duration contracts recognized in the consolidated statements of operations and comprehensive income (loss) as of the dates indicated.

For the Years Ended

Years Ended December 31,

(In thousands)

December 31, 2024 December 31, 2023

Gross Premiums Interest Expense Gross Premiums Interest Expense

Life Insurance Segment:

International Insurance:

Life Insurance:

6 unchanged sentences

Other 709 — 761 —

Reinsurance 3 — 4 —

Total, net of reinsurance 763 — 721 —

Total $ 118,355 38,724 118,803 40,136

Home Service Insurance Segment:

Domestic Insurance:

Life Insurance:

6 unchanged sentences

Other 1,054 — 1,027 —

Reinsurance 3 — 3 —

Total, net of reinsurance 1,051 — 1,024 —

Total $ 58,016 15,169 54,543 14,444

1 unchanged sentence

December 31, 2025 December 31, 2024

(In years) Life

Insurance Home Service

Insurance Life

Insurance Home Service

(In years) International

International

Duration at original discount rate 8.1 17.2 7.9 16.9

8 unchanged sentences

December 31, 2025 December 31, 2024

Insurance Home Service

Insurance Life

Insurance Home Service

International

Interest rate at original discount rate 4.81 % 4.95 % 4.86 % 5.03 %

43 unchanged sentences

Interest credited 2,850 3,167 2,301 816

Other 5 — — —

Surrenders and withdrawals — 12,426 5,478 8,816

35 unchanged sentences

The following table presents information on changes in the liability for policy and contract claims.

Years ended December 31,

(In thousands)

Policy claims payable:

Balance at January 1,

$ 8,822 6,637

reinsurance recoverable 923 1,298

12 unchanged sentences

Balance at December 31,

$ 8,772 8,822

(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.

3 unchanged sentences

In the normal course of business, the Company reinsures portions of certain policies that we underwrite to mitigate exposure to potential losses and/or to provide additional capacity for growth.

In our international business, we generally retain $ 100,000 on any one individual life insurance policy and reinsure the death benefit amount above $ 100,000 .

In our international business, prior to April 1, 2025, we retained up to $ 100,000 on any one individual life insurance policy and reinsured the death benefit amounts above this amount.

For new policies beginning on such date, we increased our retention amount to $ 250,000 and reinsure amounts above that.

We also reinsure 100 % of our accidental death benefit rider coverage.

In the second quarter of 2024, CICA Domestic entered into a coinsurance agreement with RGA Reinsurance Company ("RGA").

Under this agreement, CICA Domestic initially elected for RGA to reinsure 50 % of its newly written final expense business.

In the second quarter of 2024, CLOA entered into a coinsurance agreement with RGA Reinsurance Company ("RGA").

Under this agreement, CLOA initially elected for RGA to reinsure 50 % of its newly written final expense

December 31, 2025 | 10-K 87

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Company remains contingently liable in the event that any of the reinsurers are unable to meet their obligations under any reinsurance agreement.

Prior to 2024, the Company maintained catastrophic reinsurance for its Louisiana property and casualty business operated through Security Plan Fire Insurance Company.

This reinsurance had a net retention on any one loss of $ 30,000 , which was the maximum policy limit on any single risk.

The Company ceased this business in June 2023 and thus did not renew this reinsurance.

The Company remains contingently liable in the event that any of the reinsurers are unable to meet their obligations under any reinsurance agreement.

Our amounts recoverable from reinsurers represent receivables from and reserves ceded to reinsurers.

33 unchanged sentences

We may incur defense costs, including attorneys' fees, and other direct litigation costs associated with defending claims.

If we suffer an adverse judgment as a result of litigation claims, it could have a material adverse effect on our business, results of

If we suffer an adverse judgment as a result of litigation claims, it could have a material adverse effect on our business, results of operations and financial condition.

The Company's policy is to accrue for defense costs as those services are provided.

December 31, 2025 | 10-K 88

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

operations and financial condition.

The Company's policy is to accrue for defense costs as those services are provided.

Trade Secret Lawsuit

1 unchanged sentence

The trade secret lawsuit was filed in 2018 by Citizens, CICA Life Ltd.

(Bermuda) and CICA Life Insurance Company of America (collectively, the “Citizens Companies,” “we,” "us" or "our") against certain former employees and independent consultants who we alleged unlawfully took Citizens’ confidential information in order to unfairly compete with us.

(CICA Bermuda) and CICA Life Insurance Company of America (CLOA) (collectively, the “Citizens Companies,” “we,” "us" or "our") against certain former employees and independent consultants who we alleged unlawfully took Citizens’ confidential information in order to unfairly compete with us.

Our claims against these parties included various unfair competition, tortious interference, breach of contract and other related claims.

14 unchanged sentences

The Company is required to pay Regions a quarterly commitment fee of 0.375 % of the unused portion of the Credit Facility, which the Company expenses as it is incurred.

Obligations under the Credit Facility are secured by substantially all of the assets of the Company other than the equity interests its subsidiaries, real estate owned by the Company, and other limited exceptions.

Obligations under the Credit Facility are secured by substantially all of the assets of the Company other than the equity interests in its subsidiaries, real estate owned by the Company, and other limited exceptions.

The Credit Facility contains customary events of default and financial, affirmative and negative covenants, including but not limited to restrictions on indebtedness, liens, investments, asset dispositions and restricted payments.

1 unchanged sentence

CONTRACTUAL OBLIGATIONS

The Company leases home office space in Austin, Texas for Citizens and in Puerto Rico for NES as well as several district office locations related to our Home Service Insurance segment across Louisiana, Mississippi and Arkansas, which are classified as operating leases.

The Company leases home office space in Austin, Texas for Citizens and in Puerto Rico for NES as well as several district office locations across Louisiana, Mississippi and Arkansas, for SPLIC which are classified as operating leases.

Certain operating leases include renewal options that extend the lease term.

8 unchanged sentences

Maturity of operating lease liabilities:

After 2029 1,253

Total operating lease liabilities

2 unchanged sentences

We record the lease right-of-use asset in Property and Equipment, Net and the lease liability in Other Liabilities using a weighted average discount rate of 2.74 %.

Cash payments related to the operating lease liabilities were $ 1.5 million and $ 1.4 million for the years ended December 31, 2024 and 2023, respectively, and were reported in operating cash flows.

Cash payments related to the operating lease liabilities were $ 1.5 million for the years ended December 31, 2025 and 2024 and were reported in operating cash flows.

The Company does not engage in lease agreements among related parties.

As of December 31, 2024, CICA International is committed to fund investments up to $ 15.4 million related to limited partnership investments.

As of December 31, 2025, we are committed to fund investments up to $ 10.9 million related to limited partnership and structured note investments previously described.

(9) STOCKHOLDERS' EQUITY AND RESTRICTIONS

2 unchanged sentences

and (b) the holders of the Class B common stock have the exclusive right to elect a simple majority of the Board of Directors of Citizens.

Citizens currently has no outstanding preferred stock or Class B common stock other than that held in treasury.

Citizens currently has no outstanding preferred stock or Class B common stock.

A summary of the change in the number of shares of Class A common stock and treasury stock issued is as follows:

3 unchanged sentences

Stock issued for compensation 352 —

Acquisition of Class A shares — 393

Balance at December 31, 2024

19 unchanged sentences

STATUTORY CAPITAL AND SURPLUS

The table below shows the combined total of all of our domestic insurance subsidiaries' statutory capital and surplus and statutory net income (loss) for life insurance operations and property insurance operations, although these amounts are not all available as dividends to Citizens since CICA Domestic is the only subsidiary directly owned by Citizens.

All other domestic subsidiaries are owned by CICA Domestic.

The combined total of all of our domestic insurance subsidiaries' statutory capital and surplus was $ 24.8 million and $ 28.8 million for as of December 31, 2025 and 2024, respectively.

The combined total for all of our domestic insurance subsidiaries' statutory net income are shown in the table below, although these amounts are not all available as dividends to Citizens since CLOA is the only subsidiary directly owned by Citizens.

All other domestic subsidiaries are owned by CLOA.

SPFIC, our property insurance subsidiary, was dissolved during 2024.

As of December 31,

(In thousands)

Combined statutory capital and surplus:

Life insurance operations $ 28,814 29,416

Property insurance operations — 5,692

Total combined statutory capital and surplus $ 28,814 35,108

Years ended December 31,

5 unchanged sentences

Generally, the net assets of the domestic insurance subsidiaries available for transfer to their immediate parent are limited to the lesser of the subsidiary's net gain from operations during the preceding year or 10 % of the subsidiary's net statutory surplus as of the end of the preceding year as determined in accordance with accounting practices prescribed or permitted by insurance regulatory authorities.

Under these practices, total surplus at December 31, 2024 was $ 25.7 million and net loss from operations was $ 10.2 million for CICA Domestic for the year ended December 31, 2024.

Under these practices, total surplus at December 31, 2025 was $ 21.7 million and net loss from operations was $ 5.5 million for CLOA for the year ended December 31, 2025.

Based upon these amounts, no dividend could be paid to the Company without prior regulatory approval in 2026.

Payments of dividends in excess of such amounts would generally require approval by regulatory authorities.

Our domestic insurance subsidiaries have calculated their risk-based capital ("RBC") in accordance with the National Association of Insurance Commissioners' ("NAIC") Model Rule and the RBC rules as adopted by their

December 31, 2024 | 10-K 96

CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

respective states of domicile.

All domestic insurance subsidiaries exceeded the minimum capital requirements at December 31, 2025.

On March 27, 2024, Citizens and the Colorado Division of Insurance entered into a capital maintenance agreement that specifies that Citizens will infuse capital as needed to ensure that CICA Domestic's RBC remains above 350%.

As CICA Domestic's RBC exceeded 350% at December 31, 2024, no capital contribution was necessary.

As CLOA's RBC exceeded 350% at December 31, 2025, no capital contribution was necessary.

CICA International is a Puerto Rico domiciled company.

The Insurance Code of Puerto Rico does not specifically set forth minimum capital and surplus standards, but rather requires that an insurer submit a business plan for approval to the Office of the Commissioner of Insurance ("OIC") that includes proposed minimum capital and surplus.

CICA International is required to maintain a minimum of $750,000 in capital and maintain a premium to surplus ratio of 7 to 1.

CICA International began issuing new business as of January 1, 2023 and received the transfer of all of CICA Bermuda's in force insurance business as of August 31, 2023.

December 31, 2025 | 10-K 91

CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

International is required to maintain a minimum of $750,000 in capital and maintain a premium to surplus ratio of 7 to 1.

CICA International's capital exceeds both of the required minimum capital and related ratio.

As of December 31,

As of and for the years ended December 31,

(In thousands)

CICA International capital and surplus

CICA International:

Capital and surplus

$ 101,470 91,513

Years ended December 31,

(In thousands)

CICA International net income

$ 9,901 18,871

2 unchanged sentences

(10) SEGMENT AND OTHER OPERATING INFORMATION

Explanation of Recast Data Due to Segment Reorganization

As discussed in Note 1 .

Summary of Significant Accounting Policies , effective December 31, 2025, the Company reorganized its insurance reporting structure, shifting from Life Insurance and Home Service Insurance segments to Domestic Insurance and International Insurance segments.

As a result of this reorganization, comparative prior periods presented have been recast to conform to the current year presentation.

Recasting involves restating prior period segment information as if the new segment definitions had been in place during those periods.

This allows for meaningful comparisons across periods and provides stakeholders with a consistent view of segment performance over time.

The reorganization of our operating segments had no impact on our previously reported consolidated results of operations, financial condition, or cash flows.

Segment Information

The Company's segments are defined by management's reporting structure and operating activities.

1 unchanged sentence

The Company has two reportable segments:

Life Insurance and Home Service Insurance.

Our Life Insurance segment issues endowment contracts, which are principally accumulation contracts that incorporate an element of life insurance protection, and whole life insurance to non-U.S.

International Insurance and Domestic Insurance.

Our International Insurance segment issues endowment contracts, which are principally accumulation contracts that incorporate an element of life insurance protection, and whole life insurance to non-U.S.

residents through CICA International.

These contracts are designed to provide a fixed amount of insurance coverage over the life of the insured and may utilize rider benefits to provide additional coverage and annuity benefits to enhance accumulations.

CICA Domestic issues whole life, final expense and life products with living benefits throughout the U.S.

Our Home Service Insurance segment operates through our subsidiaries SPLIC and MGLIC, and focuses on the life insurance needs of the lower-income markets, primarily in Louisiana, Mississippi and Arkansas.

Our Domestic Insurance segment operates through our subsidiaries CLOA, which issues whole life, final expense and life products with living benefits throughout the U.S., and SPLIC and MGLIC, which focus on the life insurance needs of the lower-income markets, primarily in Louisiana, Mississippi and Arkansas.

SPLIC also issues critical illness policies.

Our policies are sold and serviced through funeral homes and independent agents who sell policies, collect premiums and service policyholders.

Our policies are sold and serviced through independent agents.

SPFIC sold property insurance policies in Louisiana and Arkansas until operations were ceased effective June 30, 2023.

SPFIC was dissolved during 2024.

The Life Insurance and Home Service Insurance portions of the Company constitute separate businesses.

In addition to the Life Insurance and Home Service Insurance business, the Company also operates other non-insurance portions of the Company ("Other Non-Insurance Enterprises"), which primarily include the Company’s IT and corporate-support functions.

The International Insurance and Domestic Insurance portions of the Company constitute separate businesses.

In addition to the International Insurance and Domestic Insurance business, the Company also operates other non-insurance portions of the Company ("Other Non-Insurance Enterprises"), which primarily include the Company’s IT and corporate-support functions.

The accounting policies of the reportable segments and Other Non-Insurance Enterprises are presented in accordance with U.S.

8 unchanged sentences

(In thousands)

Insurance Home

Service Insurance Other

International Insurance Domestic Insurance Other

Non-Insurance

Enterprises Consolidated

Life insurance $ 129,426 42,135 — 171,561

Accident and health insurance 763 1,022 — 1,785

Property insurance — ( 18 ) — ( 18 )

$ 118,355 58,016 — 176,371

Net investment income (loss) 50,869 20,420 750 72,039

22 unchanged sentences

(In thousands)

Insurance Home

Service Insurance Other

International Insurance Domestic Insurance Other

Non-Insurance

Enterprises Consolidated

Life insurance $ 121,424 43,185 — 164,609

Accident and health insurance 721 916 — 1,637

Property insurance — 793 — 793

$ 118,803 54,525 — 173,328

Net investment income (loss) 49,174 19,654 884 69,712

18 unchanged sentences

The Company categorizes premiums in two categories - first year premiums are premiums received within the first 12 months of a policy's issuance and any premiums received thereafter are renewal premiums.

A summary of the direct premiums for the Life Insurance segment is detailed below.

A summary of the direct premiums for the International Insurance segment is detailed below.

Years ended December 31,

(In thousands)

Life Insurance Segment

International Insurance Segment

Direct premiums:

7 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Since the property casualty business was dissolved during 2024, a summary of the Home Service Insurance segment direct life and A&H premium breakout is detailed below.

A summary of the Domestic Insurance segment direct life and A&H premium breakout is detailed below.

Years ended December 31,

(In thousands)

Home Service Insurance Segment

Domestic Insurance Segment

Direct life and A&H premiums:

2 unchanged sentences

Total direct life and A&H premiums 68,589 58,385

$ 43,184 44,126

Reinsurance ( 10,573 ) ( 3,842 )

Total life and A&H premiums $ 58,016 54,543

The table below summarizes assets by segment.

(In thousands)

Life Insurance $ 1,291,300 1,267,243

Home Service Insurance 358,788 359,773

International Insurance

$ 1,190,736 1,151,562

Domestic Insurance

529,357 498,526

Total Segments

9 unchanged sentences

Taiwan 14,359 16,690

Venezuela 14,305 15,143

Ecuador 13,550 13,159

Venezuela 13,322 14,305

Argentina 11,758 10,319

3 unchanged sentences

(11) INCOME TAXES

CICA International and CICA Bermuda are considered controlled foreign corporations for federal income tax purposes.

As a result, the insurance activity of CICA International and CICA Bermuda are subject to Subpart F of the Internal Revenue Code ("IRC") and are included in Citizens’ taxable income.

Due to the 0 % enacted tax rate in Bermuda for all periods prior to the transfer of CICA Bermuda's insurance in force business to CICA International, there are no deferred taxes recorded for CICA Bermuda's temporary differences.

The Government of Puerto Rico

CICA International is considered a controlled foreign corporation for federal income tax purposes.

As a result, the insurance activity of CICA International is subject to Subpart F of the Internal Revenue Code ("IRC") and is included in Citizens’ taxable income.

The Government of Puerto Rico approved a tax exemption decree for CICA International which freezes the income tax rate at 0 % on taxable earnings up to $ 1.2 million and 4 % on any taxable earnings in excess of $ 1.2 million for a minimum of 15 years.

December 31, 2025 | 10-K 95

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

approved a tax exemption decree for CICA International which freezes the income tax rate at 0 % on taxable earnings up to $ 1.2 million and 4 % on any taxable earnings in excess of $ 1.2 million for a minimum of 15 years.

In connection with the transfer of CICA Bermuda’s business from a zero tax jurisdiction to CICA International’s 4 % tax jurisdiction in Puerto Rico, certain opening tax assets and liabilities, mainly related to investments, DAC and reserves, were established and the Company's consolidated deferred federal income tax liability was reduced by $ 4.4 million.

Since the transfer was between companies under common control, the $ 4.4 million reduction in the deferred federal income tax liability was recorded as a credit to equity, $ 1.4 million of which increased retained earnings and $ 3.0 million of which reduced accumulated other comprehensive income (loss), based on the nature of the components during 2023 in accordance with ASC Topic 805.

A summary of the income (loss) before federal income tax expense, by jurisdiction, is as follows:

4 unchanged sentences

Puerto Rico 10,045 19,297

Bermuda — 14,874

Total income before federal income tax

4 unchanged sentences

Current income tax expense (benefit) related to:

United States - normal operations

United States - UTP impact

United States

Total current income tax expense

2 unchanged sentences

2,477 ( 908 )

( 1,010 ) ( 892 )

Total deferred income tax expense (benefit)

1 unchanged sentence

Total federal income tax expense (benefit)

December 31, 2024 | 10-K 101

CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A reconciliation between the U.S.

21 unchanged sentences

75 0.4 ( 2 ) —

Changes in unrecognized tax benefits

34 0.2 52 0.3

1 unchanged sentence

Total federal income tax expense (benefit) $ 2,879 16.5 % $ 68 0.5 %

December 31, 2025 | 10-K 96

CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A summary of the total federal income tax payments made and refunds received by jurisdiction is as follows:

5 unchanged sentences

Total tax payments

December 31, 2024 | 10-K 102

CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The components of deferred federal income taxes are as follows:

1 unchanged sentence

Deferred tax assets:

Future policy benefit reserves $ — 739

Net operating and capital loss carryforwards $ 2,136 1,774

20 unchanged sentences

(In thousands)

Deferred federal and state income taxes:

Balance January 1, $ ( 1,102 ) ( 3,653 )

Balance at January 1,

$ ( 3,442 ) ( 1,102 )

Deferred tax benefit (expense) ( 1,467 ) 1,800

3 unchanged sentences

1,405 ( 6,566 )

Balance December 31, $ ( 3,442 ) ( 1,102 )

Balance at December 31,

$ ( 5,996 ) ( 3,442 )

December 31, 2025 | 10-K 97

CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company and our subsidiaries have $ 7.1 million in net operating loss carryforwards in the U.S.

2 unchanged sentences

and $ 0.2 million in Puerto Rico at December 31, 2025, which begin expiring in 2026 and 2031, respectively.

December 31, 2024 | 10-K 103

CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At December 31, 2025 and 2024, we determined it was more likely than not that a portion of our capital deferred tax assets would not be realized in their entirety.

1 unchanged sentence

The Company recognizes only the impact of tax positions that, based on their technical merits, are more likely than not to be sustained upon an audit by the taxing authority.

A reconciliation of unrecognized tax benefits is as follows:

Years ended December 31,

(In thousands)

Balance January 1,

Reductions for tax positions of prior years — ( 971 )

Balance December 31, $ — —

The Company accrued an uncertain tax position of $ 1.0 million at December 31, 2022 which would have affected the effective tax rate if recognized.

However, the Company released all of the remaining uncertain tax positions, including interest, during the fourth quarter of 2023 following the expiration of the statute of limitations on the tax year ended December 31, 2019.

The Company has no uncertain tax positions as of December 31, 2024.

The Company does not have any unrecognized tax benefits for December 31, 2025 and 2024.

The Company’s practice is to recognize interest and penalties related to income tax matters in income tax expense.

In the consolidated statements of operations and comprehensive income (loss), we recorded no interest income for the year ended December 31, 2024 and $ 0.2 million for the year ended December 31, 2023.

In the consolidated statements of operations and comprehensive income (loss), we received $ 0.1 million of interest income related to refunds for the year ended December 31, 2025 and none in 2024.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S.

The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

The Company had an immaterial impact to our income tax expense or effective tax rate for the enactment of OBBBA for the year ended December 31, 2025.

The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted on March 27, 2020 in response to the COVID-19 pandemic.

The CARES Act, among other things, permitted net operating losses incurred in 2018, 2019 and 2020 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes.

During the year ended December 31, 2022, the Company was able to claim a net refund for taxes paid in preceding years as a result of the CARES Act.

As of December 31, 2024, the Company has an accrued tax refund remaining of $ 0.7 million.

The American Rescue Plan Act of 2021 was enacted on March 11, 2021 and the Inflation Reduction Act was enacted on August 16, 2022.

These Acts did not have a material impact on the Company's financial statements.

The Company's federal income tax return is filed on a consolidated basis with the following entities:

3 unchanged sentences

Security Plan Life Insurance Company

Security Plan Fire Insurance Company

Computing Technology, Inc.

7 unchanged sentences

The Company's Puerto Rico subsidiaries are subject to examination by Puerto Rico tax authorities for tax years ending after December 31, 2022.

(12) OTHER COMPREHENSIVE INCOME (LOSS)

The changes in the components of other comprehensive income (loss) are reported net of the effects of income taxes of 21% for domestic entities and 4% for Puerto Rican entities for the twelve months ended December 31,

December 31, 2025 | 10-K 98

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(12) OTHER COMPREHENSIVE INCOME (LOSS)

The changes in the components of other comprehensive income (loss) are reported net of the effects of income taxes of 21% for domestic entities and 4 % for Puerto Rican entities as indicated below.

(In thousands) Amount Tax Effect Total

Year ended December 31, 2024:

Unrealized gains (losses):

Unrealized holding gains (losses) arising during the period $ ( 30,982 ) 2,572 ( 28,410 )

Reclassification adjustment for (gains) losses included in net income (loss)

2025 and 2024.

The following table provides a rollforward of accumulated other comprehensive income (loss) for the periods indicated below.

(In thousands) Unrealized Gains and Losses on Available for Sale Securities Discount Rate for Liability for Future Policy Benefits Other Comprehensive Income (Loss)

Balance at December 31, 2023, net of tax

$ ( 141,741 ) 23,586 ( 118,155 )

Unrealized holding gains (losses), net

Other comprehensive income (loss) before reclassification, before tax ( 30,982 ) 56,613 25,631

Amounts reclassified from other comprehensive income (loss), before tax

Income tax benefit (expense)

2,425 ( 6,565 ) ( 4,140 )

Change in current discount rate for liability for future policy benefits

Balance at December 31, 2024, net of tax

( 169,599 ) 73,634 ( 95,965 )

Other comprehensive income (loss) $ 26,330 ( 4,140 ) 22,190

Year ended December 31, 2023:

Unrealized gains (losses):

Unrealized holding gains (losses) arising during the period $ 50,894 971 51,865

Reclassification adjustment for (gains) losses included in net income (loss)

Other comprehensive income (loss) before reclassification, before tax 36,097 ( 27,117 ) 8,980

Amounts reclassified from other comprehensive income (loss), before tax

( 349 ) — ( 349 )

Unrealized holding gains (losses), net

Income tax benefit (expense)

( 2,493 ) 1,406 ( 1,087 )

Change in current discount rate for liability for future policy benefits

Balance at December 31, 2025, net of tax

$ ( 136,344 ) 47,923 ( 88,421 )

Other comprehensive income (loss) $ 16,860 2,029 18,889

(13) STOCK COMPENSATION

8 unchanged sentences

Employee RSU grants vest over three years , subject to continued employment (except in the case of retirement, death or disability).

December 31, 2024 | 10-K 105

CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides a rollforward of RSU activity for the two-year period ended December 31, 2025.

Restricted Stock Units Units Weighted Average Grant Date Fair Value

Restricted Stock Units Units

(In thousands)

Weighted Average Grant Date Fair Value

Outstanding at December 31, 2023 574 $ 3.37

7 unchanged sentences

Outstanding at December 31, 2025 912 $ 3.08

In 2024, we recognized $ 1.5 million of expense for RSUs granted on or prior to December 31, 2024, while $ 1.8 million was unrecognized and is expected to be amortized up to two years .

We also recognized compensation expenses of $ 1.4 million and $ 0.6 million in 2024 and 2023, respectively, related to RSU awards that vested during these periods.

December 31, 2025 | 10-K 99

CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In 2025, we recognized compensation expense of $ 2.5 million and $ 1.4 million in 2025 and 2024, respectively, related to RSU awards that were granted and vested during these periods.

The aggregate intrinsic value of RSUs vested during the years ended December 31, 2025 and 2024 was $ 2.1 million and $ 1.2 million, respectively.

As of December 31, 2025, unrecognized compensation costs for RSU awards was $ 1.8 million and is expected to be amortized over two years .

Performance Share Units.

In 2024, the Board of Directors granted PSUs to a limited number of senior executives.

PSUs have a three-year performance period and and give the grantee the right to receive one share of our Class A common stock in the future for each PSU granted, subject to subject to certain restrictions and a risk of forfeiture.

The Board of Directors granted PSUs to a limited number of senior executives in 2024 and 2025.

PSUs have a three-year performance period and give the grantee the right to receive one share of our Class A common stock in the future for each PSU granted, subject to certain restrictions and a risk of forfeiture.

While the PSU grant specifies a stated target number of shares, the grantees can earn up to 200 % of the target PSUs awarded based on the achievement of the Board approved metric over the performance period.

3 unchanged sentences

Performance Stock Units Units

Weighted Average Grant Date Fair Value

(In thousands)

Weighted Average Grant Date Fair Value

Outstanding at March 28, 2024

2 unchanged sentences

Outstanding at December 31, 2024

(1) The number of PSUs represents the base number of PSUs that may vest.

The actual number of PSUs that vest will be between 0 and 500,000 , depending on the Company's achievement of certain performance goals.

December 31, 2024 | 10-K 106

CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In 2024, for the PSU grants, we recognized $ 0.1 million of expense, while $ 0.2 million was unrecognized and is expected to be amortized over the next two years .

As of December 31, 2024, management estimates that the probability of achieving the performance targets was 50 %.

Granted 143 4.55

Forfeited 15 3.73

Outstanding at December 31, 2025 378 (1)

(1) Represents the base number of PSUs that may vest.

The actual number of PSUs that vest will be between 0 and 0.6 million, depending on the Company's achievement of certain performance goals.

We recognized $ 0.3 million and $ 0.1 million of expense for the PSU grants in 2025 and 2024, respectively, while $ 0.5 million was unrecognized and is expected to be amortized over the next one to three years depending on the vesting schedule of the grants.

The vesting of PSUs occurs after a three-year performance period, and the actual quantity of shares awarded is determined by how well the Company fulfills established performance goals.

As of December 31, 2025, management estimates that the probability of achieving the performance targets was 50 % for the shares granted in 2024 and 100 % for shares granted in 2025.

(14) BENEFIT PLANS

7 unchanged sentences

The Company's expense was $ 0.8 million in both 2025 and 2024.

Until December 31, 2024, the Company was primarily self-insured for employee health benefits.

The Company recorded its self-insurance liability based on an estimate of claims incurred but not yet reported.

Through December 31, 2024, we also had stop-loss coverage for amounts in excess of $ 80,000 per individual per year.

(15) RELATED PARTY TRANSACTIONS

1 unchanged sentence

We perform an expense study on an annual basis, utilizing an enterprise-wide time study, and we adjust cost allocations among entities as needed based upon this review.

Any allocation changes are reflected in the segment operations, but do not impact consolidated expenses.

December 31, 2025 | 10-K 100

CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

allocation changes are reflected in the segment operations, but do not impact consolidated expenses.

There were no changes related to these relationships during the year ended December 31, 2025 and no additional related party transactions.

8 unchanged sentences

Federal income tax expense (benefit) 526 2,062 455 ( 164 )

Net income 3,621 2,790 3,959 4,542

Net income available to common shareholders 3,621 2,790 3,959 4,542

Basic earnings per share of Class A common stock 0.07 0.06 0.08 0.09

Diluted earnings per share of Class A common stock

0.07 0.05 0.08 0.09

Net income (loss) 7,338 2,417 6,459 ( 1,623 )

Net income (loss) available to common shareholders 7,338 2,417 6,459 ( 1,623 )

Basic earnings (loss) per share of Class A common stock 0.15 0.04 0.13 ( 0.03 )

Diluted earnings (loss) per share of Class A common stock 0.14 0.04 0.13 ( 0.03 )

Revenues $ 63,474 61,731 62,084 57,712

8 unchanged sentences

0.07 0.05 0.08 0.09

December 31, 2024 | 10-K 107

CITIZENS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(17) SUBSEQUENT EVENTS

14 unchanged sentences

Cash (restricted portion:

$ 1,554 and none in 2024 and 2023, respectively)

$ 1,554 in 2025 and 2024)

Accrued investment income 159 197

39 unchanged sentences

Total expenses 48,509 47,686

Income (loss) before federal income tax expense (benefit) and equity in income (loss) of consolidated subsidiaries ( 1,084 ) ( 1,380 )

Federal income tax expense (benefit) — 1,798

Income (loss) before equity in income (loss) of consolidated subsidiaries ( 2,760 ) ( 1,084 )

37 unchanged sentences

Maturities and calls of fixed maturity securities, available-for-sale 4,671 9,989

Purchase of equity securities ( 120 ) —

Sales of fixed maturity securities, available-for-sale 4,444 —

Sale of equity securities — 770

Purchases of property and equipment — ( 106 )

Maturities of short-term investments — 750

Sales of short-term investments

Net cash provided by (used in) investing activities 175 4,817

Cash flows from financing activities:

Acquisition of treasury stock — ( 919 )

Capital contribution to subsidiary — ( 10,010 )

15 unchanged sentences

Deferred policy acquisition costs:

Life Insurance $ 141,660 120,840

Home Service Insurance 57,975 54,928

International Insurance

$ 133,038 125,684

Domestic Insurance

87,499 73,951

Total consolidated deferred policy acquisition costs $ 220,537 199,635

Future policy benefit reserves and policy claims payable:

Life Insurance $ 931,302 970,327

Home Service Insurance 250,625 266,452

International Insurance

$ 874,118 869,235

Domestic Insurance

324,081 312,692

Total consolidated future policy benefit reserves and policy claims payable $ 1,198,199 1,181,927

Unearned premiums:

Life Insurance $ 1,232 1,356

Home Service Insurance 40 38

International Insurance

$ 1,658 1,215

Domestic Insurance

Total consolidated unearned premiums $ 1,715 1,272

Other policy claims and benefits payable:

Life Insurance $ 211,739 192,953

Home Service Insurance 23,187 23,638

International Insurance

$ 187,003 159,682

Domestic Insurance

75,221 75,244

Total consolidated other policy claims and benefits payable $ 262,224 234,926

2 unchanged sentences

FINANCIAL SCHEDULES

T he Company's written premium is not materially different from earned premium, therefore only earned premiums are detailed in Schedule IV.

The Company's written premium is not materially different from earned premium, therefore only earned premiums are detailed in Schedule IV.

Consolidated Statement of Reinsurance

7 unchanged sentences

Accident and health insurance 1,763 3 — 1,760

Property insurance ( 5 ) 13 — ( 18 )

Total premiums $ 188,766 12,446 51 176,371 — %

6 unchanged sentences

December 31, 2025 | 10-K 106

The following exhibits are filed herewith:

Restated and Amended Articles of Incorporation dated March 4, 2004 (incorporated herein by reference to Exhibit 3.1 to the Registrant's Annual Report on Form 10-K for the Year Ended December 31, 2003, filed on March 15, 2004)

8 unchanged sentences

Form of Citizens, Inc.

E xecutive O fficer Performance Share Unit Agreemen t

Executive Officer Performance Share Unit Agreement (incorporated by reference to Exhibit 10.5 to the Registrant's Annual Report on Form 10-K filed on March 13, 2025)

Form of Citizens, Inc.

1 unchanged sentence

Executive Employment Agreement by and between Citizens, Inc.

and Gerald W.

Shields, effective as of January 1, 2022 (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed on December 21, 2021)

Amendment to Executive Employment Agreement by and between Citizens, Inc.

and Gerald W.

Shields, effective as of January 1, 2024 (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K, filed on November 15, 2023)

Executive Employment Agreement by and between Citizens, Inc.

and Jon Stenberg, e ntered into as of March 18, 2024 (incorporated by reference to Exhibit 10.1 to the Registra nt's Current Report on Form 8-K filed on Ma rch 18 , 2024)

and Jon Stenberg, entered into as of March 18, 2024 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on March 18, 2024)

Credit Agreement between the Company and Regions Bank dated May 5, 2021 (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on August 4, 2021)

2 unchanged sentences

First Amendment to Credit Agreement between the Company and Regions Bank dated May 3, 2024 (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on August 6, 2024)

Form of Executive Change in Leadership Agreement entered into on November 3, 2023, by and between the Company and each of the following Named Executive Officers:

Conklin, Sheryl Kinlaw, Robert M.

Mauldin III and Harvey J.L.

Waite (incorporated by reference to Exhibit 10.1 to the Registrant's Quarterly Report on Form 10-Q filed on November 6, 2023)

Compensation Recovery Policy (incorporated by reference to Exhibit 10.11 to the Registrant's Annual Report for the Year Ended December 31, 2023 on Form 10-K filed on March 14, 2024)

December 31, 2024 | 10-K 114

Services Agreement between Citizens, Inc.

and Robert M.

Mauldin III effective August 2, 2024 (incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on November 7, 2024)

Citizens, Inc.

Insider Trading Policy

Insider Trading Policy (incorporated by reference to Exhibit 19.1 to the Registrant's Annual Report on Form 10-K filed on March 13, 2025)

Subsidiaries of the Registrant

5 unchanged sentences

Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act

December 31, 2025 | 10-K 107

101.INS XBRL Instance Document

24 unchanged sentences

March 12, 2026

/s/ Gerald W.

Davis, Jr., Chairman of the Board and Director Gerald W.

Shields, Vice Chairman of the Board and Director

/s/ Cynthia H.

Davis, Jr., Chairman of the Board and Director Cynthia H.

Davis, Vice Chairman of the Board and Director

/s/ Christopher W.

Claus /s/ Cynthia H.

Claus /s/ Peter M.

Christopher W.

Claus, Director Cynthia H.

Davis, Director

Claus, Director Peter M.

Carlson, Director

Maness /s/ Mary Taylor

Maness, Director Mary Taylor, Director

Keith Morgan, Director

Keith Morgan /s/ Michael Harwood

Keith Morgan, Director Michael Harwood, Director

/s/ Jon Stenberg

Jon Stenberg, Director

December 31, 2025 | 10-K 109

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures