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Citizens (CIA) guidance and outlook

Citizens' 10-Q filed Nov 5, 2026 makes 21 forward-looking statements.

Guidance and outlook

Forward-looking statements, 10-Q filed Nov 5, 2026

• Because death claims from Venezuela have been lower than expected since the earthquakes, we have reduced the death claim liability to $250,000, which is reflected as a $250,000 reduction to death claim liability in the third quarter.
• Although we experienced a $13.2 million decrease in claims and surrenders benefits due to the expected contractual decreases of matured endowments, this was more than offset by a $16.3 million increase in future policy benefit reserves and a $1.9 million increase in policyholder liability remeasurement loss.
• We expect this trend in our International Insurance segment to continue due to the anticipated volumes of endowment maturities being replaced by higher volumes of whole life products.
• Persistency is a key measure because we spend a significant amount of money acquiring a policyholder upfront ( e.g. , commissions, underwriting, marketing) and expect to recover those costs over many years.
• While we have been experiencing low persistency in our Domestic Insurance final expense business, we actively monitor persistency trends across our product lines and customer segments, and where less than desired persistency is observed, we may take targeted retention actions; however, there can be no assurance that such efforts will fully offset the financial impact of higher than expected policy terminations.
• 2025 was our highest year for contractually maturing endowments and thus, as expected, we are experiencing a significant decrease in 2026.
• These actuarial assumptions are reviewed periodically to reflect emerging experience and changes in expectations and our operating results will be affected to the extent there is a variance between our actuarial assumptions and actual experience.
• Future policy benefit reserves reflect the liability established to provide for the future payment of policy benefits and thus they generally increase when we have a larger in force block of business due to higher sales and persistency (i.e., more policies on which we expect to pay future benefits) and decrease when we have lower sales and persistency.
• When a policy is initially issued, we establish a "net premium ratio" ("NPR") using assumptions regarding expected premiums and policyholder benefit liabilities.
• On a quarterly basis, we review actual versus expected experience in such quarter, which is reported as a policyholder liability remeasurement gain (if better performance than assumptions) or loss (if lower performance than assumptions).
• We believe the decrease and anticipated continued decrease in benefit outflows, alongside our sustained investment performance, as well as our investment into new asset classes, positions the Company well to improve our net investment income as we move beyond the peak maturity cycle.
• We expect other income to decline as our matured endowments decline, as this income is primarily related to supplemental contracts issued to policyholders when their endowments mature.

Citizens' latest quarter

Questions

What does Citizens expect?

Because death claims from Venezuela have been lower than expected since the earthquakes, we have reduced the death claim liability to $250,000, which is reflected as a $250,000 reduction to death claim liability in the third quarter. Although we experienced a $13.2 million decrease in claims and surrenders benefits due to the expected contractual decreases of matured endowments, this was more than offset by a $16.3 million increase in future policy benefit reserves and a $1.9 million increase in policyholder liability remeasurement loss. We expect this trend in our International Insurance segm

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.