Citizens, Inc.

Climate Impact & Sustainability Data (2019, 2021, 2023)

Potential effects of the COVID-19 pandemic on investment performance, premium receipts, and claims and claim liabilities.

Moved into a new LEED Gold Certified headquarters building in 2020, designed to be highly energy efficient with LED lighting and motion sensors; Home Service Insurance segment transitioned from 100% paper applications to an online portal; Life Insurance segment achieved over 95% electronic applications; reduced paper usage through electronic signatures and distribution software; updated payment processing systems reduced paper and transportation use.

Pay equity audit concluded that neither gender nor race predict compensation; quarterly town hall meetings and confidential employee surveys to foster engagement; two women elected to the Board in 2021; a woman appointed as Chief Legal Officer; comprehensive benefits package including health insurance, dental and vision insurance, fitness center access and wellness programs; permanent hybrid working environment.

Transitioned from a controlled company to a non-controlled company; added diversity to the Board; updated Board refreshment policy (mandatory retirement at 75, 12-year term limit); added individual director self-assessments; adopted Stock Ownership Guidelines for directors and officers; adopted a Director Resignation Policy.

Mortality risks (COVID and non-COVID deaths); impact of surrenders on operations; low interest-rate environment; risks to strategic goals; catastrophic events (e.g., Hurricane Ida); regulatory risk (international operations); operational risks (Home Services Insurance transformation); financial risks (statutory capital ratios); information and data security risks; anti-money laundering risks.

Initiatives to retain policies; diversified investment strategy; focused marketing campaigns; new products; ERM program; information security training and compliance program; robust AML program with external audit.

Moved to a LEED Gold Certified, energy-efficient headquarters building in 2020.
Reduced paper usage through online portals and electronic systems for applications, customer communications, and agent statements.
First investment in a private equity fund focused on global renewable power generation (wind and solar energy) in 2020.

Pay equity audit in 2021 concluded that neither gender nor race predict compensation.
Quarterly town hall meetings and confidential employee surveys to foster engagement.
Comprehensive benefits package including health insurance, dental, vision, and fitness center access.
Permanent hybrid work environment implemented.

Inflation and rising costs negatively impacted policy retention in the Home Service Insurance segment in 2023.
Risks related to the rapid expansion of the Company's domestic operations.
Risks related to acquiring and retaining talent in Austin, Texas.

Focused marketing campaigns to improve Home Service Insurance segment performance.
Robust processes for assessing, identifying and managing cybersecurity threats.
Implementation of incident response and breach management processes.