AUSTIN, Texas, Nov. 6 /PRNewswire-FirstCall/ -- Citizens, Inc. (NYSE: CIA)
reported net income of $4.9 million or $0.07 per share of Class A common stock
for the nine months ended September 30, 2008, compared to net income of
$10.6 million, or $0.22 per share of Class A common stock, for the same period
in 2007. The decrease in earnings was due primarily to higher property claims
from Hurricanes Gustav and Ike as well as expense related to the increase in
the fair value of warrants associated with the Company's Series A Preferred
Stock.
Total revenues increased 2.1% in the first nine months of 2008 to
$123.4 million compared to $120.9 million in the same period of 2007. The
increase resulted primarily from renewal premiums in the Life Insurance
segment. Total revenues from the Life Insurance segment increased 4.6% to
$85.1 million compared to $81.4 million. Premium income was $101.9 million
for the first nine months of 2008, a 3.2% increase over the same period of
2007, when premiums equaled $98.8 million. Net investment income increased
4.7% during the first nine months of 2008 to $22.5 million from $21.5 million
in 2007 resulting from growth in the investment portfolio during 2008. Claims
and surrenders increased to $41.7 million for the nine months ended September
30, 2008 from $37.9 million during the same period in 2007, impacted primarily
from an increase in death claims, property claims from Hurricanes Gustav and
Ike and an increase in endowment benefits.
For the three months ended September 30, 2008, the Company incurred a net
loss of $814,000 or $0.04 per Class A common stock share, compared to net
income $4.7 million or $0.10 per Class A common stock share for the same
period in 2007. The decrease resulted primarily from claims and additional
reinsurance expenses related to Hurricanes Gustav and Ike, which hit Louisiana
in the third quarter of 2008, expenses related to the increase in the fair
value of warrants from our Series A Preferred Stock and higher operating
expenses. Total revenues decreased 3.8% to $40.2 million, compared to the
same quarter of 2007 when revenues were $41.7 million. Premium income was
$34.0 million for the quarter, a slight decrease over the same period in 2007
when premiums equaled $34.3 million.
