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Stockholders' Equity and Restrictions | 6 Months Ended
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Jun. 30, 2023
Earnings Per Share [Abstract] |
Stockholders' Equity Note Disclosure | STOCKHOLDERS' EQUITY AND RESTRICTIONS STOCK Our Restated and Amended Articles of Incorporation authorize the issuance of 127,000,000 shares, of which 100,000,000 shares shall be Class A common stock, 2,000,000 shares shall be Class B common stock, and 25,000,000 shall be preferred stock. The two authorized classes of common stock are equal in all respects, except (a) each share of Class A common stock is entitled to receive twice the cash dividends paid on a per share basis to the Class B common stock, if any; and (b) the holders of the Class B common stock have the exclusive right to elect a simple majority of the Board of Directors of Citizens. In April 2021, we repurchased all of the outstanding Class B common stock, which is now classified as treasury stock. As a result, all of the directors are elected by the holders of the Class A common stock. Citizens has never issued any preferred stock. A summary of the change in number of shares of Class A and Class B common stock and treasury stock issued is as follows:
| Six Months Ended June 30,
| 2023 |  | 2022
(In thousands) | Common Stock |  | Treasury |  | Common Stock |  | Treasury
Class A |  | Class B |  | Stock |  | Class A |  | Class B |  | Stock
Balance at beginning of year | 53,758 |  |  | 1,002 |  |  | 4,937 |  |  | 53,170 |  |  | 1,002 |  |  | 4,138 |
Stock issued under stock investment plan | — |  |  | — |  |  | — |  |  | 475 |  |  | — |  |  | — |
Stock issued for compensation | 106 |  |  | — |  |  | — |  |  | 81 |  |  | — |  |  | — |
Acquisition of Class A shares | — |  |  | — |  |  | 325 |  |  | — |  |  | — |  |  | 392 |
Other share issuance | — |  |  | — |  |  | — |  |  | 16 |  |  | — |  |  | — |
Balance at end of period | 53,864 |  |  | 1,002 |  |  | 5,262 |  |  | 53,742 |  |  | 1,002 |  |  | 4,530 |
EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings (loss) per share.
Three Months Ended June 30, | 2023 |  | 2022
(In thousands, except per share amounts) |
Basic and diluted earnings (loss) per share: |  |  |
Numerator: |  |  |
Net income (loss) | $ | 6,126 |  |  | 2,492 |
Net income (loss) allocated to Class A common stock | $ | 6,126 |  |  | 2,492 |
Denominator: |  |  |
Weighted average shares of Class A outstanding - basic | 49,758 |  |  | 50,373 |
Weighted average shares of Class A outstanding - diluted | 50,552 |  |  | 51,065 |
Basic and diluted earnings (loss) per share of Class A common stock | $ | 0.12 |  |  | 0.05 |
Six Months Ended June 30, | 2023 |  | 2022
(In thousands, except per share amounts) |
Basic and diluted earnings (loss) per share: |  |  |
Numerator: |  |  |
Net income (loss) | $ | 10,998 |  |  | 8,941 |
Net income (loss) allocated to Class A common stock | $ | 10,998 |  |  | 8,941 |
Denominator: |  |  |
Weighted average shares of Class A outstanding - basic | 49,791 |  |  | 50,278 |
Weighted average shares of Class A outstanding - diluted | 50,584 |  |  | 50,970 |
Basic and diluted earnings (loss) per share of Class A common stock | $ | 0.22 |  |  | 0.18 |
CAPITAL AND SURPLUS Each of our regulated insurance subsidiaries is required to meet stipulated regulatory capital requirements. These include capital requirements imposed by the U.S. National Association of Insurance Commissioners ("NAIC") and the Bermuda Monetary Authority ("BMA"). All domestic insurance subsidiaries exceeded the minimum capital requirements at June 30, 2023. In order to minimize the risk of a shortfall in capital arising from an unexpected adverse deviation or excess risk, the BMA has established a threshold capital level (termed the Target Capital Level ("TCL")), which is set at 120% of a company’s enhanced capital requirement. The TCL serves as an early warning tool for the BMA. As of June 30, 2023, CICA International was above the TCL threshold. At the request of the BMA, on April 15, 2021, Citizens and CICA International entered into a Keep Well Agreement. The Keep Well Agreement requires Citizens to contribute up to $10 million in capital to CICA International as necessary to ensure that CICA International has a minimum capital level of 120% (equal to the TCL). Since CICA International’s capital level currently exceeds 120%, Citizens is not required to make a capital contribution. CICA PR is a Puerto Rico domiciled company. The Insurance Code of Puerto Rico does not specifically set forth minimum capital and surplus standards, but rather requires that an insurer submit a business plan for approval to the Office of the Commissioner of Insurance ("OIC") that includes proposed minimum capital and surplus. CICA PR is required to maintain a minimum of $750,000 in capital and maintain a premium to surplus ratio of 7 to 1. CICA PR began issuing new business as of January 1, 2023 and since higher costs are associated with new business than renewal business (e.g., first year commissions), we expect that Citizens will have to contribute capital to CICA PR in order to maintain the required premium to surplus ratio.

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