CITIZENS, INC.

BASIS OF PRESENTATION AND CONSOLIDATION

The consolidated financial statements include the accounts and operations of Citizens, Inc. ("Citizens," the "Company," "it," "we," "us" or "our"), a Colorado corporation, and its wholly-owned subsidiaries - CICA Life Insurance Company of America ("CLOA"), Security Plan Life Insurance Company ("SPLIC"), Magnolia Guaranty Life Insurance Company ("MGLIC"), Computing Technology, Inc. ("CTI"), and Nexo Global Services LLC, a Puerto Rico holding company ("Nexo") and its wholly-owned subsidiaries, CICA Life A.I., a Puerto Rico company ("CICA International") and Nexo Enrollment Services LLC, a Puerto Rico service company ("NES"). All significant inter-company accounts and transactions have been eliminated.

The consolidated balance sheet as of September 30, 2026, the consolidated statements of operations and comprehensive income (loss) and stockholders' equity for the three and nine months ended September 30, 2026 and September 30, 2025 and the consolidated statements of cash flows for the nine months ended September 30, 2026 and September 30, 2025 have been prepared by the Company without audit and are not subject to audit. In the opinion of management, these statements include all normal recurring adjustments necessary for a fair presentation of the financial position, results of operations, and changes in cash flows at September 30, 2026 and for comparative periods. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission ("SEC"). Accordingly, the consolidated financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2025 ("2025 Form 10-K"). Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.

The Company operates through two segments: International Insurance and Domestic Insurance.

International Insurance. All international policies are issued by CICA International. CICA International offers U.S. dollar-denominated products to non-U.S. residents/citizens internationally, including endowment products, which are principally accumulation contracts that incorporate an element of life insurance protection and whole life insurance. These contracts are designed to provide a fixed amount of insurance coverage over the life of the insured and may utilize rider benefits to provide additional increasing or decreasing coverage and annuity benefits to enhance accumulations.

NES provides services to policyholders of CICA International.

Domestic Insurance. Our Domestic Insurance segment operates through our subsidiaries CLOA and MGLIC and until September 30, 2026, SPLIC. On October 1, 2026, SPLIC merged into its parent, CLOA. CLOA issues whole life, final expense and life products with living benefits throughout the U.S. while SPLIC (now branded under CLOA as "Security Plan") focuses on the life insurance needs of the lower-income markets, primarily in Louisiana, Mississippi and Arkansas. MGLIC sold and now continues to service low face amount whole life policies through funeral homes in Mississippi. Our products in this segment consist primarily of small face amounts of whole life, industrial life and pre-need policies, which are designed to fund final expenses for the insured, primarily relating to funeral and burial costs. SPLIC also issued critical illness policies through September 30, 2026.

CTI provides data processing systems and services to the Company.

September 30, 2026 | 10-Q 9

USE OF ESTIMATES

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from these estimates.

Significant estimates include those used in the evaluation of credit losses on fixed maturity securities, valuation allowances on deferred tax assets, and actuarially determined assets and liabilities. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the consolidated financial statements.

SIGNIFICANT ACCOUNTING POLICIES

For a description of all significant accounting policies, see Note 1 - Summary of Significant Accounting Policies in our 2025 Form 10-K, which should be read in conjunction with these accompanying consolidated financial statements.