What changed in this filing

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Item 1. Financial Statements

2026-05-07 compared with 2025-11-06 · 209 added, 387 removed, 895 unchanged (40% of the section changed)

3 unchanged sentences

Consolidated Balance Sheets

(In thousands) September 30, 2025 December 31, 2024

(In thousands) March 31, 2026 December 31, 2025

Fixed maturity securities available-for-sale, at fair value (amortized cost:

20 unchanged sentences

See accompanying Notes to Consolidated Financial Statements.

September 30, 2025 | 10-Q 2

March 31, 2026 | 10-Q 2

CITIZENS, INC.

1 unchanged sentence

Consolidated Balance Sheets, Continued

(In thousands, except share amounts) September 30, 2025 December 31, 2024

(In thousands, except share amounts) March 31, 2026 December 31, 2025

Liabilities and Stockholders' Equity:

14 unchanged sentences

Deferred federal income tax liability 6,219 5,996

Payable for securities

Other liabilities 41,603 47,455

12 unchanged sentences

See accompanying Notes to Consolidated Financial Statements.

September 30, 2025 | 10-Q 3

March 31, 2026 | 10-Q 3

CITIZENS, INC.

1 unchanged sentence

Consolidated Statements of Operations and Comprehensive Income (Loss)

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(In thousands, except per share amounts)

2025 2024 2025 2024

Life insurance $ 42,872 42,461 125,158 122,823

Accident and health insurance 431 452 1,330 1,324

Property insurance — ( 16 ) — ( 18 )

Premiums $ 39,938 39,797

Net investment income 17,304 17,377

18 unchanged sentences

Federal income tax expense (benefit)

2,062 247 2,353 ( 27 )

Net income (loss) 2,268 ( 1,623 )

2,417 2,790 7,253 11,291

Per Share Amounts:

6 unchanged sentences

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

( 691 ) ( 100 ) ( 440 ) 547

Unrealized gains (losses) on fixed maturity securities, net ( 15,883 ) 18,417

4 unchanged sentences

See accompanying Notes to Consolidated Financial Statements.

September 30, 2025 | 10-Q 4

March 31, 2026 | 10-Q 4

CITIZENS, INC.

14 unchanged sentences

Balance at March 31, 2026 $ 272,771 3,184 73,921 ( 87,483 ) ( 23,725 ) 238,668

Comprehensive income (loss):

Net income (loss)

— — 6,459 — — 6,459

Other comprehensive income (loss) — — — 3,419 — 3,419

Total comprehensive income (loss) — — 6,459 3,419 — 9,878

Stock-based compensation 1,009 — — — — 1,009

Balance at June 30, 2025 271,324 3,184 61,898 ( 83,655 ) ( 23,725 ) 229,026

Comprehensive income (loss):

Net income (loss)

— — 2,417 — — 2,417

Other comprehensive income (loss) — — — ( 5,761 ) — ( 5,761 )

Total comprehensive income (loss) — — 2,417 ( 5,761 ) — ( 3,344 )

Stock-based compensation ( 78 ) — — — — ( 78 )

Balance at September 30, 2025 $ 271,246 3,184 64,315 ( 89,416 ) ( 23,725 ) 225,604

See accompanying Notes to Consolidated Financial Statements.

September 30, 2025 | 10-Q 5

CITIZENS, INC.

AND CONSOLIDATED SUBSIDIARIES

Consolidated Statements of Stockholders' Equity

Common Stock Retained Earnings

Accumulated Other Comprehensive Income (Loss)

Treasury Stock

Total Stockholders' Equity

(In thousands) Class A Class B

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

6 unchanged sentences

Balance at March 31, 2025 $ 270,315 3,184 55,439 ( 87,074 ) ( 23,725 ) 218,139

Comprehensive income (loss):

Net income (loss)

— — 3,959 — — 3,959

Other comprehensive income (loss) — — — ( 8,154 ) — ( 8,154 )

Total comprehensive income (loss) — — 3,959 ( 8,154 ) — ( 4,195 )

Stock-based compensation 481 — — — — 481

Balance at June 30, 2024 269,283 3,184 50,651 ( 107,924 ) ( 23,725 ) 191,469

Comprehensive income (loss):

Net income (loss)

— — 2,790 — — 2,790

Other comprehensive income (loss) — — — 13,241 — 13,241

Total comprehensive income (loss) — — 2,790 13,241 — 16,031

Stock-based compensation 73 — — — — 73

Balance at September 30, 2024 $ 269,356 3,184 53,441 ( 94,683 ) ( 23,725 ) 207,573

See accompanying Notes to Consolidated Financial Statements.

September 30, 2025 | 10-Q 6

March 31, 2026 | 10-Q 5

CITIZENS, INC.

1 unchanged sentence

Consolidated Statements of Cash Flows

Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands)

16 unchanged sentences

Federal income tax receivable

( 384 ) 1,041

Commissions payable and other liabilities ( 5,212 ) ( 7,855 )

Other, net 1,855 131

Net cash provided by operating activities

Net cash provided by (used in) operating activities

Cash flows from investing activities:

2 unchanged sentences

Maturities and calls of fixed maturity securities, available-for-sale 18,752 8,402

Purchases of equity securities ( 120 ) —

Sales of equity securities

Principal payments on mortgage loans 2 2

6 unchanged sentences

See accompanying Notes to Consolidated Financial Statements.

September 30, 2025 | 10-Q 7

March 31, 2026 | 10-Q 6

CITIZENS, INC.

1 unchanged sentence

Consolidated Statements of Cash Flows, Continued

Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands)

3 unchanged sentences

Other share repurchases

( 280 ) ( 371 )

Net cash used in financing activities

4 unchanged sentences

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:

During the nine months ended September 30, 2025, various fixed maturity issuers exchanged securities with book values of $ 7.9 million for securities of equal value and $ 3.7 million during the nine months ended September 30, 2024.

The Company had $ 12.5 million net unsettled security trades at September 30, 2025 and none at September 30, 2024.

The Company recognized right-of-use assets of $ 0.2 million in exchange for new operating lease liabilities during the nine months ended September 30, 2025 and none during the nine months ended September 30, 2024.

During the three months ended March 31, 2025, various fixed maturity issuers exchanged securities with book values of $ 5.7 million for securities of equal value and none during the three months ended March 31, 2026.

The Company had $ 1.9 million net unsettled security trades at March 31, 2026 and $ 0.3 million at March 31, 2025.

See accompanying Notes to Consolidated Financial Statements.

September 30, 2025 | 10-Q 8

March 31, 2026 | 10-Q 7

CITIZENS, INC .

3 unchanged sentences

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

("CTI"), Nexo Global Services LLC, a Puerto Rico holding company ("Nexo") and its wholly-owned subsidiaries, CICA Life A.I., a Puerto Rico company ("CICA International") and Nexo Enrollment Services LLC, a Puerto Rico service company ("NES").

("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"), Magnolia Guaranty Life Insurance Company ("MGLIC"), Computing Technology, Inc.

("CTI"), and Nexo Global Services LLC, a Puerto Rico holding company ("Nexo") and its wholly-owned subsidiaries, CICA Life A.I., a Puerto Rico company ("CICA International") and Nexo Enrollment Services LLC, a Puerto Rico service company ("NES").

All significant inter-company accounts and transactions have been eliminated.

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

The consolidated balance sheet as of September 30, 2025, the consolidated statements of operations and comprehensive income (loss) and stockholders' equity for the three and nine months ended September 30, 2025 and September 30, 2024 and the consolidated statements of cash flows for the nine months ended September 30, 2025 and September 30, 2024 have been prepared by the Company without audit and are not subject to audit.

In the opinion of management, all normal and recurring adjustments to present fairly the financial position, results of operations, and changes in cash flows at September 30, 2025 and for comparative periods have been made.

The consolidated balance sheet as of March 31, 2026, the consolidated statements of operations and comprehensive income (loss) and stockholders' equity for the three months ended March 31, 2026 and March 31, 2025 and the consolidated statements of cash flows for the three months ended March 31, 2026 and March 31, 2025 have been prepared by the Company without audit and are not subject to audit.

In the opinion of management, all normal and recurring adjustments to present fairly the financial position, results of operations, and changes in cash flows at March 31, 2026 and for comparative periods have been made.

The consolidated financial statements have been prepared in accordance with U.S.

3 unchanged sentences

Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.

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

CICA Domestic.

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

CICA International.

The Company operates through two segments:

International Insurance and Domestic Insurance.

International Insurance.

All International policies are issued by CICA International.

CICA International offers U.S.

2 unchanged sentences

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 increasing or decreasing coverage and annuity benefits to enhance accumulations.

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 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.

NES provides services to policyholders of CICA International.

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.

SPLIC also issues critical illness policies.

CTI provides data processing systems and services to the Company.

NES provides services to policyholders of CICA International.

USE OF ESTIMATES

1 unchanged sentence

GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent

September 30, 2025 | 10-Q 9

March 31, 2026 | 10-Q 8

CITIZENS, INC .

2 unchanged sentences

Actual results could differ materially from these estimates.

Significant estimates include those used in the evaluation of credit losses on fixed maturity securities, valuation allowances on deferred tax assets, actuarially determined assets and liabilities, and assumptions and contingencies related to litigation and regulatory matters.

Significant estimates include those used in the evaluation of credit losses on fixed maturity securities, valuation allowances on deferred tax assets, and actuarially determined assets and liabilities.

Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the consolidated financial statements.

8 unchanged sentences

Early adoption is permitted, and the amendments may be applied either prospectively or retrospectively.

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 notes to the consolidated financial statements.

This ASU will impact only our disclosures and not our financial condition or results of operations.

We are currently evaluating the impact of adopting this pronouncement on the notes to the consolidated financial statements.

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

3 unchanged sentences

(In thousands, except for %)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Amount % Amount %

6 unchanged sentences

Total cash and invested assets $ 1,444,889 100.0 % 1,465,087 100.0 %

September 30, 2025 | 10-Q 10

March 31, 2026 | 10-Q 9

CITIZENS, INC .

1 unchanged sentence

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

September 30, 2025

March 31, 2026

(In thousands)

29 unchanged sentences

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

September 30, 2025 | 10-Q 11

March 31, 2026 | 10-Q 10

CITIZENS, INC .

2 unchanged sentences

(In thousands)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Equity securities:

2 unchanged sentences

Non-redeemable preferred stock 7 7

Non-redeemable preferred stock fund — 3,891

Total equity securities $ 1,451 1,356

VALUATION OF INVESTMENTS

Available-for-sale ("AFS") fixed maturity securities are reported in the consolidated financial statements at fair value.

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 $ 0.3 million for both the three and nine months ended September 30, 2025, compared to gains of $ 0.4 million for both the three and nine months ended September 30, 2024, respectively, on equity securities held.

Available-for-sale ("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 also measured at fair value in the consolidated financial statements with the change in fair value recorded through net income (loss).

The Company recognized net investment related gains of $ 0.1 million and $ 47 thousand for the three months ended March 31, 2026 and 2025, respectively, on equity securities held.

The Company considers several factors in its review and evaluation of individual investments, using the process described in Part IV, Item 15, Note 2.

Investments in the notes to the consolidated financial statements of our 2025 Form 10-K to determine whether a credit valuation loss exists.

For the three and nine months ended September 30, 2025 and 2024, the Company recorded no credit valuation losses on fixed maturity securities.

For fixed maturity security investments that have unrealized losses as of September 30, 2025 and December 31, 2024, the gross unrealized losses and related fair values that have been in a continuous unrealized loss position by timeframe are as follows.

September 30, 2025 Less than 12 months Greater than 12 months Total

(In thousands, except for # of securities) Fair

For the three months ended March 31, 2026 and 2025, the Company recorded no credit valuation losses on fixed maturity securities.

For fixed maturity security investments that have unrealized losses as of March 31, 2026 and December 31, 2025, the gross unrealized losses and related fair values that have been in a continuous unrealized loss position by timeframe are as follows.

March 31, 2026 Less than 12 months Greater than 12 months Total

(In thousands,

except for # of securities)

Value Unrealized

16 unchanged sentences

Total fixed maturity securities $ 175,328 3,696 334 766,814 163,936 1,001 942,142 167,632 1,335

September 30, 2025 | 10-Q 12

March 31, 2026 | 10-Q 11

CITIZENS, INC .

1 unchanged sentence

December 31, 2025 Less than 12 months Greater than 12 months Total

(In thousands, except for # of securities) Fair

(In thousands,

except for # of securities)

Value Unrealized

17 unchanged sentences

In each category of our fixed maturity securities described above, we do not intend to sell our investments, and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases.

As of September 30, 2025 and December 31, 2024, 99.0 % and 99.2 % of the fair value of our fixed maturity securities portfolio, respectively, were rated investment grade.

As of March 31, 2026 and December 31, 2025, 98.8 % and 98.7 % of the fair value of our fixed maturity securities portfolio, respectively, were 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.

1 unchanged sentence

The fair value is expected to recover as the securities approach maturity or if market yields for such investments decline.

The amortized cost and fair value of fixed maturity securities at September 30, 2025 by contractual maturity are shown in the table below.

The amortized cost and fair value of fixed maturity securities at March 31, 2026 by contractual maturity are shown in the table below.

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Securities not due at a single maturity date have been reflected based upon final stated maturity.

September 30, 2025 Amortized

March 31, 2026 Amortized

(In thousands)

5 unchanged sentences

Total fixed maturity securities $ 1,431,586 1,271,111

September 30, 2025 | 10-Q 13

March 31, 2026 | 10-Q 12

CITIZENS, INC .

1 unchanged sentence

The Company uses the specific identification method of the individual security to determine the cost basis used in the calculation of realized gains and losses related to security sales.

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(In thousands) 2026 2025

3 unchanged sentences

Gross realized losses $ 368 4

During the second quarter of 2025, the Company accepted a tender offer by Discovery Communications, Inc.

after considering the outlook of the issuer.

As a result, the Company recognized a realized loss of $ 0.4 million, which is recorded a net realized investment loss for the period.

(4) FAIR VALUE MEASUREMENTS

19 unchanged sentences

Level 3 is comprised of financial instruments whose fair value is estimated based on non-binding broker prices utilizing significant inputs not based on or corroborated by readily available market information.

There were no securities in this category as of or during the periods ended September 30, 2025 and December 31, 2024.

September 30, 2025 | 10-Q 14

We have no investments in this category.

March 31, 2026 | 10-Q 13

CITIZENS, INC .

1 unchanged sentence

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

September 30, 2025 Level 1 Level 2 Level 3 Total

March 31, 2026 Level 1 Level 2 Level 3 Total

(In thousands)

20 unchanged sentences

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

September 30, 2025 | 10-Q 15

March 31, 2026 | 10-Q 14

CITIZENS, INC .

16 unchanged sentences

Common stocks

1,130 — — 1,130

Non-redeemable preferred stock 7 — — 7

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

Total equity securities 1,356 — — 1,356

6 unchanged sentences

Fixed maturity securities, available-for-sale.

At September 30, 2025, fixed maturity securities, valued using a third-party pricing source, totaled $ 1.3 billion for Level 2 assets and comprised 93.2 % of total reported fair value of our financial assets.

At March 31, 2026, fixed maturity securities, valued using a third-party pricing source, totaled $ 1.3 billion for Level 2 assets and comprised 93.1 % of total reported fair value of our financial assets.

The Level 1 and Level 2 valuations are reviewed and updated quarterly through testing by comparisons to separate pricing models, other third-party pricing services, and back tested to recent trades.

In addition, we obtain information annually relative to the third-party pricing models and review model parameters for reasonableness.

There were no Level 3 assets at September 30, 2025.

As of September 30, 2025, there were no material changes to the valuation methods or assumptions used to determine fair values, and no broker or third-party prices were changed from the values received.

There were no Level 3 assets as of March 31, 2026.

For the three months ended March 31, 2026, there were no material changes to the valuation methods or assumptions used to determine fair values, and no broker or third-party prices were changed from the values received.

Equity securities.

1 unchanged sentence

Structured note.

At September 30, 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 valued at net asset value ("NAV") as a practical expedient, which approximates fair value.

As of September 30, 2025, we are committed to fund this investment up to $ 14.6 million over the next 10 years.

At March 31, 2026, 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 losses of $ 0.1 million for the three months ended March 31, 2026.

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

As of March 31, 2026, we are committed to funding this structured note investment up to $ 4.1 million over the next nine years .

Limited partnerships.

1 unchanged sentence

The following table includes information

September 30, 2025 | 10-Q 16

March 31, 2026 | 10-Q 15

CITIZENS, INC .

2 unchanged sentences

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 $ 3.7 million and $ 2.3 million for the three and nine months ended September 30, 2025, and gains of $ 0.5 million and $ 1.8 million on limited partnership investments held for the three and nine months ended September 30, 2024.

The Company recognized net investment related gains of $ 1.8 million and losses of $ 1.5 million on limited partnerships held for the three months ended March 31, 2026 and 2025, respectively.

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

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(In thousands, except for years)

3 unchanged sentences

Middle market Investments in privately-originated, performing senior secured debt primarily in North America-based companies $ 29,385 — 2 $ 30,956 — 2

Global equity fund Investments in common stocks of U.S., international developed and emerging markets with a focus on long-term capital growth — — 0 11,568 — 0

Late-stage growth Investments in private late-stage, established companies seeking capital to accelerate growth prior to an IPO or sale 39,603 1,558 2 to 4

36,623 2,232 2 to 4

Infrastructure Investments in environmental infrastructure and related technology, focusing on renewable power generation and distribution 13,817 3,925 8 to 10

18,575 5,637 9 to 10

Infrastructure Investments in environmental infrastructure and related technology, focusing on renewable power generation and distribution 14,738 2,638 8 15,013 4,052 8

Total limited partnerships $ 83,726 4,196 $ 82,592 6,284

5 unchanged sentences

The carrying amount and fair value for the financial assets and liabilities on the consolidated financial statements not otherwise disclosed for the periods indicated were as follows:

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

(In thousands) Carrying

6 unchanged sentences

Annuity - investment contracts 69,134 63,098 68,975 64,066

September 30, 2025 | 10-Q 17

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Policy loans.

Policy loans had a weighted average annual interest rate of 7.7 % at both September 30, 2025 and December 31, 2024 and no specified maturity dates.

The aggregate fair value of policy loans approximates the carrying value reflected on the consolidated balance sheets.

Policy loans had a weighted average annual interest rate of 7.7 % at both March 31, 2026 and December 31, 2025 and no specified maturity dates.

Policy loans are an integral part of the life insurance policies we have in force, cannot be valued separately and are not marketable.

Therefore, the fair value of policy loans approximates the carrying value and policy loans are considered Level 3 assets in the fair value hierarchy.

Therefore, the fair value of policy loans

March 31, 2026 | 10-Q 16

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

approximates the carrying value reflected on the consolidated balance sheets are considered Level 3 assets in the fair value hierarchy.

Residential mortgage loan.

This mortgage loan is secured by a residential property.

The interest rate for this loan was 7.0 % at both September 30, 2025 and December 31, 2024.

At September 30, 2025, the remaining loan matures in three years .

Management estimated the fair value using an annual interest rate of 6.25 % at both September 30, 2025 and December 31, 2024.

The mortgage loan is secured by a residential property.

The interest rate for this loan was 7.0 % at both March 31, 2026 and December 31, 2025.

At March 31, 2026, the remaining loan matures in two years .

Management estimated the fair value using an annual interest rate of 6.25 % at both March 31, 2026 and December 31, 2025.

Our mortgage loan is considered a Level 3 asset in the fair value hierarchy and is included in other long-term investments on the consolidated balance sheets.

2 unchanged sentences

Annuity liabilities.

The fair value of the Company's liabilities under annuity contracts, which are considered Level 3 liabilities, was estimated at September 30, 2025 and December 31, 2024 using discounted cash flows based upon spot rates adjusted for various risk adjustments ranging from 3.42 % to 4.86 % and 3.96 % to 4.96 %, respectively.

The fair value of the Company's liabilities under annuity contracts, which are considered Level 3 liabilities, was estimated at March 31, 2026 and December 31, 2025 using discounted cash flows based upon spot rates adjusted for various risk adjustments ranging from 3.63 % to 5.10 % and 3.31 % to 4.98 %, respectively.

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.

4 unchanged sentences

(In thousands )

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Other long-term investments:

7 unchanged sentences

(5) DEFERRED POLICY ACQUISITION COSTS AND COST OF INSURANCE ACQUIRED

The following tables roll forward the DAC and COIA balances for the nine months ended September 30, 2025 and 2024 by reporting cohort.

Our reporting cohorts are Permanent, which summarizes insurance policies with premiums payable over the lifetime of the policy, and Permanent Limited Pay, which summarizes insurance policies

September 30, 2025 | 10-Q 18

The following tables roll forward the deferred policy acquisition costs ("DAC") and cost of insurance acquired ("COIA") balances for the three months ended March 31, 2026 and 2025 by reporting cohort.

Our reporting cohorts are Permanent, which summarizes insurance policies with premiums payable over the lifetime of the policy, and

March 31, 2026 | 10-Q 17

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

with premiums payable for a limited time after which the policy is fully paid up.

Permanent Limited Pay, which summarizes insurance policies with premiums payable for a limited time after which the policy is fully paid up.

Both reporting cohorts include whole life and endowment policies.

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

(In thousands)

Permanent Permanent Limited Pay Other Business Total

Life Insurance:

International Insurance:

Balance, beginning of year $ 113,915 18,585 538 133,038

2 unchanged sentences

Balance, end of period 114,387 18,796 536 133,719

Home Service Insurance:

Domestic Insurance:

Balance, beginning of year 74,622 11,683 1,194 87,499

7 unchanged sentences

Balance, end of period $ 192,166 30,605 1,731 224,502

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

(In thousands)

Permanent Permanent Limited Pay Other Business Total

Life Insurance:

International Insurance:

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

2 unchanged sentences

Balance, end of period 109,418 17,014 573 127,005

Home Service Insurance:

Domestic Insurance:

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

7 unchanged sentences

Balance, end of period $ 173,826 28,249 1,762 203,837

September 30, 2025 | 10-Q 19

March 31, 2026 | 10-Q 18

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DAC capitalization decreased for the nine months ended September 30, 2025, compared to the same prior year period mainly from increased ceding commissions and expenses due to a full nine months of reinsurance with RGA in 2025 offset by higher first year sales.

Nine Months Ended September 30, 2025

(In thousands)

Permanent Permanent Limited Pay Other Business Total

Life Insurance:

Balance, beginning of year $ 599 648 — 1,247

Amortization expense ( 30 ) ( 30 ) — ( 60 )

Balance, end of period 569 618 — 1,187

Home Service Insurance:

Balance, beginning of year 6,825 161 1,213 8,199

Amortization expense ( 264 ) ( 5 ) 24 ( 245 )

Balance, end of period 6,561 156 1,237 7,954

Consolidated:

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

Amortization expense ( 294 ) ( 35 ) 24 ( 305 )

Balance, end of period $ 7,130 774 1,237 9,141

Nine Months Ended September 30, 2024

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

therefore, the balances for the three months ended March 31, 2026 and 2025 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 ( 12 ) ( 36 ) ( 33 ) ( 81 )

Balance, end of period 237 659 373 1,269

Home Service Insurance:

Three Months Ended March 31, 2026

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

Amortization expense ( 93 ) ( 9 ) ( 86 ) ( 188 )

Balance, end of period 6,915 163 1,219 8,297

Consolidated:

Balance, end of year $ 6,943 755 1,109 8,807

Three Months Ended March 31, 2025

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

Amortization expense ( 99 ) ( 13 ) 14 ( 98 )

Balance, end of period $ 7,152 822 1,592 9,566

Balance, end of year $ 7,325 796 1,227 9,348

(6) POLICYHOLDERS’ LIABILITIES

2 unchanged sentences

Permanent, which summarizes insurance policies with premiums payable over the lifetime of the policy,

September 30, 2025 | 10-Q 20

March 31, 2026 | 10-Q 19

CITIZENS, INC .

2 unchanged sentences

Both reporting cohorts include whole life and endowment policies.

September 30, 2025

March 31, 2026

(In thousands)

Life Insurance

Home Service Insurance

International Insurance

Domestic Insurance

Permanent Permanent Limited Pay Total Permanent Permanent Limited Pay Total

2 unchanged sentences

Beginning balance at original discount rate $ 242,912 20,405 263,317 192,071 13,446 205,517

Effect of changes in cash flow assumptions ( 5,915 ) 4,119 ( 1,796 ) 831 ( 82 ) 749

Effect of actual variances from expected experience

11 unchanged sentences

Beginning balance at original discount rate $ 932,243 174,075 1,106,318 339,821 152,775 492,596

Effect of changes in cash flow assumptions ( 7,051 ) 5,992 ( 1,059 ) ( 624 ) ( 306 ) ( 930 )

Effect of actual variances from expected experience

12 unchanged sentences

Net liability for future policy benefits, after reinsurance recoverable $ 651,961 142,603 794,564 126,616 124,003 250,619

September 30, 2025 | 10-Q 21

March 31, 2026 | 10-Q 20

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

March 31, 2025

(In thousands)

Life Insurance Home Service Insurance

International Insurance

Domestic Insurance

Permanent Permanent Limited Pay Total Permanent Permanent Limited Pay Total

2 unchanged sentences

Beginning balance at original discount rate $ 247,279 15,807 263,086 164,666 14,105 178,771

Effect of changes in cash flow assumptions 17,731 274 18,005 ( 462 ) 21 ( 441 )

Effect of actual variances from expected experience

11 unchanged sentences

Beginning balance at original discount rate $ 965,548 170,911 1,136,459 304,500 153,902 458,402

Effect of changes in cash flow assumptions 18,320 734 19,054 ( 502 ) ( 1,078 ) ( 1,580 )

Effect of actual variances from expected experience

11 unchanged sentences

Net liability for future policy benefits, after reinsurance recoverable $ 675,686 143,245 818,931 125,167 126,640 251,807

September 30, 2025 | 10-Q 22

March 31, 2026 | 10-Q 21

CITIZENS, INC .

1 unchanged sentence

The following table reconciles the net liability for future policy benefits shown above to the liability for future policy benefits reported in the consolidated balance sheets.

September 30, 2025

September 30, 2024

(In thousands) Life

Insurance Home Service

Insurance Consolidated Life

Insurance Home Service

March 31, 2026

March 31, 2025

(In thousands) International

Consolidated International

Insurance Consolidated

9 unchanged sentences

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefit payments for long-term duration contracts.

September 30, 2025 September 30, 2024

(In thousands) Life

Insurance Home Service

Insurance Life

Insurance Home Service

March 31, 2026 March 31, 2025

(In thousands) International

Insurance International

Insurance Domestic

Undiscounted:

9 unchanged sentences

Expected future benefit payments 162,609 136,718 159,225 139,964

September 30, 2025 | 10-Q 23

March 31, 2026 | 10-Q 22

CITIZENS, INC .

1 unchanged sentence

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

Three Months Ended September 30,

Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

(In thousands)

Gross Premiums Interest Expense Gross Premiums Interest Expense Gross Premiums Interest Expense Gross Premiums Interest Expense

Life Insurance Segment:

Gross Premiums Interest Expense Gross Premiums Interest Expense

International Insurance:

Life Insurance:

6 unchanged sentences

Other 153 — 187 —

Reinsurance 1 — 1 — 2 — 3 —

Total, net of reinsurance 173 — 196 — 552 — 562 —

Total $ 25,198 9,459 25,608 9,845

Home Service Insurance Segment:

Domestic Insurance:

Life Insurance:

7 unchanged sentences

Total $ 14,740 3,866 14,189 3,759

September 30, 2025 | 10-Q 24

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides the weighted-average durations of the liability for future policy benefits.

September 30, 2025 September 30, 2024

(In years) Life

Insurance Home Service

Insurance Life

Insurance Home Service

March 31, 2026 March 31, 2025

(In years) International

International

Duration at original discount rate 8.1 17.1 8.0 17.0

3 unchanged sentences

Duration at current discount rate 7.3 12.6 6.7 12.9

March 31, 2026 | 10-Q 23

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table provides the weighted-average interest rates for the liability for future policy benefits.

September 30, 2025 September 30, 2024

Insurance Home Service

Insurance Life

Insurance Home Service

March 31, 2026 March 31, 2025

International

Interest rate at original discount rate 4.81 % 4.96 % 4.84 % 4.91 %

6 unchanged sentences

At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total

September 30, 2025

March 31, 2026

(In thousands)

9 unchanged sentences

Total $ 160,612 576 26,335 71,549 259,072

September 30, 2025 | 10-Q 25

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

At Guaranteed Minimum 1 Basis Point-50 Basis Points Above 51 Basis Points-150 Basis Points Above Greater Than 150 Basis Points Above Total

September 30, 2024

March 31, 2025

(In thousands)

9 unchanged sentences

Total $ 145,240 568 19,584 69,720 235,112

March 31, 2026 | 10-Q 24

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following tables summarize balances of and changes in policyholders' account balances.

September 30, 2025

March 31, 2026

(In thousands, except for %)

5 unchanged sentences

Interest credited 862 765 515 203

Other 3 — — —

Surrenders and withdrawals — 2,902 1,167 1,408

3 unchanged sentences

Cash surrender value $ 91,260 88,423 52,248 27,141

September 30, 2024

March 31, 2025

(In thousands, except for %)

10 unchanged sentences

Cash surrender value $ 67,838 88,708 48,593 29,973

September 30, 2025 | 10-Q 26

March 31, 2026 | 10-Q 25

CITIZENS, INC .

1 unchanged sentence

The following table reconciles policyholders' account balances shown above to the policyholders' account balance liability in the consolidated balance sheets.

As of September 30,

As of March 31,

(In thousands)

12 unchanged sentences

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 has elected for RGA to reinsure 50 % of its newly written final expense business.

In CLOA, we have a coinsurance agreement with RGA Reinsurance Company ("RGA").

Under this agreement, CLOA has elected RGA to reinsure 50 % of its final expense business.

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

5 unchanged sentences

(In thousands)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Life insurance in force:

3 unchanged sentences

Net life insurance in force $ 4,537,477 4,524,688

September 30, 2025 | 10-Q 27

March 31, 2026 | 10-Q 26

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The Company's reinsurance recoverable on ceded reinsurance was $ 10.4 million and $ 6.9 million as of September 30, 2025 and December 31, 2024, respectively.

The Company's reinsurance recoverable on ceded reinsurance was $ 12.9 million and $ 10.9 million as of March 31, 2026 and December 31, 2025, respectively.

Premiums, claims and surrenders assumed and ceded, and expenses ceded for all lines of business are summarized for the periods indicated below.

Three Months Ended Nine Months Ended

September 30, September 30,

Three Months Ended

(In thousands) 2026 2025

22 unchanged sentences

Commitments and Contingencies of our consolidated financial statements and notes thereto included in the 2025 Form 10-K includes a discussion of our legal proceedings.

There have been no material developments in the nine months ended September 30, 2025 from the legal proceedings described in our 2024 consolidated financial statements and notes thereto included in the Form 10-K .

There have been no material developments in the three months ended March 31, 2026 from the legal proceedings described in our consolidated financial statements and notes thereto included in the 2025 Form 10-K .

CONTRACTUAL OBLIGATIONS

As of September 30, 2025, CICA International is committed to fund investments up to $ 20.7 million related to limited partnership and structured note investments previously described.

As of March 31, 2026, we committed to funding investments up to $ 8.3 million related to limited partnership and structured note investments previously described.

CREDIT FACILITY

3 unchanged sentences

At the Company's election, the revolving loans may either bear a rate (a fluctuating rate per annum) equal to

September 30, 2025 | 10-Q 28

March 31, 2026 | 10-Q 27

CITIZENS, INC .

4 unchanged sentences

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.

As of September 30, 2025, the Company had no t borrowed any funds against the Credit Facility and was not in violation of any covenants.

As of March 31, 2026, the Company had no t borrowed any funds against the Credit Facility and was not in violation of any covenants.

(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:

Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands)

6 unchanged sentences

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share.

Three Months Ended September 30, 2025 2024

The following table sets forth the computation of basic and diluted earnings per share of Class A common stock.

Three Months Ended March 31, 2026 2025

(In thousands, except per share amounts)

3 unchanged sentences

Weighted average shares of Class A outstanding - diluted (1)

Basic earnings per share of Class A common stock $ 0.04 0.06

Diluted earnings per share of Class A common stock

September 30, 2025 | 10-Q 29

51,580 50,912

Basic earnings (loss) per share of Class A common stock

$ 0.05 ( 0.03 )

Diluted earnings (loss) per share of Class A common stock

0.04 ( 0.03 )

(1) Because the Company reported a net loss for the three months ended March 31, 2025, the effect of all potentially dilutive securities was excluded from the calculation of diluted earnings per share as it would be anti-dilutive.

March 31, 2026 | 10-Q 28

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Nine Months Ended September 30, 2025 2024

(In thousands, except per share amounts)

Basic and diluted earnings per share:

Net income (loss) $ 7,253 11,291

Weighted average shares of Class A outstanding - basic 50,099 49,687

Weighted average shares of Class A outstanding - diluted 51,401 50,519

Basic earnings per share of Class A common stock $ 0.14 0.23

Diluted earnings per share of Class A common stock

STATUTORY CAPITAL AND SURPLUS

1 unchanged sentence

National Association of Insurance Commissioners ("NAIC").

All domestic insurance subsidiaries exceeded the minimum capital requirements at September 30, 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 September 30, 2025, no capital contribution was necessary.

All domestic insurance subsidiaries exceeded the minimum capital requirements at March 31, 2026.

As CLOA's RBC exceeded 350% at March 31, 2026, no capital contribution was necessary.

CICA International is a Puerto Rico domiciled company.

1 unchanged sentence

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

At September 30, 2025, CICA International's capital exceeds both of the required minimum capital and related ratio.

At March 31, 2026, CICA International's capital exceeds both the required minimum capital and related ratio.

(10) SEGMENT AND OTHER OPERATING INFORMATION

2 unchanged sentences

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.

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.

September 30, 2025 | 10-Q 30

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Our policies are sold and serviced through independent agents.

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.

1 unchanged sentence

The CODM evaluates profit and loss performance based on U.S.

GAAP net income (loss) before federal income taxes for its two reportable segments.

GAAP income (loss) before federal income tax for its two reportable segments.

The Company's Other Non-Insurance Enterprises represents the only reportable difference between segments and consolidated operations.

Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated

Three Months Ended September 30, 2025

(In thousands)

Life insurance $ 32,612 10,260 — 42,872

Accident and health insurance 173 258 — 431

Net investment income 15,342 3,581 194 19,117

Investment related gains (losses), net ( 2,063 ) 799 9 ( 1,255 )

Other income 1,518 — 125 1,643

Total revenues 47,582 14,898 328 62,808

Benefits and expenses:

Insurance benefits paid or provided:

Claims and surrenders 38,603 5,673 — 44,276

Increase (decrease) in future policy benefit reserves ( 8,360 ) 1,600 — ( 6,760 )

Policyholder liability remeasurement (gain) loss 1,405 ( 1,864 ) — ( 459 )

Policyholders' dividends 1,372 5 — 1,377

Total insurance benefits paid or provided 33,020 5,414 — 38,434

Commissions 8,566 3,089 — 11,655

Other general expenses 7,050 3,879 2,362 13,291

Capitalization of deferred policy acquisition costs ( 8,670 ) ( 1,304 ) — ( 9,974 )

Amortization of deferred policy acquisition costs 4,063 732 — 4,795

Amortization of cost of insurance acquired 18 110 — 128

Total benefits and expenses 44,047 11,920 2,362 58,329

Income (loss) before federal income tax $ 3,535 2,978 ( 2,034 ) 4,479

September 30, 2025 | 10-Q 31

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated

Nine Months Ended September 30, 2025

(In thousands)

Life insurance $ 94,030 31,128 — 125,158

Accident and health insurance 552 778 — 1,330

Net investment income 42,254 10,854 555 53,663

Investment related gains (losses), net ( 2,185 ) 433 11 ( 1,741 )

Other income 5,011 — 125 5,136

Total revenues 139,662 43,193 691 183,546

Benefits and expenses:

Insurance benefits paid or provided:

Claims and surrenders 107,968 16,626 — 124,594

Increase (decrease) in future policy benefit reserves ( 19,257 ) 4,297 — ( 14,960 )

Policyholder liability remeasurement (gain) loss 2,499 ( 1,779 ) — 720

Policyholders' dividends 3,969 18 — 3,987

Total insurance benefits paid or provided 95,179 19,162 — 114,341

Commissions 24,913 9,426 — 34,339

Other general expenses 20,266 11,461 7,716 39,443

Capitalization of deferred policy acquisition costs ( 24,544 ) ( 3,999 ) — ( 28,543 )

Amortization of deferred policy acquisition costs 11,862 2,193 — 14,055

Amortization of cost of insurance acquired 60 245 — 305

Total benefits and expenses 127,736 38,488 7,716 173,940

Income (loss) before federal income tax $ 11,926 4,705 ( 7,025 ) 9,606

September 30, 2025 | 10-Q 32

March 31, 2026 | 10-Q 29

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated

Three Months Ended September 30, 2024

International Insurance

Domestic Insurance

Other Non-Insurance Enterprises Consolidated

Three Months Ended March 31, 2026

(In thousands)

Life insurance $ 32,005 10,456 — 42,461

Accident and health insurance 196 256 — 452

Property insurance — ( 16 ) — ( 16 )

$ 25,198 14,740 — 39,938

Net investment income 12,004 5,113 187 17,304

16 unchanged sentences

Income (loss) before federal income tax $ 3,605 1,251 ( 2,482 ) 2,374

September 30, 2025 | 10-Q 33

March 31, 2026 | 10-Q 30

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Life Insurance Home Service Insurance Other Non-Insurance Enterprises Consolidated

Nine Months Ended September 30, 2024

International Insurance

Domestic Insurance

Other Non-Insurance Enterprises Consolidated

Three Months Ended March 31, 2025

(In thousands)

Life insurance $ 91,105 31,718 — 122,823

Accident and health insurance 562 762 — 1,324

Property insurance — ( 18 ) — ( 18 )

$ 25,608 14,189 — 39,797

Net investment income 12,131 5,059 187 17,377

17 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 premiums for the Life Insurance segment is detailed below.

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

(In thousands)

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Life Insurance Segment:

Direct premiums:

4 unchanged sentences

Total premiums $ 25,198 25,608

September 30, 2025 | 10-Q 34

March 31, 2026 | 10-Q 31

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

A summary of the Domestic Insurance segment premium breakout is detailed below.

(In thousands)

Three Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

Home Service Insurance Segment:

Direct life and A&H premiums:

Direct premiums:

First year $ 5,680 5,425

Renewal 12,670 10,846

Total direct life and A&H premiums 10,525 10,717 31,994 32,504

Total direct premiums

18,350 16,271

Reinsurance ( 3,610 ) ( 2,082 )

Total life and A&H premiums

Total premiums

$ 14,740 14,189

The table below summarizes assets by segment.

As of September 30,

(In thousands)

Life Insurance $ 1,333,849 1,325,855

Home Service Insurance 372,916 372,362

March 31, 2026 December 31, 2025

International Insurance

$ 1,178,768 1,190,736

Domestic Insurance

529,478 529,357

Total Segments

5 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

(In thousands)

2025 2024 2025 2024

United States $ 18,521 16,500

Colombia 6,825 6,554

Ecuador 3,527 3,421 10,093 9,610

Taiwan 3,406 3,886

Venezuela 3,178 3,350

Ecuador 2,996 3,200

Argentina 2,602 2,096

2 unchanged sentences

Total premiums $ 39,938 39,797

September 30, 2025 | 10-Q 35

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(11) INCOME TAXES

The effective tax rate is the ratio of tax expense or tax benefit over pre-tax income.

The tax benefit effective rates were 46.0 % and 24.5 % for the three and nine months ended September 30, 2025, compared to effective tax rate of 8.1 % and ( 0.2 )% for the same periods in 2024.

The tax effective rate was 4.5 % for the three months ended March 31, 2026, compared to an effective tax benefit rate of 9.2 % for the same period in

March 31, 2026 | 10-Q 32

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

2 unchanged sentences

The effective tax rate varies from the prevailing corporate federal income tax rate of 21% mainly due to the impact of Subpart F and the reduced Puerto Rico income tax rate.

At September 30, 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.

The Company recorded valuation allowances of $ 4.2 million and $ 3.8 million at September 30, 2025 and 2024, respectively, in Accumulated Other Comprehensive Income (Loss).

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 three and nine months ended September 30, 2025.

At March 31, 2026 and 2025, we determined it was more likely than not that a portion of our capital deferred tax assets would not be realized in their entirety.

The Company recorded valuation allowances of $ 4.7 million at March 31, 2026 and 2025, in accumulated other comprehensive income (loss) on the consolidated balance sheets.

(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 three and nine months ended

September 30, 2025 | 10-Q 36

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2025 and 2024.

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

8 unchanged sentences

$ ( 151,036 ) 63,553 ( 87,483 )

Other comprehensive income (loss) before reclassification, before tax 243 4,003 4,246

Amounts reclassified from other comprehensive income (loss), before tax 168 — 168

Income tax benefit (expense) ( 213 ) ( 782 ) ( 995 )

Balance at June 30, 2025, net of tax

( 152,363 ) 68,708 ( 83,655 )

Other comprehensive income (loss) before reclassification, before tax 22,623 ( 29,058 ) ( 6,435 )

Amounts reclassified from other comprehensive income (loss), before tax ( 691 ) — ( 691 )

Income tax benefit (expense) ( 1,357 ) 2,722 1,365

Balance at September 30, 2025, net of tax

$ ( 131,788 ) 42,372 ( 89,416 )

Balance at December 31, 2024, net of tax

6 unchanged sentences

$ ( 152,561 ) 65,487 ( 87,074 )

Other comprehensive income (loss) before reclassification, before tax ( 14,258 ) 5,522 ( 8,736 )

Amounts reclassified from other comprehensive income (loss), before tax 199 — 199

Income tax benefit (expense) 951 ( 568 ) 383

Balance at June 30, 2024, net of tax

( 166,713 ) 58,789 ( 107,924 )

Other comprehensive income (loss) before reclassification, before tax 59,101 ( 45,404 ) 13,697

Amounts reclassified from other comprehensive income (loss), before tax ( 100 ) — ( 100 )

Income tax benefit (expense) ( 4,339 ) 3,983 ( 356 )

Balance at September 30, 2024, net of tax

$ ( 112,051 ) 17,368 ( 94,683 )

September 30, 2025 | 10-Q 37

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(13) RELATED PARTY TRANSACTIONS

The Company has various routine related party transactions in conjunction with our holding company structure, such as management service agreements related to costs incurred, a tax sharing agreement between entities, and inter-company dividends and capital contributions.

There were no changes related to these relationships during the nine months ended September 30, 2025.

There were no changes related to these relationships during the three months ended March 31, 2026.

See our 2025 Form 10-K for a comprehensive discussion of related party transactions.

1 unchanged sentence

The Company has evaluated the impact of subsequent events as defined by the accounting guidance through the date this report was issued and determined that no other significant subsequent events need to be recognized or disclosed at this time.

September 30, 2025 | 10-Q 38

March 31, 2026 | 10-Q 33

CITIZENS, INC.

1 unchanged sentence

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-Q

Item 1. Financial Statements