Citizens Inc. (CIA, Financial) filed Quarterly Report for the period ended 2010-06-30.
Citizens Inc. has a market cap of $337.3 million; its shares were traded at around $6.93 with a P/E ratio of 26.6 and P/S ratio of 1.8.
Realized Gains, Net. The Company realized net gains of $0.7 million and $0.8 million for the three and six months ended June 30, 2010 compared to gains of $1.5 million and $1.8 million for the same periods in 2009. The net realized gains in the second quarter of 2010 were primarily the result of sales of several available-for-sale debt and equity securities, including some securities that had previously been impaired. The Company recorded a valuation allowance of $45,000 during the first quarter of 2010 on a non-performing mortgage loan. In 2009, the Companys realized gains were offset by realized losses of $111,000 relating to other-than-temporary impairments.
Other Underwriting, Acquisition and Insurance Expenses. The decrease in these expenses was due to a decrease of $0.2 million in legal fees, which were associated with the 2009 acquisition of ICC. Additionally, auditing fees were lower by $0.3 million in the current year, reflecting efficiencies in the financial reporting process area.
Federal Income Tax. The effective tax rate for the three and six months ended June 30, 2010 was 27.0% and 28.9% versus 8.8% and 18.4% for the same periods in 2009. The rate variance from the statutory rate of 35% was due to the fact that the changes in fair value of our Class A common stock warrants of $0.4 million and $1.0 million for the three months ended June 30, 2010 and 2009, respectively, are not taxable items. For the six months, the warrant revenues were $0.3 million and $3.1 million for 2010 and 2009, respectively.
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Citizens Inc. has a market cap of $337.3 million; its shares were traded at around $6.93 with a P/E ratio of 26.6 and P/S ratio of 1.8.
Highlight of Business Operations:
The decrease in investment income related to equity securities in 2010 resulted from the disposal of securities primarily related to an acquired portfolio throughout 2009 with a book value totaling $1.3 million and the disposal of SPLICs mutual funds totaling $16.1 million in the fourth quarter of 2009. Policy loans have increased primarily from policyholders using the cash value accumulated on their policies to pay premiums and continue their insurance coverage. The increase in the asset balance has resulted in the correlating increase in investment income. Other investment income decreased to $0.4 million for the six months ended June 30, 2010 compared to the same period in 2009 as the Company had received a lawsuit settlement of $0.2 million in 2009 resulting from a defaulted bond investment.Realized Gains, Net. The Company realized net gains of $0.7 million and $0.8 million for the three and six months ended June 30, 2010 compared to gains of $1.5 million and $1.8 million for the same periods in 2009. The net realized gains in the second quarter of 2010 were primarily the result of sales of several available-for-sale debt and equity securities, including some securities that had previously been impaired. The Company recorded a valuation allowance of $45,000 during the first quarter of 2010 on a non-performing mortgage loan. In 2009, the Companys realized gains were offset by realized losses of $111,000 relating to other-than-temporary impairments.
Other Underwriting, Acquisition and Insurance Expenses. The decrease in these expenses was due to a decrease of $0.2 million in legal fees, which were associated with the 2009 acquisition of ICC. Additionally, auditing fees were lower by $0.3 million in the current year, reflecting efficiencies in the financial reporting process area.
Federal Income Tax. The effective tax rate for the three and six months ended June 30, 2010 was 27.0% and 28.9% versus 8.8% and 18.4% for the same periods in 2009. The rate variance from the statutory rate of 35% was due to the fact that the changes in fair value of our Class A common stock warrants of $0.4 million and $1.0 million for the three months ended June 30, 2010 and 2009, respectively, are not taxable items. For the six months, the warrant revenues were $0.3 million and $3.1 million for 2010 and 2009, respectively.
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