Is Citizens Life Insurance A House Of Cards? Strong Sell
- Citizens Inc. (CIA) is a low quality life insurance company trading at sky-high valuations of 66X P/E and 4.5x Price/Tangible Book yet faces multiple, total wipeout risks.
- CIA sells insurance overseas without a foreign presence with questionable legality – while a questionable “Stock Investment Plan” artificially generates temporary demand inflating CIA’s stock.
- When foreign insurance regulators wake up, there could be huge fines that could completely wipe CIA out – Brazil fined peer company NWLI $6 billion.
- CIA has -75% to -88% downside just to trade at a similar valuation as superior peer company NWLI. Multiple additional risks create potential for -100% overnight loss and total wipeout.
- The economies of CIA’s largest end markets in South America are imploding, creating serious macro headwinds for CIA.