EXHIBIT 99.1
 FOR FURTHER INFORMATION CONTACT:
 
 Citizens, Inc. Reports Fourth Quarter and Full-Year 2010 Results
 Investor conference call scheduled for Friday, March 11, at 10 a.m. CST
 AUSTIN, TEXAS (March 10, 2011) 
   Q410
    
    
    Q409
    
    
    2010
    
    
    2009(In thousands, except share amounts)Premiums
    
    $
    42,131
    
    
    
    40,786
    
    
    
    152,052
    
    
    
    147,280Net investment income
    
    $
    6,181
    
    
    
    7,869
    
    
    
    30,077
    
    
    
    29,602Net realized gains (losses), net
    
    $
    7,364
    
    
    
    5,213
    
    
    
    8,012
    
    
    
    8,040Change in fair value of warrants
    
    $
    (148
    )
    
    
    73
    
    
    
    232
    
    
    
    3,154Total revenue
    
    $
    55,734
    
    
    
    54,049
    
    
    
    191,181
    
    
    
    188,980Net income applicable to common stock
    
    $
    9,055
    
    
    
    7,627
    
    
    
    15,511
    
    
    
    14,835Net income per diluted share of Class A common stock
    
    $
    0.19
    
    
    
    0.16
    
    
    
    0.32
    
    
    
    0.31Weighted average shares of Class A common stock (diluted)
    
    
    48,718
    
    
    
    48,687
    
    
    
    48,688
    
    
    
    47,556




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##### 



Consolidated results
 
    
    Total revenues Total revenues increased 3.1% for the quarter ended December 31, and
1.2% for full-year 2010, due to growth in both premiums and investment income. Total
revenue, excluding the change in fair value of warrants, increased 3.5% and 2.8% for the
same periods.
 
    
    Net income Net income rose by $1.4 million for the quarter ended December 31, and
$0.7 million for full-year 2010. On an after-tax basis, realized gains contributed $5.2
million, or $0.11 per share of Class A common stock, to full-year net income, unchanged
from 2009. On an after-tax basis, the non-cash charge for the change in fair value of
warrants increased net income in 2010 by $0.2 million, which would be less than 1 cent per
share of Class A common stock, compared with $3.2 million, or $0.04 per share of Class A
common stock, in 2009.
 
    
    Book value Book value per share of Class A common stock rose 5.3% to $4.58 at
December 31, 2010, compared with $4.35 at year-end 2009. Year-end 2010 book value declined
$0.19 from September 30, 2010, due to market declines in bond values.
 Insurance operations
 
    
    Premiums Premium growth for the fourth quarter and full-year was driven by strong
persistency and higher endowment sales in the international life insurance business. Life
first-year premiums increased 2.8% for 2010 and represented approximately 15% of total life
premiums for 2010 and 2009.
 
    
    Endowment sales now represent a significant portion of
international new business sales, reflecting increased interest in guaranteed
products in recent years from the Pacific Rim and Latin America. Endowment
sales rose 10.6% to $9.4 million in 2010.
 
    
    Most of our life insurance policies contain a policy loan
provision, which allows the policyholder to tap the cash value of a policy to
pay premiums and keep policies in force. The policy loan asset balance
increased 10.9% year over year.
 
    
    Underwriting profit Total benefits and expenses rose less rapidly than premiums for
the fourth quarter and full-year. For those periods, increases in insurance benefits paid
or provided and commissions, which were related to premium growth, particularly the higher
endowment sales, were offset by lower expenses and changes in capitalization and
amortization of deferred acquisition costs and other items. Investment income is a factor
in profitability, but the Companys product design does not depend solely on interest rate
spreads, but also relies on the mortality, expense and persistency margins.
 Investments
 
    
    Invested assets Total invested assets grew 8.1% to $725.7 million at December 31,
2010, from $671.3 million at December 31, 2009, reflecting additional premium income from
new and renewal business over the past year. Fixed maturity securities represented 90.4%
of the portfolio at year-end 2010, compared with 88.3% at year-end 2009. Cash and cash
equivalents were 6.4% at year-end 2010, down from 6.8% in 2009 of total cash, cash
equivalents and invested assets, reflecting the timing of calls relating to higher-yielding
fixed maturity investments.
 
    
    Investment income Net investment income decreased 21.5% for the quarter ended
December 31, 2010, but rose 1.6% for the full-year. Lower yields on invested assets
continue to offset higher average investment balances. As noted above, the policy loan
asset balance rose by 10.9% in 2010, resulting in an increase in policy loan income, which
is included in investment income.




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##### 




    
    Yield and duration During 2010, average invested assets rose 12.6% while average
yield declined to 4.32% compared with 4.75% in 2009. The average annualized yield for the
quarter ended December 31, 2010 was 3.47% compared to 4.87% for the quarter ended December
31, 2009. Significant calls by issuers of fixed maturity securities has resulted in the
Company reinvesting proceeds at lower yields as market rates have declined. During 2010,
the Company continued to invest in bonds of U.S. Government-sponsored enterprises. In
addition, the Company made additional investments in high quality corporate and municipal
bonds to obtain higher yields
 
    
    Realized gains Realized gains for the full year ended 2010 were comparable to net
realized gains from 2009. In 2010 and 2009, the Company sold equity mutual funds, which
were previously impaired, and realized gains of $6.4 million and $4.9 million,
respectively. During the current year, the Company also realized net gains of $1.3 million
on sales of securities related to an acquired entity that were primarily below investment
grade quality. The Company also sold a number of fixed maturity investments in 2009,
resulting in a total gain of over $8.0 million that was offset by realized losses from
impairments of $0.3 million.
 Investor Conference Call
  About Citizens, Inc.
  Safe Harbor




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##### 



Consolidated Statements of Operations
( In thousands, except per share amounts)
 Three Months Ended
    
    
    Twelve Months EndedDecember 31,
    
    
    December 31,Unaudited
    
    
    
    
    
    
    Unaudited2010
    
    
    2009
    
    
    2010
    
    
    2009Revenues:Premiums:Life insurance
    
    $
    40,551
    
    
    
    39,143
    
    
    
    145,665
    
    
    
    141,001Accident and health insurance
    
    
    362
    
    
    
    396
    
    
    
    1,577
    
    
    
    1,531Property insurance
    
    
    1,218
    
    
    
    1,247
    
    
    
    4,810
    
    
    
    4,748Net investment income
    
    
    6,181
    
    
    
    7,869
    
    
    
    30,077
    
    
    
    29,602Realized gains (losses), net
    
    
    7,364
    
    
    
    5,213
    
    
    
    8,012
    
    
    
    8,040Decrease (increase) in fair value of warrants
    
    
    (148
    )
    
    
    73
    
    
    
    232
    
    
    
    3,154Other income
    
    
    206
    
    
    
    108
    
    
    
    808
    
    
    
    904Total revenues
    
    
    55,734
    
    
    
    54,049
    
    
    
    191,181
    
    
    
    188,980Benefits and expenses:Insurance benefits paid or provided:Claims and surrenders
    
    
    14,628
    
    
    
    15,734
    
    
    
    61,038
    
    
    
    59,988Increase in future policy benefit reserves
    
    
    15,694
    
    
    
    12,769
    
    
    
    46,420
    
    
    
    40,790Policyholders dividends
    
    
    2,161
    
    
    
    1,938
    
    
    
    7,485
    
    
    
    6,680Total insurance benefits paid or provided
    
    
    32,483
    
    
    
    30,441
    
    
    
    114,943
    
    
    
    107,458Commissions
    
    
    10,200
    
    
    
    10,074
    
    
    
    36,585
    
    
    
    35,536Other underwriting, acquisition and insurance
expenses
    
    
    6,516
    
    
    
    6,451
    
    
    
    27,057
    
    
    
    28,340Capitalization of deferred policy acquisition costs
    
    
    (7,414
    )
    
    
    (7,450
    )
    
    
    (27,960
    )
    
    
    (27,132
    )Amortization of deferred policy acquisition costs
    
    
    3,278
    
    
    
    5,538
    
    
    
    17,840
    
    
    
    20,678Amortization of cost of customer relationships
acquired and other intangibles
    
    
    754
    
    
    
    864
    
    
    
    3,086
    
    
    
    3,494Total benefits and expenses
    
    
    45,817
    
    
    
    45,918
    
    
    
    171,551
    
    
    
    168,374Income (loss) before income tax expense
    
    
    9,917
    
    
    
    8,131
    
    
    
    19,630
    
    
    
    20,606Income tax expense (benefit)
    
    
    862
    
    
    
    504
    
    
    
    4,119
    
    
    
    3,266Net income (loss)
    
    $
    9,055
    
    
    
    7,627
    
    
    
    15,511
    
    
    
    17,340Net income (loss) applicable to common stockholders
    
    $
    9,055
    
    
    
    7,627
    
    
    
    15,511
    
    
    
    14,835Per Share Amounts:Basic and diluted earnings (loss) per share of
Class A common stock
    
    $
    0.19
    
    
    
    0.16
    
    
    
    0.32
    
    
    
    0.31Basic and diluted earnings (loss) per share of
Class B common stock
    
    $
    0.09
    
    
    
    0.08
    
    
    
    0.16
    
    
    
    0.15




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##### 



Consolidated Statements of Financial Position
December 31,
(In thousands)
 Assets
    
    2010
    
    
    2009UnauditedInvestments:Fixed maturities available-for-sale, at fair value
(cost: $578,412 in 2010 and $389,195 in 2009)
    
    $
    575,737
    
    
    
    385,579Fixed maturities held-to-maturity, at amortized cost
(fair value: $79,103 in 2010 and $199,767 in 2009)
    
    
    80,232
    
    
    
    206,909Equity securities available-for-sale, at fair value
(cost: $19,844 in 2010 and $25,899 in 2009)
    
    
    23,304
    
    
    
    33,477Mortgage loans on real estate
    
    
    1,489
    
    
    
    1,533Policy loans
    
    
    35,585
    
    
    
    32,096Real estate held for investment (less $1,017 and $913 accumulated
depreciation in 2010 and 2009, respectively)
    
    
    9,200
    
    
    
    9,032Other long-term investments
    
    
    148
    
    
    
    184Short-term investments
    
    
    
    
    
    
    2,510Total investments
    
    
    725,695
    
    
    
    671,320Cash and cash equivalents
    
    
    49,723
    
    
    
    48,625Accrued investment income
    
    
    7,433
    
    
    
    7,455Reinsurance recoverable
    
    
    9,729
    
    
    
    11,587Deferred policy acquisition costs
    
    
    125,684
    
    
    
    115,570Cost of customer relationships acquired
    
    
    31,631
    
    
    
    34,728Goodwill
    
    
    17,160
    
    
    
    17,160Other intangible assets
    
    
    1,019
    
    
    
    1,046Federal income tax receivable
    
    
    1,914
    
    
    
    4,023Property and equipment, net
    
    
    7,101
    
    
    
    6,018Due premiums, net (less $1,568 and $1,644 allowance for doubtful
accounts in 2010 and 2009, respectively)
    
    
    8,537
    
    
    
    8,960Prepaid expenses
    
    
    474
    
    
    
    288Other assets
    
    
    406
    
    
    
    546Total assets
    
    $
    986,506
    
    
    
    927,326(Continued)




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##### 



Consolidated Statements of Financial Position, Continued
December 31, 2010 and 2009
(In thousands)
 Liabilities and Stockholders Equity
    
    2010
    
    
    2009UnauditedLiabilities:Future policy benefit reserves:Life insurance
    
    $
    637,140
    
    
    
    592,358Annuities
    
    
    42,096
    
    
    
    37,882Accident and health
    
    
    5,910
    
    
    
    6,399Dividend accumulations
    
    
    9,498
    
    
    
    5,621Premiums paid in advance
    
    
    23,675
    
    
    
    20,373Policy claims payable
    
    
    10,540
    
    
    
    10,222Other policyholders funds
    
    
    8,191
    
    
    
    8,105Total policy liabilities
    
    
    737,050
    
    
    
    680,960Commissions payable
    
    
    2,538
    
    
    
    2,434Deferred federal and state income taxes
    
    
    9,410
    
    
    
    8,052Payable for securities in process of settlement
    
    
    
    
    
    
    6,000Warrants outstanding
    
    
    1,587
    
    
    
    1,819Other liabilities
    
    
    8,287
    
    
    
    11,986Total liabilities
    
    
    758,872
    
    
    
    711,251Commitments and contingenciesStockholders equity:Common stock:Class A, no par value, 100,000,000 shares authorized,
51,822,497 shares issued and outstanding in 2010 and 2009,
including shares in treasury of 3,135,738 in 2010 and 2009
    
    
    256,703
    
    
    
    256,703Class B, no par value, 2,000,000 shares authorized,
1,001,714 shares issued and outstanding in 2010 and 2009
    
    
    3,184
    
    
    
    3,184Accumulated deficit
    
    
    (22,581
    )
    
    
    (38,092
    )Accumulated other comprehensive income (loss):Unrealized gains (losses) on securities, net of tax
    
    
    1,339
    
    
    
    5,291238,645
    
    
    
    227,086Treasury stock, at cost
    
    
    (11,011
    )
    
    
    (11,011
    )Total stockholders equity
    
    
    227,634
    
    
    
    216,075Total liabilities and stockholders equity
    
    $
    986,506
    
    
    
    927,326