Citizens, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Revenue fell year over year: Total revenues were $60.4 million, down from $65.1 million a year earlier. Adjusted total revenues, excluding investment related gains and losses, were $61.9 million, down from $62.7 million, which management attributed to decreased other income. Source
• Net loss against prior-year profit: The company reported a net loss of $0.4 million, or $0.01 per fully diluted Class A share, compared with net income of $6.5 million, or $0.13 per share, in Q2 2025. Source
• International revenue and income declined: International Insurance total revenues were $39.7 million against $45.9 million a year earlier. Pre-tax income was $1.1 million against $7.1 million, and claims and surrenders were $25.9 million against $34.4 million. Source
• First-year premiums up 15 quarters: Direct first year premiums have risen year over year for fifteen consecutive quarters. Management tied total premium revenue growth to an expanding sales force and newer product offerings. Source
• Claims fell on matured endowments: Claims and surrenders decreased $6.5 million as contractual decreases in matured endowments took effect. Matured endowments reached their highest level in 2025. Source
• Reserve build offset claim savings: Future policy benefit reserves rose $7.7 million, mainly from growth in Domestic Insurance. The prior-year period also had a large reserve release when matured endowments were paid. Source
• Operating cash flow turned positive: Operating cash flow was $1.7 million provided in Q2 2026, after $0.3 million used in Q1 2026 according to the prior release. Source
• Book value per share rose: Book value per Class A share was $4.64 at June 30, 2026, up from $4.56 a year earlier. Source

“Our second-quarter results were affected by investment-market fluctuations and increase in future policy benefit reserves mainly due to growth in our Domestic Insurance segment”

Jon Stenberg, President and Chief Executive Officer

What changed from last quarter

• New: The definition of adjusted income before federal income tax no longer lists income from ceased businesses as an exclusion. The prior quarter's definition did. Source

Results and growth drivers

• Revenue fell year over year: Total revenues were $60.4 million, down from $65.1 million a year earlier. Adjusted total revenues, excluding investment related gains and losses, were $61.9 million, down from $62.7 million, which management attributed to decreased other income. Source
• Investment gains drove the decline: Management said the main reason was a $3.9 million decline in investment related gains and losses, tied to market value changes in limited partnership assets that were not sold. Source
• Net loss against prior-year profit: The company reported a net loss of $0.4 million, or $0.01 per fully diluted Class A share, compared with net income of $6.5 million, or $0.13 per share, in Q2 2025. Source
• Adjusted net income declined: Adjusted net income was $0.8 million, or $0.01 per fully diluted Class A share, against $4.2 million, or $0.08, a year earlier. Source

Segments and regions

• International revenue and income declined: International Insurance total revenues were $39.7 million against $45.9 million a year earlier. Pre-tax income was $1.1 million against $7.1 million, and claims and surrenders were $25.9 million against $34.4 million. Source
• Domestic revenue and premiums rose: Domestic Insurance direct premiums were $19.2 million against $17.1 million, and total revenues were $20.5 million against $19.0 million. Pre-tax income was $1.6 million against $2.6 million. Source
• International premiums slightly lower: International Insurance direct premiums were $28.9 million, against $29.3 million a year earlier. Source

“These achievements demonstrate continued execution against our strategic roadmap”

Jon Stenberg, President and Chief Executive Officer

Premiums, agents and renewals

• First-year premiums up 15 quarters: Direct first year premiums have risen year over year for fifteen consecutive quarters. Management tied total premium revenue growth to an expanding sales force and newer product offerings. Source
• Direct premiums rose to $48.1M: Direct insurance premiums were $48.1 million in Q2 2026, up from $46.4 million, driven by newer products and expanded distribution in Domestic Insurance. Source
• Renewal premiums grew on past sales: Direct renewal premiums grew because strong sales in prior periods led to more policies paying renewal premiums in the current period. Source
• Producing agent network expanded: The global network of producing agents was up 6% from June 30, 2025. Source

Claims, reserves and benefits

• Claims fell on matured endowments: Claims and surrenders decreased $6.5 million as contractual decreases in matured endowments took effect. Matured endowments reached their highest level in 2025. Source
• Reserve build offset claim savings: Future policy benefit reserves rose $7.7 million, mainly from growth in Domestic Insurance. The prior-year period also had a large reserve release when matured endowments were paid. Source
• Total benefits and expenses rose: Total benefits and expenses rose to $60.9 million from $58.2 million, as the claims decline was more than offset by the reserve increase. Source

“Targeted investments in our strategic roadmap reinforce our leadership and are designed to drive clear growth of premiums and adjusted book value per share, and deliver long-term value for both our customers and shareholders”

Jon Stenberg, President and Chief Executive Officer

Investments and portfolio

• Total investment income rose: Total investment income was $18.1 million, up from $17.9 million, due to investment grade private placement credit investments, where management expects higher returns. Source
• Net investment income slipped: Net investment income was $17.0 million, down from $17.2 million, which management attributed to higher limited partnership investment expenses. Source
• Portfolio carrying value steady: The carrying value of the total investment portfolio was $1.4 billion at June 30, 2026, about the same as a year earlier. Source

Cash, book value and capital

• Operating cash flow turned positive: Operating cash flow was $1.7 million provided in Q2 2026, after $0.3 million used in Q1 2026 according to the prior release. Source
• Book value per share rose: Book value per Class A share was $4.64 at June 30, 2026, up from $4.56 a year earlier. Source
• No debt and $17.0M cash: The company reported cash and cash equivalents of $17.0 million and no debt at June 30, 2026, with total assets of $1.8 billion. Source

Strategy, growth and reporting

• Four key growth initiatives listed: The listed initiatives are increasing first year premium revenues, penetration in new and existing countries, new or enhanced products, and agent and client servicing platforms. Source
• Roadmap aimed at per-share growth: Management said the strategic roadmap is designed to deliver sustainable growth in premiums, adjusted net income, and adjusted book value per share. Source
• Non-GAAP measures exclude investment swings: Adjusted measures exclude investment related gains and losses, which management says are heavily affected by investment market fluctuations. Source

Coming up, as management said on 6 August 2026

• Maturities expected to decline further: Management expects reduced levels of matured endowments during the rest of 2026 and over the next few years, as fewer contracts expire. Source
• Other income expected to decline: Other income, which relates to supplemental contracts, is expected to decline as matured endowment benefits decline, as contractually expected. Source

Figures management reported

Risks management discussed

• Demand: Unfavorable persistency in Domestic Insurance constrained premium growth, according to management. Source
• Demand: Surrenders and matured endowments over recent years have reduced the number of International policies in force and paying renewal premiums. Source
• Financial: The annualized portfolio yield was 4.41% against 4.50% a year earlier, which management attributed to higher investment expenses. Source

Earlier plans management reported on

• Met: Management referred to positive annual operating cash flow in every year since 2004. Source
• Not stated: Management expects positive net cash provided by operating activities for the rest of 2026. Source

Other quarters

• Q3 FY2026 earnings call
• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.