AUSTIN, Texas - Citizens, Inc. (NYSE: CIA), a financial services firm specializing in insurance products, announced today a leadership transition with Jon Stenberg stepping into the role of Chief Executive Officer, effective immediately.
Stenberg, who has been serving as the company's President since March 2024, will now helm the company as its CEO, succeeding Gerald W. Shields. Shields will continue to serve as Vice Chairman of the Board of Directors.
This transition comes after Citizens reported significant growth, with a 61% year-over-year increase in insurance issued, totaling $274.5 million in the first quarter of 2024. The company also celebrated a record $5 billion of insurance in force as of March 31, 2024. Stenberg's appointment is seen as a strategic move to leverage these achievements and drive further growth.
Stenberg's career in the life insurance industry spans over 30 years, including executive roles at Symetra Life Insurance Company, Ameriprise Financial (NYSE:AMP), New York Life, UBS Insurance Agency, and Lincoln Financial Group. He is recognized for his expertise in scaling revenue and building high-performing teams.
His educational background includes an MBA from the Wharton School of Business at the University of Pennsylvania and a Bachelor of Science degree from Central Michigan University. Stenberg is also a U.S. Army veteran.
Under Shields' leadership, Citizens advanced its strategic roadmap and earned recognition from AM Best with financial strength and credit ratings for its CICA Life Insurance Company of America in 2023. Shields, who became CEO on January 1, 2022, after a period as Interim CEO and President, has been pivotal in setting records for the company and will continue to influence its direction from his position on the Board.
Citizens, Inc. operates in the U.S., Latin America, and Asia, offering life, living benefits, and final expense insurance. The company prides itself on its customer-centric approach, providing innovative products tailored to meet the needs of its diverse customer base.
The company's forward-looking statements indicate an expectation of continued sales growth in 2024, with a strong profit growth forecast for 2025. However, it is noted that such statements involve risks and uncertainties and are not guarantees of future performance.
This leadership update is based on a press release statement issued by Citizens, Inc. and does not include any additional analysis or commentary. The information presented is intended to provide a factual report on the company's leadership change and recent performance achievements.
"In other recent news, Citizens Inc. has been the subject of positive attention from Singular Research. The firm initiated coverage on Citizens Inc. with a Buy-Long Term rating, indicating a favorable view of the company's growth prospects. This rating is accompanied by a price target of $3.50, reflecting the firm's confidence in the company's future performance.
Citizens Inc. has demonstrated significant growth in its core business, issuing new life insurance policies at more than double the rate since the fiscal year 2020. This growth trajectory was noted as a contributing factor to Singular Research's positive outlook.
Moreover, the company is expanding its market reach through a white-label business strategy. This allows other companies to offer Citizens' insurance products under their own branding, creating additional growth opportunities.
These recent developments highlight the company's strategic initiatives and performance. As per the analysis of Singular Research, the Buy-Long Term rating suggests potential upside for investors, given Citizens Inc.'s proven growth and expanding market presence."
InvestingPro Insights
In light of the recent leadership transition at Citizens, Inc. (NYSE: CIA), with Jon Stenberg stepping into the role of CEO, investors may find the company's current financial metrics and expert analysis from InvestingPro particularly insightful.
InvestingPro data indicates that Citizens is trading at a low earnings multiple with a P/E Ratio of 5.62 and an adjusted P/E Ratio for the last twelve months as of Q1 2024 at 5.6. This could suggest that the company's stock is undervalued compared to its earnings. Moreover, the company's Price / Book ratio stands at 0.69, which might appeal to value investors seeking assets that are priced below their perceived intrinsic value.
Despite the company's positive growth metrics, such as a 4.03% revenue growth over the last twelve months as of Q1 2024, InvestingPro Tips highlight some potential concerns. Analysts predict that net income is expected to drop this year, and the company's short-term obligations exceed its liquid assets, which could indicate liquidity challenges. Still, it is worth noting that Citizens has been profitable over the last twelve months and analysts predict the company will remain profitable this year.
InvestingPro also reveals a strong return over the last three months, with a 28.91% price total return, demonstrating robust short-term performance. This could be reassuring for investors looking at the recent positive trend in the company's stock performance. It is important to mention that Citizens does not pay a dividend to shareholders, which might be a consideration for income-focused investors.
To gain deeper insights and additional analysis, investors can explore more InvestingPro Tips for Citizens, Inc. There are currently 7 additional tips available on InvestingPro's platform. For those interested in a comprehensive investment analysis tool, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/CIA.
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