CITIZENS : | 2023 ANNUAL REPORT

INSURANCE IS A PROMISE MADE.

CITIZENS IS A PROMISE KEPT. ™

		REPORT
		.
	INC
CITIZENS,
2023	ANNUAL

CITIZENS OVERVIEW

We specialize in offering traditional life insurance, endowment products and final expense insurance in niche markets where we believe we are able to achieve competitive advantages.

232 EMPLOYEES	2023 PREMIUM REVENUE
		(GEOGRAPHY)
		United
	Other	States
POLICYHOLDERS
IN MORE THAN
75 COUNTRIES	Argentina
	Ecuador	Colombia
3,000+
INDEPENDENT	Venezuela
AGENTS		Taiwan

$1.7B ASSETS

OVER $4.9 BILLION GROSS INSURANCE IN-FORCE

$167MM DIVERSIFIED PREMIUM REVENUES

*All information as of December 31, 2023

CITIZENS, INC. | 2023 ANNUAL REPORT

INDEX

PAGES 2-3- Letter to Shareholders

PAGE 4 - Form 10-K (For Year Ended December 31, 2023)

INSIDE BACK COVER - Corporate Information

CITIZENS, INC. | 2023 ANNUAL REPORT

LETTER TO SHAREHOLDERS

2023 - EXPANDING POLICYHOLDER PROTECTION

What an exciting year, 2023 ended with a bang. The year ended with my wife and I having a new grandson, Sebastian, who was born on December 20th, which happens to be our wedding anniversary. Finally, a grandchild who's birthday I will remember. Our grandson was a few weeks premature and struggled for a couple weeks. Everything worked out and he is doing really well. But this reminded me how fragile and delicate life can be. Every day is full of uncertainty, difficulties, joys, happiness and sometimes sadness. Life is precious and uncertain. This uncertainty is key to our mission and to the purpose of Citizens. We protect families during the uncertain times. I am constantly reminding our team that we have a very important job - our commitment and passion to provide life insurance and policyholder services at an extremely high level. As we say at Citizens, "Insurance is a promise; Citizens is a promise kept". We want to honor our commitments to our policyholders - we also want to honor their lives by giving them some peace of mind that their family will be taken care of when they are no longer here to do that.

CELEBRATING 30 YEARS ON THE NYSE!

2 Courtesy of NYSE

LETTER TO SHAREHOLDERS

As a result of our focused strategy to introduce new and better products and grow our distribution channels, in 2023, Citizens is proud that we provided coverage to more policyholders than ever before. At the end of 2023, Citizens had more than a half a million policies in force and $4.9 billion USD of gross insurance in-force in over 75 countries. In 2023 alone, we issued almost $750 million in new insurance, a 10% increase from 2022. That is a lot of people we are protecting around the world; a lot of families that have life insurance to protect them during those uncertain times. Policyholders have entrusted us with the protection of their families. Citizens takes this trust very seriously; we want to honor this trust and consistently be there to protect families. In 2023, Citizens paid over $30 million dollars in claims to over 10,000 beneficiaries. This is a real example where Citizens is honoring our promise to be there for the families.

2023 saw significant expansion in both our international and domestic business. First year sales in our international business grew by over 6% as we grew our producing agent sales force. I am very proud of the tremendous work our international team is doing, thriving in a chaotic time. Our Taiwan market saw growth rate over 7%; tremendous growth in a very competitive market.

In 2023, Citizens expanded our footprint into the U.S. Final Expense market through continued expansion of both our product offerings and our white-label distribution partnerships. This is an exciting time as we now offer more product domestically, in both English and in Spanish, in order to serve more policyholders. This is not an effort to abandon our international market, rather to better capitalize on our end-to-end Spanish and Portuguese capabilities to serve these demographics in the United States.

2023 also saw Citizens get our first AM Best rating. We achieved a B++ rating, with a "very strong" balance sheet. This tremendous first-time rating is a testimony to the accomplishments of the last few years and shows the strong financial position of Citizens. We were invited to ring the Opening Bell at the New York Stock Exchange to commemorate this accomplishment. We are very encouraged and look forward to continuing to build upon this rating to further expand our domestic distribution.

2024 is going to be a very exciting year as we continue to grow and strengthen Citizens. The opportunities seem to be boundless in all our markets. With $1.7 billion in assets and no debt, we are in the best financial position we have been in and have improved the talent of our team to face the challenges of the future. Hold on, as you see the exciting times that await us this next year!!! We are growing as never before.

Sincerely,

Gerald W. Shields

Chief Executive Officer

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FORM 10-K

WWW.CITIZENSINC.COM

4

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

FORM 10-K

• ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023

or

• TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 000-16509

CITIZENS, INC.

(Exact name of registrant as specified in its charter)

Colorado			84-0755371
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification no.)
11815 Alterra Pkwy, Suite 1500, Austin, TX	78758
	(Address of principal executive offices)		(Zip Code)
Registrant's telephone number, including area code	[phone]
Securities registered pursuant to Section 12(b) of the Act
Class A Common Stock	CIA		New York Stock Exchange
(Title of each class)	(Trading symbol(s))		(Name of each exchange on which registered)

Securities registered pursuant to Section 12(g) of the Act

None

(Title of class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. ☐ Yes ☒ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. ☐ Yes ☒ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large accelerated	☐	Accelerated filer ☒	Non-accelerated	☐	Smaller reporting	☒	Emerging growth	☐
filer			filer		company		company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive- based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ☐ Yes ☒ No

As of June 30, 2023, the aggregate market value of the Class A common stock held by non-affiliates of the registrant was approximately $115,859,350.

As of March 6, 2024, the Registrant had 49,572,398 shares of Class A common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Part III of this Report incorporates by reference certain portions of the definitive proxy materials to be delivered to stockholders in connection with the 2024 Annual Meeting of Shareholders (the "2024 Proxy Statement"). The 2024 Proxy Statement will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates.

TABLE OF CONTENTS

		Page
PART I
Item 1.	Business	2
Item 1A.	Risk Factors	12
Item 1B.	Unresolved Staff Comments	24
Item 1C.	Cybersecurity	24
Item 2.	Properties	25
Item 3.	Legal Proceedings	25
Item 4.	Mine Safety Disclosures	25
PART II
Item 5.	Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases	26
	of Equity Securities
Item 6.	[Reserved]	26
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations	27
Item 7A.	Quantitative and Qualitative Disclosures about Market Risk	55
Item 8.	Financial Statements and Supplementary Data	55
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	55
Item 9A.	Controls and Procedures	55
Item 9B.	Other Information	57
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspection	57
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	58
Item 11.	Executive Compensation	58
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related	58
	Stockholder Matters
Item 13.	Certain Relationships and Related Transactions, and Director Independence	58
Item 14.	Principal Accountant Fees and Services	58
PART IV
Item 15.	Exhibits, Financial Statement Schedules	59
Item 16.	Form 10-K Summary	121

Signatures

122

CITIZENS, INC.

FORWARD-LOOKING STATEMENTS

This Annual Report on Form 10-K ("Form 10-K") contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this Form 10-K other than statements of historical fact, including statements regarding our future results of operations and financial position, our business strategy and plans, our expected capital needs, and our objectives for future operations, are forward-looking statements. Forward-looking statements may be identified by words such as "future," "anticipates," "believes," "estimates," "expects," "intends," "plans," "predicts," "will," "would," "could," "can," "may," and similar terms. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in Part I, Item 1A, Risk Factorsin this Form 10-K. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the future events and trends discussed in this Form 10-K may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

We assume no obligation to revise or update any forward-looking statements for any reason, except as required by law. You should be aware that factors not referred to above could affect the accuracy of our forward-lookingstatements and use caution and common sense when considering our forward-lookingstatements.

ACCESS TO INFORMATION

The U.S. Securities and Exchange Commission ("SEC") maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC. The public can obtain any documents that the Company files with the SEC at http://www.sec.gov. We also make available, free of charge, through our Internet website (http:// www.citizensinc.com), our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Section 16 Reports filed by officers and directors, and, if applicable, amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as soon as reasonably practicable after we electronically file such reports with, or furnish such reports to, the SEC. We are not including any of the information contained on our website as part of, or incorporating it by reference into, this Form 10-K.

December 31, 2023 | 10-K

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