CITIZENS, INC.

Item 1. LEGAL PROCEEDINGS

In the first quarter of 2024, a jury trial was held in the “trade secret lawsuit”. The trade secret lawsuit was filed in 2018 by Citizens, CICA Life Ltd. ("CICA Bermuda") and CICA Life Insurance Company of America ("CLOA") (collectively, the “Citizens Companies,” “we,” "us" or "our") against certain former employees and independent consultants who we alleged unlawfully took Citizens’ confidential information in order to unfairly compete with us. Our claims against these parties included various unfair competition, tortious interference, breach of contract and other related claims.

As previously disclosed, the jury found that Citizens should pay Alexis Delgado and Carlos Nalsen Landa, former independent consultants, approximately $1.3 million for “money had and received”, an equitable theory that claimed that the Citizens Companies would be unjustly enriched if they didn’t pay past and future commissions to Delgado and Landa. Additionally, the trial court awarded defendants Michael P. Buchweitz and Randall Riley approximately $3.5 million of their legal fees incurred during the trade secret lawsuit. On August 16, 2024, the judge signed a Final Judgment reflecting the jury decision and the court award of the legal fees. We continue to believe that Delgado and Landa are not entitled to the awarded commissions and that Riley and Buchweitz are not entitled to the awarded legal fees.

On September 17, 2024, we filed an appeal bond with the trial court in order to stay any execution of the judgment against us.

We appealed the judgment to the Court of Appeals, Third District of Texas. Consistent with the parties’ positions that oral argument was not necessary, the Court of Appeals has set the appeal for submission on the briefs on November 23, 2026.