Schedule II - Financial Statements (Tables)

12 Months Ended

Dec. 31, 2022

Condensed Financial Information Disclosure [Abstract]


Schedule II Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Balance Sheets
December 31, (In thousands)	2022		2021

Assets
Investment in subsidiaries (1)	$	(38,524)	271,639
Fixed maturity securities available-for-sale, at fair value	28,566		33,724
Equity securities, at fair value	770		1,466
Mortgage loans on real estate	—		1,000


Short-term investments	1,241		—
Cash	2,163		3,399
Accrued investment income	342		439
Accounts receivable from subsidiaries (1)	5,126		5,832
Property and equipment, net	10,387		11,564

Other assets	1,715		3,049
Total assets	$	11,786	332,112
Liabilities and Stockholders' Equity
Liabilities:
Accrued expense and other liabilities	$	10,743	11,541
Total liabilities	10,743		11,541
Stockholders' equity:
Common stock:
Class A	268,147		265,561
Class B	3,184		3,184
Accumulated deficit	(52,203)		(45,565)
Unrealized investment gains (losses) on securities held by parent and subsidiaries, net of tax	(195,279)		117,492
Treasury stock	(22,806)		(20,101)
Total stockholders' equity	1,043		320,571
Total liabilities and stockholders' equity	$	11,786	332,112

(1) Eliminated in consolidation. Negative amount due to unrealized losses on fixed maturity securities during at December 31, 2022.

Note to Schedule II:

Citizens, Inc.'s investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries and unrealized gains (losses) on investments held by consolidated subsidiaries. The Company includes in its Statement of Operations and Comprehensive Income (Loss) dividends from its subsidiaries and equity in income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.

Condensed Income Statement


Schedule II, Continued Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Statements of Operations and Comprehensive Income (Loss)
Years ended December 31, (In thousands)	2022		2021
Comprehensive income (loss):
Revenues:
Management service fees (1)	$	35,413	33,311
Investment income	6,124		1,063
Other	6		(37)
Investment related gains (losses), net	(188)		1,197
Total revenues	41,355		35,534
Expenses:
General expenses	38,926		37,977
Taxes, licenses and fees	149		198
Total expenses	39,075		38,175
Income (loss) before federal income tax expense (benefit) and equity in income (loss) of consolidated subsidiaries	2,280		(2,641)
Federal income tax expense (benefit)	(571)		(1,661)
Income (loss) before equity in income (loss) of consolidated subsidiaries	2,851		(980)
Equity in income (loss) of consolidated subsidiaries	(9,489)		37,767
Net income (loss)	(6,638)		36,787
Other comprehensive income (loss)	(312,771)		(10,763)
Total comprehensive income (loss)	$	(319,409)	26,024

(1) Eliminated in consolidation.

Note to Schedule II:

Condensed Cash Flow Statement


Schedule II, Continued Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Statements of Cash Flows
Years ended December 31, (In thousands)	2022		2021
Cash flows from operating activities:
Net income (loss)	$	(6,638)	36,787
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Investment related gains (losses), net	188		(1,197)
Equity in loss (income) of consolidated subsidiaries	9,489		(37,767)
Change in accrued expenses and other liabilities	639		(11,458)
Change in federal income tax payable	(10,379)		(2,683)
Deferred federal income tax expense (benefit)	1,065		227
Amortization of premiums and discounts on investments	281		473
Depreciation	224		239
Change in accrued investment income	97		32
Stock-based compensation	461		646
Decrease (increase) in receivable from subsidiaries and other assets	705		(921)
Other, net	188		151
Net cash provided by (used in) operating activities	(3,680)		(15,471)
Cash flows from investing activities:


Purchases of fixed maturity securities, available-for-sale	(11,232)		(2,678)
Maturities and calls of fixed maturity securities, available-for-sale	9,721		7,548

Sales of fixed maturity securities, available-for-sale	4,314		6,952
Sales of property and equipment	2		14
Sale of equity securities	500		—
Sale of other long-term investments	—		8,790
Sale of real estate	—		3,552
Funding of mortgage loans	—		(1,000)
Principal payments on mortgage loans	1,000		—

Purchases of property and equipment	(32)		(119)
Purchases of short-term investments	(1,250)		—


Net cash provided by (used in) investing activities	3,023		23,059
Cash flows from financing activities:

Issuance of common stock	2,244		2,255
Acquisition of treasury stock	(2,705)		(9,090)
Other	(118)		(456)
Net cash provided by (used in) financing activities	(579)		(7,291)
Net increase (decrease) in cash	(1,236)		297
Cash at beginning of year	3,399		3,102
Cash at end of year	$	2,163	3,399

Note to Schedule II: