What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-08-06 compared with 2026-05-07 · 300 added, 166 removed, 938 unchanged (33% of the section changed)

3 unchanged sentences

Consolidated Balance Sheets

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

(In thousands) June 30, 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.

March 31, 2026 | 10-Q 2

June 30, 2026 | 10-Q 2

CITIZENS, INC.

1 unchanged sentence

Consolidated Balance Sheets, Continued

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

(In thousands, except share amounts) June 30, 2026 December 31, 2025

Liabilities and Stockholders' Equity:

28 unchanged sentences

See accompanying Notes to Consolidated Financial Statements.

March 31, 2026 | 10-Q 3

June 30, 2026 | 10-Q 3

CITIZENS, INC.

1 unchanged sentence

Consolidated Statements of Operations and Comprehensive Income (Loss)

Three Months Ended

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands, except per share amounts)

2026 2025 2026 2025

Premiums $ 43,703 43,388 83,641 83,185

19 unchanged sentences

Federal income tax expense (benefit)

( 104 ) 455 2 291

Net income (loss) ( 425 ) 6,459 1,843 4,836

Per Share Amounts:

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 )

Basic and diluted earnings (loss) per share of Class A common stock ( 0.01 ) 0.13 0.04 0.10

Other Comprehensive Income (Loss):

2 unchanged sentences

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

( 34 ) 168 378 251

Unrealized gains (losses) on fixed maturity securities, net 3,833 411 ( 12,050 ) 18,828

4 unchanged sentences

See accompanying Notes to Consolidated Financial Statements.

March 31, 2026 | 10-Q 4

June 30, 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)

— — ( 425 ) — — ( 425 )

Other comprehensive income (loss) — — — ( 3,612 ) — ( 3,612 )

Total comprehensive income (loss) — — ( 425 ) ( 3,612 ) — ( 4,037 )

Stock-based compensation 533 — — — — 533

Balance at June 30, 2026 $ 273,304 3,184 73,496 ( 91,095 ) ( 23,725 ) 235,164

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)

— — 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

See accompanying Notes to Consolidated Financial Statements.

March 31, 2026 | 10-Q 5

June 30, 2026 | 10-Q 5

CITIZENS, INC.

1 unchanged sentence

Consolidated Statements of Cash Flows

Three Months Ended March 31,

Six Months Ended June 30,

(In thousands)

16 unchanged sentences

Federal income tax receivable

( 377 ) ( 995 )

Commissions payable and other liabilities ( 6,313 ) ( 1,417 )

13 unchanged sentences

See accompanying Notes to Consolidated Financial Statements.

March 31, 2026 | 10-Q 6

June 30, 2026 | 10-Q 6

CITIZENS, INC.

1 unchanged sentence

Consolidated Statements of Cash Flows, Continued

Three Months Ended March 31,

Six Months Ended June 30,

(In thousands)

9 unchanged sentences

SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:

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.

During the six months ended June 30, 2026 and 2025, various fixed maturity issuers exchanged securities with book values of $ 7.2 million and $ 6.5 million, respectively, for securities of equal value.

See accompanying Notes to Consolidated Financial Statements.

March 31, 2026 | 10-Q 7

June 30, 2026 | 10-Q 7

CITIZENS, INC .

8 unchanged sentences

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

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 balance sheet as of June 30, 2026, the consolidated statements of operations and comprehensive income (loss) and stockholders' equity for the three and six months ended June 30, 2026 and June 30, 2025 and the consolidated statements of cash flows for the six months ended June 30, 2026 and June 30, 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 June 30, 2026 and for comparative periods have been made.

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

11 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.

During the three months ended June 30, 2026, the Company’s wholly-owned subsidiary, CICA Bermuda, was removed from the Register of Companies in Bermuda and dissolved pursuant to applicable Bermuda law.

The dissolution did not have any impact on the Company’s consolidated financial statements.

NES provides services to policyholders of CICA International.

2 unchanged sentences

and SPLIC and MGLIC, which focus on the life insurance needs of the 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 relating to funeral and burial costs.

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

SPLIC also issues critical illness policies.

CTI provides data processing systems and services to the Company.

USE OF ESTIMATES

The preparation of consolidated financial statements in conformity with U.S.

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

March 31, 2026 | 10-Q 8

June 30, 2026 | 10-Q 8

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

USE OF ESTIMATES

The preparation of consolidated financial statements in conformity with U.S.

GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results could differ materially from these estimates.

12 unchanged sentences

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.

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

(3) INVESTMENTS

2 unchanged sentences

(In thousands, except for %)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Amount % Amount %

6 unchanged sentences

Total cash and invested assets $ 1,449,659 100.0 % 1,465,087 100.0 %

March 31, 2026 | 10-Q 9

June 30, 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.

March 31, 2026

June 30, 2026

(In thousands)

29 unchanged sentences

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

March 31, 2026 | 10-Q 10

June 30, 2026 | 10-Q 10

CITIZENS, INC .

2 unchanged sentences

(In thousands)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Equity securities:

6 unchanged sentences

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 recognized net investment related losses of $ 0.2 million and $ 0.1 million for the three and six months ended June 30, 2026 and losses of $ 16 thousand and gains of $ 31 thousand for the same periods in 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 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

For the three and six months ended June 30, 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 June 30, 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:

June 30, 2026 Less than 12 months Greater than 12 months Total

(In thousands,

18 unchanged sentences

Total fixed maturity securities $ 242,317 4,346 370 766,921 158,300 996 1,009,238 162,646 1,366

March 31, 2026 | 10-Q 11

June 30, 2026 | 10-Q 11

CITIZENS, INC .

21 unchanged sentences

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

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 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.

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

As of June 30, 2026 and December 31, 2025, 98.7 % of the fair value of our fixed maturity securities portfolio 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 March 31, 2026 by contractual maturity are shown in the table below.

The amortized cost and fair value of fixed maturity securities at June 30, 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.

March 31, 2026 Amortized

June 30, 2026 Amortized

(In thousands)

5 unchanged sentences

Total fixed maturity securities $ 1,438,702 1,282,060

March 31, 2026 | 10-Q 12

June 30, 2026 | 10-Q 12

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

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

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands) 2026 2025 2026 2025

25 unchanged sentences

We have no investments in this category.

March 31, 2026 | 10-Q 13

June 30, 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.

March 31, 2026 Level 1 Level 2 Level 3 Total

June 30, 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.

March 31, 2026 | 10-Q 14

June 30, 2026 | 10-Q 14

CITIZENS, INC .

26 unchanged sentences

Fixed maturity securities, available-for-sale.

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.

At June 30, 2026, fixed maturity securities, valued using a third-party pricing source, totaled $ 1.3 billion for Level 2 assets and comprised 93.4 % of total reported fair value of our total 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 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.

There were no Level 3 assets as of June 30, 2026.

For the three and six months ended June 30, 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 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.

At June 30, 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.

The Company recognized investment related losses of $ 0.3 million and $ 0.4 million for the three and six months ended June 30, 2026, respectively, related to changes in fair value.

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.

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

March 31, 2026 | 10-Q 15

As of June 30, 2026, we are committed to funding this structured note investment up to $ 4.1 million over the next nine years .

June 30, 2026 | 10-Q 15

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

related to our investments in limited partnerships that calculate NAV per share.

Limited partnerships.

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 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.

The Company recognized net investment related losses of $ 2.4 million and $ 0.6 million and gains of $ 2.9 million and $ 1.4 million on limited partnerships held for the three and six months ended June 30, 2026 and 2025, respectively, related to changes in fair value.

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In thousands, except for years)

12 unchanged sentences

The estimated fair values of financial instruments presented below are not necessarily indicative of the amounts the Company might realize in actual market transactions.

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:

March 31, 2026 December 31, 2025

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

June 30, 2026 December 31, 2025

(In thousands) Carrying

6 unchanged sentences

Annuity - investment contracts 70,547 64,415 68,975 64,066

Policy loans.

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

March 31, 2026 | 10-Q 16

June 30, 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.

Policy loans.

Policy loans had a weighted average annual interest rate of 7.7 % at both June 30, 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 reflected on the consolidated balance sheets and is considered a Level 3 asset in the fair value hierarchy.

Residential mortgage loan.

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.

The interest rate for this loan was 7.0 % at both June 30, 2026 and December 31, 2025.

At June 30, 2026, the remaining loan matures in two years .

Management estimated the fair value using an annual interest rate of 6.25 % at both June 30, 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 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 the Company's liabilities under annuity contracts, which are considered Level 3 liabilities, was estimated at June 30, 2026 and December 31, 2025 using discounted cash flows based upon spot rates adjusted for various risk adjustments ranging from 3.73 % to 5.01 % 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.

1 unchanged sentence

Financial instruments included in other long-term investments are classified in various levels of the fair value hierarchy.

The following table summarizes the carrying amounts of these investments.

The following table summarizes the carrying values of these investments.

Carrying Value

(In thousands )

March 31, 2026 December 31, 2025

June 30, 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 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.

The following tables roll forward the deferred policy acquisition costs ("DAC") and cost of insurance acquired ("COIA") balances for the six months ended June 30, 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

June 30, 2026 | 10-Q 17

CITIZENS, INC .

2 unchanged sentences

Both reporting cohorts include whole life and endowment policies.

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

(In thousands)

15 unchanged sentences

Balance, end of period $ 196,587 30,868 1,743 229,198

Three Months Ended March 31, 2025

Six Months Ended June 30, 2025

(In thousands)

15 unchanged sentences

Balance, end of period $ 178,443 28,741 1,760 208,944

March 31, 2026 | 10-Q 18

June 30, 2026 | 10-Q 18

CITIZENS, INC .

1 unchanged sentence

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.

therefore, the balances for the six months ended June 30, 2026 and 2025 on a consolidated basis by reporting cohort are shown below.

(In thousands)

Permanent Permanent Limited Pay Other Business Total

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

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

Amortization expense ( 186 ) ( 20 ) ( 125 ) ( 331 )

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

Three Months Ended March 31, 2025

Balance, end of period $ 6,850 744 1,070 8,664

Six Months Ended June 30, 2025

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

Amortization expense ( 199 ) ( 25 ) 47 ( 177 )

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

Balance, end of period $ 7,225 784 1,260 9,269

(6) POLICYHOLDERS’ LIABILITIES

2 unchanged sentences

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

March 31, 2026 | 10-Q 19

June 30, 2026 | 10-Q 19

CITIZENS, INC .

2 unchanged sentences

Both reporting cohorts include whole life and endowment policies.

March 31, 2026

June 30, 2026

(In thousands)

32 unchanged sentences

Net liability for future policy benefits, after reinsurance recoverable $ 654,641 143,403 798,044 131,026 126,068 257,094

March 31, 2026 | 10-Q 20

June 30, 2026 | 10-Q 20

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

June 30, 2025

(In thousands)

31 unchanged sentences

Net liability for future policy benefits, after reinsurance recoverable $ 667,322 142,469 809,791 124,474 125,119 249,593

March 31, 2026 | 10-Q 21

June 30, 2026 | 10-Q 21

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

March 31, 2026

March 31, 2025

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 for the periods indicated below.

June 30, 2026

June 30, 2025

(In thousands) International

11 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.

March 31, 2026 March 31, 2025

June 30, 2026 June 30, 2025

(In thousands) International

12 unchanged sentences

Expected future benefit payments 163,001 138,960 158,811 138,640

March 31, 2026 | 10-Q 22

June 30, 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 March 31,

Three Months Ended June 30,

Six Months Ended June 30,

2026 2025 2026 2025

(In thousands)

Gross Premiums Interest Expense Gross Premiums Interest Expense

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

International Insurance:

17 unchanged sentences

Other 258 — 262 — 516 — 524 —

Reinsurance 1 — 1 — 1 — 1 —

Total, net of reinsurance 257 — 261 — 515 — 523 —

Total $ 15,334 3,892 14,510 3,796 30,074 7,758 28,699 7,555

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

March 31, 2026 March 31, 2025

June 30, 2026 June 30, 2025

(In years) International

5 unchanged sentences

Duration at current discount rate 7.3 12.9 5.6 15.0

March 31, 2026 | 10-Q 23

June 30, 2026 | 10-Q 23

CITIZENS, INC .

1 unchanged sentence

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

March 31, 2026 March 31, 2025

June 30, 2026 June 30, 2025

International

8 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

March 31, 2026

June 30, 2026

(In thousands)

10 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

March 31, 2025

June 30, 2025

(In thousands)

9 unchanged sentences

Total $ 140,658 561 26,995 67,148 235,362

March 31, 2026 | 10-Q 24

June 30, 2026 | 10-Q 24

CITIZENS, INC .

1 unchanged sentence

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

March 31, 2026

June 30, 2026

(In thousands, except for %)

10 unchanged sentences

Cash surrender value $ 92,643 89,859 53,230 26,302

March 31, 2025

June 30, 2025

(In thousands, except for %)

10 unchanged sentences

Cash surrender value $ 71,355 85,811 49,281 28,915

March 31, 2026 | 10-Q 25

June 30, 2026 | 10-Q 25

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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

As of March 31,

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

(In thousands)

June 30, 2026 June 30, 2025

Supplemental contracts without life contingencies $ 92,643 71,355

20 unchanged sentences

(In thousands)

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Life insurance in force:

3 unchanged sentences

Net life insurance in force $ 4,599,419 4,524,688

March 31, 2026 | 10-Q 26

June 30, 2026 | 10-Q 26

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

The Company's reinsurance recoverable on ceded reinsurance was $ 15.2 million and $ 10.9 million as of June 30, 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

Three Months Ended Six Months Ended

June 30, June 30,

(In thousands) 2026 2025 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 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 .

There have been no material developments in the six months ended June 30, 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 March 31, 2026, we committed to funding investments up to $ 8.3 million related to limited partnership and structured note investments previously described.

As of June 30, 2026, we committed to funding investments up to $ 7.8 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

March 31, 2026 | 10-Q 27

June 30, 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 March 31, 2026, the Company had no t borrowed any funds against the Credit Facility and was not in violation of any covenants.

As of June 30, 2026, the Company had no t borrowed any funds against the Credit Facility and was in compliance with the covenants.

(9) STOCKHOLDERS' EQUITY AND RESTRICTIONS

4 unchanged sentences

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

Three Months Ended March 31,

Six Months Ended June 30,

(In thousands)

7 unchanged sentences

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

Three Months Ended June 30,

(In thousands, except per share amounts)

4 unchanged sentences

51,824 50,985

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

Basic and diluted earnings (loss) per share of Class A common stock $ ( 0.01 ) 0.13

(1) Because the Company reported a net loss for the three months ended June 30, 2026, the effect of all potentially dilutive securities was excluded from the calculation of diluted earnings per share as it would be anti-dilutive

June 30, 2026 | 10-Q 28

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Six Months Ended June 30,

(In thousands, except per share amounts)

Basic and diluted earnings per share:

Net income (loss) $ 1,843 4,836

Weighted average shares of Class A outstanding - basic 50,426 50,024

Weighted average shares of Class A outstanding - diluted 51,714 50,897

Basic and diluted earnings (loss) per share of Class A common stock $ 0.04 0.10

STATUTORY CAPITAL AND SURPLUS

1 unchanged sentence

National Association of Insurance Commissioners ("NAIC").

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

All domestic insurance subsidiaries exceeded the minimum capital requirements at June 30, 2026.

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 CLOA's RBC remains above 350 %.

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

As CLOA's RBC exceeded 350% at June 30, 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 March 31, 2026, CICA International's capital exceeds both the required minimum capital and related ratio.

At June 30, 2026, CICA International's capital exceeds both the required minimum capital and related ratio.

(10) SEGMENT AND OTHER OPERATING INFORMATION

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

The chief operating decision maker ("CODM"), our President and Chief Executive Officer, reviews and analyzes income statement information by segment to make decisions, assess financial performance and allocate resources across the Company in order to meet the overall strategic objectives of the Company.

The chief operating decision maker ("CODM"), our President and Chief Executive Officer, reviews segment operating results to assess financial performance, allocate resources and make operating and strategic decisions.

The Company has two reportable segments:

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.

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

Our Domestic Insurance segment operates through our subsidiaries:

3 unchanged sentences

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.

GAAP and are the same as those described in the summary of significant accounting policies in our 2025 Form 10-K .

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

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.

March 31, 2026 | 10-Q 29

The CODM evaluates the profitability of the International Insurance and Domestic Insurance segments based on the income (loss) before federal income tax, or segment profit (loss), which is measured as revenues less directly attributable total benefits and expenses.

This measure reflects the operating performance of each insurance segment and is the primary measure used by the CODM to evaluate segment results and allocate resources.

The significant expense categories regularly provided to the CODM and included in the measure of segment profit (loss) are presented in the tables below.

The International Insurance and Domestic Insurance operations constitute separate businesses.

In addition to these reportable segments, the Company also captures other corporate-related non-insurance income and expenses associated with operating the Company.

These amounts are not included in the segment profit (loss) and are

June 30, 2026 | 10-Q 29

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

reported separately below to reconcile to the consolidated income (loss) before federal income tax on the consolidated statements of operations and other comprehensive income (loss).

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies included in our 2025 Form 10-K and are prepared in accordance with U.S.

The tables below present segment revenues, segment profit (loss) and the significant expense categories included in the measure of segment profitability reviewed by the CODM.

Three Months Ended June 30, 2026 International Insurance Domestic Insurance Total

(In thousands)

Premiums $ 28,369 15,334 43,703

Net investment income 11,725 5,102 16,827

Investment related gains (losses), net ( 1,559 ) 67 ( 1,492 )

Other income 1,161 7 1,168

Total segment revenues 39,696 20,510 60,206

Other non-insurance revenues 202

Total consolidated revenues $ 60,408

Benefits and expenses:

Insurance benefits paid or provided:

Claims and surrenders 25,907 7,844

Increase (decrease) in future policy benefit reserves 189 3,003

Policyholder liability remeasurement (gain) loss 1,966 ( 254 )

Policyholders' dividends 1,341 52

Total insurance benefits paid or provided 29,403 10,645

Commissions 4,892 6,460

Other general expenses 5,193 5,428

Capitalization of deferred policy acquisition costs ( 4,464 ) ( 5,253 )

Amortization of deferred policy acquisition costs 3,548 1,473

Amortization of cost of insurance acquired — 143

Total segment benefits and expenses 38,572 18,896

Segment profit (loss) $ 1,124 1,614 2,738

Other non-insurance revenues 202

Stock-based compensation expense ( 776 )

Other non-insurance expenses ( 2,693 )

Income (loss) before federal income tax $ ( 529 )

June 30, 2026 | 10-Q 30

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

International Insurance

Domestic Insurance

Other Non-Insurance Enterprises Consolidated

Three Months Ended March 31, 2026

Six Months Ended June 30, 2026

(In thousands)

$ 25,198 14,740 — 39,938

Premiums $ 53,567 30,074 83,641

Net investment income 23,729 10,215 33,944

1 unchanged sentence

Other income 2,648 14 2,662

Total revenues 40,023 19,515 182 59,720

Total segment revenues 79,719 40,025 119,744

Other non-insurance revenues 384

Total consolidated revenues $ 120,128

Benefits and expenses:

10 unchanged sentences

Amortization of cost of insurance acquired — 331

Total benefits and expenses 36,418 18,264 2,664 57,346

Total segment benefits and expenses 74,990 37,160

Segment profit (loss) $ 4,729 2,865 7,594

Other non-insurance revenues 384

Stock-based compensation expense ( 1,314 )

Other non-insurance expenses ( 4,819 )

Income (loss) before federal income tax $ 1,845

March 31, 2026 | 10-Q 30

June 30, 2026 | 10-Q 31

CITIZENS, INC .

2 unchanged sentences

Domestic Insurance

Other Non-Insurance Enterprises Consolidated

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

(In thousands)

$ 25,608 14,189 — 39,797

Premiums $ 28,878 14,510 43,388

Net investment income 12,076 4,919 16,995

1 unchanged sentence

Other income 2,113 8 2,121

Total revenues 36,338 19,126 188 55,652

Total segment revenues 45,901 19,010 64,911

Other non-insurance revenues 175

Total consolidated revenues $ 65,086

Benefits and expenses:

10 unchanged sentences

Amortization of cost of insurance acquired — 79

Total benefits and expenses 36,533 18,568 2,338 57,439

Total segment benefits and expenses 38,774 16,382

Segment profit (loss) $ 7,127 2,628 9,755

Other non-insurance revenues 175

Stock-based compensation expense ( 1,209 )

Other non-insurance expenses ( 1,807 )

Income (loss) before federal income tax $ 6,914

June 30, 2026 | 10-Q 32

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

International Insurance

Domestic Insurance

Six Months Ended June 30, 2025

(In thousands)

Premiums $ 54,486 28,699 83,185

Net investment income 24,207 9,978 34,185

Investment related gains (losses), net 68 ( 556 ) ( 488 )

Other income 3,478 15 3,493

Total segment revenues 82,239 38,136 120,375

Other non-insurance revenues 363

Total consolidated revenues $ 120,738

Benefits and expenses:

Insurance benefits paid or provided:

Claims and surrenders 67,433 12,885

Increase (decrease) in future policy benefit reserves ( 13,821 ) 5,621

Policyholder liability remeasurement (gain) loss 1,199 ( 20 )

Policyholders' dividends 2,414 196

Total insurance benefits paid or provided 57,225 18,682

Commissions 10,288 12,396

Other general expenses 10,613 10,185

Capitalization of deferred policy acquisition costs ( 9,747 ) ( 8,822 )

Amortization of deferred policy acquisition costs 6,928 2,332

Amortization of cost of insurance acquired — 177

Total segment benefits and expenses 75,307 34,950

Segment profit (loss) $ 6,932 3,186 10,118

Other non-insurance revenues 363

Stock-based compensation expense ( 1,781 )

Other non-insurance expenses ( 3,573 )

Income (loss) before federal income tax $ 5,127

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.

2 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Direct premiums:

4 unchanged sentences

Total premiums $ 28,369 28,878 53,567 54,486

March 31, 2026 | 10-Q 31

June 30, 2026 | 10-Q 33

CITIZENS, INC .

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2026 2025 2026 2025

Direct premiums:

6 unchanged sentences

$ 15,334 14,510 30,074 28,699

The table below summarizes assets by segment.

The tables below provide a reconciliation of assets by reportable segment to total consolidated assets as presented on the consolidated balance sheets as of the periods indicated.

Assets not directly attributable to the Company's reportable segments are reflected as other corporate assets.

June 30, 2026

(In thousands)

March 31, 2026 December 31, 2025

International Insurance

$ 1,178,768 1,190,736

Domestic Insurance

529,478 529,357

Total Segments

1,708,246 1,720,093

Other Non-Insurance Enterprises 31,254 34,667

International Domestic Total

Segment Assets:

Cash, cash equivalents and investments $ 1,018,612 409,479 1,428,091

DAC and COIA 134,635 103,227 237,862

Other assets 30,870 22,521 53,391

Total segment assets $ 1,184,117 535,227 1,719,344

Other corporate assets 32,716

Total assets $ 1,752,060

December 31, 2025

(In thousands)

International Domestic Total

Segment Assets:

Cash, cash equivalents and investments $ 1,026,980 415,464 1,442,444

DAC and COIA 133,038 96,494 229,532

Other assets 30,718 17,399 48,117

Total segment assets $ 1,190,736 529,357 1,720,093

Other corporate assets 34,667

Total assets $ 1,754,760

June 30, 2026 | 10-Q 34

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

GEOGRAPHIC INFORMATION

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

(In thousands)

2026 2025 2026 2025

United States $ 19,167 16,983 37,688 33,483

8 unchanged sentences

(11) INCOME TAXES

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

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

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

For the three and six months ended June 30, 2026, the effective tax benefit rate was 19.7 % and effective tax expense rate was 0.1 %, respectively, compared to an effective tax expense rate of 6.6 % and 5.7 % for the same periods in 2025, respectively.

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 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.

At June 30, 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 $ 4.5 million and $ 4.8 million at June 30, 2026 and 2025, respectively, 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 months ended March 31, 2026 and 2025.

June 30, 2026 | 10-Q 35

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

2026 and 2025.

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 3,867 ( 8,393 ) ( 4,526 )

Amounts reclassified from other comprehensive income (loss), before tax ( 34 ) — ( 34 )

Income tax benefit (expense) ( 225 ) 1,173 948

Balance at June 30, 2026, net of tax

$ ( 147,428 ) 56,333 ( 91,095 )

(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, 2024, net of tax

6 unchanged sentences

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

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 )

(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 three months ended March 31, 2026.

There were no changes related to these relationships during the six months ended June 30, 2026.

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

June 30, 2026 | 10-Q 36

CITIZENS, INC .

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(14) SUBSEQUENT EVENTS

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.

March 31, 2026 | 10-Q 33

June 30, 2026 | 10-Q 37

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