CITIZENS, INC. Table of Contents REVENUES Revenues are primarily generated from insurance premium revenues and investment income on invested assets. Premium Income. Premium income derived from life, accident and health, and property insurance sales decreased 4.9% during 2020 compared to 2019. The decrease in 2020 was driven primarily by a decline in renewal and first year premiums in our Life insurance segment as discussed in "2020 Highlights". As discussed in “2020 Highlights”, we believe that our consolidated first year premium revenue was negatively impacted by the COVID-19 pandemic. The decrease in renewal premiums in our Life Insurance segment resulted from a decline in our in force business in this segment over the past few years, which is due in part to changes we made to our products and distribution. Renewal premiums in our Home Services segment were strong but were negatively impacted by catastrophic reinsurance premiums paid in the second half of 2020, as described below. Net Investment Income. Net investment income increased 1.1% to $60.2 million in 2020 compared to $59.5 million in 2019 driven by a growing asset base derived from cash flows from our insurance operations. The annualized yield decreased by twelve basis points in 2020 compared to 2019 as we continue to face a challenging investment environment for fixed maturity assets, which account for the majority of our investment portfolio. Net investment income performance is summarized as follows. The sustained low interest rate environment of the past several years has required us to reinvest a portion of our portfolio at lower interest rates, which led to a lower portfolio yield in 2020. As part of the ongoing process of managing our portfolio and optimizing performance, we are continuing to identify and invest in new asset classes, including private equity. December 31, 2020 | 10-K 42 Years ended December 31, (In thousands, except for %) 2020 2019 2018 Net investment income $ 60,197 59,531  54,205  Average invested assets, at amortized cost 1,420,129 1,365,036  1,300,755  Yield on average invested assets 4.24 % 4.36 % 4.17 % Years ended December 31, (In thousands) 2020 2019 2018 Premiums: First year $ 15,972 17,508  17,639  Renewal 159,357 166,839  170,221  Total premiums $ 175,329 184,347  187,860  Years ended December 31, (In thousands) 2020 2019 2018 Revenues: Premiums: Life insurance $ 170,328 178,351  181,825  Accident and health insurance 1,019 1,383  1,218  Property insurance 3,982 4,613  4,817  Net investment income 60,197 59,531  54,205  Realized investment gains 1,502 5,249  108  Other income 1,828 1,418  1,833  Total revenues $ 238,856 250,545  244,006 