AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” (Good) to CICA Life Insurance Company of America (CICA). CICA is headquartered in Austin, TX. The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect CICA’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).

The very strong balance sheet strength assessment reflects the company’s strongest level of risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), on a pro forma basis with parental backing from the publicly traded parent, Citizens, Inc. [NYSE: CIA]. AM Best expects CICA’s risk-adjusted capitalization to remain at the strongest level; however, BCAR is projected to decline modestly primarily due to statutory expense strain from increasing new business sales and infrastructure investments to support future growth plans.

CICA has a low dependence on reinsurance as most new business is retained by the company. The company also has access to capital via Federal Home Loan Bank lending, various lines of credit, as well as parental liquidity and capital markets channels.

Partially offsetting these factors is CICA’s limited business profile, which reflects execution risk pertaining to the business growth plan being pursued. The company has expanded nationally yet premium concentration exists among the top five states where it writes business. While AM Best expects significant premium growth in the coming years, CICA’s bottom-line performance on a statutory basis is projected to be negative until it can achieve scale and earnings generated from in-force business are able to offset new business strain.

The stable outlooks reflect AM Best’s expectation that over the intermediate term, the company will maintain a very strong balance sheet strength assessment, supported by additional initiatives that will further leverage the parent company’s ERM framework. AM Best will continue to monitor CICA’s progress in executing its business plan as well as its impact on operating performance and surplus.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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Brent DeAngelis Financial Analyst +1 908 882 1730 brent.deangelis@ambest.com

Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 christopher.sharkey@ambest.com

Michael Adams Associate Director +1 908 882 1592 michael.adams@ambest.com

Al Slavin Senior Public Relations Specialist +1 908 882 2318 al.slavin@ambest.com

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