CITIZENS, INC.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are generally based upon observable and unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our view of market assumptions in the absence of observable market information. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. All assets and liabilities carried at fair value are required to be classified and disclosed in one of the following three categories.

•Level 1 - Quoted prices for identical instruments in active markets.

•Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in inactive markets; and model-derived valuations with observable inputs or significant value drivers. Valuations are determined through independent pricing services or broker quotes, utilizing industry-standard models that incorporate observable inputs - including interest rates, credit spreads, and foreign exchange rates. All key inputs are either directly observable or supported by market-executed transactions.

•Level 3 - Instruments whose significant value drivers are unobservable are estimated using non-binding broker prices utilizing significant inputs not based on or corroborated by readily available market information.

September 30, 2026 | 10-Q 14

The following tables set forth our assets measured at fair value on a recurring basis as of September 30, 2026 and December 31, 2025.

(1) Total investments included in the fair value hierarchy exclude certain other long-term investments that are measured at estimated fair value using the NAV per share (or its equivalent) practical expedient. The estimated fair value of such investments was $81.0 million and $85.2 million as of September 30, 2026, and December 31, 2025, respectively.

September 30, 2026 | 10-Q 15

FINANCIAL INSTRUMENTS VALUATION

FINANCIAL INSTRUMENTS CARRIED AT FAIR VALUE

Fixed maturity securities, available-for-sale. At September 30, 2026, fixed maturity securities classified as Level 2 and valued using a third-party pricing source totaled $1,210.8 million and comprised 93.2% of total reported fair value of our total financial assets. The Level 1 and Level 2 valuations are reviewed and updated quarterly through testing by comparisons to separate pricing models, other third-party pricing services, and back tested to recent trades. In addition, we obtain information annually relative to the third-party pricing models and review model parameters for reasonableness. There wereno Level 3 fixed maturity securities as of September 30, 2026. For the three and nine months ended September 30, 2026, there wereno material changes to the valuation methods or assumptions used to determine fair values, andno broker or third-party prices were changed from the values received.

Equity securities. Our equity securities are classified as Level 1 as their fair values are based upon quoted market prices.

Structured note. At September 30, 2026, the Company held an investment in a structured note, which includes components classified as fixed maturity securities and other long-term investments on the consolidated balance sheets. The partner interest is measured at its NAV of $2.9 million as a practical expedient, which approximates fair value. The Company recognized investment related losses of $5 thousand and $0.4 million for the three and nine months ended September 30, 2026, respectively, related to changes in fair value on this investment. The partner interest is included in other long-term investments on the consolidated balance sheets. As of September 30, 2026, we are committed to funding this structured note investment up to $3.3 million over the next nine years.

Limited partnerships. The Company considers the NAV to represent the value of the investment fund and is measured by the total value of assets minus the total value of liabilities. The following table includes information related to our investments in limited partnerships that calculate NAV per share. For these investments, which are measured at fair value on a recurring basis, we use the NAV per share to measure fair value. The Company recognized net investment related gains of $2.1 million and $1.4 million and losses of $3.7 million and $2.3 million on limited partnerships held for the three and nine months ended September 30, 2026 and 2025, respectively, related to changes in fair value. These investments are included in other long-term investments on the consolidated balance sheets.

The majority of our limited partnership investments are not redeemable because distributions from the funds will be received when the underlying investments of the funds are liquidated. The life spans indicated above may be shortened or extended at the fund manager's discretion, typically in one or two-year increments.

September 30, 2026 | 10-Q 16

FINANCIAL INSTRUMENTS NOT CARRIED AT FAIR VALUE

Estimates of fair values are made at a specific point in time, based on relevant market prices and information about the financial instruments. The estimated fair values of financial instruments presented below are not necessarily indicative of the amounts the Company might realize in actual market transactions.

The carrying value and fair value for the financial assets and liabilities on the consolidated financial statements not otherwise disclosed for the periods indicated were as follows:

Policy loans. Policy loans had a weighted average annual interest rate of 7.7% at both September 30, 2026 and December 31, 2025 and no specified maturity dates. Policy loans are an integral part of the life insurance policies we have in force, cannot be valued separately and are not marketable. Therefore, the carrying value of policy loans approximates the fair value reflected on the consolidated balance sheets and is considered a Level 3 asset in the fair value hierarchy.

Residential mortgage loan. The mortgage loan is secured by a residential property. The interest rate for this loan was 7.0% at both September 30, 2026 and December 31, 2025. At September 30, 2026, the remaining loan matures intwo years. Management estimated the fair value using an annual interest rate of 6.25% at both September 30, 2026 and December 31, 2025. Our mortgage loan is considered a Level 3 asset in the fair value hierarchy and is included in other long-term investments on the consolidated balance sheets.

Cash and cash equivalents. Cash and cash equivalents are reported at carrying value, which approximates fair value due to their short-term nature, and are classified as Level 1 assets in the fair value hierarchy.

Annuity liabilities. The fair value of the Company's liabilities under annuity contracts, which are considered Level 3 liabilities, was estimated at September 30, 2026 and December 31, 2025 using discounted cash flows based upon spot rates adjusted for various risk adjustments ranging from 4.27% to 5.62% and 3.31% to 4.98%, respectively. The fair value of liabilities under all insurance contracts are taken into consideration in the overall management of interest rate risk, which seeks to minimize exposure to changing interest rates through the matching of investment maturities with amounts due under insurance contracts.

September 30, 2026 | 10-Q 17

Other long-term investments. Financial instruments included in other long-term investments are classified in various levels of the fair value hierarchy. The following table summarizes the carrying values of these investments.

We are a member of the Federal Home Loan Bank ("FHLB") of Dallas, and such membership requires members to own stock in the FHLB. Our FHLB stock is carried at amortized cost, which approximates fair value.