CITIZENS, INC.

Previous wording

We refer to our Management’s Discussion and Analysis of Financial Condition and Results of Operations as our “MD&A”. The objective of our MD&A is to provide investors with information in order to assess the material changes in our financial condition from December 31, 2025 to June 30, 2026 and the material changes in our results of operations for the three and six months ended June 30, 2026 as compared to the same periods in 2025. We also discuss in the MD&A any trends that we believe may materially affect our future operations or financial condition.

Current wording

We refer to our Management’s Discussion and Analysis of Financial Condition and Results of Operations as our “MD&A”. The objective of our MD&A is to provide investors with information in order to assess the material changes in our financial condition from December 31, 2025 to September 30, 2026 and the material changes in our results of operations for the three and nine months ended September 30, 2026 as compared to the same periods in 2025. We also discuss in the MD&A any trends that we believe may materially affect our future operations or financial condition.

Previous wording

We operate in two segments - International Insurance and Domestic Insurance. Our International Insurance segment operates through CICA Life, A.I., a Puerto Rican insurer, referred to as "CICA International". Our Domestic

Current wording

We operate in two segments - International Insurance and Domestic Insurance. Our International Insurance segment operates through CICA Life, A.I., a Puerto Rican insurer, referred to as "CICA International". Our Domestic Insurance segment operates through our subsidiaries CICA Life Insurance Company of America ("CLOA") and Magnolia Guaranty Life Insurance Company ("MGLIC"). Prior to October 1, 2026, we also operated through Security Plan Life Insurance Company ("SPLIC"). SPLIC was merged into its parent, CLOA, on such date and is now operated through CLOA as the "Security Plan" brand.

Previous wording

From time-to-time, certain events may affect our business in ways that cause current or future results to differ from past results. See (1) the factors described in Part 1. Item 1A. Risk Factors in our Annual Report on Form 10-K for the period ended December 31, 2025 ("2025 Form 10-K"); and (2) the events described in Part 1. Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations - Events that Impacted Our Business" in the 2025 Form 10-K.

Current wording

From time-to-time, certain events may affect our business in ways that cause current or future results to differ from past results. See (1) the factors described in Item 1A, Risk Factors in our Annual Report on Form 10-K for the period ended December 31, 2025 ("2025 Form 10-K"); and (2) the events described in Management's Discussion and Analysis of Financial Condition and Results of Operations - "Events that Impacted Our Business" in the 2025 Form 10-K.

Previous wording

•$1.7 million increase in insurance benefits paid or provided due to:

Current wording

Q3: Income before federal income tax decreased to $0.1 million in the three months ended September 30, 2026 compared to $4.5 million in the same prior year period. Despite a $1.5 million increase in premium revenue and a $2.6 million increase in investment related gains and losses, the decrease was driven by a $5.1 million increase in insurance benefits paid or provided. Although we experienced a $13.2 million decrease in claims and surrenders benefits due to the expected contractual decreases of matured endowments, this was more than offset by a $16.3 million increase in future policy benefit reserves and a $1.9 million increase in policyholder liability remeasurement loss. The $16.3 million increase in future policy benefit reserves was due to:

Previous wording

◦$7.7 million increase in future policy benefit reserves primarily due to the increased business in our Domestic Insurance segment and the large amount of reserves released in the prior year period as we paid out matured endowment and released the corresponding reserves.

Current wording

•the large amount of reserves released in the prior year period as we paid out matured endowments and released the corresponding reserves; and

Previous wording

•Total direct insurance in force of $5.5 billion

Current wording

•Total direct insurance in force of $5.6 billion

Previous wording

•Book value per share of Class A common stock of $4.64

Current wording

•Book value per share of Class A common stock of $4.37

Previous wording

•Diluted earnings per share of Class A common stock for the six months ended of $0.04

Current wording

•Diluted earnings per share of Class A common stock for the nine months ended of $0.03

Previous wording

Sales of our Products. We believe sales statistics are meaningful to gain an understanding of, among other things, the attractiveness of our products, how expansion of our distribution channels affects our revenue, customer retention and the performance of our business from period-to-period. Throughout the MD&A, we describe the actions and initiatives we are taking to increase sales and improve retention, sales performance in each period and as compared to prior year periods, and how we view trends with respect to sales and retention.

Current wording

Sales of our Products. We believe sales statistics are meaningful to gain an understanding of, among other things, the attractiveness of our products, how the expansion of our distribution channels affects our revenue, customer retention and the performance of our business from period-to-period. Throughout the MD&A, we describe the actions and initiatives we are taking to increase sales and improve retention, sales performance in each period compared to prior year periods, and how we view trends with respect to sales and retention.

Previous wording

Customer retention, or persistency, is another key factor influencing both revenue and profitability. Persistency refers to the extent to which policyholders keep their insurance policies in force over time rather than allowing them to lapse, surrender, or terminate. Persistency is a key measure because we spend a significant amount of money acquiring a policyholder upfront (e.g., commissions, underwriting, marketing) and expect to recover those costs over many years. A highly persistent block of business is one where policyholders continue paying premiums and maintaining coverage for many years. Unfavorable persistency is characterized by higher than expected policy lapses, surrenders, or terminations, which can negatively impact profitability by reducing the in-force block of business generating premiums, coupled with an increase in reserves resulting from less projected future premiums, as well as an acceleration in the recognition of deferred acquisition costs. We actively monitor persistency trends across our product lines and customer segments, and where unfavorable persistency is observed, we may take targeted retention actions; however, there can be no assurance that such efforts will fully offset the financial impact of higher than expected policy terminations.

Current wording

Customer retention, or persistency, is another key factor influencing both revenue and profitability. Persistency refers to the extent to which policyholders keep their insurance policies in force over time rather than allowing them to lapse, surrender, or terminate. Persistency is a key measure because we spend a significant amount of money acquiring a policyholder upfront (e.g., commissions, underwriting, marketing) and expect to recover those costs over many years. A highly persistent block of business is one where policyholders continue paying premiums and maintaining coverage for many years. Unfavorable persistency is characterized by higher than expected policy lapses, surrenders, or terminations, which can negatively impact profitability by reducing the in-force block of

Previous wording

1 Adjusted book value per of Class A common share is a non-GAAP measure that is calculated by dividing actual Class A common stockholders’ equity, excluding AOCI, by the number of Class A common shares outstanding at the end of the period.

Current wording

1 Adjusted book value per share of Class A common share is a non-GAAP measure that is calculated by dividing actual Class A common stockholders’ equity, excluding AOCI, by the number of Class A common shares outstanding at the end of the period.

Previous wording

Throughout the MD&A, we refer to "direct" premiums as all premiums received and "net" or "total" premiums as all premiums received less premiums ceded to our reinsurers. Direct premium revenue increased 4% in the three and six months ended June 30, 2026 to $48.1 million and $92.0 million, respectively, from $46.4 million and $88.8 million in the three and six months ended June 30, 2025, respectively. This increase was driven by sales and renewal premiums in our Domestic Insurance segment.

Current wording

Throughout the MD&A, we refer to "direct" premiums as all premiums received and "net" or "total" premiums as all premiums received less premiums ceded to our reinsurers. Direct premium revenue increased 7% and 5% in the three and nine months ended September 30, 2026, respectively, to $50.0 million and $142.1 million, respectively, from $46.6 million and $135.3 million in the three and nine months ended September 30, 2025, respectively. This increase was driven by sales and renewal premiums in our Domestic Insurance segment.

Previous wording

First Year Premiums. Direct first year premiums increased 3% in the three and six months ended June 30, 2026 to $9.8 million and $18.7 million, respectively, from $9.4 million and $18.3 million in the three and six months ended June 30, 2025, respectively, driven by sales in our Domestic Insurance segment and from an increased number of producing agents. First year premium growth primarily resulted from our CLOA final expense business.

Current wording

First Year Premiums. Direct first year premiums increased 9% and 5% in the three and nine months ended September 30, 2026 to $10.4 million and $29.1 million, respectively, from $9.5 million and $27.8 million in the three and nine months ended September 30, 2025, respectively, driven by sales in our Domestic Insurance segment and from an increased number of producing agents. First year premium growth primarily resulted from our CLOA final expense business.

Previous wording

Renewal Premiums. Our direct renewal premiums in the three and six months ended June 30, 2026 increased primarily due to strong sales in prior periods in our Domestic Insurance segment, leading to higher number of policies paying renewal premiums in the current period. Premium growth was constrained by unfavorable persistency in our Domestic Insurance segment, as well as the high level of surrenders and matured endowments in our International Insurance segment during the last few years, both of which have lowered the number of policies remaining in force and paying renewal premiums.

Current wording

Renewal Premiums. Our direct renewal premiums in the three and nine months ended September 30, 2026 increased primarily due to strong sales in prior periods in our Domestic Insurance segment, leading to higher number of policies paying renewal premiums in the current period. Premium growth was constrained by unfavorable persistency in our Domestic Insurance segment, as well as the high level of surrenders and matured endowments in our International Insurance segment during the last few years, both of which have lowered the number of policies remaining in force and paying renewal premiums.

Previous wording

Operating Expenses. Operating expenses are our second largest expense and thus also drive our operating results. Operating expenses are meaningful to gain an understanding of how we manage our business, including among other things, salaries, benefits, and spending on growth initiatives. Our operating expenses increased by $0.6 million and $1.3 million in the three and six months ended June 30, 2026, respectively, as compared to the prior year periods due to continued investment in supporting the growth of our business.

Current wording

Operating Expenses. Operating expenses are our second largest expense and thus also drive our operating results. Operating expenses are meaningful to gain an understanding of how we manage our business, including among other things, salaries, benefits, and spending on growth initiatives. Our operating expenses increased by $1.5

Previous wording

Actuarial Assumptions. The actuarial assumptions that underlie our reserves are based upon our best estimates of certain factors such as mortality, lapses, morbidity and discount rates. Our results will be affected to the extent there is a variance between our actuarial assumptions and actual experience. This is reflected in our Consolidated Statements of Operations and Comprehensive Income as increase (decrease) in future policy benefit reserves and policyholder liability remeasurement (gain) loss.

Current wording

Because life insurance benefits are often paid many years after premiums are received, we establish reserves for future policy benefits to provide for our estimated obligations to policyholders. These reserves are determined using actuarial assumptions regarding mortality, persistency, expenses, and investment returns and are intended to ensure that adequate funds are available to satisfy future policyholder benefits and related obligations. These actuarial assumptions are reviewed periodically to reflect emerging experience and changes in expectations and our operating results will be affected to the extent there is a variance between our actuarial assumptions and actual experience. This is reflected in our Consolidated Statements of Operations and Comprehensive Income (Loss) as: (1) an increase (decrease) in the liability for future policy benefit reserves and (2) policyholder liability remeasurement (gain) loss.

Previous wording

Increase (Decrease) in Future Policy Benefit Reserves. Future policy benefit reserves reflect the liability established to provide for the future payment of policy benefits and thus they generally increase when we have a larger in force block of business due to higher sales and persistency (i.e., more policies on which we expect to pay future benefits) and decrease when we have lower sales and persistency. In the three and six months ended June 30, 2026, the change in future policy benefit reserves increased compared to the prior year periods from the increase to inforce business and due to the high level of reserves released in the prior year periods in connection with policyholder benefits payouts.

Current wording

Increase (decrease) in future policy benefit reserves. Future policy benefit reserves reflect the liability established to provide for the future payment of policy benefits and thus they generally increase when we have a larger in force block of business due to higher sales and persistency (i.e., more policies on which we expect to pay future benefits) and decrease when we have lower sales and persistency. In the three and nine months ended September 30, 2026, the change in reserves increased by $16.3 million and $22.9 million, respectively, compared to the same periods in 2025. The increases in the 2026 periods primarily reflect additional reserves due to our growing in-force business, combined with lower reserve releases from endowment maturities. Endowment maturities continue to occur, but at a lower level than in the 2025 periods and therefore provide less of an offset to reserve growth. The increases in the 2026 period also reflect the decrease to the ceded reserve credit of $1.7 million discussed above.

Previous wording

Policyholder Liability Remeasurement (Gain) Loss. Most of our products are long-duration contracts that provide a specified, fixed amount of insurance benefit in exchange for a fixed premium. When a policy is initially issued, we establish a "net premium ratio" ("NPR") using assumptions regarding expected premiums and policyholder benefit liabilities. On a quarterly basis, we review actual versus expected experience in such quarter, which is reported as a policyholder liability remeasurement gain (if better performance than assumptions) or loss (if lower performance than assumptions). Additionally, the best estimate assumptions are updated every year in our third quarter and are reflected on our income statement as a policyholder liability remeasurement gain or loss. In the three and six months ended June 30, 2026, the remeasurement (gain) loss was negatively affected by unfavorable experience in our International Insurance segment.

Current wording

Policyholder liability remeasurement (gain) loss. Most of our products are long-duration contracts that provide a specified, fixed amount of insurance benefit in exchange for a fixed premium. When a policy is initially issued, we establish a "net premium ratio" ("NPR") using assumptions regarding expected premiums and policyholder benefit liabilities. On a quarterly basis, we review actual versus expected experience in such quarter, which is reported as a policyholder liability remeasurement gain (if better performance than assumptions) or loss (if lower performance than assumptions). Additionally, the best estimate assumptions are updated every year in our third quarter and are reflected on our income statement as a policyholder liability remeasurement gain or loss. In the three and nine months ended September 30, 2026, we experienced policyholder remeasurement losses of $1.4 million and $4.0 million, respectively, compared to a gain of $0.5 million in the three months ended September 30, 2025 and a loss of $0.7 million in the nine months ended September 30, 2025. The variances in both periods were primarily driven by the favorable impact in 2025 from changes to mortality, lapse and accrual assumption updates, along with unfavorable actual-to-expected experience in the International Insurance segment in 2026, partially offset by a favorable year-over-year variance in the impact of best estimate assumption updates.

Previous wording

In the first six months of 2026, we issued $519.6 million in new direct insurance.

Current wording

In the first nine months of 2026, we issued $801.0 million in new direct insurance, compared to $777.6 million issued in the first nine months of 2025.

Previous wording

The number of insurance policies issued, average policy face amount and total insurance issued in our International Insurance segment decreased in the six months ended June 30, 2026 as compared to the prior year period due to lower volume and product mix. During the first six months of 2026, a larger proportion of our sales was comprised of our single premium product aimed at replacing maturing endowments, which has a $100,000 maximum face value, as well as other endowment products. Our endowment products generally have lower policy face amounts than our whole life product.

Current wording

The number of insurance policies issued, average policy face amount and total insurance issued in our International Insurance segment decreased in the nine months ended September 30, 2026 as compared to the prior year period due to lower volume and product mix. More endowment products were sold in the 2026 period than in 2025; these products generally have lower policy face amounts than our whole life product.

Previous wording

Our revenues are generated primarily by life insurance premiums and investment income from invested assets. Total revenues declined in the three months ended June 30, 2026 primarily due to the $3.9 million decline in investment related gains (losses) resulting from changes in market value of the underlying assets. The decline in other income also contributed to the decline in the three month-period, as well as the six months ended June 30, 2026.

Current wording

Our revenues are generated primarily by life insurance premiums and investment income from invested assets. Total revenues increased in the three and nine months ended September 30, 2026, as compared to the same prior

Previous wording

Our first year direct premiums increased 3% in the three and six months ended June 30, 2026 compared to the same periods in 2025, due to sales and expanded distribution in our Domestic Insurance segment. Renewal premiums also increased from strong first year sales in prior periods in our Domestic Insurance segment, leading to higher number of policies paying renewal premiums in the current period, which more than offset the impact from the high level of surrenders during the last few years and increasing matured endowment benefits paid in our International Insurance segment, which has lowered the number of policies paying renewal premiums in this segment.

Current wording

Direct renewal premiums also increased due to first year sales in prior periods in our Domestic Insurance segment that led to higher number of policies paying renewal premiums in the current periods. This growth more than offset the effects of high level of surrenders and matured endowment benefits paid in our International Insurance segment over the last few years, which has lowered the number of policies paying renewal premiums in this segment.

Previous wording

Reinsurance premiums ceded increased in the three and six months ended June 30, 2026 compared to the same periods in 2025. We have a coinsurance agreement with RGA Reinsurance Company ("RGA") in order to provide more capacity for growth in our Domestic Insurance segment. Since we cede 50% of the direct premiums we receive for our CLOA final expense products to RGA, as sales of these products increase, reinsurance ceded to RGA also increases.

Current wording

Reinsurance premiums ceded increased in the three and nine months ended September 30, 2026 compared to the same periods in 2025 due to the RGA Agreement that provides more capacity for growth in our Domestic Insurance segment. Since we cede 50% of the direct premiums we receive for our CLOA final expense products to RGA, as sales of these products increase, reinsurance ceded to RGA also increases.

Previous wording

Fixed maturity securities constitute the vast majority, or 89%, of our investment portfolio based on fair value and thus provide the majority of our net investment income. Our fixed maturity investment portfolio, primarily invested in callable securities, has faced challenges due to the sustained low interest rate environment for the 10 years prior to 2021. Many securities were called between 2019 and 2021, which required us to reinvest in lower interest rate fixed maturity assets, which impacts net investment income and yields. In order to enhance yields, we are investing in new opportunities, including investment grade private placement fixed income securities and other asset classes, while maintaining a prudent risk profile. As discussed above, net investment income and our annualized yield are down for the three and six months ended June 30, 2026 as a result of higher investment expenses when compared to prior year periods.

Current wording

Fixed maturity securities constitute the vast majority, or 89%, of our investment portfolio based on fair value and thus provide the majority of our net investment income. Our fixed maturity investment portfolio, primarily invested in callable securities, faced challenges due to the sustained low interest rate environment for the 10 years prior to 2021. Many securities were called between 2019 and 2021, which required us to reinvest in lower interest rate fixed maturity assets, which impacts net investment income and yields. In order to enhance yields, we are investing in new opportunities, including investment grade private placement fixed income securities and other asset classes, while maintaining a prudent risk profile. Additionally, as we have discussed, we had high levels of surrenders and matured endowments in our International Insurance segment over the last few years as a large number of our endowment policies reached their contractual maturity dates. Despite the high level of cash outflow due to this activity, the Company has experienced stable levels of net investment income over the last several years. We believe the decrease and anticipated continued decrease in benefit outflows, alongside our sustained investment performance, as well as our investment into new asset classes, positions the Company well to improve our net investment income as we move beyond the peak maturity cycle.

Previous wording

Investment Related Gains (Losses), Net. We recorded investment related losses of $1.5 million and $0.5 million during the three and six months ended June 30, 2026, respectively, compared to investment related gains of $2.4 million and losses of $0.5 million during the same prior year periods, respectively, primarily in our International Insurance segment. The gain or loss between periods is attributable to changes in the estimated fair market value of our limited partnership investments, which can vary considerably based on market conditions and underlying fund performance.

Current wording

Investment Related Gains (Losses), Net. We recorded investment related gains of $1.4 million and $0.9 million during the three and nine months ended September 30, 2026, respectively, compared to investment related losses of $1.3 million and $1.7 million during the same prior year periods, respectively, primarily in our International Insurance segment. The gain or loss between periods is primarily attributable to changes in the estimated fair market value of our limited partnership investments, which can vary considerably based on market conditions and underlying fund performance.

Previous wording

Other Income. Other income is derived mainly from supplemental contracts issued to policyholders in our International Insurance segment upon the surrender or maturity of their original policies. Supplemental contracts offer our policyholders the opportunity to leave their cash with us and be paid interest at a guaranteed rate or receive an annuity, at their option. We expect other income to decline as our matured endowments decline, as this income is primarily related to supplemental contracts issued to policyholders when their endowments mature. The net impact from these supplemental contracts on the consolidated financial statements is minimal as the reserve liability setup for these policies offsets any recognized income.

Current wording

Other Income. Other income is derived mainly from supplemental contracts issued to policyholders in our International Insurance segment upon the surrender or maturity of their original policies. Supplemental contracts offer our policyholders the opportunity to leave their cash with us and be paid interest at a guaranteed rate or receive an annuity, at their option. We expect other income to decline as our matured endowments decline, as this income is primarily related to supplemental contracts issued to policyholders when their endowments mature. The

Previous wording

Payments of claims and surrenders benefits, which constitute the vast majority of our expenses, declined in both the three- and six-month periods ended June 30, 2026.

Current wording

Payments of claims and surrenders benefits, which constitute the vast majority of our expenses, declined in both the three and nine months ended September 30, 2026.

Previous wording

Death claim benefits increased in the three and six months ended June 30, 2026 compared to the same periods in 2025 due to a higher volume of claims, especially in our expanding Domestic Insurance business. While we maintain diligent oversight of claims activities, we expect this rise in line with the expansion of our business. Additionally, as discussed above, the Venezuela earthquakes in June 2026 have had a direct impact on our International Insurance segment's claims experience. Although the impact is immaterial at this time, we have established a $0.5 million death claim liability given the number of people still missing as we expect the total impact to be determined over time as claims are reported and verified. We will continue to monitor developments related to this event and update our estimates as additional information becomes available. Many of these death claims may be partially offset by our reinsurance coverage.

Current wording

Death claim benefits increased in the three and nine months ended September 30, 2026 compared to the same periods in 2025 due to a higher volume of claims, especially in our expanding Domestic Insurance business. While we maintain diligent oversight of claims activities, we expect this rise in line with the expansion of our business. Many of these death claims may be partially offset by our reinsurance coverage.

Previous wording

The vast majority of our surrender benefits payments are made on policies surrendered in our International Insurance segment. These policies are generally policies that have been in place for many years, built up cash values, and have little or no surrender charges remaining. Surrender benefits decreased 7% in the three and six months ended June 30, 2026 compared to the prior year periods and can vary from one period to another. We continue to focus efforts on retention initiatives.

Current wording

The vast majority of our surrender benefits payments are made on policies surrendered in our International Insurance segment. These policies are generally policies that have been in place for many years, built up cash values, and have little or no surrender charges remaining. Surrender benefits decreased 17% and 11% in the three

Previous wording

As we have previously disclosed, 2025 was the year in which the highest number of our endowment policies reached their contractual maturity dates and thus matured endowment benefits decreased in the three and six months ended June 30, 2026 compared to the prior year periods. Compared to peak endowment activity in 2025, we expect maturity benefits to continue to decrease throughout 2026.

Current wording

As we have previously disclosed, 2025 was the year in which the highest number of our endowment policies reached their contractual maturity dates and thus matured endowment benefits decreased in the three and nine months ended September 30, 2026 compared to the prior year periods. Compared to peak endowment activity in 2025, we expect maturity benefits to be lower in 2026.

Previous wording

Commissions. Commission expenses are a cost of acquiring business, as commissions are the primary compensation paid to our independent agents for selling our products. First year commission rates are higher than renewal commission rates and thus commissions fluctuate directly in relation to first year sales. Although first year sales increased in the three and six months ended June 30, 2026 as compared to the same period in 2025, commissions decreased in the three and six months ended June 30, 2026 due to more sales of our single premium product offered to policyholders with maturing endowments in the International Insurance segment, which has a lower commission rate than other products.

Current wording

Commissions. Commission expenses are a cost of acquiring business, as commissions are the primary compensation paid to our independent agents for selling our products. First year commission rates are higher than renewal commission rates and thus commissions fluctuate directly in relation to first year sales. Although first year sales increased in the three and nine months ended September 30, 2026 as compared to the same periods in 2025, commissions were relatively flat in the three months ended September 30, 2026 and decreased in the nine months ended September 30, 2026. This reduction reflected a combination of lower International Insurance segment sales volume and product mix changes to sales of products with lower commission rates.

Previous wording

Other General Expenses. Total general expenses increased $0.6 million and $1.3 million in the three and six months ended June 30, 2026, respectively, as compared to the prior year periods due to continued investment in supporting the growth of our business.

Current wording

Other General Expenses. Total general expenses increased $1.5 million and $2.8 million in the three and nine months ended September 30, 2026, respectively, as compared to the prior year periods due to continued investment in supporting the growth of our business.

Previous wording

Amortization of Deferred Policy Acquisition Costs. Our deferred policy acquisition costs (DAC) are amortized on a constant level basis over the expected term of the related contracts to approximate straight-line amortization. As described above, unfavorable persistency leads to accelerated amortization of deferred policy acquisition costs, which contributed to the increased costs in both the three- and six-month periods ended June 30, 2026.

Current wording

Amortization of Deferred Policy Acquisition Costs. Our deferred policy acquisition costs ("DAC") are amortized on a constant level basis over the expected term of the related contracts to approximate straight-line amortization. As described above, unfavorable persistency leads to accelerated amortization of deferred policy acquisition costs, which contributed to the increased costs in both the three and nine months ended September 30, 2026.

Previous wording

Our International Insurance segment derives its premiums from policyholders residing in over 80 different countries across the globe. The following table sets forth our premiums by location for the three and six months ended June 30, 2026 and 2025.

Current wording

Our International Insurance segment derives its premiums from policyholders residing in over 80 different countries across the globe. The following table sets forth our premiums by location for the three and nine months ended September 30, 2026 and 2025.

Previous wording

Sales in Taiwan have been declining recently due to leadership succession related difficulties within our primary distribution agency in Taiwan and regulatory challenges. We are facing some headwinds in Venezuela that may affect premium revenues. Most notably, the Venezuela earthquakes of June 2026 may impair policyholders' ability to make timely premium payments. The strength of the U.S. dollar, combined with policyholders' difficulties in obtaining dollars, may further constrain their ability to remit premiums. The recent political instability may cause further decline in this business. We continue to closely monitor emerging trends in our Venezuela business.

Current wording

We are facing some headwinds in Venezuela that may affect premium revenues. Because of the recent political instability in Venezuela, our reinsurers will not reinsure policies issued in Venezuela and accordingly we have had to decline a few very large policies. We are seeking additional reinsurance support for this business. Additionally, the strength of the U.S. dollar, combined with policyholders' difficulties in obtaining dollars, may constrain their ability to remit premiums. We continue to closely monitor emerging trends in our Venezuela business.

Previous wording

As discussed, the majority of our claims and surrender benefits in this segment are related to payment of matured endowment and surrender benefits. Matured endowment benefits peaked in 2025 and has decreased in the three and six months ended June 30, 2026 compared to the prior year periods, as contractually expected. Surrender benefits are also a large component of this expense; often as surrender charges expire on endowments after certain periods, policyholders surrender their policies to access the cash value. Accordingly, as our block of maturing endowments decreases, surrenders will generally decrease as well.

Current wording

As discussed, the majority of our claims and surrender benefits in this segment are related to payment of matured endowment and surrender benefits. Matured endowment benefits peaked in 2025 and decreased in the three and nine months ended September 30, 2026 compared to the prior year periods, as contractually expected. Surrender benefits are also a large component of this expense; often as surrender charges expire on endowments after certain periods, policyholders surrender their policies to access the cash value. Accordingly, as our block of maturing endowments decreases, surrenders will generally decrease as well.

Previous wording

In our Domestic Insurance segment, the majority of claims and surrender benefits are death claim benefits. Death claim benefits increased in the three and six months ended June 30, 2026 compared to the same prior year periods due primarily to a higher volume of reported claims. The Company carefully tracks mortality experience as an important measure of performance, which can fluctuate from quarter-to-quarter based on reported claims. While we monitor claims activities, we expect a rise in claims corresponding with business expansion. A portion of these death claims should be offset by our reinsurance coverage.

Current wording

In our Domestic Insurance segment, the majority of claims and surrender benefits are death claim benefits. Death claim benefits increased in the three and nine months ended September 30, 2026 compared to the same prior year periods due primarily to a higher volume of reported claims. The Company carefully tracks mortality experience as an important measure of performance, which can fluctuate from quarter to quarter based on reported claims. While we monitor claims activities, we expect a rise in claims corresponding with business expansion. A portion of these death claims are offset by our reinsurance coverage.

Previous wording

This operating unit represents the administrative support functions for the insurance operations. Its revenues are primarily intercompany and have been eliminated in consolidation under U.S. GAAP, which typically results in a loss. Revenue in this operating unit consists primarily of net investment income and investment related gains or losses, while expenses consist of other general expenses related to corporate functions. For the three and six months ended June 30, 2026, the elevated loss before federal income tax compared to the same periods in 2025 is mainly due to higher general expenses to support our growth initiatives.

Current wording

This operating unit represents the administrative support functions for the insurance operations. Its revenues are primarily intercompany and have been eliminated in consolidation under U.S. GAAP, which typically results in a loss. Revenue in this operating unit consists primarily of net investment income and investment related gains or losses, while expenses consist of other general expenses related to corporate functions. For the three and nine months ended September 30, 2026, the increased loss before federal income tax compared to the same periods in 2025 is mainly due to higher general expenses to support our growth initiatives.

Previous wording

Our investments are an integral part of our business success, as we invest the majority of premiums collected to pay for future benefits and rely on net investment income for our ongoing operations. Our cash and invested assets at June 30, 2026 were $1.4 billion, of which 88% was invested in fixed maturity securities, all of which are classified as available-for-sale. We closely monitor the duration of our fixed maturity investments, and investment purchases and sales are executed with the objective of having adequate funds available to satisfy our insurance obligations.

Current wording

Our investments are an integral part of our business success, as we invest the majority of premiums collected to pay for future benefits and rely on net investment income for our ongoing operations. Our cash and invested assets at September 30, 2026 were $1,382.4 million, of which 88% was invested in fixed maturity securities, all of which are classified as available-for-sale. We closely monitor the duration of our fixed maturity investments, and investment purchases and sales are executed with the objective of having adequate funds available to satisfy our insurance obligations.

Previous wording

(1)Includes $97.6 million and $106.9 million of securities guaranteed by third parties at June 30, 2026 and December 31, 2025, respectively.

Current wording

(1)Includes $91.7 million and $106.9 million of securities guaranteed by third parties at September 30, 2026 and December 31, 2025, respectively.