CITIZENS, INC.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
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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
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(3) Investments
The Company invests primarily in fixed maturity securities as shown below.
| Carrying Value(In thousands, except for %) · September 30, 2026 · December 31, 2025 | ||||
|---|---|---|---|---|
| Amount · % · Amount · % | ||||
| Cash and invested assets: | ||||
| Fixed maturity securities | $1,216,359 | 87.9% | 1,287,861 | 87.9% |
| Equity securities | 1,338 | 0.1 | 1,356 | 0.1 |
| Policy loans | 65,832 | 4.8 | 67,455 | 4.6 |
| Other long-term investments | 81,271 | 5.9 | 85,439 | 5.8 |
| Cash and cash equivalents | 17,586 | 1.3 | 22,976 | 1.6 |
| Total cash and invested assets | $1,382,386 | 100.0% | 1,465,087 | 100.0% |
September 30, 2026 | 10-Q 10
| CITIZENS, INC. | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
|---|---|---|
| (Unaudited) | ||
The following tables represent the amortized cost, gross unrealized gains and losses and fair value of fixed maturity securities as of the dates indicated.
| AmortizedCost | GrossUnrealizedGains | GrossUnrealizedLosses | FairValue | |
|---|---|---|---|---|
| (In thousands) | ||||
| Fixed maturity securities: | ||||
| U.S. Treasuries | $5,655 | 4 | 173 | 5,486 |
| U.S. Government-sponsored enterprises | 1,257 | 17 | — | 1,274 |
| States and political subdivisions | 283,265 | 214 | 41,682 | 241,797 |
| Corporate: | ||||
| Financial | 325,051 | 363 | 44,255 | 281,159 |
| Consumer | 254,287 | 103 | 55,143 | 199,247 |
| Utilities | 143,696 | 22 | 28,886 | 114,832 |
| Energy | 81,866 | — | 11,812 | 70,054 |
| Communications | 74,330 | 107 | 13,820 | 60,617 |
| All other | 133,486 | 122 | 23,884 | 109,724 |
| Commercial mortgage-backed | 10,265 | — | 307 | 9,958 |
| Residential mortgage-backed | 105,619 | 1 | 14,331 | 91,289 |
| Asset-backed | 31,699 | 421 | 1,198 | 30,922 |
| Total fixed maturity securities | $1,450,476 | 1,374 | 235,491 | 1,216,359 |
| AmortizedCost | GrossUnrealizedGains | GrossUnrealizedLosses | FairValue | |
|---|---|---|---|---|
| (In thousands) | ||||
| Fixed maturity securities: | ||||
| U.S. Treasuries | $5,692 | 61 | 99 | 5,654 |
| U.S. Government-sponsored enterprises | 1,268 | 86 | — | 1,354 |
| States and political subdivisions | 294,347 | 1,881 | 27,436 | 268,792 |
| Corporate: | ||||
| Financial | 323,056 | 4,137 | 26,847 | 300,346 |
| Consumer | 244,480 | 797 | 39,093 | 206,184 |
| Utilities | 136,005 | 829 | 20,048 | 116,786 |
| Energy | 82,205 | 473 | 7,622 | 75,056 |
| Communications | 69,719 | 256 | 8,454 | 61,521 |
| All other | 122,240 | 764 | 16,027 | 106,977 |
| Commercial mortgage-backed | 8,872 | 24 | 2 | 8,894 |
| Residential mortgage-backed | 111,243 | 28 | 8,183 | 103,088 |
| Asset-backed | 33,327 | 412 | 530 | 33,209 |
| Total fixed maturity securities | $1,432,454 | 9,748 | 154,341 | 1,287,861 |
September 30, 2026 | 10-Q 11
| CITIZENS, INC. | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
|---|---|---|
| (Unaudited) | ||
The Company's investments in equity securities are shown below.
| Fair Value(In thousands) | September 30, 2026 | December 31, 2025 |
|---|---|---|
| Equity securities: | ||
| Bond mutual funds | $193 | 219 |
| Common stocks | 1,139 | 1,130 |
| Non-redeemable preferred stock | 6 | 7 |
| Total equity securities | $1,338 | 1,356 |
VALUATION OF INVESTMENTS
The Company classifies all fixed maturity securities as available-for-sale ("AFS"), which are reported in the consolidated financial statements at fair value with the change in fair value recorded through other comprehensive income (loss). Equity securities are also measured at fair value in the consolidated financial statements with the change in fair value recorded through net income (loss). The Company recognized net investment related gains of $0.1 million and losses of $18 thousand for the three and nine months ended September 30, 2026, respectively, and gains of $0.3 million for both periods in 2025, on equity securities held.
The Company considers several factors in its review and evaluation of individual investments, using the process described in Note 2 - Investments in our 2025 Form 10-K to determine whether a credit valuation loss exists. For the three and nine months ended September 30, 2026 and 2025, the Company recordedno credit valuation losses on fixed maturity securities.
For fixed maturity security investments that have unrealized losses as of September 30, 2026 and December 31, 2025, the gross unrealized losses and related fair values that have been in a continuous unrealized loss position by timeframe are as follows:
| September 30, 2026 | Less than 12 months | Greater than 12 months | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|
| (In thousands, except for # of securities) | FairValue | UnrealizedLosses | # ofSecurities | FairValue | UnrealizedLosses | # ofSecurities | FairValue | UnrealizedLosses | # ofSecurities |
| Fixed maturity securities: | |||||||||
| U.S. Treasuries | $703 | 9 | 2 | 822 | 164 | 7 | 1,525 | 173 | 9 |
| States and political subdivisions | 88,678 | 4,588 | 118 | 123,518 | 37,094 | 170 | 212,196 | 41,682 | 288 |
| Corporate: | |||||||||
| Financial | 115,502 | 5,282 | 175 | 128,184 | 38,973 | 174 | 243,686 | 44,255 | 349 |
| Consumer | 46,534 | 3,370 | 107 | 149,412 | 51,773 | 214 | 195,946 | 55,143 | 321 |
| Utilities | 38,196 | 2,579 | 70 | 74,827 | 26,307 | 152 | 113,023 | 28,886 | 222 |
| Energy | 32,226 | 1,708 | 57 | 37,828 | 10,104 | 53 | 70,054 | 11,812 | 110 |
| Communications | 18,071 | 1,704 | 30 | 37,816 | 12,116 | 49 | 55,887 | 13,820 | 79 |
| All Other | 45,625 | 2,670 | 66 | 62,031 | 21,214 | 88 | 107,656 | 23,884 | 154 |
| Commercial mortgage-backed | 9,889 | 302 | 5 | 69 | 5 | 1 | 9,958 | 307 | 6 |
| Residential mortgage-backed | 8,879 | 373 | 27 | 82,354 | 13,958 | 72 | 91,233 | 14,331 | 99 |
| Asset-backed | 10,901 | 253 | 24 | 11,975 | 945 | 14 | 22,876 | 1,198 | 38 |
| Total fixed maturity securities | $415,204 | 22,838 | 681 | 708,836 | 212,653 | 994 | 1,124,040 | 235,491 | 1,675 |
September 30, 2026 | 10-Q 12
| CITIZENS, INC. | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
|---|---|---|
| (Unaudited) | ||
| December 31, 2025 | Less than 12 months | Greater than 12 months | Total | ||||||
|---|---|---|---|---|---|---|---|---|---|
| (In thousands, except for # of securities) | FairValue | UnrealizedLosses | # ofSecurities | FairValue | UnrealizedLosses | # ofSecurities | FairValue | UnrealizedLosses | # ofSecurities |
| Fixed maturity securities: | |||||||||
| U.S. Treasuries | $— | — | — | 883 | 99 | 7 | 883 | 99 | 7 |
| States and political subdivisions | 21,991 | 147 | 28 | 145,859 | 27,289 | 180 | 167,850 | 27,436 | 208 |
| Corporate: | |||||||||
| Financial | 13,485 | 196 | 23 | 148,244 | 26,651 | 182 | 161,729 | 26,847 | 205 |
| Consumer | 19,282 | 361 | 25 | 165,229 | 38,732 | 225 | 184,511 | 39,093 | 250 |
| Utilities | 12,109 | 170 | 35 | 82,012 | 19,878 | 152 | 94,121 | 20,048 | 187 |
| Energy | 11,650 | 214 | 24 | 44,795 | 7,408 | 55 | 56,445 | 7,622 | 79 |
| Communications | 10,682 | 126 | 14 | 39,964 | 8,328 | 50 | 50,646 | 8,454 | 64 |
| All Other | 4,289 | 38 | 13 | 72,186 | 15,989 | 93 | 76,475 | 16,027 | 106 |
| Commercial mortgage-backed | — | — | — | 79 | 2 | 1 | 79 | 2 | 1 |
| Residential mortgage-backed | 17 | — | 4 | 93,197 | 8,183 | 77 | 93,214 | 8,183 | 81 |
| Asset-backed | 1,569 | 66 | 2 | 11,569 | 464 | 13 | 13,138 | 530 | 15 |
| Total fixed maturity securities | $95,074 | 1,318 | 168 | 804,017 | 153,023 | 1,035 | 899,091 | 154,341 | 1,203 |
In each category of our fixed maturity securities described above, we do not intend to sell our investments, and it is unlikely that the Company will be required to sell the investments before recovery of their amortized cost bases. As of September 30, 2026 and December 31, 2025,98.7% of the fair value of our fixed maturity securities portfolio were rated investment grade. We continuously monitor all fixed maturity securities in unrealized loss positions to determine whether an allowance for credit losses would be required.
The unrealized losses on fixed maturity securities are due to noncredit-related factors, including changes in credit spreads and rising interest rates since purchase, which have little bearing on the recoverability of our investments, hence they are not recognized as credit losses. The fair value is expected to recover as the securities approach maturity or if market yields for such investments decline.
The amortized cost and fair value of fixed maturity securities at September 30, 2026 by contractual maturity are shown in the table below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date have been reflected based upon final stated maturity.
| September 30, 2026 | AmortizedCost | FairValue |
|---|---|---|
| (In thousands) | ||
| Fixed maturity securities: | ||
| Due in one year or less | $12,874 | 12,867 |
| Due after one year through five years | 115,660 | 113,131 |
| Due after five years through ten years | 320,723 | 304,120 |
| Due after ten years through twenty years | 547,476 | 444,758 |
| Due after twenty years | 453,743 | 341,483 |
| Total fixed maturity securities | $1,450,476 | 1,216,359 |
The Company uses the specific identification method of each individual security to determine the cost basis used in the calculation of realized gains and losses related to fixed maturity security sales. The proceeds from sales and
September 30, 2026 | 10-Q 13
| CITIZENS, INC. | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | |
|---|---|---|
| (Unaudited) | ||
the gross realized gains and losses on fixed maturity securities, available-for-sale for the three and nine months ended September 30, 2026 and 2025 are shown in the table below.
| Three Months Ended · Nine Months Ended | ||||
|---|---|---|---|---|
| September 30, | September 30, | |||
| (In thousands) | 2026 | 2025 | 2026 | 2025 |
| Fixed maturity securities, available-for-sale: | ||||
| Proceeds | $2,914 | 45,574 | 19,393 | 60,143 |
| Gross realized gains | $64 | 868 | 223 | 960 |
| Gross realized losses | $3 | 75 | 424 | 517 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.