Citizens, Inc. LD Micro 20th Annual Main Event Conference

Thank you, Kendall. I know you've all been waiting for this session because the life insurance session is the one everyone rushes towards. We will try to make life insurance exciting for you in the next 25 minutes, though, because I think we do some things in a very unique way, very fun way, and we have what I think is really amazing growth potential, and I'll explain why that is. First of all, we're easy stock ticker to remember, CIA. So that makes it fun when I go visit our partners in South America. No, I'm the other CIA. So that's fun. What we do is we sell life insurance, endowment, whole life, basic life insurance, but we do it in a very unique way. How is that? Let's start with who we are here. There we go. You're going to see a few dots here on the map, and for those who are listening audio, I'll explain that we have four dots on a world map here.

You're going to see one in South America. That doesn't represent a specific country. That's just that we have a base of production of sales and in-force business in South America. We also have a dot over Puerto Rico. We issue our international products out of Puerto Rico, so these are our life insurance policies for the international market is a U.S. issued, U.S. dollar life insurance policy. The dot in Texas is in Austin. That's where we're headquarters. You're also going to see a dot on Taiwan, and we have great partners there, and we do a lot of business there. You can see we have almost 250 employees.

We counted up the countries of birth of our 250 employees. I think we got to 26 different countries, so we're very internationally aligned in our employee base. We have policy holders in over 80 countries. That's very unique, and I'll talk about that later. We are producing over 3,000 producing agents on nearly $2 billion assets. We cover over $5 billion of total life insurance, and our premium revenue is $189 million and 25. Let's quickly talk about the circle with the countries. United States is our most important country, followed by Colombia, Taiwan, Venezuela, Ecuador, and Argentina, and then 15% of the rest of our in-force and premium comes from other countries. Let's move to the snapshot because I want to try to get through this so we can get to some fun Q&A. Our international life insurance, why are we so successful internationally?

Well, we have a fairly unique value proposition. If you live in Argentina right now, things are going great. The economy's doing well. They've stabilized their currency. Government spending has reined in. But they're just one election away from that flipping to the other side and potentially dealing with hyperinflation. For the one thing that you really want peace of mind with might be the life insurance for your family. If you are middle upper class or lower affluent, a U.S. dollar denominated life insurance policy might be really exciting for you. That's true peace of mind. It's protected from asset confiscation from your country. It's protected from hyperinflation. That's why our products are so appealing to many people overseas, and if you're Taiwan, for example, you have China breathing down your neck. You don't know if and when that's going to blow up.

You can protect your family in a U.S. policy. That makes our international business very unique and very expandable because we don't have brick and mortar in those countries. We're only scratching the surface of the opportunities we have in this market. Domestically, which is most of our sales growth, we offer basic whole life policies to the underserved, and that business is growing very rapidly. That's where we're doing a lot of investment currently to mature that business and build the policies and procedures we need to have a really high quality, profitable, and sustainable long-term business. We do business in 43 states, and this combination makes us very unique because we're the only company that does business in over 40 states in the United States and has clients in over 70 countries that has a unified management team.

Most companies like AIG or others, they have multiple management teams around the world. There's acrimony, and they fight with each other, and it stifles innovation. We have one. We have a global perspective as an American company. That's one very unique thing about us. Okay. I'm not going to go deep into our history. I will just say one also unique thing about us is I consider ourselves a growth stock. Personally, my family is not buying our stock, and we're buying a lot of it. We're not buying it for the reasons of our current quarterly results over last quarterly results or year over year. We're buying it for what we will become. Most growth stocks lose money. We're a little bit unique, and it kind of hurts us in a way that we're a growth stock that makes money year over year.

That's something very unique about our company also. Okay, I'm not going to go deep into a lot of this stuff. We just don't have the time. I will say, let's finish up the list of things that make us a very unique stock. I mentioned the unified management team. We're also in a very unique point in our history, and that is we're moving from a very stable but very old assembly language administration system. We own the code. Yes, we're kind of in the code business, which you probably wouldn't think we should be, and you'd be right. But we own the code. They started coding that in 1969, and it's really hard to find people that code in assembly language.

But we've kicked that can down the road because it's been a fairly stable and affordable system, far enough that we actually have bypassed multiple generations of life insurance technology that other companies have not. Other companies are stuck in a quagmire, a morass of the multiple administration systems that have to talk to each other and underwriting feeds and customer service feeds that just create a real paralyzing effect on those companies. We're leapfrogging all that. We're going right to the only life insurance administration system out there that I would call seventh generation. We will have the cleanest technology of any life insurance company, I believe, in the world, and will really allow us to do some things that others can't. We already do some things others can't, and that is we white label our life insurance to key distributors.

That is a unique thing that we do. 60% of our domestic final expense business comes in through our white label program. What all that is if you've built an amazing life insurance distribution sales force, well, every other company, you're just going to sell their off-the-shelf product. But what we'll offer you is you get to pick the name, you get to pick what it's called, the colors, the motif, the logo on it, and we power it. So that's very unique. But we only do that domestically. With this new system, we can take that global. We can, I think, have amazing opportunities in Asia and all through the world using this technique. The new technology will also allow us to build a truly modern life insurance portfolio, an American-style life insurance portfolio that doesn't exist outside of the United States.

The United States is very advanced in its life insurance. If you're very wealthy, you will fly to the United States often to get life insurance at up to 50% discount than you can buy it in your local country in a more sophisticated product. So our new technology will allow us to build indexed universal life, guaranteed universal life, various flavors of annuity, both index and fixed, linked benefit products, custom term. We can create a very modern portfolio and potentially partner with companies around the world or distribution systems around the world to offer those very sophisticated products to locals in countries all over the world. So hypothetically, somebody in Turkmenistan could get a more modern policy than somebody in Munich, Germany. So we have a very unique opportunity there, and we're really excited about it.

I think I will wrap up my comments there because there's probably some good questions out there to be answered. How am I doing on time? 14. Okay, yeah. Right on time. All right. Thank you for your attention. If you have any questions, I'd love to hear them.

The question is, are we interested in branching outside of life insurance? Yes, if you consider annuities and linked benefit products outside of life insurance. They are related. We do intend to pursue opportunities outside of life insurance, yes. There are policies like Med Supp in the U.S. that we are interested in. There are hybrid long-term care products we are interested in. Not traditional long-term care, those are somewhat dangerous, but hybrids which very distinctly limit the risk to the company. The answer is yes, and with this new technology that we have agreed to adopt, we have full access to all of those products. Great question. Thank you. Yes.