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

(6) Policyholders' Liabilities

LIABILITY FOR FUTURE POLICY BENEFITS

The following tables summarize balances of and changes in the liability for future policy benefits for our reporting cohorts: Permanent, which summarizes insurance policies with premiums payable over the lifetime of the policy, and Permanent Limited Pay, which summarizes insurance policies with premiums payable for a limited time after which the policy is fully paid up. Both reporting cohorts include whole life and endowment policies.

September 30, 2026 | 10-Q 19

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

September 30, 2026(In thousands) · International Insurance · Domestic Insurance
Permanent · Permanent Limited Pay · Total · Permanent · Permanent Limited Pay · Total
Present Value of Expected Net Premiums:
Balance, beginning of year	$241,394	20,592	261,986	189,845	13,052	202,897
Beginning balance at original discount rate	$242,912	20,405	263,317	192,071	13,446	205,517
Effect of changes in cash flow assumptions	163	1,097	1,260	(18,209)	6	(18,203)
Effect of actual variances from expected experience	5,749	468	6,217	(30,619)	(2,264)	(32,883)
Adjusted beginning of year balance	248,824	21,970	270,794	143,243	11,188	154,431
Issuances	20,618	2,571	23,189	84,479	1,390	85,869
Interest accrual	7,432	609	8,041	6,456	362	6,818
Net premiums collected	(34,111)	(4,779)	(38,890)	(21,888)	151	(21,737)
Derecognition and other	183	146	329	(4,430)	(8)	(4,438)
Ending balance at original discount rate	242,946	20,517	263,463	207,860	13,083	220,943
Effect of changes in discount rates	(11,463)	(304)	(11,767)	(12,391)	(994)	(13,385)
Balance, end of period	$231,483	20,213	251,696	195,469	12,089	207,558
Present Value of Expected Future Policy Benefits:
Balance, beginning of year	$910,575	166,327	1,076,902	324,382	139,220	463,602
Beginning balance at original discount rate	$932,243	174,075	1,106,318	339,821	152,775	492,596
Effect of changes in cash flow assumptions	850	2,237	3,087	(18,760)	1	(18,759)
Effect of actual variances from expected experience	8,936	2,108	11,044	(30,713)	(1,322)	(32,035)
Adjusted beginning of year balance	942,029	178,420	1,120,449	290,348	151,454	441,802
Issuances	21,093	2,709	23,802	84,445	1,390	85,835
Interest accrual	30,363	5,207	35,570	11,732	5,364	17,096
Benefit payments	(63,788)	(11,530)	(75,318)	(17,981)	(5,571)	(23,552)
Derecognition and other	(372)	122	(250)	(4,527)	39	(4,488)
Ending balance at original discount rate	929,325	174,928	1,104,253	364,017	152,676	516,693
Effect of changes in discount rates	(73,777)	(17,105)	(90,882)	(38,437)	(24,310)	(62,747)
Balance, end of period	$855,548	157,823	1,013,371	325,580	128,366	453,946
Net liability for future policy benefits	$624,065	137,610	761,675	130,111	116,277	246,388
Plus: Flooring impact	2	—	2	—	—	—
Less: Reinsurance recoverable	—	—	—	7,456	—	7,456
Net liability for future policy benefits, after reinsurance recoverable	$624,067	137,610	761,677	122,655	116,277	238,932

September 30, 2026 | 10-Q 20

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

September 30, 2025(In thousands) · International Insurance · Domestic Insurance
Permanent · Permanent Limited Pay · Total · Permanent · Permanent Limited Pay · Total
Present Value of Expected Net Premiums:
Balance, beginning of year	$237,944	15,592	253,536	156,432	13,248	169,680
Beginning balance at original discount rate	$247,279	15,807	263,086	164,666	14,105	178,771
Effect of changes in cash flow assumptions	(3,947)	4,277	330	(1,137)	(240)	(1,377)
Effect of actual variances from expected experience	2,223	1,053	3,276	(32,352)	(2,754)	(35,106)
Adjusted beginning of year balance	245,555	21,137	266,692	131,177	11,111	142,288
Issuances	22,119	2,971	25,090	74,062	1,626	75,688
Interest accrual	7,361	519	7,880	5,727	366	6,093
Net premiums collected	(33,425)	(4,335)	(37,760)	(17,621)	635	(16,986)
Derecognition and other	157	253	410	(6,558)	29	(6,529)
Ending balance at original discount rate	241,767	20,545	262,312	186,787	13,767	200,554
Effect of changes in discount rates	(1,829)	128	(1,701)	(1,938)	(374)	(2,312)
Balance, end of period	$239,938	20,673	260,611	184,849	13,393	198,242
Present Value of Expected Future Policy Benefits:
Balance, beginning of year	$914,153	159,244	1,073,397	281,212	139,461	420,673
Beginning balance at original discount rate	$965,548	170,911	1,136,459	304,500	153,902	458,402
Effect of changes in cash flow assumptions	(3,161)	7,277	4,116	(4,514)	(1,591)	(6,105)
Effect of actual variances from expected experience	3,603	2,577	6,180	(32,478)	(1,126)	(33,604)
Adjusted beginning of year balance	965,990	180,765	1,146,755	267,508	151,185	418,693
Issuances	22,565	3,215	25,780	74,028	1,619	75,647
Interest accrual	31,225	5,128	36,353	10,757	5,371	16,128
Benefit payments	(84,191)	(15,101)	(99,292)	(14,152)	(5,394)	(19,546)
Derecognition and other	(378)	10	(368)	(6,591)	28	(6,563)
Ending balance at original discount rate	935,211	174,017	1,109,228	331,550	152,809	484,359
Effect of changes in discount rates	(20,029)	(7,439)	(27,468)	(12,856)	(11,504)	(24,360)
Balance, end of period	$915,182	166,578	1,081,760	318,694	141,305	459,999
Net liability for future policy benefits	$675,244	145,905	821,149	133,845	127,912	261,757
Plus: Flooring impact	(2)	—	(2)	—	—	—
Less: Reinsurance recoverable	—	—	—	5,786	—	5,786
Net liability for future policy benefits, after reinsurance recoverable	$675,242	145,905	821,147	128,059	127,912	255,971

September 30, 2026 | 10-Q 21

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

The following table reconciles the net liability for future policy benefits shown above to the liability for future policy benefits reported in the consolidated balance sheets for the periods indicated below.

	September 30, 2026			September 30, 2025
(In thousands)	International Insurance	DomesticInsurance	Consolidated	International Insurance	DomesticInsurance	Consolidated
Life Insurance:
Permanent	$624,067	122,655	746,722	675,242	128,059	803,301
Permanent limited pay	137,610	116,277	253,887	145,905	127,912	273,817
Deferred profit liability	28,030	40,198	68,228	25,591	38,484	64,075
Other	32,277	25,267	57,544	28,566	22,631	51,197
Total life insurance	821,984	304,397	1,126,381	875,304	317,086	1,192,390
Accident & Health Insurance:
Other	803	740	1,543	612	629	1,241
Total future policy benefit reserves	$822,787	305,137	1,127,924	875,916	317,715	1,193,631

The following table provides the amount of undiscounted and discounted expected gross premiums and expected future benefit payments for long-term duration contracts.

	September 30, 2026		September 30, 2025
(In thousands)	International Insurance	DomesticInsurance	International Insurance	DomesticInsurance
Undiscounted:
Permanent:
Expected future gross premiums	$575,922	785,616	571,533	710,726
Expected future benefit payments	1,413,272	799,219	1,408,194	737,765
Permanent Limited Pay:
Expected future gross premiums	47,792	72,594	49,825	76,199
Expected future benefit payments	266,144	397,597	261,409	399,661
Discounted:
Permanent:
Expected future gross premiums	$429,670	469,586	448,912	443,908
Expected future benefit payments	855,548	325,580	915,182	318,694
Permanent Limited Pay:
Expected future gross premiums	41,924	44,411	44,973	49,648
Expected future benefit payments	157,823	128,366	166,578	141,305

September 30, 2026 | 10-Q 22

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

The following tables summarize the amount of revenue and interest related to long-term duration contracts recognized in the consolidated statement of operations and comprehensive income (loss).

Three Months Ended September 30, · Nine Months Ended September 30,
	2026		2025		2026		2025
(In thousands)	Gross Premiums	Interest Expense	Gross Premiums	Interest Expense	Gross Premiums	Interest Expense	Gross Premiums	Interest Expense
International Insurance:
Life Insurance:
Permanent	$23,895	7,615	23,329	7,821	67,809	22,931	67,054	23,864
Permanent Limited Pay	3,834	1,836	4,092	1,811	12,843	5,432	12,444	5,338
Other	1,801	—	1,631	—	3,020	—	4,563	—
Less:
Reinsurance	568	—	461	—	1,468	—	1,360	—
Total, net of reinsurance	28,962	9,451	28,591	9,632	82,204	28,363	82,701	29,202
Accident & Health Insurance:
Other	139	—	169	—	464	—	545	—
Total	$29,101	9,451	28,760	9,632	82,668	28,363	83,246	29,202
Domestic Insurance:
Life Insurance:
Permanent	$18,368	1,785	14,588	1,699	51,241	5,276	41,994	5,030
Permanent Limited Pay	1,917	2,143	1,973	2,105	5,873	6,410	6,136	6,329
Other	(163)	—	546	—	62	—	1,819	—
Less:
Reinsurance	4,674	—	2,826	—	12,169	—	7,492	—
Total, net of reinsurance	15,448	3,928	14,281	3,804	45,007	11,686	42,457	11,359
Accident & Health Insurance:
Other	255	—	263	—	771	—	787	—
Less:
Reinsurance	1	—	1	—	2	—	2	—
Total, net of reinsurance	254	—	262	—	769	—	785	—
Total	$15,702	3,928	14,543	3,804	45,776	11,686	43,242	11,359

The following table provides the weighted-average durations of the liability for future policy benefits.

	September 30, 2026		September 30, 2025
(In years)	International Insurance	DomesticInsurance	International Insurance	DomesticInsurance
Permanent:
Duration at original discount rate	7.8	16.5	7.8	16.3
Duration at current discount rate	7.7	15.6	7.8	15.3
Permanent Limited Pay:
Duration at original discount rate	7.6	13.6	6.4	16.0
Duration at current discount rate	7.2	12.3	6.1	15.0

September 30, 2026 | 10-Q 23

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

The following table provides the weighted-average interest rates for the liability for future policy benefits.

	September 30, 2026		September 30, 2025
	International Insurance	DomesticInsurance	International Insurance	DomesticInsurance
Permanent:
Interest rate at original discount rate	4.81%	5.01%	4.64%	5.03%
Interest rate at current discount rate	5.88%	6.21%	4.60%	5.55%
Permanent Limited Pay:
Interest rate at original discount rate	4.24%	4.85%	3.53%	5.63%
Interest rate at current discount rate	5.89%	6.17%	4.03%	6.16%

LIABILITY FOR POLICYHOLDERS’ ACCOUNT BALANCES

The following table presents the policyholders' account balances by range of guaranteed minimum crediting rates and the related range of the difference, in basis points, between rates being credited and the respective guaranteed minimums.

At Guaranteed Minimum · 1 Basis Point-50 Basis Points Above · 51 Basis Points-150 Basis Points Above · Greater Than 150 Basis Points Above · Total
September 30, 2026(In thousands)
Range of Guaranteed Minimum Crediting Rates:
0.00% - 1.49%	$925	—	—	31,121	32,046
1.50% - 2.99%	3,751	165	6	43,528	47,450
3.00% - 4.49%	130,141	388	26,427	—	156,956
Greater or equal to 4.50%	31,065	—	—	—	31,065
Total	$165,882	553	26,433	74,649	267,517

At Guaranteed Minimum · 1 Basis Point-50 Basis Points Above · 51 Basis Points-150 Basis Points Above · Greater Than 150 Basis Points Above · Total
September 30, 2025(In thousands)
Range of Guaranteed Minimum Crediting Rates:
0.00% - 1.49%	$870	—	—	33,360	34,230
1.50% - 2.99%	3,916	179	6	35,308	39,409
3.00% - 4.49%	113,376	385	26,965	—	140,726
Greater or equal to 4.50%	31,254	—	—	—	31,254
Total	$149,416	564	26,971	68,668	245,619

September 30, 2026 | 10-Q 24

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

The following tables summarize balances of and changes in policyholders' account balances.

September 30, 2026(In thousands, except for %)	Supplemental Contracts Without Life Contingencies	Fixed Annuity	Dividend Accumulations	Premiums Paid in Advance
Balance, beginning of year	$85,782	88,297	51,360	27,317
Issuances	19,980	3,982	539	2,173
Premiums received	244	4,074	4,379	802
Interest credited	2,585	2,300	1,587	583
Less:
Surrenders and withdrawals	—	6,855	3,500	5,189
Benefit payments	12,923	—	—	—
Balance, end of period	$95,668	91,798	54,365	25,686
Weighted-average crediting rates	4.14%	3.97%	3.98%	3.37%
Cash surrender value	$95,668	91,798	54,365	25,686

September 30, 2025(In thousands, except for %)	Supplemental Contracts Without Life Contingencies	Fixed Annuity	Dividend Accumulations	Premiums Paid in Advance
Balance, beginning of year	$60,414	88,080	47,768	29,897
Issuances	26,548	3,312	590	3,581
Premiums received	186	3,475	4,300	580
Interest credited	2,060	2,251	1,473	625
Other	3	—	—	—
Less:
Surrenders and withdrawals	—	10,149	3,986	6,125
Benefit payments	9,264	—	—	—
Balance, end of period	$79,947	86,969	50,145	28,558
Weighted-average crediting rates	4.09%	3.97%	3.87%	3.23%
Cash surrender value	$79,947	86,969	50,145	28,558

September 30, 2026 | 10-Q 25

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

The following table reconciles policyholders' account balances shown above to the policyholders' account balance liability in the consolidated balance sheets for the periods indicated below.

(In thousands)	September 30, 2026	September 30, 2025
Annuities:
Supplemental contracts without life contingencies	$95,668	79,947
Fixed annuity	91,798	86,969
Unearned revenue reserve	1,499	1,480
Total annuities	$188,965	168,396
Premiums paid in advance:
Premiums paid in advance	$25,686	28,558
Other	3,176	2,070
Total premiums paid in advance	$28,862	30,628

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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.