Schedule II

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Disclosure [Abstract]

Schedule II

Schedule II Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Balance Sheets
December 31, (In thousands)	2020		2019
Assets
Investment in subsidiaries (1)	$	231,992	191,869
Fixed maturity securities available-for-sale, at fair value	42,202		50,491
Equity securities, at fair value	1,347		1,167
Real estate held-for-sale	2,571		2,571
Other long-term investments	8,790		—
Short-term investments	—		1,301
Cash	3,102		10,829
Accrued investment income	471		535
Accounts receivable from subsidiaries (1)	4,911		4,770
Property and equipment, net	12,666		817
Other assets	3,183		552
Total assets	$	311,235	264,902
Liabilities and Stockholders' Equity
Liabilities:
Accrued expense and other liabilities	$	10,290	5,066
Total liabilities	$	10,290	5,066
Stockholders' equity:
Common stock:
Class A	$	262,869	261,515
Class B	3,184		3,184
Accumulated deficit	(82,352)		(70,969)
Unrealized investment gains on securities held by parent and subsidiaries, net of tax	128,255		77,117
Treasury stock	(11,011)		(11,011)
Total stockholders' equity	300,945		259,836
Total liabilities and stockholders' equity	$	311,235	264,902

 (1) Eliminated in consolidation.

Note to Schedule II:

Citizens, Inc.'s investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The Company includes in its Statement of Operations and Comprehensive Income (Loss) dividends from its subsidiaries and equity in income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.

Schedule II, Continued Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Statements of Operations and Comprehensive Income (Loss)
Years ended December 31, (In thousands)	2020		2019	2018
Comprehensive income (loss):
Revenues:
Management service fees (1)	$	32,828	43,694	43,323
Investment income	11,253		1,685	1,086
Other	3		2	1
Realized investment gains (losses)	(62)		(3,013)	(196)
Total revenues	44,022		42,368	44,214
Expenses:
General expenses	49,747		46,020	44,009
Taxes, licenses and fees	189		146	761
Total expenses	49,936		46,166	44,770
Income (loss) before federal income tax expense (benefit) and equity in income (loss) of consolidated subsidiaries	(5,914)		(3,798)	(556)
Federal income tax expense (benefit)	(5,583)		(4,491)	(185)
Income (loss) before equity in income (loss) of consolidated subsidiaries	(331)		693	(371)
Equity in income (loss) of consolidated subsidiaries	(10,657)		(2,063)	(10,691)
Net loss	(10,988)		(1,370)	(11,062)
Other comprehensive income (loss)	51,138		71,751	(25,128)
Total comprehensive income (loss)	$	40,150	70,381	(36,190)

 (1) Eliminated in consolidation.

Note to Schedule II:

Citizens, Inc.'s investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The Company includes in its Statement of Operations and Comprehensive Income (Loss) dividends from its subsidiaries and equity in income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.

Schedule II, Continued Condensed Financial Information of Registrant CITIZENS, INC. (Parent Company) Statements of Cash Flows
Years ended December 31, (In thousands)	2020		2019	2018
Cash flows from operating activities:
Net income (loss)	$	(10,988)	(1,370)	(11,062)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Realized investment losses (gains), net	62		3,013	196
Equity in loss (income) of consolidated subsidiaries	10,657		2,063	10,691
Change in accrued expenses and other liabilities	11,629		(6,530)	(2,036)
Change in federal income tax payable	(17,647)		—	—
Deferred federal income tax expense (benefit)	79		—	—
Amortization of premiums and discounts on investments	535		496	567
Depreciation	133		267	356
Change in accrued investment income	64		(5)	(46)
Stock-based compensation	2,223		2,099	—
Decrease (increase) in receivable from subsidiaries and other assets	(141)		1,101	382
Other, net	(3,896)		(248)	22
Net cash provided by (used in) operating activities	(7,290)		886	(930)
Cash flows from investing activities:
Purchases of fixed maturity securities, available-for-sale	(4,628)		(12,970)	(11,871)
Maturities of fixed maturity securities, available-for-sale	7,114		691	7,160
Purchase of equity securities	(250)		—	—
Sales of fixed maturity securities, available-for-sale	5,735		4,268	1,366
Sales of property and equipment	11		14	103
Purchases of other long-term investments	(8,790)		—	—
Purchases of property and equipment	(60)		(85)	(60)
Purchases of short-term investments	—		(2,456)	(7,850)
Maturities of short-term investments	1,300		9,090	—
Net cash provided by (used in) investing activities	432		(1,448)	(11,152)
Cash flows from financing activities:
Other	(869)		(377)	—
Net cash provided by (used in) financing activities	(869)		(377)	—
Net increase (decrease) in cash	(7,727)		(939)	(12,082)
Cash at beginning of year	10,829		11,768	23,850
Cash at end of year	$	3,102	10,829	11,768

Note to Schedule II:

Citizens, Inc.'s investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The Company includes in its Statement of Operations and Comprehensive Income (Loss) dividends from its subsidiaries and equity in income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.