Citizens Inc. Profits Down in Second Quarter.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)--Aug. 16, 1999-- 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). ), announced a loss for the quarter ended June June: see month. 30 of $(111,120), or $(0.01) per share, a decrease from a gain of $199,856 or $0.01 per share for the same period in 1998. Net income for the six-month period ended June 30, 1999, was $166,631, down from the $312,440 earned the previous year. For the second quarter ended June 30, 1999, revenues increased slightly to $18.3 million, compared to $18.2 million for the same period in 1998. Premium income increased 2.1% during the quarter to $14.9 million, compared to $14.6 million in 1998. Investment income grew 4.5% to $2.9 million from $2.8 million. Increases in accident and health claims, coupled with a decrease in persistency of the Company's international life insurance business, contributed to the loss. Citizen's international markets, particularly in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. , have experienced significant economic problems over the past year, which have impacted the Company's life insurance business. Management believes the products offered overseas are highly competitive and expects persistency to improve with the economies. Revenues during the first six months of 1999 increased 1.2% to $35.0 million from $34.6 million for the first six months of 1998. Premium income for the first half of 1999 reached $28.4 million, from the same period in 1998 when premiums were $28.0 million. In reaction to increased claims on group accident and health business, termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. notices have been issued to all such groups, as well as individual major medical policyholders, effective on renewal dates. A majority of such terminations will be effective during the fourth quarter of 1999. The result of the terminations will be the loss of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5 million in annual premiums. Despite the loss of revenue, management believes the actions will increase long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. profitability. Total assets increased to $253.0 million at June 30, 1999, from $251.0 million at June 30, 1998. 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. decreased to $74.1 million compared to $76.4 million at the close of the first quarter 1999. Declines in the market value of the Company's available-for-sale bond portfolio, resulting from higher market interest rates were the reason for the decline in equity. Citizens Inc. is a Colorado-domiciled life insurance holding company with headquarters in Austin, Texas. The Company was incorporated in 1977 and is 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. -0-
CITIZENS INC.
COMPARATIVE CONSOLIDATED FINANCIAL HIGHLIGHTS
OPERATING STATEMENTS
--------------------
(Unaudited) (Unaudited)
Six Months Ended Three Months Ended
June 30, June 30,
-------- --------
1999 1998 1999 1998
---- ---- ---- ----
Premiums and Other
Revenues
Premium income $28,392,142 $27,970,186 $14,857,197 $14,549,512
Net investment
income 5,917,231 5,504,064 2,912,273 2,787,417
Other 737,864 1,148,412 459,697 825,452
----------- ----------- ----------- -----------
Total
revenues $35,047,237 $34,622,662 $18,229,167 $18,162,381
Benefits and Expenses
Increase in future
policy benefit
reserves $3,099,810 $3,835,053 $1,926,161 $2,323,379
Claims and
surrenders 16,572,827 14,962,318 8,365,566 8,190,825
Policyholder
dividends 1,238,361 1,441,535 736,727 751,255
Commissions 5,694,633 5,957,553 2,827,955 3,071,337
Underwriting and
insurance
expenses 5,386,318 5,880,597 3,038,598 3,021,246
Net change in
deferred policy
acquisition costs 1,514,361 537,319 615,479 (61,988)
Other 1,431,296 1,586,409 945,285 593,955
----------- ----------- ----------- -----------
Total benefits
and expenses 34,937,606 34,200,784 18,455,771 17,890,009
----------- ----------- ----------- -----------
Income (loss)
before federal
income tax $109,631 $421,878 $(226,604) $272,372
Federal income tax
expense (benefit) $(57,000) $109,438 $(115,484) $72,516
----------- ----------- ----------- -----------
Net income (loss) $166,631 $312,440 $(111,120) $199,856
=========== =========== =========== ===========
INCOME PER SHARE
(UNAUDITED)
Net income (loss)
per share $0.01 $0.01 $(0.01) $0.01
===== ===== ======= =====
Average shares
outstanding 21,911,253 21,386,137 21,995,406 21,386,137
BALANCE SHEETS
--------------
(Unaudited) (Unaudited)
June 30, March 31, Dec. 31,
1999 1999 1998
---- ---- ----
Total
assets $252,974,823 $254,380,103 $253,384,195
Total
invested
assets $177,240,791 $177,172,069 $176,572,123
Stockholders'
equity $74,066,445 $76,383,725 $74,903,679
(Unaudited) (Unaudited)
Sept. 30, June 30,
1998 1998
---- ----
Total
assets $251,495,726 $250,978,541
Total
invested
assets $179,099,245 $164,040,981
Stockholders'
equity $ 74,582,837 $ 79,296,266
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