falsedesktopCIA2020-09-30000002409020000055{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated filer\t☐\tAccelerated filer\t☒\nNon-accelerated filer\t☐\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☐\n", "q10k_tbl_1": "\t\t\tPage Number\nPart I. FINANCIAL INFORMATION\t\t\t\n\tItem 1.\tFinancial Statements\t\n\t\tConsolidated Balance Sheets September 30 2020 (Unaudited) and December 31 2019\t2\n\t\tConsolidated Statements of Operations and Comprehensive Income (Loss) Three and Nine Months Ended September 30 2020 and 2019 (Unaudited)\t4\n\t\tConsolidated Statements of Stockholders' Equity Nine Months Ended September 30 2020 and 2019 (Unaudited)\t5\n\t\tConsolidated Statements of Cash Flows Nine Months Ended September 30 2020 and 2019 (Unaudited)\t7\n\t\tNotes to Consolidated Financial Statements (Unaudited)\t9\n\tItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t33\n\tItem 3.\tQuantitative and Qualitative Disclosures about Market Risk\t57\n\tItem 4.\tControls and Procedures\t59\nPart II. OTHER INFORMATION\t\t\t\n\tItem 1.\tLegal Proceedings\t60\n\tItem 1A.\tRisk Factors\t62\n\tItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t64\n\tItem 3.\tDefaults Upon Senior Securities\t64\n\tItem 4.\tMine Safety Disclosures\t64\n\tItem 5.\tOther Information\t65\n\tItem 6.\tExhibits\t65\n", "q10k_tbl_2": "(In thousands)\tSeptember 30 2020\tDecember 31 2019\nAssets\t(Unaudited)\t\nInvestments:\t\t\nFixed maturities available-for-sale at fair value (amortized cost: $1308056 and $1293853 in 2020 and 2019 respectively)\t1444579\t1377959\nEquity securities at fair value\t21151\t16033\nPolicy loans\t83962\t82005\nReal estate held-for-sale\t2571\t2571\nOther long-term investments (portion measured at fair value $10503 in 2020; less allowance for losses of $11 in 2020)\t19668\t385\nShort-term investments\t0\t1301\nTotal investments\t1571931\t1480254\nCash and cash equivalents\t42261\t46205\nAccrued investment income\t16320\t17453\nReinsurance recoverable\t11970\t3696\nDeferred policy acquisition costs\t143523\t149249\nCost of insurance acquired\t12083\t13455\nGoodwill and other intangible assets\t13572\t13575\nProperty and equipment net\t16089\t5904\nDue premiums\t11222\t12656\nOther assets (less allowance for losses of $257 in 2020)\t5367\t2489\nTotal assets\t1844338\t1744936\n", "q10k_tbl_3": "(In thousands except share amounts)\tSeptember 30 2020\tDecember 31 2019\nLiabilities and Stockholders' Equity\t(Unaudited)\t\nLiabilities:\t\t\nPolicy liabilities:\t\t\nFuture policy benefit reserves:\t\t\nLife insurance\t1238568\t1218757\nAnnuities\t79875\t76380\nAccident and health\t806\t1031\nDividend accumulations\t32449\t29211\nPremiums paid in advance\t41058\t43102\nPolicy claims payable\t18822\t8059\nOther policyholders' funds\t21599\t18192\nTotal policy liabilities\t1433177\t1394732\nCommissions payable\t2070\t2514\nCurrent federal income tax payable\t47787\t44622\nDeferred federal income tax payable\t16030\t12428\nPayable for securities in process of settlement\t5995\t0\nOther liabilities\t42525\t30804\nTotal liabilities\t1547584\t1485100\nCommitments and contingencies (Note 8)\t\t\nStockholders' Equity:\t\t\nCommon stock:\t\t\nClass A no par value 100000000 shares authorized 52654016 and 52364993 shares issued and outstanding in 2020 and 2019 respectively including shares in treasury of 3135738 in 2020 and 2019\t262667\t261515\nClass B no par value 2000000 shares authorized 1001714 shares issued and outstanding in 2020 and 2019\t3184\t3184\nAccumulated deficit\t(83890)\t(70969)\nAccumulated other comprehensive income:\t\t\nNet unrealized gains on fixed maturity securities net of tax\t125804\t77117\nTreasury stock at cost\t(11011)\t(11011)\nTotal stockholders' equity\t296754\t259836\nTotal liabilities and stockholders' equity\t1844338\t1744936\n", "q10k_tbl_4": "\tThree Months Ended September 30\t\tNine Months Ended September 30\t\n(In thousands except per share amounts)\t2020\t2019\t2020\t2019\nRevenues:\t\t\t\t\nPremiums:\t\t\t\t\nLife insurance\t42732\t44502\t122863\t127795\nAccident and health insurance\t236\t350\t745\t1018\nProperty insurance\t1140\t1157\t3313\t3464\nNet investment income\t14997\t15039\t45081\t44150\nRealized investment gains (losses) net\t527\t72\t669\t3164\nOther income\t193\t347\t1217\t1148\nTotal revenues\t59825\t61467\t173888\t180739\nBenefits and Expenses:\t\t\t\t\nInsurance benefits paid or provided:\t\t\t\t\nClaims and surrenders\t32958\t28751\t87161\t78808\nIncrease in future policy benefit reserves\t4158\t6409\t21866\t28180\nPolicyholders' dividends\t1450\t1560\t4011\t4165\nTotal insurance benefits paid or provided\t38566\t36720\t113038\t111153\nCommissions\t7712\t8879\t22279\t25147\nOther general expenses\t19391\t11530\t42003\t37611\nCapitalization of deferred policy acquisition costs\t(4892)\t(5984)\t(13632)\t(16224)\nAmortization of deferred policy acquisition costs\t6760\t7835\t18940\t21043\nAmortization of cost of insurance acquired\t459\t355\t1228\t1192\nTotal benefits and expenses\t67996\t59335\t183856\t179922\nIncome (loss) before federal income tax\t(8171)\t2132\t(9968)\t817\nFederal income tax expense (benefit)\t(256)\t86\t2558\t7138\nNet income (loss)\t(7915)\t2046\t(12526)\t(6321)\nPer Share Amounts:\t\t\t\t\nBasic and diluted earnings (losses) per share of Class A common stock\t(0.16)\t0.04\t(0.25)\t(0.13)\nBasic and diluted earnings (losses) per share of Class B common stock\t(0.07)\t0.02\t(0.12)\t(0.06)\nOther Comprehensive Income:\t\t\t\t\nUnrealized gains on fixed maturity securities:\t\t\t\t\nUnrealized holding gains arising during period\t15128\t24201\t52707\t84222\nReclassification adjustment for losses (gains) included in net income (loss)\t2\t(53)\t46\t(30)\nUnrealized gains on fixed maturity securities net\t15130\t24148\t52753\t84192\nIncome tax expense on unrealized gains on fixed maturity securities\t1020\t1627\t4067\t5815\nOther comprehensive income\t14110\t22521\t48686\t78377\nTotal comprehensive income\t6195\t24567\t36160\t72056\n", "q10k_tbl_5": "\tCommon Stock\t\tAccumulated deficit\tAccumulated other comprehensive income (loss)\tTreasury stock\tTotal Stock-holders' equity\n(In thousands)\tClass A\tClass B\t\t\nBalance at December 31 2019\t261515\t3184\t(70969)\t77117\t(11011)\t259836\nAccounting standards adopted January 1 2020\t0\t0\t(395)\t0\t0\t(395)\nComprehensive income (loss):\t\t\t\t\t\t\nNet income (loss)\t0\t0\t(3584)\t0\t0\t(3584)\nUnrealized investment gains (losses) net\t0\t0\t0\t(40070)\t0\t(40070)\nTotal comprehensive income (loss)\t0\t0\t(3584)\t(40070)\t0\t(43654)\nStock-based compensation\t(53)\t0\t0\t0\t0\t(53)\nBalance at March 31 2020\t261462\t3184\t(74948)\t37047\t(11011)\t215734\nComprehensive income (loss):\t\t\t\t\t\t\nNet income (loss)\t0\t0\t(1027)\t0\t0\t(1027)\nUnrealized investment gains (losses) net\t0\t0\t0\t74647\t0\t74647\nTotal comprehensive income (loss)\t0\t0\t(1027)\t74647\t0\t73620\nStock-based compensation\t439\t0\t0\t0\t0\t439\nBalance at June 30 2020\t261901\t3184\t(75975)\t111694\t(11011)\t289793\nComprehensive income (loss):\t\t\t\t\t\t\nNet income (loss)\t0\t0\t(7915)\t0\t0\t(7915)\nUnrealized investment gains (losses) net\t0\t0\t0\t14110\t0\t14110\nTotal comprehensive income (loss)\t0\t0\t(7915)\t14110\t0\t6195\nStock-based compensation\t766\t0\t0\t0\t0\t766\nBalance at September 30 2020\t262667\t3184\t(83890)\t125804\t(11011)\t296754\n", "q10k_tbl_6": "CITIZENS INC. AND CONSOLIDATED SUBSIDIARIES\t\t\t\t\t\t\nConsolidated Statements of Stockholders' Equity Continued\t\t\t\t\t\t\n(Unaudited)\t\t\t\t\t\t\n\tCommon Stock\t\tAccumulated deficit\tAccumulated other comprehensive income (loss)\tTreasury stock\tTotal Stock-holders' equity\n(In thousands)\tClass A\tClass B\t\t\nBalance at December 31 2018\t259793\t3184\t(69599)\t5366\t(11011)\t187733\nComprehensive income (loss):\t\t\t\t\t\t\nNet income (loss)\t0\t0\t(3802)\t0\t0\t(3802)\nUnrealized investment gains (losses) net\t0\t0\t0\t26880\t0\t26880\nTotal comprehensive income (loss)\t0\t0\t(3802)\t26880\t0\t23078\nStock-based compensation\t1083\t0\t0\t0\t0\t1083\nBalance at March 31 2019\t260876\t3184\t(73401)\t32246\t(11011)\t211894\nComprehensive income (loss):\t\t\t\t\t\t\nNet income (loss)\t0\t0\t(4565)\t0\t0\t(4565)\nUnrealized investment gains (losses) net\t0\t0\t0\t28976\t0\t28976\nTotal comprehensive income (loss)\t0\t0\t(4565)\t28976\t0\t24411\nStock-based compensation\t127\t0\t0\t0\t0\t127\nBalance at June 30 2019\t261003\t3184\t(77966)\t61222\t(11011)\t236432\nComprehensive income (loss):\t\t\t\t\t\t\nNet income (as restated)\t0\t0\t2046\t0\t0\t2046\nUnrealized investment gains (losses) net\t0\t0\t0\t22521\t0\t22521\nTotal comprehensive income (loss)\t0\t0\t2046\t22521\t0\t24567\nStock-based compensation\t343\t0\t0\t0\t0\t343\nBalance at September 30 2019\t261346\t3184\t(75920)\t83743\t(11011)\t261342\n", "q10k_tbl_7": "Nine Months Ended September 30 (In thousands)\t2020\t2019\nCash flows from operating activities:\t\t\nNet income (loss)\t(12526)\t(6321)\nAdjustments to reconcile net gain (loss) to net cash provided by operating activities:\t\t\nRealized investment (gains) losses on sale of investments and other assets\t(669)\t(3164)\nNet deferred policy acquisition costs\t5308\t4819\nAmortization of cost of insurance acquired\t1228\t1192\nDepreciation\t771\t1269\nAmortization of premiums and discounts on investments\t6616\t10422\nStock-based compensation\t2020\t1930\nDeferred federal income tax expense (benefit)\t(386)\t560\nChange in:\t\t\nAccrued investment income\t1133\t819\nReinsurance recoverable\t(8274)\t68\nDue premiums\t1434\t2588\nFuture policy benefit reserves\t21654\t27994\nOther policyholders' liabilities\t15364\t2309\nFederal income tax payable\t3165\t6580\nCommissions payable and other liabilities\t145\t1699\nOther net\t(2967)\t(1851)\nNet cash provided by (used in) operating activities\t34016\t50913\nCash flows from investing activities:\t\t\nPurchases of fixed maturity securities available-for-sale\t(187267)\t(210445)\nSales of fixed maturity securities available-for-sale\t17524\t39708\nMaturities and calls of fixed maturity securities available-for-sale\t154873\t111757\nPurchases of equity securities\t(4473)\t0\nPrincipal payments on mortgage loans\t9\t6\nIncrease in policy loans net\t(1957)\t(1141)\nSales of other long-term investments and real estate\t0\t6981\nPurchases of other long-term investments\t(19115)\t0\nSales of property and equipment\t0\t15\nPurchases of property and equipment\t(124)\t(509)\nMaturities of short-term investments\t1300\t7940\nPurchases of short-term investments\t0\t(2456)\nNet cash provided by (used in) investing activities\t(39230)\t(48144)\nSee accompanying Notes to Consolidated Financial Statements.\t\t\n", "q10k_tbl_8": "CITIZENS INC. AND CONSOLIDATED SUBSIDIARIES\t\t\nConsolidated Statements of Cash Flows Continued\t\t\n(Unaudited)\t\t\nNine Months Ended September 30 (In thousands)\t2020\t2019\nCash flows from financing activities:\t\t\nAnnuity deposits\t5542\t4948\nAnnuity withdrawals\t(3403)\t(5685)\nOther\t(869)\t(377)\nNet cash provided by (used in) financing activities\t1270\t(1114)\nNet increase (decrease) in cash and cash equivalents\t(3944)\t1655\nCash and cash equivalents at beginning of year\t46205\t45492\nCash and cash equivalents at end of period\t42261\t47147\n", "q10k_tbl_9": "\tLife Insurance\tHome Service Insurance\tOther Non-Insurance Enterprises\tConsolidated\nThree Months Ended September 30 2020\t\t\n(In thousands)\t\t\nRevenues:\t\t\t\t\nPremiums\t32265\t11843\t0\t44108\nNet investment income\t11507\t3200\t290\t14997\nRealized investment gains (losses) net\t133\t388\t6\t527\nOther income\t189\t1\t3\t193\nTotal revenues\t44094\t15432\t299\t59825\nBenefits and expenses:\t\t\t\t\nInsurance benefits paid or provided:\t\t\t\t\nClaims and surrenders\t25023\t7935\t0\t32958\nIncrease in future policy benefit reserves\t3274\t884\t0\t4158\nPolicyholders' dividends\t1443\t7\t0\t1450\nTotal insurance benefits paid or provided\t29740\t8826\t0\t38566\nCommissions\t4140\t3572\t0\t7712\nOther general expenses\t1915\t4524\t12952\t19391\nCapitalization of deferred policy acquisition costs\t(3512)\t(1380)\t0\t(4892)\nAmortization of deferred policy acquisition costs\t6190\t570\t0\t6760\nAmortization of cost of insurance acquired\t113\t346\t0\t459\nTotal benefits and expenses\t38586\t16458\t12952\t67996\nIncome (loss) before federal income tax expense\t5508\t(1026)\t(12653)\t(8171)\n", "q10k_tbl_10": "\tLife Insurance\tHome Service Insurance\tOther Non-Insurance Enterprises\tConsolidated\nNine Months Ended September 30 2020\t\t\n(In thousands)\t\t\nRevenues:\t\t\t\t\nPremiums\t92146\t34775\t0\t126921\nNet investment income\t34332\t9788\t961\t45081\nRealized investment gains (losses) net\t1259\t(405)\t(185)\t669\nOther income\t1195\t19\t3\t1217\nTotal revenues\t128932\t44177\t779\t173888\nBenefits and expenses:\t\t\t\t\nInsurance benefits paid or provided:\t\t\t\t\nClaims and surrenders\t66071\t21090\t0\t87161\nIncrease in future policy benefit reserves\t18804\t3062\t0\t21866\nPolicyholders' dividends\t3987\t24\t0\t4011\nTotal insurance benefits paid or provided\t88862\t24176\t0\t113038\nCommissions\t11912\t10367\t0\t22279\nOther general expenses\t11309\t13431\t17263\t42003\nCapitalization of deferred policy acquisition costs\t(10149)\t(3483)\t0\t(13632)\nAmortization of deferred policy acquisition costs\t16927\t2013\t0\t18940\nAmortization of cost of insurance acquired\t358\t870\t0\t1228\nTotal benefits and expenses\t119219\t47374\t17263\t183856\nIncome (loss) before federal income tax expense\t9713\t(3197)\t(16484)\t(9968)\n", "q10k_tbl_11": "\tLife Insurance\tHome Service Insurance\tOther Non-Insurance Enterprises\tConsolidated\nThree Months Ended September 30 2019\t\t\n(In thousands)\t\t\nRevenues:\t\t\t\t\nPremiums\t34385\t11624\t0\t46009\nNet investment income\t11340\t3309\t390\t15039\nRealized investment gains (losses) net\t61\t3\t8\t72\nOther income (loss)\t349\t(2)\t0\t347\nTotal revenues\t46135\t14934\t398\t61467\nBenefits and expenses:\t\t\t\t\nInsurance benefits paid or provided:\t\t\t\t\nClaims and surrenders\t22533\t6218\t0\t28751\nIncrease (decrease) in future policy benefit reserves\t7667\t(1258)\t0\t6409\nPolicyholders' dividends\t1551\t9\t0\t1560\nTotal insurance benefits paid or provided\t31751\t4969\t0\t36720\nCommissions\t5386\t3493\t0\t8879\nOther general expenses\t5358\t4669\t1503\t11530\nCapitalization of deferred policy acquisition costs\t(4743)\t(1241)\t0\t(5984)\nAmortization of deferred policy acquisition costs\t5960\t1875\t0\t7835\nAmortization of cost of insurance acquired\t113\t242\t0\t355\nTotal benefits and expenses\t43825\t14007\t1503\t59335\nIncome (loss) before federal income tax expense\t2310\t927\t(1105)\t2132\n", "q10k_tbl_12": "\tLife Insurance\tHome Service Insurance\tOther Non-Insurance Enterprises\tConsolidated\nNine Months Ended September 30 2019\t\t\n(In thousands)\t\t\nRevenues:\t\t\t\t\nPremiums\t97439\t34838\t0\t132277\nNet investment income\t33121\t9720\t1309\t44150\nRealized investment gains (losses) net\t5586\t639\t(3061)\t3164\nOther income\t1146\t0\t2\t1148\nTotal revenues\t137292\t45197\t(1750)\t180739\nBenefits and expenses:\t\t\t\t\nInsurance benefits paid or provided:\t\t\t\t\nClaims and surrenders\t61011\t17797\t0\t78808\nIncrease in future policy benefit reserves\t27499\t681\t0\t28180\nPolicyholders' dividends\t4136\t29\t0\t4165\nTotal insurance benefits paid or provided\t92646\t18507\t0\t111153\nCommissions\t14435\t10712\t0\t25147\nOther general expenses\t18021\t15071\t4519\t37611\nCapitalization of deferred policy acquisition costs\t(12465)\t(3759)\t0\t(16224)\nAmortization of deferred policy acquisition costs\t17454\t3589\t0\t21043\nAmortization of cost of insurance acquired\t373\t819\t0\t1192\nTotal benefits and expenses\t130464\t44939\t4519\t179922\nIncome (loss) before federal income tax expense\t6828\t258\t(6269)\t817\n", "q10k_tbl_13": "Three Months Ended September 30\t2020\t2019\n(In thousands except per share amounts)\t\nBasic and diluted earnings (loss) per share:\t\t\nNumerator:\t\t\nNet income (loss)\t(7915)\t2046\nNet income (loss) allocated to Class A common stock\t(7836)\t2026\nNet income (loss) allocated to Class B common stock\t(79)\t20\nNet income (loss)\t(7915)\t2046\nDenominator:\t\t\nWeighted average shares of Class A outstanding - basic\t49437\t49229\nWeighted average shares of Class A outstanding - diluted\t49832\t49327\nWeighted average shares of Class B outstanding - basic and diluted\t1002\t1002\nBasic and diluted earnings (loss) per share of Class A common stock\t(0.16)\t0.04\nBasic and diluted earnings (loss) per share of Class B common stock\t(0.07)\t0.02\n", "q10k_tbl_14": "Nine Months Ended September 30\t2020\t2019\n(In thousands except per share amounts)\t\nBasic and diluted earnings (loss) per share:\t\t\nNumerator:\t\t\nNet income (loss)\t(12526)\t(6321)\nNet income (loss) allocated to Class A common stock\t(12401)\t(6257)\nNet income (loss) allocated to Class B common stock\t(125)\t(64)\nNet income (loss)\t(12526)\t(6321)\nDenominator:\t\t\nWeighted average shares of Class A outstanding - basic\t49365\t49229\nWeighted average shares of Class A outstanding - diluted\t49760\t49327\nWeighted average shares of Class B outstanding - basic and diluted\t1002\t1002\nBasic and diluted earnings (loss) per share of Class A common stock\t(0.25)\t(0.13)\nBasic and diluted earnings (loss) per share of Class B common stock\t(0.12)\t(0.06)\n", "q10k_tbl_15": "Carrying Value (In thousands except for %)\tSeptember 30 2020\t\t\t\tDecember 31 2019\t\t\nAmount\t\t%\t\tAmount\t\t%\nCash and invested assets:\t\t\t\t\t\t\t\nFixed maturity securities\t1444579\t\t89.5%\t\t1377959\t\t90.2%\nEquity securities\t21151\t\t1.3%\t\t16033\t\t1.1%\nPolicy loans\t83962\t\t5.2%\t\t82005\t\t5.4%\nReal estate and other long-term investments\t22239\t\t1.4%\t\t2956\t\t0.2%\nShort-term investments\t0\t\t-%\t\t1301\t\t0.1%\nCash and cash equivalents\t42261\t\t2.6%\t\t46205\t\t3.0%\nTotal cash and invested assets\t1614192\t\t100.0%\t\t1526459\t\t100.0%\n", "q10k_tbl_16": "\tAmortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tFair Value\nSeptember 30 2020\t\t\n(In thousands)\t\t\nFixed maturity securities:\t\t\t\t\nAvailable-for-sale:\t\t\t\t\nU.S. Treasury securities\t9549\t1960\t0\t11509\nU.S. Government-sponsored enterprises\t3497\t1358\t0\t4855\nStates and political subdivisions\t401852\t31926\t1059\t432719\nCorporate:\t\t\t\t\nFinancial\t205453\t23735\t478\t228710\nConsumer\t176020\t21911\t1414\t196517\nEnergy\t81326\t4525\t2191\t83660\nAll Other\t265948\t33708\t618\t299038\nCommercial mortgage-backed\t225\t0\t4\t221\nResidential mortgage-backed\t118088\t23699\t0\t141787\nAsset-backed\t45996\t189\t741\t45444\nForeign governments\t102\t17\t0\t119\nTotal fixed maturity securities\t1308056\t143028\t6505\t1444579\n", "q10k_tbl_17": "\tAmortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tFair Value\nDecember 31 2019\t\t\n(In thousands)\t\t\nFixed maturity securities:\t\t\t\t\nAvailable-for-sale:\t\t\t\t\nU.S. Treasury securities\t9709\t1638\t0\t11347\nU.S. Government-sponsored enterprises\t3516\t1015\t0\t4531\nStates and political subdivisions\t512239\t24285\t240\t536284\nCorporate:\t\t\t\t\nFinancial\t169146\t13094\t135\t182105\nConsumer\t148575\t12591\t464\t160702\nEnergy\t74315\t4765\t115\t78965\nAll Other\t212714\t16022\t420\t228316\nCommercial mortgage-backed\t1105\t0\t5\t1100\nResidential mortgage-backed\t118130\t12223\t66\t130287\nAsset-backed\t44302\t11\t110\t44203\nForeign governments\t102\t17\t0\t119\nTotal fixed maturity securities\t1293853\t85661\t1555\t1377959\n", "q10k_tbl_18": "Fair Value (In thousands)\tSeptember 30 2020\tDecember 31 2019\nEquity securities:\t\t\nStock mutual funds\t2833\t3274\nBond mutual funds\t11935\t12311\nCommon stock\t1145\t134\nNon-redeemable preferred stock\t267\t314\nNon-redeemable preferred stock fund\t4971\t0\nTotal equity securities\t21151\t16033\n", "q10k_tbl_19": "September 30 2020\tLess than 12 months\t\t\tGreater than 12 months\t\t\tTotal\t\t\n(In thousands except for # of securities)\tFair Value\tUnrealized Losses\t# of Securities\tFair Value\tUnrealized Losses\t# of Securities\tFair Value\tUnrealized Losses\t# of Securities\nFixed maturity securities:\t\t\t\t\t\t\t\t\t\nAvailable-for-sale securities:\t\t\t\t\t\t\t\t\t\nStates and political subdivisions\t32824\t1059\t29\t0\t0\t0\t32824\t1059\t29\nCorporate:\t\t\t\t\t\t\t\t\t\nFinancial\t16146\t478\t14\t0\t0\t0\t16146\t478\t14\nConsumer\t26861\t1130\t19\t2990\t284\t2\t29851\t1414\t21\nEnergy\t25297\t2191\t30\t0\t0\t0\t25297\t2191\t30\nAll Other\t20260\t618\t24\t0\t0\t0\t20260\t618\t24\nCommercial mortgage-backed\t221\t4\t1\t0\t0\t0\t221\t4\t1\nResidential mortgage-backed\t85\t0\t1\t0\t0\t0\t85\t0\t1\nAsset-backed\t38680\t741\t38\t0\t0\t0\t38680\t741\t38\nTotal fixed maturity securities\t160374\t6221\t156\t2990\t284\t2\t163364\t6505\t158\n", "q10k_tbl_20": "December 31 2019\tLess than 12 months\t\t\tGreater than 12 months\t\t\tTotal\t\t\n(In thousands except for # of securities)\tFair Value\tUnrealized Losses\t# of Securities\tFair Value\tUnrealized Losses\t# of Securities\tFair Value\tUnrealized Losses\t# of Securities\nFixed maturity securities:\t\t\t\t\t\t\t\t\t\nAvailable-for-sale securities:\t\t\t\t\t\t\t\t\t\nStates and political subdivisions\t24064\t163\t24\t1961\t77\t6\t26025\t240\t30\nCorporate:\t\t\t\t\t\t\t\t\t\nFinancial\t13581\t135\t15\t0\t0\t0\t13581\t135\t15\nConsumer\t22671\t464\t20\t0\t0\t0\t22671\t464\t20\nEnergy\t4208\t34\t4\t898\t81\t2\t5106\t115\t6\nAll Other\t22437\t285\t30\t2771\t135\t3\t25208\t420\t33\nCommercial mortgage-backed\t1100\t5\t2\t0\t0\t0\t1100\t5\t2\nResidential mortgage-backed\t1656\t65\t11\t91\t1\t3\t1747\t66\t14\nAsset-backed\t36039\t110\t27\t0\t0\t0\t36039\t110\t27\nTotal fixed maturity securities\t125756\t1261\t133\t5721\t294\t14\t131477\t1555\t147\n", "q10k_tbl_21": "September 30 2020\tAmortized Cost\tFair Value\n(In thousands)\t\nFixed maturity securities:\t\t\nDue in one year or less\t47918\t48263\nDue after one year through five years\t106727\t114430\nDue after five years through ten years\t227840\t250142\nDue after ten years\t925571\t1031744\nTotal fixed maturity securities\t1308056\t1444579\n", "q10k_tbl_22": "\tThree Months Ended\t\tNine Months Ended\t\nFixed Maturity Securities Available-for-Sale\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\t\t\t\t\t\t\nProceeds\t11221\t29294\t17524\t39708\t\t\t\t\t\t\nGross realized gains\t25\t125\t148\t234\t\t\t\t\t\t\nGross realized losses\t77\t22\t134\t387\t\t\t\t\t\t\n", "q10k_tbl_23": "September 30 2020\tLevel 1\tLevel 2\tLevel 3\tTotal Fair Value\n(In thousands)\t\t\nFinancial Assets\t\t\t\t\nFixed maturities available-for-sale\t\t\t\t\nU.S. Treasury and U.S. Government-sponsored enterprises\t11509\t4855\t0\t16364\nStates and political subdivisions\t0\t432719\t0\t432719\nCorporate\t51\t807874\t0\t807925\nCommercial mortgage-backed\t0\t221\t0\t221\nResidential mortgage-backed\t0\t141787\t0\t141787\nAsset-backed\t0\t45444\t0\t45444\nForeign governments\t0\t119\t0\t119\nTotal fixed maturities available-for-sale\t11560\t1433019\t0\t1444579\nEquity securities\t\t\t\t\nStock mutual funds\t2833\t0\t0\t2833\nBond mutual funds\t11935\t0\t0\t11935\nCommon stock\t1145\t0\t0\t1145\nNon-redeemable preferred stock\t267\t0\t0\t267\nNon-redeemable preferred stock fund\t4971\t0\t0\t4971\nTotal equity securities\t21151\t0\t0\t21151\nOther long-term investments (1)\t0\t0\t0\t10503\nTotal financial assets\t32711\t1433019\t0\t1476233\n", "q10k_tbl_24": "December 31 2019\tLevel 1\tLevel 2\tLevel 3\tTotal Fair Value\n(In thousands)\t\t\nFinancial Assets\t\t\t\t\nFixed maturities available-for-sale\t\t\t\t\nU.S. Treasury and U.S. Government-sponsored enterprises\t11348\t4530\t0\t15878\nStates and political subdivisions\t0\t536284\t0\t536284\nCorporate\t52\t650036\t0\t650088\nCommercial mortgage-backed\t0\t1100\t0\t1100\nResidential mortgage-backed\t0\t130287\t0\t130287\nAsset-backed\t0\t44203\t0\t44203\nForeign governments\t0\t119\t0\t119\nTotal fixed maturities available-for-sale\t11400\t1366559\t0\t1377959\nEquity securities\t\t\t\t\nStock mutual funds\t3274\t0\t0\t3274\nBond mutual funds\t12311\t0\t0\t12311\nCommon stock\t134\t0\t0\t134\nNon-redeemable preferred stock\t314\t0\t0\t314\nTotal equity securities\t16033\t0\t0\t16033\nTotal financial assets\t27433\t1366559\t0\t1393992\n", "q10k_tbl_25": "\tSeptember 30 2020\t\tDecember 31 2019\t\n(In thousands)\tCarrying Value\tFair Value\tCarrying Value\tFair Value\nFinancial Assets:\t\t\t\t\nMortgage loans\t158\t196\t177\t210\nPolicy loans\t83962\t83962\t82005\t82005\nShort-term investments\t0\t0\t1301\t1301\nCash and cash equivalents\t42261\t42261\t46205\t46205\nFinancial Liabilities:\t\t\t\t\nAnnuity - investment contracts\t60582\t67650\t56878\t60667\n", "q10k_tbl_26": "Carrying Value (In thousands)\tSeptember 30 2020\tDecember 31 2019\nOther long-term investments:\t\t\nPrivate equity funds\t10503\t0\nFHLB common stock\t190\t187\nMortgage loans\t158\t177\nAll other investments\t8817\t21\nTotal other long-term investments\t19668\t385\n", "q10k_tbl_27": "September 30 2020\t2020\t2019\n(In thousands)\t\nPolicy claims payable January 1\t477\t404\nLess: reinsurance recoverable\t0\t0\nNet balance January 1\t477\t404\nAdd claims incurred related to:\t\t\nCurrent year\t1890\t1082\nPrior years\t(15)\t(165)\n\t1875\t917\nDeduct claims paid related to:\t\t\nCurrent year\t1822\t764\nPrior years\t315\t157\n\t2137\t921\nNet balance September 30\t215\t400\nPlus: reinsurance recoverable\t8755\t0\nPolicy claims payable September 30\t8970\t400\n", "q10k_tbl_28": "Three Months Ended September 30\t2020\t\t2019\t\n(In thousands except for %)\tAmount\t%\tAmount\t%\nFederal income tax expense:\t\t\t\t\nExpected tax expense (benefit)\t(1716)\t21.0%\t448\t21.0%\nForeign income tax rate differential\t(687)\t8.4%\t(521)\t(24.4)%\nTax-exempt interest and dividends-received deduction\t(35)\t0.4%\t(57)\t(2.7)%\nAnnualized effective tax rate adjustment\t(646)\t7.9%\t(1796)\t(84.2)%\nAdjustment of prior year taxes\t98\t(1.2)%\t1923\t90.2%\nEffect of uncertain tax position\t630\t(7.7)%\t(2284)\t(107.1)%\nNondeductible costs to remediate tax compliance issue\t(620)\t7.6%\t(27)\t(1.3)%\nCICA Ltd. Subpart F income\t787\t(9.6)%\t2253\t105.7%\nNondeductible officer compensation\t2041\t(25.0)%\t0\t-%\nOther\t(108)\t1.3%\t147\t6.9%\nTotal federal income tax expense (benefit)\t(256)\t3.1%\t86\t4.1%\n", "q10k_tbl_29": "Nine Months Ended September 30\t2020\t\t2019\t\n(In thousands except for %)\tAmount\t%\tAmount\t%\nFederal income tax expense:\t\t\t\t\nExpected tax expense (benefit)\t(2093)\t21.0%\t172\t21.0%\nForeign income tax rate differential\t(1726)\t17.3%\t(632)\t(77.4)%\nTax-exempt interest and dividends-received deduction\t(113)\t1.1%\t(175)\t(21.4)%\nAnnualized effective tax rate adjustment\t200\t(2.0)%\t1468\t179.7%\nAdjustment of prior year taxes\t10\t(0.1)%\t1923\t235.4%\nEffect of uncertain tax position\t2673\t(26.8)%\t132\t16.2%\nNondeductible costs to remediate tax compliance issue\t(620)\t6.2%\t(27)\t(3.3)%\nCICA Ltd. Subpart F income\t2180\t(21.9)%\t3848\t471.0%\nNondeductible officer compensation\t2042\t(20.5)%\t0\t-%\nOther\t5\t(0.1)%\t429\t52.5%\nTotal federal income tax expense (benefit)\t2558\t(25.8)%\t7138\t873.7%\n", "q10k_tbl_30": "Nine Months Ended September 30\t2020\t2019\n(In thousands)\t\nFederal income tax expense:\t\t\nCurrent\t2944\t6580\nDeferred\t(386)\t558\nTotal federal income tax expense\t2558\t7138\n", "q10k_tbl_31": "Net Deferred Tax Asset (Liability) (In thousands)\tSeptember 30 2020\tDecember 31 2019\nDeferred tax assets:\t\t\nFuture policy benefit reserves\t2722\t2641\nNet operating and capital loss carryforwards\t595\t230\nAccrued expenses\t0\t85\nInvestments\t286\t702\nDeferred intercompany loss\t2637\t3539\nFixed assets\t533\t365\nLease liability\t2576\t238\nOther\t792\t250\nTotal gross deferred tax assets\t10141\t8050\nDeferred tax liabilities:\t\t\nDeferred policy acquisition costs cost of insurance acquired and intangible assets\t(8465)\t(8417)\nUnrealized gains on investments available-for-sale\t(11171)\t(7300)\nTax reserves transition liability\t(3923)\t(4483)\nRight of use lease asset\t(2576)\t(238)\nOther\t(36)\t(40)\nTotal gross deferred tax liabilities\t(26171)\t(20478)\nNet deferred tax liability\t(16030)\t(12428)\n", "q10k_tbl_32": "(In thousands)\tOperating Lease Payments\nMaturity of Lease Liabilities\t\n2020\t391\n2021\t1411\n2022\t1272\n2023\t1271\n2024\t1302\nAfter 2024\t8271\nTotal lease payments\t13918\nInterest expense\t(1653)\nPresent value of lease liabilities\t12265\n", "q10k_tbl_33": "Nine Months Ended September 30\t2020\t\t\t2019\t\t\n\tAmount of Insurance Issued\tNumber of Policies Issued\tAverage Policy Face Amount Issued\tAmount of Insurance Issued\tNumber of Policies Issued\tAverage Policy Face Amount Issued\nLife Insurance\t142390980\t2214\t64314\t166580870\t2519\t66130\nHome Service Insurance\t103456413\t20261\t5106\t124529689\t17288\t7203\n", "q10k_tbl_34": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\nRevenues:\t\t\t\t\nPremiums:\t\t\t\t\nLife insurance\t42732\t44502\t122863\t127795\nAccident and health insurance\t236\t350\t745\t1018\nProperty insurance\t1140\t1157\t3313\t3464\nNet investment income\t14997\t15039\t45081\t44150\nRealized investment gains net\t527\t72\t669\t3164\nOther income\t193\t347\t1217\t1148\nTotal revenues\t59825\t61467\t173888\t180739\n", "q10k_tbl_35": "\tSeptember 30\tDecember 31\tSeptember 30\n(In thousands except for %)\t2020\t2019\t2019\nNet investment income annualized\t60108\t59531\t58867\nAverage invested assets at amortized cost\t1409993\t1365036\t1357720\nAnnualized yield on average invested assets\t4.26%\t4.36%\t4.34%\n", "q10k_tbl_36": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\nGross investment income:\t\t\t\t\nFixed maturity securities\t13593\t13637\t40973\t39898\nEquity securities\t214\t154\t593\t479\nPolicy loans\t1666\t1619\t4918\t4820\nLong-term investments\t72\t0\t91\t1\nOther investment income\t3\t98\t87\t287\nTotal investment income\t15548\t15508\t46662\t45485\nInvestment expenses\t(551)\t(469)\t(1581)\t(1335)\nNet investment income\t14997\t15039\t45081\t44150\n", "q10k_tbl_37": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\nBenefits and expenses:\t\t\t\t\nInsurance benefits paid or provided:\t\t\t\t\nClaims and surrenders\t32958\t28751\t87161\t78808\nIncrease in future policy benefit reserves\t4158\t6409\t21866\t28180\nPolicyholders' dividends\t1450\t1560\t4011\t4165\nTotal insurance benefits paid or provided\t38566\t36720\t113038\t111153\nCommissions\t7712\t8879\t22279\t25147\nOther general expenses\t19391\t11530\t42003\t37611\nCapitalization of deferred policy acquisition costs\t(4892)\t(5984)\t(13632)\t(16224)\nAmortization of deferred policy acquisition costs\t6760\t7835\t18940\t21043\nAmortization of cost of insurance acquired\t459\t355\t1228\t1192\nTotal benefits and expenses\t67996\t59335\t183856\t179922\n", "q10k_tbl_38": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\nClaims and Surrenders:\t\t\t\t\nDeath claims\t7724\t5797\t21359\t18227\nSurrender benefits\t16131\t13959\t38861\t37124\nEndowments\t2706\t3012\t8064\t9079\nMatured endowments\t4475\t4232\t14376\t10597\nProperty claims\t966\t625\t1769\t1115\nAccident and health benefits\t33\t92\t147\t208\nOther policy benefits\t923\t1034\t2585\t2458\nTotal claims and surrenders\t32958\t28751\t87161\t78808\n", "q10k_tbl_39": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\nSegments:\t\t\t\t\nLife Insurance\t5508\t2310\t9713\t6828\nHome Service Insurance\t(1026)\t927\t(3197)\t258\nTotal segments\t4482\t3237\t6516\t7086\nOther Non-Insurance enterprises\t(12653)\t(1105)\t(16484)\t(6269)\nIncome (loss) before federal income tax expense\t(8171)\t2132\t(9968)\t817\n", "q10k_tbl_40": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\nCountry:\t\t\t\t\nColombia\t5858\t6465\t17727\t18567\nVenezuela\t5000\t5740\t14890\t16471\nTaiwan\t4157\t4393\t13013\t13504\nEcuador\t3443\t3641\t9781\t10454\nArgentina\t2466\t2539\t6722\t7199\nOther Non-U.S.\t10346\t10485\t27894\t28660\nTotal\t31270\t33263\t90027\t94855\n", "q10k_tbl_41": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\nRevenues:\t\t\t\t\nPremiums\t32265\t34385\t92146\t97439\nNet investment income\t11507\t11340\t34332\t33121\nRealized investment gains net\t133\t61\t1259\t5586\nOther income\t189\t349\t1195\t1146\nTotal revenues\t44094\t46135\t128932\t137292\nBenefits and expenses:\t\t\t\t\nInsurance benefits paid or provided:\t\t\t\t\nClaims and surrenders\t25023\t22533\t66071\t61011\nIncrease in future policy benefit reserves\t3274\t7667\t18804\t27499\nPolicyholders' dividends\t1443\t1551\t3987\t4136\nTotal insurance benefits paid or provided\t29740\t31751\t88862\t92646\nCommissions\t4140\t5386\t11912\t14435\nOther general expenses\t1915\t5358\t11309\t18021\nCapitalization of deferred policy acquisition costs\t(3512)\t(4743)\t(10149)\t(12465)\nAmortization of deferred policy acquisition costs\t6190\t5960\t16927\t17454\nAmortization of cost of insurance acquired\t113\t113\t358\t373\nTotal benefits and expenses\t38586\t43825\t119219\t130464\nIncome before federal income tax expense\t5508\t2310\t9713\t6828\n", "q10k_tbl_42": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\nPremiums:\t\t\t\t\nFirst year\t2214\t3361\t6517\t8308\nRenewal\t30051\t31024\t85629\t89131\nTotal premiums\t32265\t34385\t92146\t97439\n", "q10k_tbl_43": "\tSeptember 30\tDecember 31\tSeptember 30\n(In thousands except for %)\t2020\t2019\t2019\nNet investment income annualized\t45776\t44779\t44163\nAverage invested assets at amortized cost\t1062751\t1016055\t1010578\nAnnualized yield on average invested assets\t4.31%\t4.41%\t4.37%\n", "q10k_tbl_44": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\nClaims and Surrenders:\t\t\t\t\nDeath claims\t1595\t1249\t4563\t4599\nSurrender benefits\t15449\t13104\t36884\t34591\nEndowment benefits\t2703\t3008\t8056\t9070\nMatured endowments\t4324\t4103\t13893\t10190\nAccident and health benefits\t34\t41\t102\t117\nOther policy benefits\t918\t1028\t2573\t2444\nTotal claims and surrenders\t25023\t22533\t66071\t61011\n", "q10k_tbl_45": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\nState:\t\t\t\t\nLouisiana\t10967\t10688\t31955\t31997\nMississippi\t488\t508\t1497\t1546\nArkansas\t424\t398\t1290\t1222\nOther States\t260\t235\t744\t694\nTotal\t12139\t11829\t35486\t35459\n", "q10k_tbl_46": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\nRevenues:\t\t\t\t\nPremiums\t11843\t11624\t34775\t34838\nNet investment income\t3200\t3309\t9788\t9720\nRealized investment gains (losses) net\t388\t3\t(405)\t639\nOther income (loss)\t1\t(2)\t19\t0\nTotal revenues\t15432\t14934\t44177\t45197\nBenefits and expenses:\t\t\t\t\nInsurance benefits paid or provided:\t\t\t\t\nClaims and surrenders\t7935\t6218\t21090\t17797\nIncrease in future policy benefit reserves\t884\t(1258)\t3062\t681\nPolicyholders' dividends\t7\t9\t24\t29\nTotal insurance benefits paid or provided\t8826\t4969\t24176\t18507\nCommissions\t3572\t3493\t10367\t10712\nOther general expenses\t4524\t4669\t13431\t15071\nCapitalization of deferred policy acquisition costs\t(1380)\t(1241)\t(3483)\t(3759)\nAmortization of deferred policy acquisition costs\t570\t1875\t2013\t3589\nAmortization of cost of insurance acquired\t346\t242\t870\t819\nTotal benefits and expenses\t16458\t14007\t47374\t44939\nIncome (loss) before federal income tax expense\t(1026)\t927\t(3197)\t258\n", "q10k_tbl_47": "\tNine Months Ended\tYear Ended\tNine Months Ended\n\tSeptember 30\tDecember 31\tSeptember 30\n(In thousands except for %)\t2020\t2019\t2019\nNet investment income annualized\t13051\t13058\t13098\nAverage invested assets at amortized cost\t298344\t293497\t291712\nAnnualized yield on average invested assets\t4.37%\t4.45%\t4.49%\n", "q10k_tbl_48": "\tThree Months Ended\t\tNine Months Ended\t\n\tSeptember 30\t\tSeptember 30\t\n(In thousands)\t2020\t2019\t2020\t2019\nClaims and Surrenders:\t\t\t\t\nDeath claims\t6129\t4548\t16796\t13628\nSurrender benefits\t682\t855\t1977\t2533\nEndowment benefits\t3\t6\t8\t10\nMatured endowments\t151\t129\t483\t407\nProperty claims\t966\t625\t1769\t1115\nAccident and health benefits\t(1)\t52\t45\t92\nOther policy benefits\t5\t3\t12\t12\nTotal claims and surrenders\t7935\t6218\t21090\t17797\n", "q10k_tbl_49": "Carrying Value\tSeptember 30 2020\t\tDecember 31 2019\t\n(In thousands except for %)\tAmount\t%\tAmount\t%\nCash and Invested Assets\t\t\t\t\nFixed maturity securities:\t\t\t\t\nU.S. Treasury and U.S. Government-sponsored enterprises\t16364\t1.0%\t15878\t1.0%\nStates and political subdivisions (1)\t432719\t26.8%\t536284\t35.1%\nCorporate\t807925\t50.1%\t650088\t42.6%\nMortgage-backed (2)\t142008\t8.8%\t131387\t8.6%\nAsset-backed\t45444\t2.8%\t44203\t2.9%\nForeign governments\t119\t-%\t119\t-%\nTotal fixed maturity securities\t1444579\t89.5%\t1377959\t90.2%\nShort-term investments\t0\t-%\t1301\t0.1%\nCash and cash equivalents\t42261\t2.6%\t46205\t3.0%\nOther investments:\t\t\t\t\nPolicy loans\t83962\t5.2%\t82005\t5.4%\nEquity securities\t21151\t1.3%\t16033\t1.1%\nReal estate and other long-term investments\t22239\t1.4%\t2956\t0.2%\nTotal cash and invested assets\t1614192\t100.0%\t1526459\t100.0%\n", "q10k_tbl_50": "Carrying Value\tSeptember 30 2020\t\tDecember 31 2019\t\n(In thousands except for %)\tAmount\t%\tAmount\t%\nAAA\t36249\t2.5%\t56977\t4.1%\nAA\t473027\t32.7%\t513190\t37.2%\nA\t424938\t29.4%\t385345\t28.0%\nBBB\t489990\t33.9%\t406515\t29.5%\nBB and other\t20375\t1.5%\t15932\t1.2%\nTotals\t1444579\t100.0%\t1377959\t100.0%\n", "q10k_tbl_51": "\tGeneral Obligation\t\tSpecial Revenue\t\tOther\t\tTotal\t\t% Based on Amortized Cost\n(In thousands except for %)\tFair Value\tAmortized Cost\tFair Value\tAmortized Cost\tFair Value\tAmortized Cost\tFair Value\tAmortized Cost\nMunicipal fixed maturity securities shown including third-party guarantees\t\t\t\t\t\t\t\t\t\nAAA\t23528\t22659\t6199\t5943\t0\t0\t29727\t28602\t7.1%\nAA\t78340\t73628\t140715\t132599\t12470\t10791\t231525\t217018\t54.0%\nA\t18107\t16259\t120072\t107771\t5051\t4420\t143230\t128450\t32.0%\nBBB\t4149\t4174\t17107\t16846\t1598\t1450\t22854\t22470\t5.6%\nBB and other\t4437\t4438\t946\t874\t0\t0\t5383\t5312\t1.3%\nTotal\t128561\t121158\t285039\t264033\t19119\t16661\t432719\t401852\t100.0%\nMunicipal fixed maturity securities shown excluding third-party guarantees\t\t\t\t\t\t\t\t\t\nAAA\t4572\t4437\t505\t503\t0\t0\t5077\t4940\t1.2%\nAA\t57532\t55812\t66350\t62902\t7867\t6546\t131749\t125260\t31.3%\nA\t31665\t29222\t156146\t141322\t8027\t7147\t195838\t177691\t44.2%\nBBB\t9492\t9014\t39011\t37368\t0\t0\t48503\t46382\t11.5%\nBB and other\t25300\t22673\t23027\t21938\t3225\t2968\t51552\t47579\t11.8%\nTotal\t128561\t121158\t285039\t264033\t19119\t16661\t432719\t401852\t100.0%\n", "q10k_tbl_52": "(In thousands)\tFair Value\tAmortized Cost\t% of Total Fair Value\nUtilities\t90604\t81956\t20.9%\nEducation\t70227\t64901\t16.2%\n", "q10k_tbl_53": "September 30 2020\tGeneral Obligation\t\tSpecial Revenue\t\tOther\t\tTotal\t\n(In thousands)\tFair Value\tAmortized Cost\tFair Value\tAmortized Cost\tFair Value\tAmortized Cost\tFair Value\tAmortized Cost\nTexas municipal fixed maturity securities shown including third-party guarantees\t\t\t\t\t\t\t\t\nAAA\t22919\t22150\t3354\t3100\t0\t0\t26273\t25250\nAA\t23113\t22591\t12425\t11460\t0\t0\t35538\t34051\nA\t0\t0\t18483\t18385\t0\t0\t18483\t18385\nBBB\t0\t0\t1971\t1829\t0\t0\t1971\t1829\nBB and other\t0\t0\t830\t774\t0\t0\t830\t774\nTotal\t46032\t44741\t37063\t35548\t0\t0\t83095\t80289\nTexas municipal fixed maturity securities shown excluding third-party guarantees\t\t\t\t\t\t\t\t\nAAA\t4572\t4437\t0\t0\t0\t0\t4572\t4437\nAA\t34130\t33309\t6105\t5785\t0\t0\t40235\t39094\nA\t6098\t5842\t24783\t24037\t0\t0\t30881\t29879\nBBB\t1232\t1153\t4687\t4350\t0\t0\t5919\t5503\nBB and other\t0\t0\t1488\t1376\t0\t0\t1488\t1376\nTotal\t46032\t44741\t37063\t35548\t0\t0\t83095\t80289\n", "q10k_tbl_54": "\tSeptember 30 2020\t\t\tDecember 31 2019\t\t\n(In thousands)\tAmortized Cost\tFair Value\tNet Unrealized Gains\tAmortized Cost\tFair Value\tNet Unrealized Gains\nTotal fixed maturity securities\t1308056\t1444579\t136523\t1293853\t1377959\t84106\nTotal equity securities\t19529\t21151\t1622\t15055\t16033\t978\n", "q10k_tbl_55": "Exhibit Number\tThe following exhibits are filed herewith:\n3.1\tRestated and Amended Articles of Incorporation dated March 4 2004 (incorporated herein by reference to Exhibit 3.1 to the Registrant's Annual Report on Form 10-K for the Year Ended December 31 2003 filed on March 15 2004)\n3.2\tFourth Amended and Restated Bylaws dated August 18 2020 (incorporated herein by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on August 19 2020)\n10.1†\tConsulting Agreement by and between the Company and Gerald W. Shields dated August 5 2020 (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on August 11 2020)†\n10.2*\tStatus Quo Stipulation entered into by the District Court of Arapahoe County of Colorado on September 28 2020 in connection with the lawsuit filed the Harold E. Riley Foundation against the Company and members of the Board*\n10.3†\tChief Executive Officer Separation of Service and Consulting Agreement dated July 29 2020 by and between the Company and Geoffrey M. Kolander (incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on July 30 2020)†\n31.1*\tCertification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act*\n31.2*\tCertification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act*\n32.1*\tCertification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act*\n32.2*\tCertification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act*\n101*\tInline XBRL Document Set for the condensed consolidated financial statements and accompanying notes in Part I Item 1 \"Financial Statements\" of this Quarterly Report on Form 10-Q*\n104*\tInline XBRL for the cover page of this Quarterly Report on Form 10-Q included in the Exhibit 101 Inline XBRL Document Set*\n"}{"bs": "q10k_tbl_2", "is": "q10k_tbl_4", "cf": "q10k_tbl_7"}None
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2020
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from to
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, Floor 15, Austin, TX78758
(Current Address)
14231 Tandem Blvd, 2nd Floor, Austin, TX78728
(Former Address)
Registrant's telephone number, including area code: (512) 837-7100
Securities registered pursuant to Section 12(b) of the Act
Class A Common Stock
CIA
NYSE
(Title of each class)
(Trading symbol(s))
(Name of each exchange on which registered)
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.xYeso 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). xYesoNo
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 filer
☐
Accelerated filer
☒
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth 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. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes x No
As of October 30, 2020, the Registrant had 52,654,016 shares of Class A common stock outstanding and 1,001,714 shares of Class B common stock outstanding.
Class A, no par value, 100,000,000 shares authorized, 52,654,016 and 52,364,993 shares issued and outstanding in 2020 and 2019, respectively, including shares in treasury of 3,135,738 in 2020 and 2019
262,667
261,515
Class B, no par value, 2,000,000 shares authorized, 1,001,714 shares issued and outstanding in 2020 and 2019
3,184
3,184
Accumulated deficit
(83,890)
(70,969)
Accumulated other comprehensive income:
Net unrealized gains on fixed maturity securities, net of tax
125,804
77,117
Treasury stock, at cost
(11,011)
(11,011)
Total stockholders' equity
296,754
259,836
Total liabilities and stockholders' equity
$
1,844,338
1,744,936
See accompanying Notes to Consolidated Financial Statements.
Net cash provided by (used in) financing activities
1,270
(1,114)
Net increase (decrease) in cash and cash equivalents
(3,944)
1,655
Cash and cash equivalents at beginning of year
46,205
45,492
Cash and cash equivalents at end of period
$
42,261
47,147
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:
During the nine months ended September 30, 2020 and 2019, various fixed maturity issuers exchanged securities with book values of $5.3 million and $12.2 million, respectively, for securities of equal value.
The Company had net unsettled security trades of $6.0 million at September 30, 2020 and 2019.
The Company recognized right-of-use assets of $12.0 million in exchange for new operating lease liabilities during the nine months ended September 30, 2020.
See accompanying Notes to Consolidated Financial Statements.
The consolidated financial statements include the accounts and operations of Citizens, Inc. ("Citizens" or the "Company"), a Colorado corporation, and its wholly-owned subsidiaries, CICA Life Insurance Company of America ("CICA"), CICA Life Ltd. ("CICA Ltd."), Citizens National Life Insurance Company ("CNLIC"), Security Plan Life Insurance Company ("SPLIC"), Security Plan Fire Insurance Company ("SPFIC"), Magnolia Guaranty Life Insurance Company ("MGLIC") and Computing Technology, Inc. ("CTI"). All significant inter-company accounts and interactions have been eliminated. Citizens and its wholly-owned subsidiaries are collectively referred to as the "Company", "we", "us" or "our".
The consolidated balance sheets as of September 30, 2020, the consolidated statements of operations and comprehensive income (loss) and stockholders' equity for the three and nine months ended September 30, 2020 and September 30, 2019 and cash flows for the nine months ended September 30, 2020 and September 30, 2019 have been prepared by the Company without audit. In the opinion of management, all normal and recurring adjustments to present fairly the financial position, results of operations, and changes in cash flows at September 30, 2020 and for comparative periods have been made. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q adopted by the Securities and Exchange Commission ("SEC"). Accordingly, the consolidated financial statements do not include all the information and footnotes required for complete financial statements and should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period.
We provide primarily life insurance and a small amount of health insurance policies through our insurance subsidiaries - CICA, CICA Ltd., CNLIC, SPLIC and MGLIC. CICA and CNLIC issued ordinary whole-life policies, credit life and disability, and accident and health related policies, throughout the Midwest and southern U.S. until they ceased most domestic sales beginning January 1, 2017. CICA Ltd. primarily issues endowment and ordinary whole-life policies to non-U.S. residents. SPLIC offers final expense and home service life insurance in Louisiana, Arkansas and Mississippi. SPFIC writes a limited amount of property insurance in Louisiana and Arkansas. MGLIC provides industrial life policies through independent funeral homes in Mississippi.
CTI provides data processing systems and services to the Company.
USE OF ESTIMATES
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Significant estimates include those used in the evaluation of credit allowances on fixed maturity securities, actuarially determined assets and liabilities and assumptions, tests of goodwill impairment, valuation allowance on deferred tax assets, valuation of uncertain tax positions and contingencies relating to litigation and regulatory matters. Certain of these estimates are particularly sensitive to market conditions, and deterioration and/or volatility in the worldwide debt or equity markets could have a material impact on the consolidated financial statements.
For a description of our significant accounting policies, see Note 1. Summary of Significant Accounting Policies in the notes to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019, which should be read in conjunction with these accompanying consolidated financial statements.
Investment securities. We assess all available-for-sale ("AFS") fixed maturity securities in an unrealized loss position for expected credit losses. First, we assess whether we intend to sell, or it is more likely than not that we will be required to sell, the security before recovery of its amortized cost. If either of the criteria is met, the security's amortized cost is written down to its fair value. For AFS fixed maturity securities that do not meet either criteria, we evaluate whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. Any impairment that has not been recorded through an allowance for credit losses is recognized in accumulated other comprehensive income on our consolidated balance sheets. Changes in the allowance for credit losses are recorded through realized capital losses.
The Company made a policy election to exclude accrued interest from the amortized cost of AFS fixed maturity securities and report accrued interest separately in accrued investment income in the consolidated balance sheets. AFS fixed maturity securities are placed on non-accrual status when we no longer expect to receive all contractual amounts due. Accrued interest receivable is reversed against interest income when a security is placed on non-accrual status. Accordingly, we do not recognize an allowance for credit loss against accrued interest receivable.
We initially estimate the fair value of investments in private equity funds by reference to the transaction price. Subsequently, we obtain the fair value of these investments from net asset value information provided by the general partner or manager of the investments, the financial statements of which are audited annually. Recognition of investment income on these funds is delayed due to the availability of the related financial statements, which are generally obtained from the partnerships' general partners. As a result, our private equity funds are generally reported on a three-month delay. These investments are included in other long-term investments.
(2) ACCOUNTING PRONOUNCEMENTS
ACCOUNTING STANDARDS RECENTLY ADOPTED
In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments-Credit Losses (Topic 326), with the main objective to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The ASU requires a financial asset (or a group of financial assets) measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost of the financial asset(s) to present the net carrying value at the amount expected to be collected on the financial asset. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the increases or decreases of expected credit losses that have taken place during the period. Credit losses on AFS fixed maturity securities should be measured in a manner similar to current U.S. GAAP; however, the credit losses are recorded through an allowance for credit losses rather than as a write-down. This approach is an improvement to prior U.S. GAAP because an entity will be able to record reversals of credit losses (in situations in which the estimate of credit losses declines) in current period net income, which in turn should align the income statement recognition of credit losses with the reporting period in which changes occur. Prior U.S. GAAP prohibited reflecting those improvements in current-period earnings. The Company adopted this standard effective January 1, 2020 using the modified retrospective approach. The adoption resulted in an increase in accumulated deficit of $0.4 million related to agents' debit balance collectability.
In September 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This ASU requires an entity in a cloud computing arrangement (i.e. hosting arrangement) that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs should be presented in the same line item on the balance sheet as amounts prepaid for the hosted service, if any (generally as an "other asset"). The capitalized costs will be amortized over the term of the hosting arrangement, with the amortization expense being presented in the same income statement line item as the fees paid for the hosted service. We adopted this standard effective January 1, 2020. The adoption had no impact on our consolidated financial statements.
ACCOUNTING STANDARDS NOT YET ADOPTED
In August 2018, the FASB issued ASU No. 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts. This ASU amends four key areas of the accounting and impacts disclosures for long-duration insurance and investment contracts:
•Requires updated assumptions for liability measurement. Assumptions used to measure the liability for traditional insurance contracts, which are typically determined at contract inception, will now be reviewed at least annually, and, if there is a change, updated, with the effect recorded in net income;
•Standardizes the liability discount rate. The liability discount rate will be a market-observable discount rate (upper-medium grade fixed-income instrument yield), with the effect of rate changes recorded in other comprehensive income;
•Provides greater consistency in measurement of market risk benefits. The two previous measurement models have been reduced to one measurement model (fair value), resulting in greater uniformity across similar market-based benefits and better alignment with the fair value measurement of derivatives used to hedge capital market risk;
•Simplifies amortization of deferred acquisition costs. Previous earnings-based amortization methods have been replaced with a more level amortization basis; and
•Requires enhanced disclosures. The new disclosures include rollforwards and information about significant assumptions and the effects of changes in those assumptions.
For calendar-year public companies, the changes will be effective on January 1, 2022. In July 2020, the FASB tentatively agreed to defer the original effective date by one year. If finalized, the new guidance will be effective for annual and interim reporting periods beginning January 1, 2023, however early adoption is permitted. The Company is evaluating the impact this guidance will have on our consolidated financial statements. This new guidance is expected to have a material impact on our consolidated financial statements.
No other new accounting pronouncement issued or effective during the year had, or is expected to have, a material impact on our consolidated financial statements.
(3) SEGMENT INFORMATION
The Company has two reportable segments: Life Insurance and Home Service Insurance. The Life Insurance and Home Service Insurance portions of the Company constitute separate businesses. CICA, CICA Ltd. and CNLIC constitute the Life Insurance segment, and SPLIC, SPFIC and MGLIC constitute the Home Service Insurance segment. In addition to the Life Insurance and Home Service Insurance business, the Company also operates other non-insurance portions of the Company ("Other Non-Insurance Enterprises"), which primarily include the Company's IT and Corporate-support functions that are included in the tables presented below to properly reconcile the segment information with the consolidated financial statements of the Company.
The accounting policies of the reportable segments and Other Non-Insurance Enterprises are presented in accordance with U.S. GAAP and are the same as those used in the preparation of the consolidated financial