UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X]Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the period ended March 31, 1998
or
[ ]Transition Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the transition period from to
Commission File Number: 1-13004
CITIZENS, INC.
(Exact name of registrant as specified in its charter)
Colorado 84-0755371
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) 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)
7801 North Interstate 35, Austin, Texas 78753
(Former name, former address and former fiscal year, if changed
since last report.)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
[X] Yes [ ] No
As of March 31, 1998, Registrant had 20,765,088 shares of
Class A common stock, No Par Value, outstanding and 621,049
shares of Class B common stock, No Par Value, outstanding.
CITIZENS, INC. AND SUBSIDIARIES
INDEX
Page
Number
Part I. Financial Information
Item 1. Financial Statements
Balance sheets, March 31, 1998
(Unaudited) and December 31, 1997 3
Statements of Operations, Three-Months
Ended March 31, 1998 and 1997
(Unaudited) 5
Statements of Cash Flows, Three-Months
Ended March 31, 1998 and 1997
(Unaudited) 6
Notes to Financial Statements 8
Item 2. Management's Discussion and Analysis
of Financial Conditions and Results
of Operations 9
Part Other Information 15
II.
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 1998 and December 31, 1997
(Unaudited)
March 31, December
1998 31,
1997
Assets
Investments:
Fixed maturities held for investment,
at amortized cost (market $5,722,000
in 1998 and $5,704,000 in 1997)
$5,614,442 $ 5,617,131
Fixed maturities available for sale,
at lower of cost or market (cost
$133,339,097 in 1998 and
$130,621,420 in 1997 135,739,097 133,021,681
Equity securities, at market (cost
in $815,270 in 1998 and $983,513 in
1997) 800,378 978,391
Mortgage loans on real estate (net of
reserve of $50,000 in 1998 and 1997)
1,258,149 1,287,295
Policy loans 20,554,697 20,466,184
Guaranteed student loans (net of
reserve of $10,000 in 1998 and 1997)
32,596 81,681
Other long-term investments 896,016 899,329
Short-term investments 700,000 300,000
Total investments 165,595,375 162,651,692
Cash 4,314,450 6,454,956
Prepaid reinsurance 1,424,865 -
Reinsurance recoverable 1,719,205 2,069,423
Other receivables 956,223 1,007,878
Accrued investment income 1,458,586 2,010,512
Deferred policy acquisition costs 36,507,763 37,107,070
Cost of insurance acquired 10,255,627 10,639,667
Excess of cost over net assets 17,002,957 17,466,123
acquired
Other intangible assets 2,520,125 2,596,925
Property, plant and equipment 5,700,190 5,795,573
Deferred Federal income tax 1,243,209 572,430
Other assets 979,040 1,147,186
Total assets 249,677,615 249,519,435
(Continued)
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, 1998 and December 31, 1997
(Unaudited)
March 31, December
1998 31,
1997
Liabilities and Stockholders' Equity
Liabilities:
Future policy benefit reserves 153,759,218 152,119,042
Dividend accumulations 4,772,091 4,789,194
Premium deposits 2,059,248 2,010,102
Policy claims payable 2,762,466 3,488,484
Other policyholders' funds 1,906,586 1,873,588
Total policy liabilities 165,259,609 164,280,410
Other liabilities 1,950,973 2,703,346
Commissions payable 774,929 880,811
Notes payable 933,208 937,430
Federal income tax payable 768,745 762,992
Amounts held on deposit 217,143 372,748
Total liabilities 169,904,607 169,937,737
Stockholders' Equity:
Common stock:
Class A, no par value, 50,000,000
shares authorized, 21,838,494 shares
issued in 1998 and 1997, including
shares in treasury of 1,944,735 in
1998 and 1997
52,790,642 52,790,643
Class B, no par value, 1,000,000
shares authorized, 621,049 shares
issued and outstanding in 1998 and
1997 283,262 283,262
Unrealized gain on investments 1,659,517 1,580,790
Retained earnings 26,968,741 26,856,157
81,702,162 81,510,852
Treasury stock, at cost (1,929,154) (1,929,154)
Total stockholders' equity 79,773,008 79,581,698
Commitments and contingencies
Total liabilities and stockholders' 249,677,615 249,519,435
equity
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three-Months Ended March 31, 1998 and 1997
(Unaudited)
Three-months ended March
31,
1998 1997
Revenues:
Premiums $13,420,674 $11,510,447
Annuity and Universal life 66,498 104,268
considerations
Net investment income 2,842,631 2,353,826
Other income 118,419 63,977
Realized gains on investments 30,651 117,840
Interest expense (18,592) (10,365)
16,460,281 14,139,993
Benefits and expenses:
Insurance benefits paid or provided:
Increase in future policy benefit 1,511,674 1,427,297
reserves
Policyholders' dividends 690,280 479,687
Claims and surrenders 6,771,493 7,019,684
Annuity expenses 98,572 185,932
9,072,019 9,112,600
Commissions 2,886,216 2,288,367
Underwriting, acquisition and 2,859,351 2,226,492
insurance expenses
Capitalization of deferred policy (1,514,707) (2,062,089)
acquisition costs
Amortization of deferred policy 2,114,014 2,345,108
acquisition costs
Amortization of cost of insurance
acquired and excess of cost over net 893,882 420,171
assets acquired
16,310,775 14,330,649
Income (loss) before federal income $149,506 $(190,656)
tax
Federal income tax:
Federal income tax expense (benefit) 36,922 (68,972)
Net Income (Loss) $112,584 $(121,684)
Per Share Amounts:
Basic and diluted earnings per share $0.01 $(0.01)
of common stock
Weighted average shares outstanding 21,386,137 20,470,711
CITIZENS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three-Months Ended March 31, 1998 and 1997
(Unaudited)
Three-months ended March
31,
1998 1997
Cash flows from operating
activities:
Net gain (loss) 112,584 (121,684)
Adjustments to reconcile net gain to
net cash provided by operating
activities:
Accrued investment income 551,926 314,914
Deferred policy acquisition costs 599,307 283,019
Amortization of cost of insurance
acquired and excess cost over net
assets acquired
847,206 420,171
Prepaid reinsurance (1,424,865) (1,717,236)
Reinsurance recoverable 350,218 (907,404)
Other receivables 51,655 (67,048)
Deferred Federal income tax (670,779) 0
Property, plant and equipment 95,383 102,278
Future policy benefit reserves 1,640,176 2,215,825
Other policy liabilities (660,977) (46,684)
Commissions payable and other 858,256 (1,302,182)
liabilities
Amounts received (paid out) as trustee (155,605) 7,848
Federal income tax payable 5,753 103,351
Other, net (1,624,935) 981,785
Net cash provided (used) by operating
activities 575,303 (266,953)
Cash flows from investing
activities:
Maturity of fixed maturities 1,126,716 966,518
Sale of fixed maturities available for 5,184,949 7,841,188
sale
Purchase of fixed maturities available (8,764,433) (9,724,071)
for sale
Sale of equity securities 151,463 0
Principal payments on mortgage loans 29,146 106,127
Net change in guaranteed student loans 49,085 (6,162)
Purchase of other long-term 0 (19,174)
investments
Increase in policy loans (net) (88,513) (9,593)
Net cash provided (used)
by investing activities (2,311,587) (845,167)
(Continued)
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three-Months Ended March 31, 1998 and 1997
(Unaudited)
Three-months ended March
31,
1998 1997
Cash flows from financing
activities:
Exercise of stock options 0 140,500
Sale of stock 0 192,426
Repayment of note payable (4,222) (10,498)
Net cash provided (used) by financing
activities (4,222) 322,428
Net decrease in cash and short-term
investments (1,740,506) (255,786)
Cash and short term investments at
beginning of period 6,754,956 6,285,383
Cash and short term investments at end $5,014,450 $6,029,597
of period
CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
(1) Financial Statements
The balance sheet for March 31, 1998, the statements of
operations for the three-month periods ended March 31,
1998 and 1997, and the statements of cash flows for the
three-month periods then ended have been prepared by the
Company without audit. In the opinion of management, all
adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial
position, results of operations and changes in cash flows
at March 31, 1998 and for comparative periods presented
have been made.
Certain information and footnote disclosures normally
included in financial statements prepared in accordance
with generally accepted accounting principles have been
omitted. It is suggested that these financial statements
be read in conjunction with the financial statements and
notes thereto included in the Company's December 31, 1997
annual 10-K report filed with the Securities and Exchange
Commission. The results of operations for the period
ended March 31, 1998 are not necessarily indicative of the
operating results for the full year.
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS
Certain statements contained in this Form 10Q are not statements
of historical fact and constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform
Act (the "Act"), including, without limitation, the italicized
statements and the statements specifically identified as forward-
looking statements within this document. In addition, certain
statements in future filings by the Company with the Securities
and Exchange Commission, in press releases, and in oral and
written statements made by or with the approval of the Company
which are not statements of historical fact constitute forward-
looking statements within the meaning of the Act. Examples of
forward-looking statements, include, but are not limited to: (i)
projections of revenues, income or loss, earnings or loss per
share, the payment or non-payment of dividends, capital
structure, and other financial items, (ii) statements of plans
and objectives of the Company or its management or Board of
Directors including those relating to products or services, (iii)
statements of future economic performance and (iv) statements of
assumptions underlying such statements. Words such as
"believes", "anticipates", "expects", "intends", "targeted",
"may", "will" and similar expressions are intended to identify
forward-looking statements but are not the exclusive means of
identifying such statements.
Forward-looking statements involve risks and uncertainties which
may cause actual results to differ materially from those in such
statements. Factors that could cause actual results to differ
from those discussed in the forward-looking statements include,
but are not limited to: (i) the strength of foreign and U.S.
economies in general and the strength of the local economies in
which operations are conducted; (ii) the effects of and changes
in trade, monetary and fiscal policies and laws; (iii)
inflation, interest rates, market and monetary fluctuations and
volatility; (iv) the timely development and acceptance of new
products and services and perceived overall value of these
products and services by existing and potential customers; (v)
changes in consumer spending, borrowing and saving habits; (vi)
concentrations of business from persons residing in third world
countries; (vii) acquisitions; (viii) the persistency of
existing and future insurance policies sold by the Company and
its subsidiaries; (ix) the dependence of the Company on its
Chairman of the Board; (x) the ability to control expenses; (xi)
the effect of changes in laws and regulations (including laws and
regulations concerning insurance) with which the Company and its
subsidiaries must comply, (xii) the effect of changes in
accounting policies and practices, as may be adopted by the
regulatory agencies as well as the Financial Accounting Standards
Board, (xiii) changes in the Company's organization and
compensation plans; (xiv) the costs and effects of litigation
and of unexpected or adverse outcomes in such litigation; and
(xv) the success of the Company at managing the risks involved
in the foregoing.
Such forward-looking statements speak only as of the date on
which such statements are made, and the Company undertakes no
obligation to update any forward-looking statement to reflect
events or circumstances after the date on which such statement is
made to reflect the occurrence of unanticipated events.
Three-months ended March 31, 1998 and 1997
Net income for the three-months ended March 31, 1998 was $112,584
compared to a loss of $121,684 for the same period in 1997.
Revenues increased to $16,460,2819,763,884, an increase of 16.4%
over the first three months of 1997 when revenues were
$14,139,993. The increase in revenues was driven by a 16.6%
increase in premium income and a 20.8% increase in investment
income. Increased revenues from 1997 acquisitions coupled with
increased international sales offset higher expenses associated
with the conversion of these two companies and fueled the
improved earnings.
Premium income for the first three months of 1998 was $13,420,674
compared to $11,510,447 for the same period in 1997. Production
of new premiums by the agents of Citizens Insurance Company of
America ("CICA") was higher during the first quarter of 1998 than
in the previous year. Management introduced a new line of
ordinary whole life products during January 1998 which will, in
the opinion of management, have considerable impact on new
production once they are assimilated by the marketing force.
Additionally, the premiums of United Security Life Insurance
Company (USLIC) and National Security Life and Accident Insurance
Co. (NSLIC), both acquired in 1997, are included in the 1998
results.
Net investment income increased 20.8% in the first three months
of 1998 compared to the same period in 1997. Net investment
income for the three months ended March 31, 1998 was $2,842,631
compared to $2,353,826 in 1997. This increase reflects the
earnings on the growth in the Company's asset base that is
occurring, as well as the earnings on assets of USLIC and NSLIC.
A shift in investment strategy implemented in 1996 to shift away
from U.S. Treasury instruments to government guaranteed mortgage
backed securities and agency issues will, in the opinion of
management, continue to offer greater return with a minimum
amount of additional risk.
Claims and surrenders expense decreased from $7,019,684 at March
31, 1997 to $6,771,493 for the same period in 1998. Death claims
decreased to $914,381 in 1998 from $1,375,403 in 1997. While
management is pleased with the decrease, it believes the decline
to be a temporary benefit of timing. Surrender expense decreased
to $3,343,683 from $3,845,231. Management constantly monitors
this activity to insure that the Company's persistency is holding
at levels equal to or above assumptions. The decrease in the
first quarter is, in management's opinion, a result of the
settling of the American Liberty block of business following the
acquisition and subsequent merger of said Company, as well as a
re-emphasis on conservation on the part of CICA's sales force.
Coupons and endowments increased to $1,133,891 in 1998 from
$1,092,958 in 1997. The endowment benefits are factored into the
premium much like dividends and therefor, the increase does not
pose a threat to future profitability. Management expects to see
further increases in this category in the future. Accident and
Health benefits were $1,142,036 in 1998, compared to $490,599 in
1997. This increase is directly related to the USLIC and NSLIC
blocks of business which consist of large amounts of scheduled
benefit daily indemnity policies and were not included in the
first quarter of 1997 due to the date of their respective
acquisition. The remaining components of claims and expenses,
consisting of supplemental contracts and payments of dividends
and endowments previously earned and held at interest, amounted
to $237,502 in 1998, compared to $215,493 in 1997.
Commission expense increased to $2,886,216 from $2,288,367. The
increase reflects the execution of an agreement with Worldwide
Professional Associates, Inc. to manage the Company's
international marketing operations in exchange for an overriding
commission. This agreement, as discussed below, is expected to
generate significant expense savings in future years. Deferred
policy acquisition costs capitalized in 1998 were $1,514,707
compared to $2,062,089 in the prior year. Amortization of these
costs was $2,114,014 for the first quarter of 1998 compared to
$2,345,108 for 1997.
Underwriting, acquisition and insurance expenses increased from
$2,226,492 in the first quarter of 1997 to $2,859,351. The
increase is primarily attributable to the absorption of the
operating expenses of USLIC and NSLIC. Management believes that
through economies of scale which can be achieved in the future
after conversion of systems of these companies that additional
expense reductions can be made. The first quarter of 1997
includes a one-time charge of approximately $400,000 as the
result of the acquisition of a 5.52% interest in First American
Investment Corporation, a 94.48% subsidiary of American Liberty.
Management expects to achieve significant reductions in expenses
due to the execution of an agreement with Worldwide Professional
Associates, Inc., an international marketing company, in April,
1997, to manage the Company's international sales activities in
exchange for an overriding commission on new sales. By taking
such actions, management believes a significant amount fixed
overhead can be converted to a variable expense in 1998 and
thereafter. Management has utilized firms such as this in
previous periods with great success at obtaining increases in
sales and expense reductions.
Amortization of cost of insurance acquired and excess of cost
over net assets acquired increased to $893,882 in 1998 from
$420,171 in 1997. The increase is attributable to the goodwill
and cost of insurance recorded on the acquisitions of USLIC,
NSLIC, American Liberty and Insurance Investors & Holding.
Because of the slowdown in sales activity on the part of the
agency operations previously associated with American Liberty,
management is monitoring the goodwill associated with the
acquisition of this company in 1995. Should actual production
levels be less than anticipated production, the potential exists
that the Company would have to charge-off the goodwill associated
with such decline. Management, in conjunction with its
independent actuaries is monitoring this recoverability on a
quarterly basis. At December 31, 1997, all goodwill on the
Company's balance sheet was recoverable within the period of
amortization. Production from these agents began to recover in
late 1997; however, due to the nature of their market, management
believes it will be the third quarter of 1998 before significant
levels of production are obtained from these agents. As such, a
$250,000 write-down of the American Liberty goodwill was recorded
during the first quarter of 1998. Management believes that there
should not be future issues associated with such goodwill
recovery; however, in the event any such amount proved
unrecoverable, a charge in the appropriate period will be booked.
Liquidity and Capital Resources
Stockholders' equity increased to $79,773,008 at March 31, 1998
from $79,581,698 at December 31, 1997. The income from
operations, as well as an increase in the market value of the
Company's bond portfolio, were the reasons for the increase.
Invested assets grew to $165,595,375 in 1998 from $162,651,692 at
December 31, 1997. At December 31, 1997, fixed maturities have
been categorized into two classifications: Fixed maturities held
to maturity, which are valued at amortized cost, and fixed
maturities available for sale which are valued at market. The
Company does not have a plan to make material dispositions of
fixed maturities during 1998; however, because of continued
uncertainty regarding long-term interest rates, management cannot
rule out sales during 1998. Fixed maturities held to maturity,
amounting to $5,614,442, consist primarily of U.S. Treasury
securities. Management has the intent and believes the Company
has the ability to hold the securities to maturity.
The Company's mortgage loan portfolio, which constitutes 0.8% of
invested assets at December 31, 1997 and March 31, 1998, has
historically been composed of small residential loans in Texas.
At December 31, 1997 and March 31, 1998, one mortgage loan was in
default with an outstanding principal balance of $31,000.
Management has established a reserve of $50,000 at March 31, 1998
and December 31, 1997 (approximately 3% of the mortgage
portfolio's balance) to cover potential unforeseen losses in the
Company's mortgage portfolio.
Policy loans comprise 12.4% of invested assets at March 31, 1998
and December 31, 1997. These loans, which are secured by the
underlying policy values, have yields ranging from 5% to 10%
percent and maturities that are related to the maturity or
termination of the applicable policies. Management believes that
the Company maintains more than adequate liquidity despite the
uncertain maturities of these loans.
Cash balances of the Company in its primary depository, Texas
Commerce Bank Austin, Texas, were significantly in excess of
Federal Deposit Insurance Corporation (FDIC) coverage at March
31, 1998 and December 31, 1997. Management monitors the solvency
of all financial institutions in which it has funds to minimize
the exposure for loss. At March 31, 1998, management does not
believe the Company is at risk for such a loss. During 1998, the
Company intends to utilize short-term Treasury Bills and highly-
rated commercial paper as cash management tools to minimize
excess cash balances and enhance return.
In February 1992, the Company paid cash for an 80,000 square foot
office building in Austin, Texas to serve as its primary office.
This building will, in the opinion of management, provide
adequate space for the Company's operations for many years. The
Company relocated to the building in September 1993. The Company
occupies approximately 35,000 square feet of space in the
building, which is 100% leased.
The Company's former office property, consisting of approximately
13,000 square feet in Austin, with a carrying value of $104,000
was leased to a third party on a triple-net basis for three years
during 1995. At March 31, 1998, this property was under a sales
contract for $850,000 with closing expected on or before July 7,
1998. The Company will record a gain of approximately $700,000
on the transaction..
CICA owned 1,821,332 shares of Citizens Class A common stock at
March 31, 1998 and December 31, 1997. Statutory accounting
practices prescribed by Colorado require that the Company carry
its investment at market value reduced by the percentage
ownership of Citizens by CICA, limited to 2% of admitted assets.
As of March 31, 1998 and December 31, 1997, the Company valued
the shares in accordance with prescribed statutory accounting
practices. In the Citizens' consolidated financial statements,
this stock is shown as treasury stock.
CICA had outstanding at March 31, 1998 and December 31, 1997, a
$400,000 surplus debenture payable to Citizens. For statutory
accounting purposes, this debenture is a component of surplus,
while for GAAP it is eliminated in consolidation. Citizens has
recognized a liability for its related obligation to a bank in a
like amount.
The NAICNational Association of Insurance Commissioners ("NAIC")
has established minimum capital requirements in the form of Risk-
Based Capital ("RBC"). Risk-based capital factors the type of
business written by a company, the quality of its assets, and
various other factors into account to develop a minimum level of
capital called "authorized control level risk-based capital" and
compares this level to an adjusted statutory capital that
includes capital and surplus as reported under Statutory
Accounting Principles, plus certain investment reserves. Should
the ratio of adjusted statutory capital to control level risk-
based capital fall below 200%, a series of actions by the Company
would begin. At December 31, 1997, CICA, NSLIC, USLIC and CILIC
were well above required minimum levels.
Information Systems and the Year 2000
The inability of computers, software and other equipment
utilizing microprocessors to recognize and properly process data
fields containing a two-digit year is generally referred to as
the Year 2000 compliance issue. As the year 2000 approaches,
such systems may be unable to accurately process certain date-
based or date-sensitive information.
The Company is in the process of identifying all significant
applications that will require modification to ensure Year 2000
compliance. Internal resources will be used as necessary to make
the required modifications and to test and verify Year 2000
compliance. Due to the nature of the programming of the
Company's core processing systems, such date oriented issues are
not a problem since the dates are stored as the number of days
since the year 1900, rather than as a two-digit field.
Accordingly a significant part of the Company's efforts to ensure
Year 2000 compliance will be to obtain assurances from vendors
that timely upgrades will be made available to make third party
software Year 2000 compliant. Additionally, the Company will
contact companies with whom it does business and upon whose
systems the Company may indirectly rely, to obtain assurances
that such systems will be timely modified. The Company
anticipates that it will complete this process in early 1999,
leaving adequate time to assess and resolve any significant
remaining issues. The cost of Year 2000 compliance is not
expected to be material to the Company's financial position or
results of operations in any one year.
Financial Accounting Standards
In February 1997, the FASB issued Statement 128 "Earnings per
Share" ("Statement 128"). Statement 128 establishes the
standards for computing and presenting earnings per share
("EPS"). This statement replaces the presentation of primary EPS
with a presentation of basic EPS and requires dual presentation
of basic and diluted EPS. Statement 128 is effective for fiscal
years ending after December 15, 1997. Implementation did not
have a material impact on the Company's earnings per share.
In June 1997, the FASB issued Statement 130 "Reporting
Comprehensive Income" ("Statement 130"). Statement 130
establishes the standards for reporting and display of
comprehensive income and its components in a full set of general-
purpose financial statements. Statement 130 is effective for
fiscal periods beginning after December 15, 1997. The Company
does not believe that this statement will have an impact on
future operations or liquidity.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
None.
Item 2 Changes in Securities
None, other than disclosed in the Notes to the Financial
Statements or Management's Discussion and Analysis of
Financial Condition and Results of Operations.
Item 3. Defaults upon Senior Securities
None.
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
The Annual meeting of stockholders will be held on
Tuesday, June 2, 1998, at 10:00 a.m. at the Company's
executive offices. The record date for the meeting was
April 15, 1998.
Item 6. Exhibits and Reports on Form 8-K
None.
SIGNATURES
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 thereunto duly authorized.
CITIZENS, INC.
By:/s/ Mark A. Oliver_____
Mark A. Oliver, FLMI
President
Date: May 15, 1995May 14, 1998
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