EXHIBIT 99.1

FOR FURTHER INFORMATION CONTACT:
Kay Osbourn
Chief Financial Officer
(512) 837-7100
PR@citizensinc.com

FOR IMMEDIATE RELEASE
March 10, 2011

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) — Citizens, Inc. (NYSE: CIA) reported results today for the fourth quarter and full-year ended December 31, 2010.

Rick D. Riley, Vice Chairman and President, said, “During 2010, Citizens continued to offer life insurance products emphasizing living benefits in our targeted domestic and international markets. While the business and investing environments remained challenging, the Company experienced growth in revenues and net income, reflecting both an increase in premiums from our insurance operations and an increase in investment income over 2009 as higher invested assets offset declining yields over the course of 2010.”

Riley noted, “In keeping with the long-term horizon of our policyholders, we manage our business with long-range objectives and have responded to conditions of recent years by continuing to foster the relationships that support new insurance sales and high persistency.”

		Q410				Q409				2010				2009
		(In thousands, except share amounts)
Premiums		$	42,131				40,786				152,052				147,280
Net investment income		$	6,181				7,869				30,077				29,602
Net realized gains (losses), net		$	7,364				5,213				8,012				8,040
Change in fair value of warrants		$	(148	)			73				232				3,154
Total revenue		$	55,734				54,049				191,181				188,980
Net income applicable to common stock		$	9,055				7,627				15,511				14,835
Net income per diluted share of Class A common stock		$	0.19				0.16				0.32				0.31
Weighted average shares of Class A common stock (diluted)			48,718				48,687				48,688				47,556

Riley added, “Full-year 2010 net realized gains were comparable to 2009 as the Company again sold previously impaired mutual fund holdings as well as below investment-grade securities in order to recover taxes paid on prior year gains and to accomplish current year consolidated return tax-savings. Though the contribution to net income of full-year realized gains were unchanged, the year-over-year comparison was impacted by another non-operating item — a significantly lower gain on the change in the fair value of outstanding warrants, which relates to changes in the market value of our Class A common stock.”

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.

•

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

On Friday, March 11, Citizens will host a conference call to discuss operating results at 10 a.m. Central Time. The conference call will be hosted by Rick D. Riley, Vice Chairman and President, Kay Osbourn, Chief Financial Officer, and other members of the Company’s management team. To participate, please dial (888) 674-0222 and ask to join the Citizens, Inc. call. We recommend accessing the call three to five minutes before the call is scheduled to begin. A recording of the conference call will be available on Citizens’ website at www.citizensinc.com in the Investor Information section under News Release & Publications following the call.

About Citizens, Inc.

Citizens, Inc. is a financial services company listed on the New York Stock Exchange under the symbol CIA. The Company utilizes a three-pronged strategy for growth based upon worldwide sales of U.S. Dollar-denominated whole life cash value insurance policies, life insurance product sales in the U.S. and the acquisition of other U.S. based life insurance companies.

Safe Harbor

Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as “may,” “will,” “expect,” “anticipate” or “continue” or comparable words. In addition, all statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of the Company, particularly its Form 10-K for the fiscal year ended December 31, 2010, its quarterly reports on Form 10-Q and its current reports on Form 8-K, for the meaningful cautionary language disclosing why actual results may vary materially from those anticipated by management. The Company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in the Company’s expectations. The Company also disclaims any duty to comment upon or correct information that may be contained in reports published by the investment community.

Consolidated Statements of Operations
( In thousands, except per share amounts)

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

See accompanying notes to consolidated financial statements.

Consolidated Statements of Financial Position
December 31,
(In thousands)

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

Consolidated Statements of Financial Position, Continued
December 31, 2010 and 2009
(In thousands)

Liabilities and Stockholders’ Equity		2010				2009
		Unaudited
Liabilities:
Future policy benefit reserves:
Life insurance		$	637,140				592,358
Annuities			42,096				37,882
Accident and health			5,910				6,399
Dividend accumulations			9,498				5,621
Premiums paid in advance			23,675				20,373
Policy claims payable			10,540				10,222
Other policyholders’ funds			8,191				8,105
Total policy liabilities			737,050				680,960
Commissions payable			2,538				2,434
Deferred federal and state income taxes			9,410				8,052
Payable for securities in process of settlement			—				6,000
Warrants outstanding			1,587				1,819
Other liabilities			8,287				11,986
Total liabilities			758,872				711,251
Commitments and contingencies
Stockholders’ 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				256,703
Class B, no par value, 2,000,000 shares authorized, 1,001,714 shares issued and outstanding in 2010 and 2009			3,184				3,184
Accumulated deficit			(22,581	)			(38,092	)
Accumulated other comprehensive income (loss):
Unrealized gains (losses) on securities, net of tax			1,339				5,291
			238,645				227,086
Treasury stock, at cost			(11,011	)			(11,011	)
Total stockholders’ equity			227,634				216,075
Total liabilities and stockholders’ equity		$	986,506				927,326