Table of Contents CITIZENS, INC. REVENUES Endowment sales represent a significant portion of new business sales internationally with the 20-year endowment and endowment to age 65 representing our top products. In addition, most of our life insurance policies contain a policy loan provision, which allows the policyholder to use cash value within a policy to pay premiums. The policy loan asset balance increased 1.5% in 2019 and 9.6% in 2018 and remains in line with historical levels when compared to policy benefit liabilities. Net Investment Income. Net investment income increased 9.8% to $59.5 million in 2019 compared to $54.2 million in 2018, despite a decline in overall market yields. The annualized yield increased by nineteen basis points in 2019 compared to 2018. We have been successful in achieving higher yields while maintaining a prudent risk profile for our portfolio in 2019 despite facing an increasingly challenging investment environment. During the fourth quarter of 2018, we repositioned our portfolio into more diversified holdings and maturities as part of our investment management strategy to improve our portfolio credit quality. In doing so, we increased our purchases of investment grade securities while reducing our municipal holdings. While these purchases improved the overall credit rating of our portfolio, these securities generally have lower yields. In addition, net investment income and the annualized yield on our portfolio were lower during 2018 due to the need to maintain sufficient cash balances to fund our Bermuda novation as previously noted. Premium Income. Premium income derived from life, accident and health, and property insurance sales decreased 1.9% during 2019 compared to 2018 and decreased 5.0% during 2018 compared to 2017. The decrease in 2019 was driven primarily by a decline in renewal premiums in our Life insurance segment and was partially offset by an increase in first year premiums in that segment. The decrease in 2018 was primarily due to a decline in first year and renewal premiums in our Life insurance segment. See details on the distribution of premiums below and further discussion within Segment Operations. December 31, 2019 | 10-K 32 Insurance revenues are primarily generated from premium revenues and investment income. In addition, realized gains and losses on investment holdings can significantly impact revenues from year to year. Years ended December 31, (In thousands) 2019 2018 2017 Revenues: Premiums: Life insurance $ 178,351 181,825 191,342 Accident and health insurance 1,383 1,218 1,392 Property insurance 4,613 4,817 4,986 Net investment income 59,531 54,205 53,146 Realized investment gains 5,249 108 518 Other income 1,418 1,833 1,243 Total revenues $ 250,545 244,006 252,627 Years ended December 31, (In thousands) 2019 2018 2017 Premiums: First year $ 17,508 17,639 23,726 Renewal 166,839 170,221 173,994 Total premiums $ 184,347 187,860 197,720