CI
CITIZENS, INC. (CIA)·Q4 2024 Earnings Summary
Executive Summary
- Q4 2024 showed mixed results: GAAP total revenues declined to $63.5M (-5% YoY) while adjusted revenues rose to $67.6M (+3% YoY); adjusted pre-tax income increased to $8.0M (+5% YoY), but GAAP pre-tax income fell to $3.7M due to investment losses tied to a BlackRock renewable fund write-down .
- Net income and diluted EPS declined YoY to $3.6M and $0.07, respectively (vs. $10.7M and $0.21 in Q4 2023), reflecting higher benefits/expenses and lower investment-related gains .
- Commercial momentum remained strong: insurance issued rose 10% YoY to $262.6M, first-year premiums grew 84% YoY, and the agent network expanded materially; operating cash flow improved to $10.8M in the quarter, with no debt and $29.3M cash at year-end .
- Management expects continued sales growth driving revenue and profit growth in FY 2025 and stronger growth in FY 2026; no numeric guidance ranges were provided. Street consensus data via S&P Global was not available at the time of writing, limiting beat/miss analysis .
What Went Well and What Went Wrong
What Went Well
- First-year life and A&H premiums increased 84% YoY in Q4, the ninth consecutive quarter of growth, driven by new domestic products and expanded distribution; CEO: “our new products and the expansion of our distribution channels led to the issuance of the highest amount of insurance ever in a year of over $1.1 billion” .
- Insurance issued reached $262.6M (+10% YoY), and total direct insurance in force hit a record >$5.2B, underscoring durable growth and scale .
- Operating cash flow strengthened to $10.8M in Q4 (vs. $6.6M YoY) and the balance sheet ended with $29.3M cash and no debt, supporting capital flexibility .
What Went Wrong
- GAAP total revenues fell YoY due to lower renewal premiums ($40.7M vs. $41.6M) and net investment losses (incl. $3.3M unrealized loss from BlackRock Global Renewable Power Fund III), pressuring GAAP profitability .
- Total benefits and expenses increased to $59.8M (+$1.7M YoY), driven by higher reserves tied to growth, actuarial remeasurement loss, and increased death claims, compressing GAAP pre-tax income to $3.7M (vs. $8.8M YoY) .
- Net income and EPS declined materially YoY (to $3.6M and $0.07, respectively) as investment-related gains reversed and claims dynamics weighed on results; segment Home Service pre-tax income fell to $0.5M (vs. $1.5M YoY) .
Financial Results
Consolidated results (quarterly comparison)
Q4 year-over-year comparison
Segment breakdown (Q4 2024 vs Q4 2023)
KPIs
Guidance Changes
Note: No explicit numeric ranges (revenue, margins, OpEx/tax) were provided in Q4 materials .
Earnings Call Themes & Trends
No Q4 2024 earnings call transcript was found in filings or our document catalog. Company communications referenced an upcoming investor conference (Mar 27, 2025) rather than an earnings call .
Management Commentary
- CEO Jon Stenberg: “Our new products and the expansion of our distribution channels led to the issuance of the highest amount of insurance ever in a year of over $1.1 billion…We are now licensed in 43 U.S. states and Washington, D.C.” .
- CEO Jon Stenberg: “We remain fully committed to persistent and profitable growth and capital management, as evidenced by our positive net cash from operations annually since 2004.” .
- Outlook: “We expect continued sales growth leading to revenue and profit growth in the full year 2025 and stronger growth in full year 2026.” .
Q&A Highlights
No Q4 2024 earnings call transcript or Q&A session was available in our filings corpus; management referenced participation in the Emerging Growth Virtual Conference on March 27, 2025 (webcast archived) .
Estimates Context
- Wall Street consensus (S&P Global) for CIA Q4 2024 EPS and revenue was unavailable via our tool at the time of writing, so beat/miss analysis versus consensus could not be performed. Default source for consensus would be S&P Global; however, data access was not available during this session.
Key Takeaways for Investors
- Adjusted profitability improved YoY despite GAAP pressure, as core revenue drivers (first-year premiums) remain strong; investment-related volatility and higher claims/reserve costs explain the GAAP miss in Q4 .
- Commercial growth thesis intact: insurance issued and agent expansion position renewal premium growth in 2025–2026; watch for renewal conversion and surrender trends to validate the flywheel .
- Balance sheet/cash generation supportive: positive operating cash flow, no debt, and cash of $29.3M reduce funding risk and allow reinvestment in product/distribution .
- Near-term trading implications: sentiment may hinge on non-GAAP vs GAAP narrative—highlighting adjusted pre-tax improvement and sales momentum could be key; monitor any updates on the BlackRock fund mark and claims dynamics .
- Medium-term thesis: expanding U.S. licensing, product innovation, and international niche leadership underpin multi-year growth; execution on scaling renewals and managing actuarial assumptions/reserves will determine margin trajectory .
- Watch items: renewal premium stabilization, mortality experience, actuarial remeasurement impacts, and investment marks; each can swing quarterly GAAP results despite steady operating indicators .
- Guidance cadence: directional-only (no numeric ranges). Look for FY25 updates, potential reinstatement of formal guidance, and any capital deployment disclosures as catalysts .