8-K

UNITED STATES
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): August 7, 2008

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)

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

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:

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

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

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

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

SECTION 2 — FINANCIAL INFORMATION

Item 2.02 Results of Operations and Financial Condition.

On August 7, 2008, Citizens, Inc. (“Citizens”) issued a news release (the “Release”) reporting, among other things, results for the second quarter ended June 30, 2008. A copy of the Release is included as Exhibit 99.8 to this Current Report on Form 8-K and incorporated herein by reference. Citizens also announced that it would hold a conference call to discuss its financial results at 10:00 a.m. Central Daylight Time on Friday August 8, 2008.

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 AND EXHIBITS

Item 9.01 Financial Statements and Exhibits.

(d)	Exhibits:
99.8	News Release issued by Citizens, Inc. on August 7, 2008.

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SIGNATURE

Pursuant to the requirement 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/ Rick D. Riley
	Rick D. Riley, Vice Chairman and President

Date: August 11, 2008

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EXHIBIT INDEX

Exhibit No.		Description
	99.8	News Release issued by Citizens, Inc. on August 7, 2008.

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EX-99.8

Exhibit 99.8

For further information contact:
Randall H. Riley
Vice President, Investor Relations
(512) 837-7100

FOR IMMEDIATE RELEASE

CITIZENS, INC. REPORTS SECOND QUARTER RESULTS

Austin, Texas — August 7, 2008 — Citizens, Inc. (NYSE: CIA) reported net income of $5.7 million or $0.11 per share of Class A common stock for the six months ended June 30, 2008, compared to net income of $6.0 million, or $0.12 per share of Class A common stock, for the same period in 2007. The decrease in earnings was due primarily to an increase in death claims and property claims, coupled with an increase in the amortization of deferred policy acquisition costs.

Total revenues increased 5.2% in the first six months of 2008 to $83.2 million, compared to the same period of 2007 when revenues were $79.1 million. Total revenues from our Life Insurance segment increased to $56.3 million compared to $52.8 million. Premium income was $67.9 million for the first half of 2008, a 5.2% increase over the same period of 2007 when premiums were $64.5 million. The increase resulted primarily from renewal premiums in our Life Insurance segment, which continues to experience strong persistency. Net investment income increased 5.8% during the first half of 2008 to $14.9 million from $14.1 million in 2007, the increase fueled by the growth in our investment portfolio. Underwriting and insurance expenses decreased from $14.2 million in 2007 to $13.9 million in 2008, due primarily to lower costs associated with the Company’s 2008 Annual Shareholders Meeting and the absence of insurance department examination expenses incurred during 2007.

For the three months ended June 30, 2008, the Company earned net income of $3.0 million or $0.06 per share of Class A common stock, compared to $3.5 million or $0.07 per share of Class A common stock for the same period in 2007. The decrease in the second quarter income resulted primarily from increased death claims and property claims.

Assets at June 30, 2008 totaled $801.0 million, compared to $787.9 million at December 31, 2007. Stockholders’ equity at June 30, 2008 was $174.9 million compared to $176.2 million at December 31, 2007. The decrease was a result of an increase in unrealized investment losses of $6.3 million during the period, plus amortization of discounts and deferred issuance costs of $668,000 for our Series A Preferred Stock, net of income earned during the period.

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P.O. Box 149151 •  Austin, Texas 78714-9151 •  Phone 512 837-7100 •  Fax: 512-836-9334
email: PR@citizensinc.com •  web site: www.citizensinc.com

Citizens, Inc. will hold a conference call to discuss its second quarter 2008 operating results at 10:00 a.m. Central Daylight Time on Friday, August 8, 2008, to be hosted by Rick D. Riley, Vice Chairman and President, Tom Kopetic, Chief Financial Officer and other members of the Citizens, Inc. management team.

To participate in the Citizens, Inc. conference call on Friday, August 8, 2008, dial (888) 742-8686 and when prompted enter confirmation code #8442219. It is recommended you dial in 3-5 minutes before the call is scheduled to begin.

About Citizens, Inc.

Citizens, Inc. is a financial services company listed on the New York Stock Exchange under the symbol CIA. The Company 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’ Class A common stock closed at $7.40 on August 7, 2008.

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

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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, 2007, its quarterly reports on Form 10-Q 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
(In thousands, except per share amounts)

OPERATING STATEMENTS

	(Unaudited)						(Unaudited)
	Six Months Ended						Three Months Ended
	June 30,						June 30,
	2008			2007			2008			2007
Revenues
Premiums	$	67,874			64,543			35,204			33,102
Net investment income		14,944			14,131			7,480			7,064
Realized gains (losses), net		16			(132	)		—			(119	)
Decrease (increase) in fair value of warrants		(191	)		(196	)		312			231
Other income		564			785			285			433
Total revenues		83,207			79,131			43,281			40,711
Benefits and Expenses
Insurance benefits paid or provided:
Claims and surrenders		27,808			25,204			14,730			12,024
Increase in future policy benefit reserves		14,730			15,324			7,733			8,389
Policyholders’ dividends		2,954			2,652			1,577			1,422
Total insurance benefits paid or provided		45,492			43,180			24,040			21,835
Commissions		17,087			17,386			9,376			8,997
Other underwriting, acquisition and insurance expenses		13,931			14,224			7,020			7,324
Capitalization of deferred policy acquisition costs		(11,164	)		(12,906	)		(6,309	)		(6,782	)
Amortization of deferred policy acquisition costs		7,668			6,480			4,106			3,329
Amortization of cost of customer relationships acquired and other intangibles		1,479			1,667			715			826
Total benefits and expenses		74,493			70,031			38,948			35,529
Income before Federal income tax		8,714			9,100			4,333			5,182
Federal income tax expense		2,987			3,134			1,341			1,655
Net income	$	5,727			5,966			2,992			3,527
Net income applicable to common stock	$	4,716			4,952			2,493			3,016
Basic and diluted earnings per share of Class A common stock	$	0.11			0.12			0.06			0.07
Basic and diluted earnings per share of Class B common stock	$	0.05			0.06			0.03			0.04

BALANCE SHEETS

	(Unaudited)
	June 30,		December 31,
	2008		2007
Total assets	$	800,955		787,909
Total invested assets		577,997		585,296
Stockholders’ equity		174,948		176,157