Citizens Inc. Net Income Increases 581%.Business Editors AUSTIN Austin. 1 City (1990 pop. 21,907), seat of Mower co., SE Minn., on the Cedar River, near the Iowa line; inc. 1868. The commercial and industrial center of a rich farm region, it is noted as home to the Hormel meatpacking company, whose Spam Town museum , Texas--(BUSINESS WIRE)--Nov. 8, 2001 Citizens Inc. (AMEX AMEX See: American Stock Exchange :CIA CIA: see Central Intelligence Agency. (1) (Confidentiality Integrity Authentication) The three important concerns with regards to information security. Encryption is used to provide confidentiality (privacy, secrecy). ), reported net income of $2.5 million or $0.10 per share for the first nine months of 2001, a 581.2% increase over $360,000 or $0.01 during the same period in 2000. New cash value life insurance premiums have increased by 20% in 2001 over the prior period. An increase in investment income and decline in accident and health benefits during the period combined with the growth in premiums contributed to the improvement in 2001 operating results. Investment income grew 9.2% during the nine-month period of 2001 to $10.1 million as a result of expansion of the Company's asset base and the actions taken to change the mix and duration of invested assets during the past year. Premium income increased during the period to $38.8 million. New life insurance premiums offset a 29.5% decline in accident and health premiums resulting from management's decision in prior years to cancel (character) Cancel - (CAN, Control-X) ASCII character 24. a large portion of the Company's individual major medical and group dental dental /den·tal/ (den´t'l) pertaining to a tooth or teeth. den·tal adj. 1. Of, relating to, or for the teeth. 2. Of, relating to, or intended for dentistry. blocks of business due to adverse claims experience. Claims and surrenders for the nine-month period ended September September: see month. 30, 2001 declined 9.9% to $21.6 million from $24.0 million in 2000 as a result of the cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. of the accident and health business. Third quarter 2001 net income was $1.4 million, or $0.05 per share, a 474.3% increase over a net loss of $287,000, or $(0.01) per share, for the same period in 2000. New production of whole life insurance premiums measured in paid, annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. premiums increased 25% during the quarter while death claims decreased 44.7%. Revenues for the quarter increased $700,000 to $17.6 million, compared to $16.9 million for the same period in 2000. Investment income in the third quarter of 2001 grew 8.9% to $3.5 million compared to $3.2 million for the same period in 2000. Accident and health premiums declined $500,000, or 30%, due to cancellation of the major medical and dental blocks of business. Death claims decreased as a result of reduced claim volume and smaller claim amounts. Premium income increased 2.5% during the quarter to $13.9 million, compared to $13.6 million in 2000 as the increased production of new life premium exceeded the decline in accident and health revenues. Total assets increased to $287.2 million at Sept. 30, 2001 from $267.8 million at Dec. 31, 2000. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. reached $83.0 million compared to $77.3 million at Dec. 31, 2000. Income earned in the first nine months of 2001 and increases in the market value of the Company's available-for-sale bond portfolio were the primary reasons for the increase in equity. About Citizens Inc. Citizens Inc. is a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. company listed on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. under the symbol CIA. Its growth strategy is to achieve $1 billion in assets, $250 million in revenues and $10 billion of life insurance in force by 2010 targeting the sale of U.S. dollar whole life insurance policies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. as well as world-wide and through the acquisition of other life insurance companies. Citizens is included in the Russell Russell, English noble family. It first appeared prominently in the reign of Henry VIII when John Russell, 1st earl of Bedford, 1486?–1555, rose to military and diplomatic importance. 2000(R) Index, which measures the performance of the largest companies in the U.S. stock market, based on market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. . Citizens' stock closed at $9.30 on Nov. 7, 2001. Additional information is available at the Company's Web site: www.citizensinc.com. Information herein contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, which can be identified by words such as "may," "will," "expect," "anticipate" or "continue" or comparable words. In addition, all statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of the Company, particularly its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended Dec. 31, 2000, for the meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management.
CITIZENS INC.
COMPARATIVE CONSOLIDATED FINANCIAL HIGHLIGHTS
OPERATING STATEMENTS
(Unaudited)
Nine-Months Ended
Sept. 30,
--------------------
2001 2000
---- ----
Premiums and Other Revenues
Premium income $ 38,819,800 $ 38,798,671
Net investment income 10,110,224 9,257,159
Other 488,240 611,042
------------ ------------
Total revenues $ 49,418,264 $ 48,666,872
Benefits and Expenses
Increase in future policy
benefit reserves $ 4,702,073 $ 4,615,938
Claims and surrenders 21,606,679 23,969,251
Policyholder dividends 2,301,322 2,129,379
Commissions 9,633,958 8,822,030
Underwriting and insurance
expenses 7,879,929 7,729,985
Net change in deferred policy
acquisition costs (1,635,902) (424,607)
Other 1,536,674 1,697,659
------------ ------------
Total benefits and expenses 46,024,733 48,539,635
------------ ------------
Income (loss) before federal
income tax $ 3,393,531 $ 127,237
Federal income tax expense
(benefit) $ 930,000 $ (234,398)
------------ ------------
Net income (loss) $ 2,463,531 $ 361,635
============ ============
(Unaudited)
Three-Months Ended
Sept. 30,
--------------------
2001 2000
---- ----
Premiums and Other Revenues
Premium income $ 13,892,419 $ 13,558,646
Net investment income 3,489,266 3,204,023
Other 201,049 128,363
------------ ------------
Total revenues $ 17,582,734 $ 16,891,032
Benefits and Expenses
Increase in future policy
benefit reserves $ 1,383,049 $ 2,145,261
Claims and surrenders 7,445,642 8,899,271
Policyholder dividends 905,569 836,021
Commissions 3,663,972 3,217,551
Underwriting and insurance
expenses 2,514,909 2,443,061
Net change in deferred policy
acquisition costs (855,703) (520,028)
Other 579,953 491,775
------------ ------------
Total benefits and expenses 15,637,391 17,512,912
------------ ------------
Income (loss) before federal
income tax $ 1,945,343 $ (621,880)
Federal income tax expense
(benefit) $ 585,000 $ (335,073)
------------ ------------
Net income (loss) $ 1,360,343 $ (286,807)
============ ============
INCOME (LOSS) PER SHARE
(UNAUDITED)
(Unaudited) (Unaudited)
Nine-Months Ended Three-Months Ended
Sept. 30, Sept. 30,
---------------------- ----------------------
2001 2000 2001 2000
---- ---- ---- ----
Net income
(loss) per
share $ 0.10 $ 0.01 $ 0.05 $ (0.01)
===== ===== ===== =======
Average shares
outstanding 25,128,158 25,128,158 25,128,158 25,128,158
BALANCE SHEETS
(Unaudited) (Unaudited) (Unaudited)
Sept. 30, June 30, March 31,
2001 2001 2001
---- ---- ----
Total assets $ 287,194,989 $ 273,276,061 $ 270,633,059
Total invested assets $ 203,106,657 $ 197,071,562 $ 196,214,529
Stockholders' equity $ 82,973,203 $ 78,991,654 $ 79,325,947
(Unaudited)
Dec. 31, Sept. 30,
2000 2000
---- ----
Total assets $ 267,842,364 $ 261,556,405
Total invested assets $ 194,203,327 $ 186,896,625
Stockholders' equity $ 77,313,031 $ 73,836,647
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