Citizens Inc. (CIA, Financial) filed Quarterly Report for the period ended 2009-09-30.
Citizens Inc. operates primarily as an insurance holding company. Citizens Inc. has a market cap of $288 million; its shares were traded at around $6.13 with and P/S ratio of 1.9.
Premium Income. Premium income increased for the three and nine months ended September 30, 2009 to $36.2 million and $106.5 million from $34.0 million and $101.9 million for the same period in 2008. The increase in 2009 was due primarily to an increase in renewal premiums totaling $31.3 million and $93.1 million for the three and nine months ended September 30, 2009 compared to $29.9 million and $86.4 million for the same periods in 2008. In addition, approximately $0.9 million and $2.7 million of premium income for the three and nine months ended September 30, 2009 related to the acquisitions ICIC and ONLIC, which were not included in the first nine months of 2008.
Realized Gains, Net. The Company realized net gains of $1.0 million and $2.8 million for the three and nine months ended September 30, 2009 compared to realized net losses of $226,000 and $210,000 for the same periods in 2008. The increase in realized amounts in 2009 was primarily due to gains related to sales of fixed maturity securities offset by realized losses of $111,000 relating to other-than-temporary impairments recorded in the first quarter of 2009.
Claims and Surrenders. As noted in the table below, claims and surrenders increased from $13.9 million and $41.7 million in the three and nine months ended September 30, 2008 to $14.5 million and $44.3 million during the same periods in 2009.
Commissions. Commissions during the three and nine months ended September 30, 2009 decreased to $8.4 million and $25.5 million from $8.8 million and $25.9 million in 2008. The decrease was primarily due to lower first year commissions, as first year premiums were down in 2009 compared to 2008 due to the global recession.
Other Underwriting, Acquisition and Insurance Expense. These expenses decreased to $6.8 million for the three months ended September 30, 2009, and increased to $21.9 million for the nine months ended September 30, 2009, compared to $7.3 million and $21.2 million for the same periods in 2008. The decrease for the quarter was due primarily to a one-time equipment tax of $0.3 million. The increase in the nine months ended September 30, 2009 compared to the same period in 2008 was due primarily to $1.3 million of expense from the acquisition of ONLIC and ICIC, which were not in 2008 expenses, offset by the previously mentioned state tax of $0.3 million and lower audit fees in 2009.
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Citizens Inc. operates primarily as an insurance holding company. Citizens Inc. has a market cap of $288 million; its shares were traded at around $6.13 with and P/S ratio of 1.9.
Highlight of Business Operations:
The Company reported earnings, net of tax, of $2.2 million and $9.3 million for the three and nine months ended September 30, 2009. Total revenues of $44.8 million and $134.9 million were recorded for the three and nine months ended September 30, 2009. Assets totaled $919.6 million as of September 30, 2009.Premium Income. Premium income increased for the three and nine months ended September 30, 2009 to $36.2 million and $106.5 million from $34.0 million and $101.9 million for the same period in 2008. The increase in 2009 was due primarily to an increase in renewal premiums totaling $31.3 million and $93.1 million for the three and nine months ended September 30, 2009 compared to $29.9 million and $86.4 million for the same periods in 2008. In addition, approximately $0.9 million and $2.7 million of premium income for the three and nine months ended September 30, 2009 related to the acquisitions ICIC and ONLIC, which were not included in the first nine months of 2008.
Realized Gains, Net. The Company realized net gains of $1.0 million and $2.8 million for the three and nine months ended September 30, 2009 compared to realized net losses of $226,000 and $210,000 for the same periods in 2008. The increase in realized amounts in 2009 was primarily due to gains related to sales of fixed maturity securities offset by realized losses of $111,000 relating to other-than-temporary impairments recorded in the first quarter of 2009.
Claims and Surrenders. As noted in the table below, claims and surrenders increased from $13.9 million and $41.7 million in the three and nine months ended September 30, 2008 to $14.5 million and $44.3 million during the same periods in 2009.
Commissions. Commissions during the three and nine months ended September 30, 2009 decreased to $8.4 million and $25.5 million from $8.8 million and $25.9 million in 2008. The decrease was primarily due to lower first year commissions, as first year premiums were down in 2009 compared to 2008 due to the global recession.
Other Underwriting, Acquisition and Insurance Expense. These expenses decreased to $6.8 million for the three months ended September 30, 2009, and increased to $21.9 million for the nine months ended September 30, 2009, compared to $7.3 million and $21.2 million for the same periods in 2008. The decrease for the quarter was due primarily to a one-time equipment tax of $0.3 million. The increase in the nine months ended September 30, 2009 compared to the same period in 2008 was due primarily to $1.3 million of expense from the acquisition of ONLIC and ICIC, which were not in 2008 expenses, offset by the previously mentioned state tax of $0.3 million and lower audit fees in 2009.
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