EXHIBIT
99.1
 Citizens, Inc. Reports Third Quarter and Nine Month Results    Investor conference call scheduled for Monday, November 8, at 10 a.m. CST
 AUSTIN, TEXAS (November 5, 2010) 
    (dollars in thousands, except share amounts)
    
    Q310
    
    
    Q309
    
    
    YTD10
    
    
    YTD09Premiums
    
    $
    38,055
    
    
    
    36,152
    
    
    
    109,921
    
    
    
    106,494Net investment income
    
    $
    7,272
    
    
    
    7,413
    
    
    
    23,896
    
    
    
    21,733Net realized gains (losses), net
    
    $
    (103
    )
    
    
    1,006
    
    
    
    648
    
    
    
    2,827Decrease in fair value of warrants
    
    $
    128
    
    
    
    
    
    
    
    380
    
    
    
    3,081Total revenue
    
    $
    45,455
    
    
    
    44,844
    
    
    
    135,447
    
    
    
    134,931Net income applicable to common stock
    
    $
    1,666
    
    
    
    1,878
    
    
    
    6,456
    
    
    
    7,208Net income per diluted share of Class A common stock
    
    $
    0.03
    
    
    
    0.04
    
    
    
    0.13
    
    
    
    0.10Weighted average shares of Class A common stock
(diluted)
    
    
    48,687,430
    
    
    
    47,439,286
    
    
    
    48,687,478
    
    
    
    46,202,347
 Consolidated results
 
    
    Income statement Total revenue increased 1.4% for the quarter ended
September 30, and 0.4% year-to-date in 2010, largely due to
premium growth. Total
revenue, excluding the change in fair value of warrants, increased 1.1% and 2.4%
for the same periods. The decline in net income for the three and nine
month periods ended September 30, 2010 was largely due to the change in the fair
value of the warrants as well as higher insurance benefits and expenses.
 
    
    Book value Book value rose 9.7% to $4.77 at September 30, 2010, compared
with $4.35 at year-end 2009, reflecting retained earnings and portfolio
appreciation.




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EXHIBIT 99.1, Continued
 Insurance operations
 
    
    Premiums Premium growth for the quarter and year to date was driven by life renewal
premiums, as international persistency trends remained favorable. Life first-year premiums
increased 5.3% for the nine months ended September 30, 2010 compared to 2009 and represent
approximately 14% of total life premiums for 2010 and 2009.
 
    
    Underwriting profit Lower underwriting profit for the same periods largely reflected
an increase in future policy benefit reserves. Due primarily to interest rate declines on
investments, the Company adjusted reserving assumptions in the current quarter to reflect
expectations related to new policies issued. Claims and surrenders rose slightly on a
year-over-year basis for both the quarter and year-to-date, but remained within
managements expectations. Current results reflect lower underwriting and other expenses,
which declined in both periods due primarily to lower legal and auditing fees.
 Investments
 
    
    Invested assets Total invested assets grew 8.2% to $726.6 million at September 30,
2010, from $671.3 million at year-end 2009, reflecting
additional premium income from new and renewal business over the past year. Fixed maturity securities represented 89.0% of the
portfolio at September 30, 2010, compared with 88.3% at year-end 2009. Cash and cash
equivalents rose to 8.2% from 6.8% of cash and invested assets,
reflecting the timing of calls relating to higher-yielding fixed maturity investments.
 
    
    Investment income Third quarter investment income declined slightly, partially due to
large call volumes on the fixed maturity portfolio that began in the second quarter as well
as the overall decline in portfolio yield. The increased call activity and lower yields on
new investments is likely to result in lower investment income going forward despite the
higher level of invested assets. Investment income for the year-to-date period rose 10.0%.
 
    
    Yield and duration Yields decreased approximately sixteen basis points for the period
ended September 30, 2010, compared with the same period in 2009 even though 2009 yields
were depressed. During the second quarter of 2009, the company experienced a large volume
of calls of fixed maturity investments that were not reinvested until later in the year.
The Company is currently investing in durations between five and
fifteen years seeking a higher yield in some step up fixed maturity securities while maintaining high credit quality.
 
    
    Realized gains Total realized gains in the 2010 periods were primarily driven by
opportunistic sales of equity holdings and late second quarter interest-rate-driven sales
of fixed maturity investments. In the 2009 periods, the gains reflected sales of fixed
maturity securities offset by other-than-temporary impairments recorded in the first
quarter of 2009.
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EXHIBIT 99.1, Continued
 Investor Conference Call
 www.citizensinc.com
 About Citizens, Inc.
  http://www.citizensinc.com/forms/20101105Form10Q.pdf
 Safe Harbor
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