Citizens Inc. (CIA, Financial) filed Quarterly Report for the period ended 2012-09-30.
Citizens, Inc. has a market cap of $496.9 million; its shares were traded at around $10.29 with a P/E ratio of 112.7 and P/S ratio of 2.6.
Premium Income. Premium income derived from life, accident and health, and property insurance sales increased 6.6% and 5.3% in 2012 for the three and nine months compared to the same periods ending September 30, 2011, primarily resulting from the life segment as discussed under Segment Operations.
We continue to experience growth in new sales of endowment products, which require higher initial reserve levels than whole life products. Endowment sales have become more popular among our international sales in the past few years, representing approximately 80% and 75% of total new first year premium through the nine months ended in 2012 and 2011, respectively.
Commissions. Commission expense increased for the three and nine months ended September 30, 2012, compared to the same periods in 2011. This expense fluctuates directly with new premium revenues, which were higher for the periods in 2012 compared to 2011. Commission rates paid to agents are higher on first year premium sales, which were up 26.3% for the three months ended September 30, 2012 compared to 2011. Renewal premiums for the three and nine months ended, which pay commissions at lower rates, are up $1.3 million and $5.7 million, respectively, in 2012 from the prior year. Also impacting current quarter expense is a reduction of approximately $0.4 million in commission expense for the three and nine months ended September 30, 2012 due to balances that were held pending validation that are no longer considered payable.
Policyholders' dividends. The increase in the three and nine months ended September 30, 2012 results from a manual adjustment that has now been properly set up in the policy administration system to properly reflect increasing policy values from annual paid up additions. This one time increase in dividends paid and single premium revenue of approximately $180,000 has no impact on the overall segment earnings for the quarter or nine months. The reserve liability had been previously set up relative to this policy feature and was decreased by $35,000 based upon the system calculated value.
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Citizens, Inc. has a market cap of $496.9 million; its shares were traded at around $10.29 with a P/E ratio of 112.7 and P/S ratio of 2.6.
Highlight of Business Operations:
Net investment income increased 8.5% and 4.6%, respectively. The average yield on the consolidated portfolio remained relatively steady for the third consecutive quarter at an annualized rate of 3.74% down from 3.92% for full year 2011. For the nine month period, the increase in the invested assets due to premium revenue growth offset the decrease in yield.Premium Income. Premium income derived from life, accident and health, and property insurance sales increased 6.6% and 5.3% in 2012 for the three and nine months compared to the same periods ending September 30, 2011, primarily resulting from the life segment as discussed under Segment Operations.
We continue to experience growth in new sales of endowment products, which require higher initial reserve levels than whole life products. Endowment sales have become more popular among our international sales in the past few years, representing approximately 80% and 75% of total new first year premium through the nine months ended in 2012 and 2011, respectively.
Commissions. Commission expense increased for the three and nine months ended September 30, 2012, compared to the same periods in 2011. This expense fluctuates directly with new premium revenues, which were higher for the periods in 2012 compared to 2011. Commission rates paid to agents are higher on first year premium sales, which were up 26.3% for the three months ended September 30, 2012 compared to 2011. Renewal premiums for the three and nine months ended, which pay commissions at lower rates, are up $1.3 million and $5.7 million, respectively, in 2012 from the prior year. Also impacting current quarter expense is a reduction of approximately $0.4 million in commission expense for the three and nine months ended September 30, 2012 due to balances that were held pending validation that are no longer considered payable.
Policyholders' dividends. The increase in the three and nine months ended September 30, 2012 results from a manual adjustment that has now been properly set up in the policy administration system to properly reflect increasing policy values from annual paid up additions. This one time increase in dividends paid and single premium revenue of approximately $180,000 has no impact on the overall segment earnings for the quarter or nine months. The reserve liability had been previously set up relative to this policy feature and was decreased by $35,000 based upon the system calculated value.
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