Table of Contents CITIZENS, INC. SEGMENT OPERATIONS December 31, 2019 | 10-K 37 Years ended December 31, (In thousands) 2019 2018 2017 Income (Loss) Before Federal Income Taxes: Segments: Life Insurance $ 11,795 12,085 5,394 Home Service Insurance 1,181 (2,496) (5,599) Total Segments 12,976 9,589 (205) Other Non-Insurance Enterprises (7,231) (7,587) (2,781) Total income (loss) before federal income taxes $ 5,745 2,002 (2,986) Years Ended December 31, 2019 2018 Amount of Insurance Issued Number of Policies Issued Average Policy Face Amount Issued Amount of Insurance Issued Number of Policies Issued Average Policy Face Amount Issued Life Insurance $ 233,503,780 3,456 $ 67,565 $ 231,142,212 3,786 $ 61,052 Home Service Insurance 158,758,921 22,148 7,168 171,188,227 24,308 7,042 • Life Insurance • Home Service Insurance Our business is comprised of two operating business segments, as detailed below. Our insurance operations are the primary focus of the Company, as those operations generate most of our income. The amount of insurance, number of policies issued, and average face amounts of policies issued during the periods indicated are shown below. The number of policies issued decreased 8.7% and 8.9% for the Life Insurance and Home Service Insurance segments in 2019 and 2018, respectively. The decline in the number of new business applications in our Life Insurance segment is driven by ceasing sales in Brazil and terminating agreements with several independent consultants in Latin America who did not align with our vision, values and culture. Excluding these two factors, the number of policies issued by our international business increased during 2018 and 2019 as we invested heavily in our sales and marketing activities and achieved better alignment with our independent consultants on vision, value and strategy. While the number of policies issued has declined in the Life Insurance and Home Service Insurance segments during 2019, the average face amount issued has increased, resulting in overall premium income not declining at the same rate as policy issuances. These segments are reported in accordance with U.S. GAAP. The Company evaluates profit and loss performance based on net income before federal income taxes.