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 APRIL 2025 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 that build on our sustainable competitive advantages 247 Policyholders 8,000+ $1.7B Assets In More Than Employees Independent 75 Agents Ove
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 Over 45 years serving this market We deliver whole life insurance
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: Strategic Roadmap
Strategic Roadmap \CcITIZENS ©
Slide 9: Company Timeline
COMPANY TIMELINE 2021 Transformational strategic growth roadmap initiated 2020 2021 to 2023 • Over 20 new products or product enhancements CEO, Gerald • Added sought-after white-labeled products by Shields joins established fast-growing agency partners Citizens 1975 1995 • A.M. Best Financial Rating
Slide 10: Strategic Roadmap Is on Track
STRATEGIC ROADMAP IS ON TRACK OUR DIFFERENTIATED BUSINESS MODEL AND STRONG EXECUTION FUEL MEANINGFUL GROWTH 3.5000 Drive Revenues and Profit Growth As we look ahead, we expect continued sales growth leading to revenue and profit growth in the full year 2025 and stronger growth in full year 2026. 3.0
Slide 11: Strategic Roadmap Priorities
STRATEGIC ROADMAP PRIORITIES WE ARE DELIVERING ON OUR COMMITMENTS 2024 2025E Accelerate Profitable Growth Our 2024 record setting results are a testament to Priorities: Our Strategic Roadmap is designed to deliver the significant transformation of Citizens: ▪ Increase first year premium revenues imp
Slide 12: 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 13: Executing on Success
EXECUTING ON SUCCESS Amount of Insurance Issued +54% y/y in 2024 $1,200 $1,140 New & Innovative Products $900 Successful Selling Campaigns $742 $675 Growing Distributor Relationships $600 Positive results $392 $411 • Highest amount of insurance issued ever in a year of $354 over $1.1 billion in 2024
Slide 14: 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 43 underpenetrated U.S. states and Washington, DC Licensed in 43 U.S. States • New final expense products and Washington, DC •
Slide 15: Shareholder Returns
SHAREHOLDER RETURNS Book Value Per Share, Ex-AOCI Shareholder Equity, Ex-AOCI $6.50 $6.14 $millions $5.85 $6.00 $5.31 $400 $5.50 $5.00 $4.78 $4.50 $306 $300 $290 $4.00 $265 $239 $96 $3.50 $118 $3.00 $200 $137 $2.50 $139 $2.00 $1.50 $100 $210 $172 $1.00 $128 $100 $0.50 $0.00 $0 FY 21 FY 22 FY 23 FY 2
Slide 16: 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 17: Financial Overview
Financial Overview \CcITIZENS ©
Slide 18: 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 19: Investment Portfolio
INVESTMENT PORTFOLIO HIGH-QUALITY AND WELL-DIVERSIFIED Cash and Invested Assets 12/31/24 • Fixed income and cash securities represent 86% of the investment portfolio 7% Long-term and • 99% of fixed income investments Equity Investments rated investment grade 5% Policy Loans • Annualized investment y
Slide 20: Capital Adequacy and Liquidity
CAPITAL ADEQUACY AND LIQUIDITY Risk Based Capital Ratio (%) Our Puerto Rico Company (TAC/ACL RBC) Capital Ratio 700% 8.0 623% 6.6 7.0 600% 6.0 Management’s 500% 5.0 objective is 400% less than 7.0A Minimum 350% 4.0 300% 3.0 200% 2.0 100% 1.0 0% 0.0 2024 2024 RBC Ratio (%) Premium to Surplus Ratio AO
Slide 21: Revenues
REVENUES Explanatory Notes on Use of Non-GAAP Measures 1Adjusted Revenues Adjusted revenues is a non-GAAP measure that excludes investment related gains (losses) from total revenues. Management believes the adjusted revenues metric is meaningful, as it allows investors to evaluate revenues generated
Slide 22: Adjusted Operating Income
ADJUSTED OPERATING INCOME Explanatory Notes on Use of Non-GAAP Measures, Continued 2Adjusted Operating Income Adjusted Income Before Federal Income Tax is a non-GAAP measure that is computed as pre-tax GAAP operating income with discrete adjustments that exclude net investment related gains (losses)
Slide 23: Stockholders' Equity and Book Value Per Share
STOCKHOLDERS’ EQUITY AND BOOK VALUE PER SHARE Explanatory Notes on Use of Non-GAAP Measures, Continued 3Adjusted 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
Slide 24: SC Citizens
SC CITIZENS
Slide 25: Appendix
Appendix \CcITIZENS ©
Slide 26: Dedicated & Experienced Management Team
DEDICATED & EXPERIENCED MANAGEMENT TEAM INTERDISCIPLINARY TEAM WITH BROAD CAPABILITIES JON STENBERG JEFFERY P. CONKLIN CEO and President CEO and Chief Financial Officer and Treasurer, Chief CFO Since ’19 PRESIDENT Investment Officer Joined ’17 Joined ‘24 Paula Guerrero CIO SHERYL KINLAW Chief Inform