Table of Contents CITIZENS, INC. AND CONSOLIDATED SUBSIDIARIES Our insurance operations are the primary focus of the Company, as those segments generate the most of our income. The amount of insurance, number of policies, and average face amounts of policies issued during the periods indicated are shown below. Years Ended December 31, 2018 2017 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 $ 231,142,212 3,786 $ 61,052 $ 302,571,460 5,296 $ 57,132 Home Service 171,188,227 24,308 7,042 182,144,245 26,762 6,806 The number of policies issued decreased 28.5% and 9.2% for the Life and Home Service segments in 2018 and 2017, respectively. We believe that the decline in new business applications in our Life segment was driven by several factors but primarily the political instability in Venezuela, uncertainty around the novation to Bermuda, ceasing sales in Brazil, and slower acceptance of the new product set that we repriced and submitted to the market beginning in 2017. While the number of policies issued declined during 2018, the average face amount issued increased, which results 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. Income (Loss) Before Federal Income Taxes Years Ended December 31, 2018 2017 2016 (In thousands) Segments: Life Insurance $ 12,085 5,394 5,391 Home Service Insurance (2,496) (5,599) 2,339 Total Segments 9,589 (205 ) 7,730 Other Non-Insurance Operations (7,587) (2,781) (2,247) Total $ 2,002 (2,986 ) 5,483 39