Citizens, Inc. · NYSE:CIA
Citizens — Investor Presentation (November 2024)
26 slides from Citizens's investor presentation, November 2024
Slide 1: Citizens Inc. Mix Shift to Higher Growth and Clear Revenue Growth Opportunities
CITIZENS INC. MIX SHIFT TO HIGHER GROWTH AND CLEAR REVENUE GROWTH OPPORTUNITIES NOVEMBER 2024 WWW.CITIZENSINC.COM NYSE: CIA
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Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. All statements other than statements of historical facts contained in this presentation, including statements
Slide 4: Company Overview
Company Overview \CcITIZENS ©
Slide 5: Citizens Overview (NYSE: CIA)
CITIZENS OVERVIEW (NYSE: CIA) We specialize in offering International life and endowment products and Domestic final expense insurance in niche markets globally where we believe we are able to achieve competitive advantages 232 Policyholders 8,000+ $1.7B Assets In more than employees Independent 80
Slide 6: Company Snapshot
COMPANY SNAPSHOT Our Markets We deliver U.S. dollar-denominated whole life and endowment insurance policies International Majority of premiums originate in Latin American countries Life Insurance • Additional premiums sales in Taiwan We deliver whole life insurance products, living benefits and crit
Slide 7: Uniquely Positioned for Growth Opportunities
UNIQUELY POSITIONED FOR GROWTH OPPORTUNITIES PERSISTENT CUSTOMER BASE EXPANSION IN LARGE, GROWING UNDERSERVED NICHE MARKETS GLOBALLY Capital is invested in a more secure economic environment (the U.S.) U.S. Dollar Denominated Protection against devaluation of the policyowners' local currency Product
Slide 8: 2024 Expected Milestones
2024 EXPECTED MILESTONES OUR DIFFERENTIATED BUSINESS MODEL AND STRONG EXECUTION FUELING MEANINGFUL GROWTH For 2024, Citizens has the following aspirations: • Increase first year premium revenues at least 25% Status YTD through 9/30/24: Increased 66% • Expand global network of producing agents at lea
Slide 9: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS TRANSFORMING AND CLEAR REVENUE GROWTH OPPORTUNITIES Unique Market Position Clear Growth Opportunities Executing on Goals • A Leader in USD-denominated whole • Large unmet need for Spanish insurance • Rapid expansion of sales force life products, internationally products in
Slide 10: Roadmap Execution
Roadmap Execution \CcITIZENS ©
Slide 11: Recent Accomplishments
ACCOMPLISHMENTS MIX SHIFT TO HIGHER GROWTH OPPORTUNITIES INITIATIVES Rapid expansion of sales force Clear and defined runway for geographic Disciplined expense and expansion capital management Rapidly develop innovative products Advantages in growing niche markets globally ▪ Record number of global
Slide 12: Executing on Success
EXECUTING ON SUCCESS Amount of Insurance Issued +74% y/y in YTD 1000 Through 9/30/24 800 $877 New & Innovative Products $742 $675 $238 Successful Selling Campaigns 600 Growing Distributor Relationships $392 $411 $504 400 $354 Positive results • Record insurance issued in the most recent four consecu
Slide 13: Revenue Growth Drivers: Our Life Insurance Segment
REVENUE GROWTH DRIVERS: OUR LIFE INSURANCE SEGMENT STRONG EXECUTION ON OUR ADVANTAGES IN GROWING NICHE MARKETS GLOBALLY U.S. Domestic growth drivers: • Increased licenses to 42 underpenetrated U.S. states and Washington, DC Licensed in 42 U.S. States • New final expense products and Washington, DC •
Slide 14: Shareholder Returns
SHAREHOLDER RETURNS Book Value Per Share, Ex-AOCI Shareholder Equity, Ex-AOCI $6.50 + 8% y/y $millions $6.06 $5.85 $6.00 $5.50 $5.31 $400 +8% y/y $5.00 $4.78 in Q3 2024 $4.50 $290 $302 $300 $4.00 $265 $239 $94 $3.50 $118 $3.00 $200 $137 $2.50 $139 $2.00 $1.50 $100 $208 $172 $1.00 $128 $100 $0.50 $0.
Slide 15: Process Improvements & Technology Drives Efficiency
PROCESS IMPROVEMENTS & TECHNOLOGY DRIVES EFFICIENCY MAKING IT EASIER TO DO BUSINESS WITH CITIZENS Sales & Distribution Self-service Platform Developed digital sales and Enhanced policyholder and agent servicing platforms to improve self-services platform with new distribution capabilities capabiliti
Slide 16: Financial Overview
Financial Overview \CcITIZENS ©
Slide 17: Low Risk Profile and Financial Strength
LOW RISK PROFILE AND FINANCIAL STRENGTH • Low risk business model with traditional products and conservative investment approach Disciplined Conservative • Strong balance sheet underpinned by a prudent Approach to Investment approach to: Capital and Portfolio Liquidity o Investment portfolio mix o P
Slide 18: Investment Portfolio
INVESTMENT PORTFOLIO HIGH-QUALITY AND WELL-DIVERSIFIED Cash and Invested Assets (Q3 2024) • Fixed income and cash securities represent 88% of the investment portfolio 7% Long-term and Equity • 99% of fixed income investments Investments rated investment grade 5% $1.48B Policy Loans • Annualized inve
Slide 19: Capital Adequacy and Liquidity
CAPITAL ADEQUACY AND LIQUIDITY Risk Based Capital Ratio (%) Our Puerto Rico Company (TAC/ACL RBC) Capital Ratio 600% 8.0 488% 7.0 500% 6.0 5.1 Management’s 400% 5.0 objective is Minimum 350% less than 7.0A 300% 4.0 3.0 200% 2.0 100% 1.0 0% 0.0 2023 2023 RBC Ratio (%) Premium to Surplus Ratio AOur lo
Slide 20: Financial Highlights for Q3
FINANCIAL HIGHLIGHTS FOR Q3 GAAP Financial Results As of and for the periods ended Three Months Ended September 30, Nine Months Ended September 30, Performance Highlights (In thousands, except per share data) 2024 2023 2024 2023 Total Revenues $ 61,731 $ 59,390 $ 181,527 $ 173,831 • Premium revenues
Slide 21: SC Citizens
SC CITIZENS
Slide 22: Appendix
Appendix \CcITIZENS ©
Slide 23: Explanatory Notes on Use of Non-GAAP Measures
Explanatory Notes on Use of Non-GAAP Measures 1Adjusted Operating Income Adjusted Operating Income is a non-GAAP measure that is computed as pre-tax GAAP operating income, excluding net investment related gains (losses) and unusual one-time items. Management believes that this metric is meaningful,
Slide 24: Explanatory Notes on Use of Non-GAAP Measures, Continued
Explanatory Notes on Use of Non-GAAP Measures, Continued 2Adjusted Book Value Per Class A Common Share Adjusted book value per Class A common share is a non-GAAP measure that is calculated by dividing actual Class A common stockholders’ equity, excluding AOCI, by the number of Class A common shares
Slide 25: Company Timeline
COMPANY TIMELINE 2020 2021 Strategic Initiatives CEO, Gerald 1) Product and Geographic expansion Shields joins 2) Enhance marketing and sales efforts Citizens 1975 1995 3) Implement process improvements Expanded Security Plan Life was operations incorporated to fund Internationally final expenses Be
Slide 26: Dedicated & Experienced Management Team
DEDICATED & EXPERIENCED MANAGEMENT TEAM INTERDISCIPLINARY TEAM WITH BROAD CAPABILITIES JON STENBERG SHERYL KINLAW CEO and President CEO and Vice President, Chief Legal Officer and Secretary CLO Since PRESIDENT 2021 Since 2024 MATT LEWIS ROBERT M. MAULDIN, III VP Vice President, Chief Marketing Offic