CITIZENS, INC.

For the period ended Sep 30, 2026. Filed Nov 5, 2026.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Sep 30, 2026 · Filed Nov 5, 2026

CIA$4.35+5.3%Stored close · as of Nov 9, 2026

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Contents

(10) Segment and Other Operating Information

The Company's segments are defined by management's reporting structure and operating activities. The chief operating decision maker ("CODM"), our President and Chief Executive Officer, reviews segment operating results to assess financial performance, allocate resources and make operating and strategic decisions. The Company hastwo reportable segments: International Insurance and Domestic Insurance.

September 30, 2026 | 10-Q 29

CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

Our International Insurance segment is operated through CICA International, which issues endowment contracts, which are principally accumulation contracts that incorporate an element of life insurance protection, and whole life insurance products, all to non-U.S. residents. These contracts are designed to provide a fixed amount of insurance coverage over the life of the insured and may include rider benefits and annuity features that enhance policy accumulations. Our Domestic Insurance segment operates through CLOA, which is licensed in 43 U.S. states, the District of Columbia and Puerto Rico, and issues whole life, final expense and life products with living benefits; and MGLIC, which sold and still services life insurance policies through funeral homes in Mississippi. Prior to October 1, 2026, our Domestic Insurance segment also included SPLIC, which issued smaller whole life policies in Louisiana, Arkansas and Mississippi. SPLIC was merged into its parent, CLOA, on October 1, 2026. All policies are sold and serviced through independent agents.

The CODM evaluates the profitability of the International Insurance and Domestic Insurance segments based on the income (loss) before federal income tax, or segment profit (loss), which is measured as revenues less directly attributable to total benefits and expenses. This measure reflects the operating performance of each insurance segment and is the primary measure used by the CODM to evaluate segment results and allocate resources. The significant expense categories regularly provided to the CODM and included in the measure of segment profit (loss) are presented in the tables below.

The International Insurance and Domestic Insurance operations constitute separate businesses. In addition to these reportable segments, the Company also captures other corporate-related non-insurance revenues and expenses associated with operating the Company. These amounts are not included in the segment profit (loss) and are reported separately below to reconcile to the consolidated income (loss) before federal income tax on the consolidated statements of operations and other comprehensive income (loss).

The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies included in our 2025 Form 10-K and are prepared in accordance with U.S. GAAP.

September 30, 2026 | 10-Q 30

CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

The tables below present segment revenues, segment profit (loss) and the significant expense categories included in the measure of segment profitability reviewed by the CODM.

Three Months Ended September 30, 2026 · International Insurance · Domestic Insurance · Total
(In thousands)
Revenues:
Premiums	$29,101	15,702		44,803
Net investment income	12,519	5,350		17,869
Investment related gains (losses), net	1,637	(256)		1,381
Other income	791	3		794
Total segment revenues	44,048	20,799		64,847
Other non-insurance revenues			191
Total consolidated revenues			$65,038
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	22,972	8,094
Increase (decrease) in future policy benefit reserves	4,437	5,062
Policyholder liability remeasurement (gain) loss	1,872	(479)
Policyholders' dividends	1,488	47
Total insurance benefits paid or provided	30,769	12,724
Commissions	4,950	6,837
Other general expenses	5,743	6,372
Capitalization of deferred policy acquisition costs	(4,532)	(6,007)
Amortization of deferred policy acquisition costs	3,621	1,615
Amortization of cost of insurance acquired	—	124
Total segment benefits and expenses	40,551	21,665
Segment profit (loss)	$3,497	(866)		2,631
Other non-insurance revenues			191
Stock-based compensation expense			(521)
Other non-insurance expenses			(2,159)
Income (loss) before federal income tax			$142

September 30, 2026 | 10-Q 31

CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

International Insurance · Domestic Insurance · Total
(In thousands)
Revenues:
Premiums	$82,668	45,776		128,444
Net investment income	36,248	15,565		51,813
Investment related gains (losses), net	1,412	(534)		878
Other income	3,439	17		3,456
Total segment revenues	123,767	60,824		184,591
Other non-insurance revenues			575
Total consolidated revenues			$185,166
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	80,990	23,480
Increase (decrease) in future policy benefit reserves	(2,638)	10,626
Policyholder liability remeasurement (gain) loss	4,963	(983)
Policyholders' dividends	3,865	165
Total insurance benefits paid or provided	87,180	33,288
Commissions	14,331	19,632
Other general expenses	16,538	16,906
Capitalization of deferred policy acquisition costs	(13,229)	(15,971)
Amortization of deferred policy acquisition costs	10,721	4,515
Amortization of cost of insurance acquired	—	455
Total segment benefits and expenses	115,541	58,825
Segment profit (loss)	$8,226	1,999		10,225
Other non-insurance revenues			575
Stock-based compensation expense			(1,835)
Other non-insurance expenses			(6,978)
Income (loss) before federal income tax			$1,987

September 30, 2026 | 10-Q 32

CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

International Insurance · Domestic Insurance · Total
(In thousands)
Revenues:
Premiums	$28,760	14,543		43,303
Net investment income	13,915	5,008		18,923
Investment related gains (losses), net	(2,055)	791		(1,264)
Other income	1,513	5		1,518
Total segment revenues	42,133	20,347		62,480
Other non-insurance revenues			328
Total consolidated revenues			$62,808
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	38,039	6,237
Increase (decrease) in future policy benefit reserves	(10,230)	3,470
Policyholder liability remeasurement (gain) loss	3,855	(4,314)
Policyholders' dividends	1,305	72
Total insurance benefits paid or provided	32,969	5,465
Commissions	5,487	6,168
Other general expenses	5,541	5,388
Capitalization of deferred policy acquisition costs	(5,301)	(4,673)
Amortization of deferred policy acquisition costs	3,559	1,236
Amortization of cost of insurance acquired	—	128
Total segment benefits and expenses	42,255	13,712
Segment profit (loss)	$(122)	6,635		6,513
Other non-insurance revenues			328
Stock-based compensation expense			(532)
Other non-insurance expenses			(1,830)
Income (loss) before federal income tax			$4,479

September 30, 2026 | 10-Q 33

CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

International Insurance · Domestic Insurance · Total
(In thousands)
Revenues:
Premiums	$83,246	43,242		126,488
Net investment income	38,122	14,986		53,108
Investment related gains (losses), net	(1,987)	235		(1,752)
Other income	4,991	20		5,011
Total segment revenues	124,372	58,483		182,855
Other non-insurance revenues			691
Total consolidated revenues			$183,546
Benefits and expenses:
Insurance benefits paid or provided:
Claims and surrenders	105,472	19,122
Increase (decrease) in future policy benefit reserves	(24,051)	9,091
Policyholder liability remeasurement (gain) loss	5,054	(4,334)
Policyholders' dividends	3,719	268
Total insurance benefits paid or provided	90,194	24,147
Commissions	15,775	18,564
Other general expenses	16,154	15,573
Capitalization of deferred policy acquisition costs	(15,048)	(13,495)
Amortization of deferred policy acquisition costs	10,487	3,568
Amortization of cost of insurance acquired	—	305
Total segment benefits and expenses	117,562	48,662
Segment profit (loss)	$6,810	9,821		16,631
Other non-insurance revenues			691
Stock-based compensation expense			(2,313)
Other non-insurance expenses			(5,403)
Income (loss) before federal income tax			$9,606

September 30, 2026 | 10-Q 34

CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

The Company categorizes premiums in two categories - first year premiums are premiums received within the first 12 months of a policy's issuance and any premiums received thereafter are renewal premiums.

A summary of the International Insurance segment premium breakout is detailed below.

(In thousands) · Three Months EndedSeptember 30, · Nine Months EndedSeptember 30,
2026 · 2025 · 2026 · 2025
Direct premiums:
First year	$3,381	4,080	10,212	11,286
Renewal	26,288	25,141	73,924	73,320
Total direct premiums	29,669	29,221	84,136	84,606
Reinsurance	(568)	(461)	(1,468)	(1,360)
Total premiums	$29,101	28,760	82,668	83,246

A summary of the Domestic Insurance segment premium breakout is detailed below.

(In thousands) · Three Months EndedSeptember 30, · Nine Months EndedSeptember 30,
2026 · 2025 · 2026 · 2025
Direct premiums:
First year	$7,029	5,440	18,927	16,486
Renewal	13,348	11,931	39,020	34,251
Total direct premiums	20,377	17,371	57,947	50,737
Reinsurance	(4,675)	(2,828)	(12,171)	(7,495)
Total premiums	$15,702	14,543	45,776	43,242

The tables below provide a reconciliation of assets by reportable segment to total consolidated assets as presented on the consolidated balance sheets as of the periods indicated. Assets not directly attributable to the Company's reportable segments are reflected as other corporate assets.

September 30, 2026(In thousands) · International · Domestic · Total
Assets:
Segment Assets:
Cash, cash equivalents and investments	$978,314	384,035		1,362,349
DAC and COIA	135,546	107,495		243,041
Other assets	30,589	22,834		53,423
Total segment assets	$1,144,449	514,364		1,658,813
Other corporate assets			31,963
Total assets			$1,690,776

September 30, 2026 | 10-Q 35

CITIZENS, INC.	NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
		(Unaudited)

December 31, 2025(In thousands) · International · Domestic · Total
Assets:
Segment Assets:
Cash, cash equivalents and investments	$1,026,980	415,464		1,442,444
DAC and COIA	133,038	96,494		229,532
Other assets	30,718	17,399		48,117
Total segment assets	$1,190,736	529,357		1,720,093
Other corporate assets			34,667
Total assets			$1,754,760

GEOGRAPHIC INFORMATION

The following table sets forth the Company's annual total of earned premiums by country of policyholder residence for the periods indicated.

	Three Months EndedSeptember 30,		Nine Months EndedSeptember 30,
(In thousands)	2026	2025	2026	2025
Premiums by Area:
United States	$20,274	17,473	57,962	50,956
Colombia	7,175	7,088	20,752	20,103
Ecuador	3,636	3,527	9,900	10,093
Argentina	3,457	3,180	9,273	8,199
Taiwan	2,786	3,031	9,239	10,084
Venezuela	2,592	3,258	8,929	9,930
Other foreign countries	9,900	9,717	28,185	28,414
Total premiums by area	49,820	47,274	144,240	137,779
Reinsurance and change in premium accruals	(5,017)	(3,971)	(15,796)	(11,291)
Total premiums	$44,803	43,303	128,444	126,488

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.