AUSTIN, Texas, May 7 /PRNewswire-FirstCall/ -- Citizens, Inc. (NYSE: CIA) reported net income of $4.4 million or $0.07 per basic and $0.03 per diluted share of Class A common stock for the quarter ended March 31, 2009, compared to net income of $2.7 million or $0.05 per basic and diluted share of Class A common stock during the same period in 2008. Net income included a $2.1 million increase on the change in fair value of warrants for the three months ended March 31, 2009 compared to a loss of $503,000 in 2008. The increase in net income was also due to higher premium income, fueled by continued strong renewal life insurance premiums as well as an increase in net investment income.

Total revenues for the first quarter of 2009 were $44.7 million compared to $39.9 million in 2008, an increase of 11.9%, due primarily from an increase in life insurance premiums and the $2.1 million positive adjustment in fair value of the Company's stock warrants.

First quarter 2009 premiums increased 4.8% to $34.2 million from $32.7 million in 2008 primarily due to renewal premiums representing continued persistency in the international life and home service segments. Additionally, the 2009 first quarter included premium income of $0.7 million relating to the recent acquisitions of Integrity Capital Insurance Company and Ozark National Life Insurance Company (ONLIC).

Net investment income increased 3.7% during the first quarter of 2009 to $7.7 million compared to $7.5 million in the first quarter of 2008. The increase was due primarily to growth in the investment portfolio and from equity securities acquired in the ONLIC acquisition.

Claims and surrenders increased to $14.8 million in the first quarter of 2009 compared to $13.1 million in the first quarter of 2008, due to less favorable death claim experience comparatively between quarters.