AUSTIN, Texas, March 12 /PRNewswire-FirstCall/ -- Citizens, Inc. (NYSE: CIA) reported a net loss of $15.7 million or $(0.42) per share of Class A common stock for the year ended December 31, 2008. The decrease in earnings was primarily due to an other-than-temporary impairment of $23.5 million on the Company's equity securities. Also contributing to the decrease in earnings was property losses incurred by Security Plan Fire Insurance Company (SPFIC) from Hurricanes Gustav and Ike in the amount of $845,000 net of tax and a loss from the increase in fair value of warrants associated with the Company's preferred stock. Total revenues for 2008 were $146.7 million, a 13.5% decrease over 2007 revenues of $169.6 million, because of the impairment of equity securities.
Premium income grew 3.3% to $141.3 million in 2008, compared to $136.7 million in 2007. The 2008 increase was attributable to the new international business written in 2007 and 2008 in the Life Insurance segment, which had $102.0 million of premium income during the year. Additionally, we continue to experience strong persistency in our international life business, which contributed further to the increase. First year premium in the Life Insurance segment increased slightly in 2008 over the 2007 level. The Company's Home Service Insurance segment generated $39.3 million in premium income in 2008 compared to $39.5 million in 2007. The decrease was largely due to increased reinsurance cost in our property and casualty subsidiary.
Net investment income decreased slightly during 2008 to $30.5 million, compared to $30.7 million during 2007 due primarily to lower income earned on mutual funds. Cash and investments grew substantially during 2008; however, investment income was only marginally up due to the depressed interest rate environment.
Claims and surrenders increased 11.2% from $50.6 million in 2007 to $56.3 million in 2008. The 2008 increase primarily related to an increase in property claims in SPFIC from Hurricanes Gustav and Ike, as well as an increase in death claims, surrender expense and endowments in the Life Insurance segment. Underwriting, acquisition and insurance expenses increased slightly to $28.6 million in 2008 from $27.6 million during 2007, largely due to an increase in payroll expenses and increased fees for international shipping.
For the three months ended December 31, 2008, the Company had a net loss of $20.6 million or $(0.49) per share of Class A common stock, compared to net income of $5.9 million or $0.10 per diluted share of Class A common stock for the same period in 2007, primarily due to the impairment recognized on the Company's equity mutual funds. Total revenues for the three months ended December 31, 2008 decreased to $23.3 million from $48.8 million for the same period in 2007. Life insurance premium production contributed to a 3.8% increase in premium income during the three months ended December 31, 2008 to $39.4 million, from $37.9 million during the fourth quarter of 2007.
Assets increased 5.6% to $832.3 million at December 31, 2008, compared to $787.9 million at December 31, 2007, due primarily to growth in the Company's insurance portfolio as well as the acquisition of Ozark National Life Insurance Company.
