EHXIBIT 99.1
 Citizens, Inc. Reports First Quarter 2011 Results
 AUSTIN, TEXAS (May 5, 2011) 
    (In thousands, except per share amounts)
    
    YTD11
    
    
    YTD10Premiums
    
    $
    37,228
    
    
    
    35,190Net investment income
    
    $
    7,514
    
    
    
    8,349Net realized gains
    
    $
    19
    
    
    
    59Decrease (increase) in fair value of warrants
    
    $
    399
    
    
    
    (114
    )Total revenue
    
    $
    45,283
    
    
    
    43,832Net income applicable to common stock
    
    $
    1,780
    
    
    
    1,605Net income per diluted share of Class A common stock
    
    $
    0.03
    
    
    
    0.03Weighted average shares of Class A common stock (diluted)
    
    
    48,731
    
    
    
    48,686
 Consolidated results
 
    
    Total revenues Total revenue increased 3.3% for the first quarter ended March 31,
2011, as premium growth outpaced lower investment income. Total revenue, excluding the
change in fair value of warrants, increased 2.1% for the same period.
    
    Net income Net income rose 10.9% for the three months ended March 31, 2011. On an
after-tax basis, realized gains and the change in the fair value of warrants increased net
income by $0.4 million, or $0.01 per share of diluted Class A common stock, compared with a
minimal loss of $76,000 for those items in the prior years first quarter.
    
    Book value Book value per share rose 1.3% to $4.64 at March 31, 2011, compared with
$4.58 at year-end 2010, reflecting net income and portfolio appreciation.




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EXHIBIT 99.1, Continued
 Insurance operations
 
    
    Life insurance Total premiums rose 7.1% for the first quarter of 2011, while income
before income taxes declined primarily because of an increase in future policy benefit
reserves expense.
 
    
    Life first-year premiums increased almost 28% for the three months
ended March 31, 2011, and represent approximately 15% and 13% of total life
premiums for 2011 and 2010, respectively. Sales remained strong internationally
with Colombia, Venezuela and Taiwan continuing as the top producing countries.
International persistency trends also remained favorable with renewals accounting
for the remaining 85% of premiums for the first quarter of 2011 and 87% for the
same period in 2010.
    
    Due to our international clients focus on contract guarantees,
endowment sales now represent approximately 75% of international new business
sales. The increase in future policy benefit reserves correlates to the increase
in endowment sales, which produce a faster reserve build up than whole life
products.
    
    Domestic life insurance premiums were consistent as the majority of the
domestic life insurance business is from blocks of business acquired over the past
15 years.
 
    
    Home service Total premiums rose 2.8% for the first quarter, and income before income
taxes rose 75%, primarily because the portion of underwriting expenses allocated to the
home service operation was reduced as part of a routine internal review of ongoing business
activities and reflects efficiencies in operations gained after integration onto Citizens
computer systems.
 
    
    The number of new home service policies written in the first quarter
rose 10% as the Company continued its expansion into Arkansas and Mississippi.
    
    Death claims were down 4.9% in the quarter, and property casualty
losses related to first-quarter weather events in the Companys home service
markets were within normal levels.
 Investments
 
    
    Invested assets Total invested assets grew 4.5% to $758.6 million at March 31, 2011
from $725.7 million at year-end 2010 primarily because of cash flow from premium income,
and to a lesser extent, market appreciation on investments carried at fair value in the
first three months of the year. Fixed maturity securities represented 90.7% of the
portfolio at March 31, 2011, compared with 90.4% at year-end 2010.
 
    
    The Company made approximately $54.0 million in new investments in the
first quarter of 2011, primarily investing in highly-rated municipals and
corporate utility issuers.
    
    Cash and cash equivalents decreased to 4.7% from 6.4% of cash and
invested assets, reflecting the timing of reinvesting the proceeds of U.S.
government-sponsored enterprise fixed maturity investment calls.




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EXHIBIT 99.1, Continued
 
    
    Investment income First quarter net investment income declined as annualized yield on
the portfolio declined to 4.0% from 5.0% a year ago due to prevailing interest rates. The
Company continued to experience high call volume, which began in the second quarter of
2010. The continued call activity and lower yields on new investments is likely to result
in lower investment income in the near term despite the higher level of invested assets.
    
    Realized gains and losses Realized gains and losses in the portfolio during the first
quarters of 2011 and 2010 were modest and the Company recorded no other-than-temporary
impairment charges in either period.
 Investor Conference Call
  About Citizens, Inc.
  www.citizensinc.com
 Safe Harbor




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CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
 Consolidated Statements of Operations
Three Months Ended March 31,
(In thousands, except per share amounts)
(Unaudited)
 2011
    
    
    2010Revenues:Premiums:Life insurance
    
    $
    35,611
    
    
    
    33,596Accident and health insurance
    
    
    372
    
    
    
    414Property insurance
    
    
    1,245
    
    
    
    1,180Net investment income
    
    
    7,514
    
    
    
    8,349Realized gains, net
    
    
    19
    
    
    
    59Decrease (increase) in fair value of warrants
    
    
    399
    
    
    
    (114
    )Other income
    
    
    123
    
    
    
    348Total revenues
    
    
    45,283
    
    
    
    43,832Benefits and expenses:Insurance benefits paid or provided:Claims and surrenders
    
    
    14,879
    
    
    
    15,577Increase in future policy benefit reserves
    
    
    12,318
    
    
    
    9,545Policyholders dividends
    
    
    1,662
    
    
    
    1,570Total insurance benefits paid or provided
    
    
    28,859
    
    
    
    26,692Commissions
    
    
    9,072
    
    
    
    8,128Other underwriting, acquisition and insurance expenses
    
    
    6,610
    
    
    
    6,853Capitalization of deferred policy acquisition costs
    
    
    (7,165
    )
    
    
    (5,995
    )Amortization of deferred policy acquisition costs
    
    
    4,520
    
    
    
    4,944Amortization of cost of customer relationships acquired
and other intangibles
    
    
    654
    
    
    
    838Total benefits and expenses
    
    
    42,550
    
    
    
    41,460Income before federal income tax
    
    
    2,733
    
    
    
    2,372Federal income tax expense
    
    
    953
    
    
    
    767Net income
    
    $
    1,780
    
    
    
    1,605Net income applicable to common stockholders
    
    $
    1,780
    
    
    
    1,605Per Share Amounts:Basic earnings per share of Class A common stock
    
    $
    0.04
    
    
    
    0.03Basic earnings per share of Class B common stock
    
    $
    0.02
    
    
    
    0.02Diluted earnings per share of Class A common stock
    
    $
    0.03
    
    
    
    0.03Diluted earnings per share of Class B common stock
    
    $
    0.01
    
    
    
    0.02
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CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
 Consolidated Statements of Financial Position
(In thousands)
 March 31,
    
    
    December 31,Assets
    
    2011
    
    
    2010(Unaudited)Investments:Fixed maturities available-for-sale, at fair value
    
    $
    620,614
    
    
    
    575,737Fixed maturities held-to-maturity, at amortized
cost
    
    
    67,078
    
    
    
    80,232Equity securities available-for-sale, at fair value
    
    
    23,815
    
    
    
    23,304Mortgage loans on real estate
    
    
    1,478
    
    
    
    1,489Policy loans
    
    
    36,306
    
    
    
    35,585Real estate held for investment
    
    
    9,168
    
    
    
    9,200Other long-term investments
    
    
    146
    
    
    
    148Total investments
    
    
    758,605
    
    
    
    725,695Cash and cash equivalents
    
    
    37,450
    
    
    
    49,723Accrued investment income
    
    
    8,432
    
    
    
    7,433Reinsurance recoverable
    
    
    9,397
    
    
    
    9,729Deferred policy acquisition costs
    
    
    128,325
    
    
    
    125,684Cost of customer relationships acquired
    
    
    30,962
    
    
    
    31,631Goodwill
    
    
    17,160
    
    
    
    17,160Other intangible assets
    
    
    1,012
    
    
    
    1,019Federal income tax receivable
    
    
    
    
    
    
    1,914Property and equipment, net
    
    
    7,389
    
    
    
    7,101Due premiums, net
    
    
    8,184
    
    
    
    8,537Prepaid expenses
    
    
    1,850
    
    
    
    474Other assets
    
    
    728
    
    
    
    406Total assets
    
    $
    1,009,494
    
    
    
    986,506
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CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES
 Consolidated Statements of Financial Position, Continued
(In thousands, except share amounts)
 March 31,
    
    
    December 31,Liabilities and Stockholders Equity
    
    2011
    
    
    2010(Unaudited)Liabilities:Policy liabilities:Future policy benefit reserves:Life insurance
    
    $
    649,030
    
    
    
    637,140Annuities
    
    
    43,071
    
    
    
    42,096Accident and health
    
    
    5,705
    
    
    
    5,910Dividend accumulations
    
    
    9,817
    
    
    
    9,498Premiums paid in advance
    
    
    24,399
    
    
    
    23,675Policy claims payable
    
    
    10,815
    
    
    
    10,540Other policyholders funds
    
    
    8,085
    
    
    
    8,191Total policy liabilities
    
    
    750,922
    
    
    
    737,050Commissions payable
    
    
    2,363
    
    
    
    2,538Federal income tax payable
    
    
    128
    
    
    
    Deferred federal income tax
    
    
    9,806
    
    
    
    9,410Payable for securities in process of settlement
    
    
    5,973
    
    
    
    Warrants outstanding
    
    
    1,188
    
    
    
    1,587Other liabilities
    
    
    8,655
    
    
    
    8,287Total liabilities
    
    
    779,035
    
    
    
    758,872Commitments and contingenciesStockholders equity:Common stock:Class A
    
    
    256,703
    
    
    
    256,703Class B
    
    
    3,184
    
    
    
    3,184Accumulated deficit
    
    
    (20,801
    )
    
    
    (22,581
    )Accumulated other comprehensive income:Unrealized gains on
securities, net of tax
    
    
    2,384
    
    
    
    1,339241,470
    
    
    
    238,645Treasury stock, at cost
    
    
    (11,011
    )
    
    
    (11,011
    )Total stockholders equity
    
    
    230,459
    
    
    
    227,634Total liabilities and stockholders equity
    
    $
    1,009,494
    
    
    
    986,506
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