8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 9, 2005

CITIZENS, INC.

(Exact name of registrant as specified in its charter)

COLORADO	0-16509	84-0755371
(State or other jurisdiction of incorporation	(Commission File Number)	(IRS Employer Identification No.)

400 East Anderson Lane
Austin, Texas 78752
(Address of principal executive offices) (Zip Code)

(512) 837-7100
Registrant’s telephone number, including area code

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

     ___Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     ___Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     ___Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     ___Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 40.13e-4(c))

TABLE OF CONTENTS

EX — 99.5 News Release Issued by Citizens, Inc. on November 9, 2005.

 News Release

SECTION 2 — FINANCIAL INFORMATION

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On November 9, 2005, Citizens, Inc. (“Citizens”) issued a news release (the “Release”) reporting, among other things, results for the nine and three months ended September 30, 2005. A copy of the Release is included as Exhibit 99.4 to this Current Report on Form 8-K and incorporated herein by reference.

The information in this report is being furnished, not filed, for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and pursuant to Item 2.02 of Form 8-K will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

SECTION 9 — FINANCIAL STATEMENTS

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(a)	Financial Statements of businesses acquired:
	Not applicable.
(b)	Pro Forma financial information:
	Not applicable.
(c)	Exhibits:
	The following exhibit is included with this Current Report on Form 8-K:

Exhibit No.	Description
99.5	News Release issued by Citizens, Inc. on November 9, 2005.

SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CITIZENS, INC
By:	/s/ Mark A. Oliver
	Mark A. Oliver, President

Date: November 11, 2005

Exhibit Index

Exhibit No.	Description
99.5	News Release Issued by Citizens, Inc. on November 9, 2005.

EX-99.5

Exhibit 99.5

CITIZENS, INC. REPORTS RESULTS THROUGH OCTOBER 2005

AUSTIN, Texas, Nov. 9 /PRNewswire-FirstCall/ — Citizens, Inc. (NYSE: CIA) reported net income of $4.2 million or $0.07 per share for the nine months ended September 30, 2005, compared to net income of $2.7 million, or $0.06 per share, for the same period in 2004. The growth resulted from significant increases in revenues, relating to the October 2004 acquisition of Security Plan Life Insurance Company (Security Plan) and increases in the Company’s international life insurance segment that offset the effects of Hurricanes Katrina and Rita.

Total revenues increased 60.9% in the first nine months of 2005 to $105.4 million compared to the same period of 2004 when revenues were $65.5 million, due to the acquisition of Security Plan and an increase in new life insurance business written. Premium income was $86.7 million for the first nine months of 2005, a 64.8% increase over the same period of 2004 when premiums equaled $52.6 million. First year annualized premiums from the Company’s international segment rose to $12.9 million from $10.4 million during the period, an increase of 24.0%. Net investment income increased 58.6% during the first nine months of 2005 to $17.6 million from $11.1 million in 2004, and claims and surrenders increased from $24.6 million for the nine months ended September 30, 2004 to $38.4 million for the same period in 2005, both increases primarily due to Security Plan. Underwriting and insurance expenses increased 63.6% from $11.8 million in 2004 to $19.3 million in 2005 due to the acquisition of Security Plan and the increased new business.

Amortization of cost of customer relationships acquired increased 148% from $2.1 million in the first nine months of 2004 to $5.2 million in the first nine months of 2005. The Company recorded approximately $34 million of cost of customer relationships acquired when it bought Security Plan. Approximately $3.2 million in charges were incurred in the third quarter of 2005 related to Hurricanes Katrina and Rita.

Security Plan had significant operations in the New Orleans area, and due to the uncertainty of future premium collections from displaced residents, the Company amortized approximately $2.3 million of cost of customer relationships acquired. Additionally, Security Plan owns a small casualty company which incurred approximately $900,000 in losses due to the hurricanes.

For the three months ended September 30, 2005, the Company earned net income of $1.487 million or $0.03 per share, compared to $1.493 million or $0.03 per share for the same period in 2004. The slight decline in third quarter income resulted primarily from the impact of Hurricanes Katrina and Rita discussed above, which lowered third quarter income by $3.2 million before tax. Total revenues increased 54.0% to $36.2 million, compared to the same quarter of 2004 when revenues were $23.5 million. Premium income was $29.9 million for the quarter, a 59% increase over the same period in 2004 when premiums equaled $18.8 million. Net investment income increased 82.4% in the quarter to $6.2 million from $3.4 million in the third quarter of 2004. Claims and surrenders increased to $12.5 million from $8.4 million for the three months ended September 30, 2005 compared to the same period in 2004, the increase resulting primarily from the acquisition of Security Plan.

Assets decreased slightly to $660.4 million at September 30, 2005, compared to $661.2 million at December 31, 2004. The decline reflected the repayment of the Company’s $30.0 million term loan in April 2005. Stockholders’ equity increased from $135.1 million at December 31, 2004 to $137.0 million at September 30, 2005 due to $1.2 million of unrealized losses, net of tax, in the Company’s bond portfolio that offset the income earned during the period.

About Citizens, Inc.

Citizens, Inc., parent of Citizens, Inc. Financial Group, a financial services investment company listed on the New York Stock Exchange, symbol CIA, plans to achieve $1 billion in assets, $250 million in revenues and $10 billion of life insurance in force by 2010, via the worldwide sale of U.S. dollar denominated whole life cash value insurance policies, coupled with the acquisition of other life insurance companies.

Citizens is included in the Russell 2000(R) Index, which measures the performance of the largest companies, based on market capitalization, in the U.S. stock market. Citizens’ Class A common stock closed at $5.89 on November 8, 2005.

Additional information is available about the Company on its web site: www.citizensinc.com.

###

Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as “may,” “will,” “expect,” “anticipate” or “continue” or comparable words. In addition, all statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of the Company, particularly its Form 10-K for the fiscal year ended December 31, 2004 and its current reports on Form 8-K, for the meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in the Company’s expectations. The Company also disclaims any duty to comment upon or correct information that may be contained in reports published by the investment community.

CITIZENS, INC.
COMPARATIVE CONSOLIDATED FINANCIAL HIGHLIGHTS

OPERATING STATEMENTS

	(Unaudited)						(Unaudited)
	Nine-Months Ended						Three-Months Ended
	September 30,						September 30,
	2005			2004			2005			2004
Revenues
Premium income	$	84,567,741			50,298,907			29,190,780			18,309,202
Annuity and universal life considerations		2,135,975			2,270,050			670,911			500,230
Net investment income		17,635,157			11,108,639			6,155,959			3,444,307
Realized gains		677,317			735,308			61,642			478,923
Decrease (increase) in fair value of options and warrants		(186,399	)		630,571			(129,187	)		630,571
Other income		619,856			481,127			238,056			170,720
Total revenues		105,449,647			65,524,602			36,188,161			23,533,953
Benefits and Expenses
Insurance benefits paid or provided:
Claims and surrenders		38,390,871			24,640,495			12,458,163			8,351,117
Increase in future policy benefit reserves		18,801,271			11,573,790			6,686,716			4,333,921
Policyholders’ dividends		3,394,911			2,871,708			1,317,811			1,141,695
Total insurance benefits paid or provided		60,587,053			39,085,993			20,462,690			13,826,733
Commissions		23,759,477			13,158,566			8,269,384			4,896,033
Other underwriting, acquisition and insurance expenses		19,349,462			11,825,431			5,903,568			4,206,260
Capitalization of deferred policy acquisition costs		(17,176,193	)		(12,972,220	)		(6,180,211	)		(4,973,716	)
Amortization of deferred policy acquisition costs		7,396,979			7,594,592			2,772,603			2,626,288
Amortization of cost of customer relationships acquired		5,210,183			2,087,890			2,714,252			727,875
Loss (gain) on coinsurance agreements		—			586,767			—			(23,846	)
Total benefits and expenses		99,126,961			61,367,019			33,942,286			21,285,627
Income before Federal income tax		6,322,686			4,157,583			2,245,875			2,248,326

	(Unaudited)				(Unaudited)
	Nine-Months Ended				Three-Months Ended
	September 30,				September 30,
	2005		2004		2005		2004
Federal income tax expense		2,114,000		1,407,907		759,000		755,341
Net income	$	4,208,686		2,749,676		1,486,875		1,492,985
INCOME PER SHARE (UNAUDITED)
Net Income per share	$	0.07		0.06		0.03		0.03
Weighted average shares outstanding		38,392,869		38,317,079		38,415,200		38,317,079

BALANCE SHEETS

	(Unaudited)		(Unaudited)		(Unaudited)				(Unaudited)
	September 30,		June 30,		March 31,		December 31,		September 30,
	2005		2005		2005		2004		2004
Total assets	$	660,414,879		648,699,840		680,725,559		661,211,562		413,595,750
Total invested assets		473,122,665		462,623,378		462,766,647		475,801,943		230,817,292
Stockholders’ equity		137,012,163		141,234,652		134,405,978		135,131,079		130,875,442

For further information contact:
Joel H. Mathis
Vice President
Public Relations and Investor Relations
Phone: 512-837-7100
Fax: 512-836-9334