Citizens, Inc. Form 8-K Summary
Business Context and Reporting Period
Company: Citizens, Inc.
Filing Date: August 24, 2023
Reporting Period: This filing relates to the recasting of financial statements for the fourth quarter of 2022 and prior periods to align with the adoption of Accounting Standards Update (ASU) No. 2018-12 (LDTI). The Company adopted LDTI on a modified retrospective basis effective January 1, 2023, with a transition date of January 1, 2021.
Key Financial Metrics
This Form 8-K does not contain specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. Instead, it serves as a cover document for the "Recast Financial Supplement" (Exhibit 99.1), which presents previously reported financial information on a basis consistent with LDTI. The filing explicitly states that the Recast Financial Supplement is unaudited and provided voluntarily to assist investors in evaluating the impact of the accounting change.
Material Changes
The primary material change disclosed is the restatement of historical financial data to reflect the adoption of ASU No. 2018-12 (LDTI). This accounting update affects the treatment of long-duration contracts. The filing notes that future audited financial statements may differ, perhaps materially, from the unaudited recast information provided in this supplement.
Guidance, Outlook, and Risks
- Management Commentary: The Company emphasizes that the Recast Financial Supplement is unaudited and should not be relied upon unduly. It must be read in conjunction with the audited 2022 Form 10-K.
- Risks and Contingencies: There is a risk that future filings may contain financial statements that differ materially from the recast data presented in this 8-K. The Company undertakes no obligation to update or revise the information in the Recast Financial Supplement except as required by law.
- Unusual Items: The filing clarifies that the information in Item 2.02 and Exhibit 99.1 is not deemed "filed" for purposes of Section 18 of the Exchange Act and is not subject to the liability of that section.
Investor Verification Checklist
- Review the attached Exhibit 99.1 (Recast Financial Supplement) for specific numerical impacts of the LDTI adoption on prior periods.
- Compare the recast figures in this supplement against the audited financial statements in the 2022 Form 10-K.
- Monitor future filings for the audited financial statements for the year ended December 31, 2023, which may differ materially from the unaudited recast data.
- Verify the specific impact of ASU No. 2018-12 on the Company's long-duration contract accounting and capital position.