10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to ____________

Commission File No. 0-16867

	UTG, INC.
	(Exact name of registrant as specified in its charter)
Delaware		20-2907892
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)
	5250 SOUTH SIXTH STREET
	P.O. BOX 5147
	SPRINGFIELD, IL  62705
	(Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (217) 241-6300

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a small reporting company.  See definitions of "large accelerated filer", "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of shares outstanding of the registrant's common stock as of July 28,2015, was 3,701,896.

UTG, Inc.

(The "Company")

TABLE OF CONTENTS

PART I.   Financial Information		3
	Item 1.  Financial Statements	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations	4
	Condensed Consolidated Statements of Comprehensive Income (Loss)	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
	Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations	17
	Item 4.  Controls and Procedures	22
	PART II.  Other Information	22
	Item 1.  Legal Proceedings	22
	Item 1A. Risk Factors	22
	Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	22
	Item 3.  Defaults Upon Senior Securities	22
	Item 4.  Mine Safety Disclosures	23
	Item 5.  Other Information	23
	Item 6.  Exhibits	23
	Signatures	24
	Exhibit Index	25

UTG, Inc.

Condensed Consolidated Balance Sheets

ASSETS

		June 30,		December 31,
		2015			2014*
Investments:
Investments available for sale:
Fixed maturities, at fair value (amortized cost $185,763,176 and $188,634,364)	$	191,348,772	$			197,481,456
Equity securities, at fair value (cost $41,696,686 and $39,275,638)		45,408,711				40,996,002
Trading securities, at fair value (cost $0 and $5,179,850)		0				3,826,250
Mortgage loans on real estate at amortized cost		9,769,560				14,060,930
Discounted mortgage loans on real estate at cost		5,516,065				9,101,052
Investment real estate		53,131,234				51,007,101
Policy loans		10,832,464				11,104,485
Short-term investments		4,012,988				4,382,181
Total investments		320,019,794				331,959,457
Cash and cash equivalents		20,644,252				13,977,443
Accrued investment income		2,791,394				2,662,865
Reinsurance receivables:
Future policy benefits		27,803,444				27,906,905
Policy claims and other benefits		3,974,728				3,788,294
Cost of insurance acquired		8,594,182				9,047,984
Deferred policy acquisition costs		0				0
Property and equipment, net of accumulated depreciation		2,245,082				2,475,829
Other assets		8,386,188				8,081,461
LIABILITIES AND SHAREHOLDER' EQUITY
Policy liabilities and accruals:
Future policyholder benefits	$	272,253,359	$			275,044,909
Policy claims and benefits payable		3,079,759				3,208,324
Other policyholder funds		482,350				341,248
Income taxes payable		0				1,933,243
Deferred income taxes		9,326,383				9,413,794
Notes payable		2,400,000				4,400,000
Trading securities, at fair value (proceeds $95,986 and $464,215)		89,848				23,853
Other liabilities		9,018,024				7,723,213
Total liabilities		310,901,513				316,327,638
Shareholders' equity:
Common stock - no par value, stated value $.001 per share.  Authorized 7,000,000 shares - 3,705,263 and 3,706,780 shares outstanding		3,705				3,706
Additional paid-in capital		43,094,647				43,122,944
Retained earnings		33,861,628				32,145,662
Accumulated other comprehensive income		6,028,583				6,853,974
Total UTG shareholders' equity		82,988,563				82,126,286
Noncontrolling interests		1,177,883				1,446,314
Total shareholders' equity		84,166,446				83,572,600
Total liabilities and shareholders' equity	$	395,067,959	$			399,900,238

* Balance sheet audited at December 31, 2014.

See accompanying notes.

UTG, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

		Three Months Ended				Six Months Ended
		June 30,		June 30,		June 30,		June 30,
		2015		2014		2015		2014
Revenue:
Premiums and policy fees	$	2,861,481	$	3,357,360	$	5,798,995	$	6,091,047
Ceded reinsurance premiums and policy fees		(777,916)		(827,040)		(1,557,242)		(1,608,023)
Net investment income		2,055,900		4,028,304		8,010,402		8,561,423
Other income		148,037		500,113		315,430		1,020,544
Revenues before realized gains (losses)		4,287,502		7,058,737		12,567,585		14,064,991
Realized investment gains (losses), net:
Other-than-temporary impairments		0		0		0		0
Other realized investment gains, net		1,522,414		1,694,037		4,426,320		1,971,461
Total realized investment gains (losses), net		1,522,414		1,694,037		4,426,320		1,971,461
Total revenue		5,809,916		8,752,774		16,993,905		16,036,452
Benefits and other expenses:
Benefits, claims and settlement expenses:
Life		5,197,017		6,445,808		9,873,230		13,131,855
Ceded Reinsurance benefits and claims		(627,557)		(1,124,076)		(1,122,253)		(2,326,546)
Annuity		280,984		283,662		530,234		562,239
Dividends to policyholders		120,962		130,145		251,598		266,317
Commissions and amortization of deferred policy acquisition costs		(42,051)		(5,927)		(84,276)		(107,064)
Amortization of cost of insurance acquired		226,901		246,412		453,802		492,824
Operating expenses		2,148,087		2,730,362		4,347,182		5,386,480
Interest expense		23,550		110,326		61,523		292,158
Total benefits and other expenses		7,327,893		8,816,712		14,311,040		17,698,263
Income (loss) before income taxes		(1,517,977)		(63,938)		2,682,865		(1,661,811)
Income tax (expense) benefit		646,356		274,876		(814,893)		467,387
Net income (loss)		(871,621)		210,938		1,867,972		(1,194,424)
Net (income) loss attributable to noncontrolling interests		83,832		(196,079)		(152,006)		(319,033)
Net income (loss) attributable to common shareholders	$	(787,789)	$	14,859		1,715,966		(1,513,457)
Amounts attributable to common shareholders
Basic income (loss) per share	$	(0.21)	$	0.00		0.46		(0.40)
Diluted income (loss) per share	$	(0.21)	$	0.00		0.46		(0.40)
Basic weighted average shares outstanding		3,712,325		3,765,354		3,710,038		3,768,643
Diluted weighted average shares outstanding		3,712,325		3,765,354		3,710,038		3,768,643

See accompanying notes.

UTG, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
		Three Months Ended				Six Months Ended
		June 30,		June 30,		June 30,		June 30,
		2015		2014		2015		2014
Net income (loss)	$	(871,621)	$	210,938	$	1,867,972	$	(1,194,424)
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during period, pre-tax		(4,156,380)		3,985,260		(446,781)		9,302,065
Tax expense (expenses) benefit on unrealized holding gains (losses) arising during the period		1,454,733		(1,394,841)		156,373		(3,255,723)
Unrealized holding gains (losses) arising during period, net of tax		(2,701,647)		2,590,419		(290,408)		6,046,342
Less reclassification adjustment for gains included in net income (loss)		(706,760)		(86,066)		(823,051)		(338,074)
Tax expense  for gains included in net income (loss)		247,366		30,123		288,068		118,326
Reclassification adjustment for gains included in net income (loss), net of tax		(459,394)		(55,943)		(534,983)		(219,748)
Subtotal:  Other comprehensive income (loss), net of tax		(3,161,041)		2,534,476		(825,391)		5,826,594
Comprehensive income (loss)		(4,032,662)		2,745,414		1,042,581		4,632,170
Less comprehensive (income) loss attributable to noncontrolling interests		83,832		(196,079)		(152,006)		(319,033)
Comprehensive income (loss) attributable to UTG, Inc.	$	(3,948,830)	$	2,549,335	$	890,575	$	4,313,137

See accompanying notes.

UTG, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

		Six Months Ended
		June 30,		June 30,
		2015		2014
Cash flows from operating activities:
Net income (loss) attributable to common shareholders	$	1,715,966	$	(1,513,457)
Adjustments to reconcile net income to net cash used in operating activities:
Amortization (accretion) of investments		(3,008,714)		(835,649)
Realized investment gains, net		(4,426,320)		(1,971,461)
Unrealized trading (gains) losses included in income		1,019,262		(15,622)
Amortization of deferred policy acquisition costs		0		25,828
Amortization of cost of insurance acquired		453,802		492,824
Depreciation		396,041		673,213
Net income attributable to noncontrolling interest		152,006		319,033
Charges for mortality and administration of universal life and annuity products		(3,325,645)		(3,352,060)
Interest credited to account balances		2,533,573		2,607,793
Change in accrued investment income		(128,529)		(34,623)
Change in reinsurance receivables		(82,973)		225,406
Change in policy liabilities and accruals		(1,672,749)		(3,004,690)
Change in income taxes receivable (payable)		(2,542,138)		12,582
Change in other assets and liabilities, net		1,459,220		1,852,980
Net cash used in operating activities		(7,457,198)		(4,517,903)
Cash flows from investing activities:
Proceeds from investments sold and matured:
Fixed maturities available for sale
Equity securities available for sale		5,697,643		4,120,242
Trading securities		112,879		1,116,500
Mortgage loans		9,291,371		1,154,443
Discounted mortgage loans		4,597,610		1,154,443
Real estate		9,713,102		8,599,113
Policy loans		958,134		1,700,041
Short-term investments		388,392		0
Total proceeds from investments sold and matured		41,638,055		33,499,979
Cost of investments acquired:
Fixed maturities available for sale
Equity securities available for sale		(4,125,392)		(2,462,226)
Trading securities		(463,895)		(13,901)
Mortgage loans		(5,000,000)		(1,727,681)
Discounted mortgage loans		(44,175)		(16,723)
Real estate		(6,904,517)		(4,487,029)
Policy loans		(686,113)		(4,487,029)
Short-term investments		(19,200)		(4,832,980)
Total cost of investments acquired		(24,651,753)		(26,309,541)
Net cash provided by investing activities		16,986,302		7,190,438
Cash flows from financing activities:
Policyholder conract deposits		2,712,136		2,773,092
Policyholder contract withdrawals		(3,013,592)		(3,181,015)
Payments of principal on notes payable/line of credit		(2,000,000)		(900,000)
Purchase of treasury stock		(28,297)		(173,774)
Non controlling contributions (distributions) of consolidated subsidiary		(532,542)		(78,009)
Sale of block of businees		0		(3,045,574)
Net cash used in financing activities		(2,862,295)		(4,605,280)
Net increase (decrease) in cash and cash equivalents		6,666,809		(1,932,745)
Cash and cash equivalents at beginning of period		13,977,443		19,838,618
Cash and cash equivalents at end of period	$	20,644,252		17,905,873

See accompanying notes.

UTG, Inc.

Notes to Condensed Consolidated Financial Statements

  Note 1 – Basis of Presentation

The accompanying Condensed Consolidated Balance Sheet as ofDecember 31, 2014, which has been derived from audited consolidated financial statements, and the unaudited interim Condensed Consolidated Financial Statements include the accounts of UTG, Inc. (the "Parent" or "UTG") and its subsidiaries (collectively with the Parent, the "Company").  All significant intercompany accounts and transactions have been eliminated in consolidation.  The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 8 of regulation S-X.  Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements.  The information furnished includes all adjustments and accruals of a normal recurring nature, which in the opinion of Management, are necessary for a fair presentation of the results for the interim periods.  The unaudited Condensed Consolidated Financial Statements included herein and these related notes should be read in conjunction with the Company's consolidated financial statements, and the notes thereto, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014.  The Company's results of operations for the three and six month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or for any other future period.

This document at times will refer to UTG's largest shareholder, Mr. Jesse T. Correll and certain companies controlled by Mr. Correll.  Mr. Correll holds a majority ownership of First Southern Funding, LLC ("FSF"), a Kentucky corporation, and First Southern Bancorp, Inc. ("FSBI"), a financial services holding company.  FSBI operates through its   100 %owned subsidiary bank, First Southern National Bank ("FSNB").  Banking activities are conducted through multiple locations within south-central and western Kentucky.  Mr. Correll is Chief Executive Officer and Chairman of the Board of Directors of UTG and is currently UTG's largest shareholder through his ownership control of FSF, FSBI and affiliates.  At June 30, 2015, Mr. Correll owns or controls directly and indirectly approximately  57.52% of UTG's outstanding stock.

UTG's life insurance subsidiary, Universal Guaranty Life Insurance Company ("UG"), has several wholly-owned and majority-owned subsidiaries.  The subsidiaries were formed to hold certain real estate investments.  The real estate investments were placed into the limited liability companies and partnerships to provide additional protection to the policyholders and to UG.

Note 2 – Recently Issued Accounting Standards

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, ("ASU 2015-01"), which removes the concept of extraordinary items from U.S. GAAP.  Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual and occurs infrequently.  This separate, net-of-tax presentation will no longer be allowed.  The existing requirement to separately disclose events or transactions that are unusual or occur infrequently on a pre-tax basis within continuing operations in the income statement has been retained.  The new guidance requires similar separate presentation of items that are both unusual and infrequent.  The new standard is effective for periods beginning after December 15, 2015.  Early adoption is permitted, but only as of the beginning of the fiscal year of adoption.  Upon adoption, the Company will present transactions that are both unusual and infrequent, if any, on a pre-tax basis within continuing operations in the income statement.

In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which makes changes to both the variable interest model and voting interest model and eliminates the indefinite deferral of FASB Statement No. 167, included in ASU 2010-10, for certain investment funds. All reporting entities that hold a variable interest in other legal entities will need to re-evaluate their consolidation conclusions as well as disclosure requirements. This ASU is effective for annual periods beginning after December 15, 2015, and early adoption is permitted, including any interim period. This is not expected to have a material impact on the financial statements of the Company.

Note 3 – Investments

Available for Sale Securities – Fixed Maturity and Equity Securities

The Company's insurance subsidiary is regulated by insurance statutes and regulations as to the type of investments they are permitted to make, and the amount of funds that may be used for any one type of investment.

Investments in available for sale securities are summarized as follows:

June 30, 2015		Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	21,624,172	$	1,777,869	$	(8,415)	$	23,393,626
U.S. special revenue and assessments		1,137,625		11,570		(790)		1,148,405
Public utilities		399,935		46,643		0		446,578
All other corporate bonds		162,601,444		6,783,429		(3,024,710)		166,360,163
		185,763,176		8,619,511		(3,033,915)		191,348,772
Equity securities		41,696,686		4,294,519		(582,494)		45,408,711
Total	$	227,459,862	$	12,914,030	$	(3,616,409)	$	236,757,483

December 31, 2014		Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	23,036,161	$	1,970,791	$	(50,184)	$	24,956,768
States, municipalities and political subdivisions		95,000		2,385		0		97,385
U.S. special revenue and assessments		1,137,702		13,739		(202,930)		948,511
Collateralized mortgage obligations		1,005,081		92,091		(6)		1,097,166
Public utilities		399,927		55,913		0		455,840
All other corporate bonds		162,960,493		8,624,486		(1,659,193)		169,925,786
		188,634,364		10,759,405		(1,912,313)		197,481,456
Equity securities		39,275,638		2,260,855		(540,491)		40,996,002
Total	$	227,910,002	$	13,020,260	$	(2,452,804)	$	238,477,458

The amortized cost and estimated market value of debt securities at June 30, 2015, by contractual maturity, is shown below.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Fixed Maturities Available for Sale June 30, 2015		Amortized Cost		Estimated Fair Value
Due in one year or less	$	4,260,506	$	4,345,587
Due after one year through five years		18,449,941		19,437,005
Due after five years through ten years		71,592,928		74,596,197
Due after ten years		91,459,801		92,969,983
Total	$	185,763,176	$	191,348,772

The fair value of investments with sustained gross unrealized losses at June 30, 2015 and December 31, 2014 are as follows:

June 30, 2015		Less than 12 months			12 months or longer			Total
		Fair value	Unrealized losses		Fair value	Unrealized losses		Fair value	Unrealized losses
U.S. Government and govt. agencies and authorities	$	0	0	$	4,989,455	(8,415)	$	4,989,455	(8,415)
U.S. Special Revenue and Assessments		986,530	(790)		0	0		986,530	(790)
All other corporate bonds		63,408,203	(1,843,917)		3,415,171	(1,180,793)		66,823,374	(3,024,710)
Total fixed maturities	$	64,394,733	(1,844,707)	$	8,404,626	(1,189,208)	$	72,799,359	(3,033,915)
Equity securities	$	3,173,588	(582,494)	$	0	0	$	3,173,588	(582,494)

December 31, 2014		Less than 12 months			12 months or longer			Total
		Fair value	Unrealized losses		Fair value	Unrealized losses		Fair value	Unrealized losses
U.S. Government and govt. agencies and authorities	$	0	0	$	4,947,265	(50,184)	$	4,947,265	(50,184)
U.S. special revenue and assessments		0	0		784,390	(202,930)		784,390	(202,930)
Collateralized mortgage obligations		0	0		1,012	(6)		1,012	(6)
All other corporate bonds		28,954,477	(416,560)		3,535,206	(1,242,633)		32,489,683	(1,659,193)
Total fixed maturities	$	28,954,477	(416,560)	$	9,267,873	(1,495,753)	$	38,222,350	(1,912,313)
Equity securities	$	6,067,132	(540,491)	$	0	0	$	6,067,132	(540,491)

Additional information regarding investments in an unrealized loss position is as follows:

	Less than 12 months	12 months or longer	Total
As of June 30, 2015
Fixed maturities	38	4	42
Equity securities	14	0	14
As of December 31, 2014
Fixed maturities	18	7	25
Equity securities	25	0	25

Substantially all of the unrealized losses on fixed maturities available for sale and equity securities at June 30, 2015 and December 31, 2014 are attributable to changes in market interest rates and general disruptions in the credit market subsequent to purchase.  The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position.  Based upon the Company's expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company's evaluation of other relevant factors, the Company deems these securities to be temporarily impaired as of June 30, 2015 and December 31, 2014.

The Company regularly reviews its investment securities for factors that may indicate that a decline in fair value of an investment is other than temporary.  The factors considered by Management in its regular review to identify and recognize other-than-temporary impairment losses on fixed maturities include, but are not limited to: the length of time and extent to which the fair value has been less than cost; the Company's intent to sell, or be required to sell, the debt security before the anticipated recovery of its remaining amortized cost basis; the financial condition and near-term prospects of the issuer; adverse changes in ratings announced by one or more rating agencies; subordinated credit support; whether the issuer of a debt security has remained current on principal and interest payments; current expected cash flows; whether the decline in fair value appears to be issuer specific or, alternatively, a reflection of general market or industry conditions, including the effect of changes in market interest rates.  If the Company intends to sell a debt security, or it is more likely than not that it would be required to sell a debt security before the recovery of its amortized cost basis, the entire difference between the security's amortized cost basis and its fair value at the balance sheet date would be recognized by a charge to other-than-temporary losses in the Condensed Consolidated Statements of Operations.

Equity securities may experience other-than-temporary impairments in the future based on the prospects for full recovery in value in a reasonable period of time and the Company's ability and intent to hold the security to recovery.  If a decline in fair value is judged by Management to be other-than-temporary or Management does not have the intent or ability to hold a security, a loss is recognized by a charge to other-than-temporary impairment losses in the Condensed Consolidated Statements of Operations.

Based on Management's review of the investment portfolio, the Company did not record any losses for other-than-temporary impairments in the Condensed Consolidated Statements of Operations for the six month period ended June 30, 2015 and 2014.

Trading Securities

Securities designated as trading securities are reported at fair value, with gains or losses resulting from changes in fair value recognized in net investment income on the Condensed Consolidated Statements of Operations.  Trading securities include exchange-traded equities and exchange-traded options.  Trading securities carried as liabilities are securities sold short. A gain, limited to the price at which the security was sold short, or a loss, potentially unlimited in size, will be recognized upon the termination of the short sale.  The fair value of derivatives included in trading security assets and trading security liabilities as of  June 30, 2015 was $0 and $(89,848), respectively. The fair value of derivatives included in trading security assets and trading security liabilities as of  December 31, 2014 was $6,250 and $(23,853), respectively.  Earnings from trading securities are classified in cash flows from operating activities. The derivatives held by the Company are for income generation purposes only.

As of June 30, 2015, the Company reclassified its remaining exchange-traded equity trading security to the available for sale category. The fair value of the security at the time of the reclassification was $3,224,000.  Trading securities are purchased and held primarily for purposes of selling them in the near term and reflect active and frequent buying and selling. Management analyzed the recent buying and selling activity related to the exchange-traded equity and deems the available for sale category to better reflect management's intent for this security going forward. Through June 30, 2015, unrealized gains and losses from this exchange-traded equity were recorded as a component of earnings. Future unrealized gains/losses will be reported as a component of comprehensive income.

Trading revenue charged to net investment income from trading securities was:

		Three Months Ended
		June 30,
		2015		2014
Net unrealized gains (losses)	$	71,632	$	(245,029)
Net realized gains (losses)		(92,310)		150,365
Net unrealized and realized gains (losses)	$	(20,678)	$	(94,664)

		Six Months Ended
		June 30,
		2015		2014
Net unrealized gains (losses)	$	1,019,262	$	15,622
Net realized gains (losses)		(515,967)		171,538
Net unrealized and realized gains (losses)	$	503,295	$	187,160

Mortgage Loans

As of June 30, 2015 and December 31, 2014, the Company's mortgage loan portfolio contained 27 and 33 mortgage loans, including discounted mortgage loans, with a carrying value of $15,285,625 and $23,161,982, respectively.

Changes in the current economy could have a negative impact on the loans, including the financial stability of the borrowers, the borrowers' ability to pay or to refinance, the value of the property held as collateral and the ability to find purchasers at favorable prices.  Given the uncertainty of the current market, Management has taken a conservative approach with the discounted mortgage loans and has classified all discounted mortgage loans held as non-accrual.  In such status, the Company is not recording any accrued interest income nor is it recording any accrual of discount on the loans held.  Discount accruals reported during 2015 and 2014 were the result of the loan basis already being fully paid.

On the remainder of the mortgage loan portfolio, interest accruals are analyzed based on the likelihood of repayment.  In no event will interest continue to accrue when accrued interest along with the outstanding principal exceeds the net realizable value of the property.  The Company does not utilize a specified number of days delinquent to cause an automatic non-accrual status.

A mortgage loan reserve is established and adjusted based on Management's quarterly analysis of the portfolio and any deterioration in value of the underlying property which would reduce the net realizable value of the property below its current carrying value.  The Company acquires the discounted mortgage loans at below contract value, and believes that it will fully recover its carrying value upon disposal, therefore no reserve for delinquent loans is deemed necessary.  Those loans not currently paying any interest or principal are being vigorously worked by Management.  The current discounted commercial mortgage loan portfolio has an average price of 34.26 %of face value and Management has determined that this deep discount provides a financial cushion or built in allowance for any of the loans that are not currently performing within the portfolio of loans purchased.

Note 4 – Fair Value Measurements

The Company measures its assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets based on the framework set forth in the GAAP fair value accounting guidance.  The framework establishes a fair value hierarchy of three levels based upon the transparency of information used in measuring the fair value of assets or liabilities as of the measurement date.  The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three categories.

Level 1 – Valuation is based upon quoted prices for identical assets or liabilities in active markets that the Company is able to access.  Level 1 fair value is not subject to valuation adjustments.

Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active. In addition, the Company may use various valuation techniques or pricing models that use observable inputs to measure fair value.

Level 3 – Valuation is based upon unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability.

The Company determines the existence of an active market for an asset or liability based on its judgment as to whether transactions for the asset or liability occur in such market with sufficient frequency and volume to provide reliable pricing information.  If the Company concludes that there has been a significant decrease in the volume and level of activity for an investment in relation to normal market activity for such investment, adjustments to transactions and quoted prices are made to estimate fair value.

The inputs used in the valuation techniques employed by the Company are provided by nationally recognized pricing services, external investment managers and internal resources.  To assess these inputs, the Company's review process includes, but is not limited to, quantitative analysis including benchmarking, initial and ongoing evaluations of methodologies used by external parties to calculate fair value, and ongoing evaluations of fair value estimates based on the Company's knowledge and monitoring of market conditions.

The Company periodically reviews the pricing service provider's policies and procedures for valuing securities.  The assumptions underlying the valuations from external service providers, including unobservable inputs, are generally not readily available as this information is often deemed proprietary.  Accordingly, the Company is unable to obtain comprehensive information regarding these assumptions and methodologies.

The Company's investments in fixed maturity securities available for sale, equity securities available for sale and trading securities assets and liabilities are carried at fair value.  The following are the Company's methodologies and valuation techniques for assets and liabilities measured at fair value.

Fixed maturities available for sale mainly consist of U.S. treasury securities and corporate debt securities. The Company employs a market approach to the valuation of securities where there are sufficient market transactions involving identical or comparable assets. If sufficient market data is not available for identical or comparable assets, the Company uses an income approach to valuation. The majority of the financial instruments included in fixed maturity securities available for sale are evaluated utilizing observable inputs; accordingly, they are categorized in either Level 1 or Level 2 of the fair value hierarchy. However, in instances where significant inputs utilized in valuation of the securities are unobservable, the securities are categorized in Level 3 of the fair value hierarchy.

Corporate securities primarily include fixed rate corporate bonds. Inputs utilized in connection with the Company's valuation techniques relating to this class of securities include recently executed transactions, market price quotations, benchmark yields and issuer spreads. Corporate securities are categorized in Level 2 of the fair value hierarchy.

U.S. treasury securities are based on quoted prices in active markets and are generally categorized in Level 1 of the fair value hierarchy.

Equity securities available for sale consist of common and preferred stocks mainly in private equity investments, financial institutions and insurance companies. Equity securities for which there is sufficient market data are categorized as Level 1 or 2 in the fair value hierarchy.  For the equity securities in which quoted market prices are not available, the transaction price is used as the best estimate of fair value at inception.  When evidence is believed to support a change to the carrying value from the transaction price, adjustments are made to reflect the expected exit values. The Company performs ongoing reviews of the underlying investments. The reviews consist of the evaluations of expected cash flows, material events and market data. These investments are included in Level 3 of the fair value hierarchy.

Securities designated as trading securities consist of exchange traded equities and exchange traded options.  These securities are primarily valued at quoted active market prices, and are therefore categorized as Level 1 in the fair value hierarchy.

The following table presents the Company's assets and liabilities measured at fair value in the Condensed Consolidated Balance Sheet on a recurring basis as of June 30, 2015.

		Level 1		Level 2		Level 3		Total
Assets
Fixed Maturities, available for sale	$	11,889,848	$	178,531,725	$	927,199	$	191,348,772
Equity Securities, available for sale		10,751,651		7,135,365		27,521,695		45,408,711
Total	$	22,641,499	$	185,667,090	$	28,448,894	$	236,757,483
Liabilities
Trading Securities	$	89,848	$	0	$	0	$	89,848

The following table presents the Company's assets and liabilities measured at fair value in the Condensed Consolidated Balance Sheet on a recurring basis as of December 31, 2014.

		Level 1		Level 2		Level 3		Total
Assets
Fixed Maturities, available for sale	$	13,374,878	$	183,236,853	$	869,725	$	197,481,456
Equity Securities, available for sale		4,756,292		7,361,076		28,878,634		40,996,002
Trading Securities		3,826,250		0		0		3,826,250
Total	$	21,957,420	$	190,597,929	$	29,748,359	$	242,303,708
Liabilities
Trading Securities	$	23,853	$	0	$	0	$	23,853

The following table provides reconciliations for Level 3 assets measured at fair value on a recurring basis. Transfers into and out of Level 3 are recognized as of the end of the quarter in which they occur.

		Fixed Maturities, Available for Sale		Equity Securities, Available for Sale		Total
Balance at December 31, 2014	$	869,725	$	28,878,634	$	29,748,359
Total unrealized gains (losses):
Included in realized gains(losses)		0		0		0
Included in other comprehensive income		57,474		415,774		473,248
Purchases		0		1,005,625		1,005,625
Sales	$	0	$	(2,778,338)	$	(2,778,338)
Balance at June 30, 2015		927,199		27,521,695		28,448,894

The Level 3 securities include collateralized debt obligations of trust preferred securities issued by banks and insurance companies and certain equity securities with unobservable inputs.  The Company computed fair value of Level 3 investments based on a review of current financial information, earnings trends and similar companies in the same industries.

Certain assets are not carried at fair value on a recurring basis, including investments such as mortgage loans and policy loans. Accordingly such investments are only included in the fair value hierarchy disclosure when the investment is subject to re-measurement at fair value after initial recognition and the resulting re-measurement is reflected in the Condensed Consolidated Financial Statements.

The carrying values and estimated fair values of certain of the Company's financial instruments not recorded at fair value in the Condensed Consolidated Balance Sheets are shown below. Because the fair value for all Condensed Consolidated Balance Sheet items are not required to be disclosed, the aggregate fair value amounts presented below are not reflective of the underlying value of the Company.

		June 30, 2015				December 31, 2014
Assets		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Mortgage loans on real estate	$	9,769,560	$	10,103,835	$	14,060,930	$	14,236,676
Discounted mortgage loans		5,516,065		5,516,065		9,101,052		9,101,052
Investment real estate		53,131,234		53,131,234		51,007,101		51,007,101
Policy loans		10,832,464		10,832,464		11,104,485		11,104,485
Cash and cash equivalents		20,644,252		20,644,252		13,977,443		13,977,443
Short term investments		4,012,988		4,012,988		4,382,181		4,382,181
Collateral and non-collateral loans		5,212,560		5,212,560		5,612,560		5,612,560
Liabilities
Notes payable		2,400,000		2,400,000		4,400,000		4,400,000

The above estimated fair value amounts have been determined based upon the following valuation methodologies. Considerable judgment was required to interpret market data in order to develop these estimates. Accordingly, the estimates are not necessarily indicative of the amounts which could be realized in a current market exchange.  The use of different market assumptions or estimation methodologies may have a material effect on the fair value amounts.

The fair values of mortgage loans on real estate are estimated using discounted cash flow analyses and interest rates being offered for similar loans to borrowers with similar credit ratings.  The inputs used to measure the fair value of our mortgage loans on real estate are classified as Level 3 within the fair value hierarchy.

The Company has purchased non-performing discounted mortgage loans at a deep discount through an auction process led by the federal government.  In general, the discounted loans are non-performing and there is a significant amount of uncertainty surrounding the timing and amount of cash flows to be received by the Company.  Accordingly, the Company records its investment in the discounted loans at its original purchase price, which Management believes approximates fair value.  The inputs used to measure the fair value of our discounted mortgage loans are classified as Level 3 within the fair value hierarchy.

Investment real estate is recorded at the lower of the net investment in the real estate or the fair value of the real estate less costs to sell.  The determination of fair value assessments are performed on a periodic, non-recurring basis by external appraisal and assessment of property values by Management.  The inputs used to measure the fair value of our investment real estate are classified as Level 3 within the fair value hierarchy.

Policy loans are carried at the aggregate unpaid principal balances in the consolidated balance sheets which approximate fair value, and earn interest at rates ranging from 4 % to 8 %. Individual policy liabilities in all cases equal or exceed outstanding policy loan balances.  The inputs used to measure the fair value of our policy loans are classified as Level 3 within the fair value hierarchy.

The carrying amount of cash and cash equivalents in the condensed consolidated financial statements approximates fair value given the highly liquid nature of the instruments.  The inputs used to measure the fair value of our cash and cash equivalents are classified as Level 1 within the fair value hierarchy.

The carrying amount of short term investments in the condensed consolidated financial statements approximates fair value.  The inputs used to measure the fair value of our short term investments are classified as Level 3 within the fair value hierarchy.

The Company invests in collateral and non-collateral loans that are reported in the other assets balance on the Company's Consolidated Balance Sheets.  The loans are carried at their unpaid principal balances, which approximates fair value. The inputs used to measure the fair value of the loans are classified as Level 3 within the fair value hierarchy.

The carrying value is a reasonable estimate of fair value for notes payable subject to floating rates of interest.  The fair value of notes payable with fixed rate borrowings is determined based on the borrowing rates currently available to the Company for loans with similar terms and average maturities.  The inputs used to measure the fair value of our notes payable are classified as Level 2 within the fair value hierarchy.

Note 5 – Credit Arrangements

At June 30, 2015 and December 31, 2014, the Company had the following outstanding debt:

			Outstanding Principal Balance
Instrument	Issue Date	Maturity Date		June 30, 2015	December 31, 2014
Promissory Note:
UTG Avalon	12/29/2014	4/1/2018		2,400,000	4,400,000

Instrument	Issue Date	Maturity Date		Revolving Credit Limit		December 31, 2014	Borrowings	Repayments		June 30, 2015
Lines of Credit:
UTG	2013-11-20	2015-11-20	$	8,000,000	$	0	0	0	$	0
UG	2015-06-02	2016-05-19		10,000,000		0	0	0		0

The UTG Avalon promissory note issued on December 29, 2014 carries interest at a rate of 3.5 % with interest payable quarterly beginning in July of 2015.  The interest is a variable rate that is equal to the lowest of the U.S. Prime Rates as published in the money section of the Wall Street Journal.  The interest rate is subject to change monthly and any change in interest rate is effective the first day of the month following the rate change. Principal is due upon maturity of the note.  During the second and third quarters of 2015, UTG Avalon repaid $2,000,000 and $1,500,000, respectively, of the outstanding principal balance on the promissory note.  The principal payments were paid by UTG and as a result of the payment, intercompany promissory notes receivable/payable were established.

The UTG line of credit carries interest at a fixed rate of  3.75% and is payable monthly. As collateral, UTG has pledged  100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company ("UG"). .

During June of 2015, the Federal Home Loan Bank approved UG's Cash Management Advance Application ("CMA"). The CMA gives the Company the option of selecting a variable rate of interest for up to 90 days or a fixed rate for a maximum of 30 days. The variable rate CMA is prepayable at any time without a fee, while the fixed CMA is not prepayable prior to maturity.

The consolidated scheduled principal reductions on the notes payable for the next five years are as follows:

Year		Amount
2015	$	0
2016		0
2017		0
2018		2,400,000
2019		0

Note 6 – Shareholders' Equity

Stock Repurchase Programs

The Board of Directors of UTG has authorized the repurchase in the open market or in privately negotiated transactions of UTG's common stock. At a meeting of the Board of Directors on June 3, 2015, the Board of Directors of UTG authorized the repurchase of up to an additional $1,000,000 of UTG's common stock, for a total repurchase of $8,000,000. Repurchased shares are available for future issuance for general corporate purposes.  This program can be suspended or terminated at any time without further notice.  Open market purchases are made based on the last available market price and are generally limited to a maximum per share price of the most recent reported per share GAAP equity book value of the Company.  During the six month period ended   June 30, 2015, the Company repurchased 15,858 shares through the stock repurchase program for $222,266.  Through June 30, 2015, UTG has spent $6,345,392 in the acquisition of 678,556 shares under this program.

On July 20, 2015, the Board of Directors of UTG also clarified and amended the terms on which UTG may repurchase shares in the program and gave Company management broad authority to operate the program, including the discretion of whether to purchase shares and the ability to suspend or terminate the program. The program may be suspended or terminated at any time without further notice.

Earnings Per Share Calculations

Earnings per share are based on the weighted average number of common shares outstanding during each period.  For the three and six months ended June 30, 2015 and 2014, diluted earnings per share were the same as basic earnings per share since the Company had no dilutive instruments outstanding.

Note 7 – Commitments and Contingencies

The insurance industry has experienced a number of civil jury verdicts which have been returned against life and health insurers in the jurisdictions in which the Company does business involving the insurers' sales practices, alleged agent misconduct, failure to properly supervise agents, and other matters.  Some of the lawsuits have resulted in the award of substantial judgments against the insurer, including material amounts of punitive damages.  In some states, juries have substantial discretion in awarding punitive damages in these circumstances.  In the normal course of business, the Company is involved from time to time in various legal actions and other state and federal proceedings.  Management is of the opinion that the ultimate disposition of the matters will not have a materially adverse effect on the Company's results of operations or financial position.

Under the insurance guaranty fund laws in most states, insurance companies doing business in a participating state can be assessed up to prescribed limits for policyholder losses incurred by insolvent or failed insurance companies.  Although the Company cannot predict the amount of any future assessments, most insurance guaranty fund laws currently provide that an assessment may be excused or deferred if it would threaten an insurer's financial strength.  Mandatory assessments may be partially recovered through a reduction in future premium tax in some states. The Company does not believe such assessments will be materially different from amounts already provided for in the condensed consolidated financial statements, though the Company has no control over such assessments.

Within the Company's trading accounts, certain trading securities carried as liabilities represent securities sold short.  A gain, limited to the price at which the security was sold short, or a loss, potentially unlimited in size, will be recognized upon the termination of the short sale.

The following table represents the total funding commitments and the unfunded commitment as of June 30, 2015 related to certain investments:

		Total Funding		Unfunded
		Commitment		Commitment
RLF III, LLC	$	4,000,000	$	398,120
Llano Music, LLC		4,000,000		1,904,000
Marcellus HBPI, LLP		1,800,000		141,300
Sovereign's Capital, LP Fund I		500,000		185,000
MM-Appalachia IV, LP		3,300,000		825,000
UGLIC, LLC		1,600,000		320,000
Sovereign's Capital, LP Fund II		1,000,000		950,000

During 2006, the Company committed to invest in RLF III, LLC ("RLF"), which makes land-based investments in undervalued assets. RLF makes capital calls as funds are needed for continued land purchases.

During 2010, the Company made a commitment to invest in Llano Music, LLC ("Llano"), which invests in music royalties. Llano makes capital calls to its investors as funds are needed to acquire the royalty rights.

During 2012, the Company committed to invest in Marcellus HBPI, LLP, which purchases land for leasing opportunities to those looking to harvest natural resources. Marcellus HPBI, LLP makes capital calls to investors as funds are needed for continued land purchases.

During 2012, the Company committed to invest in Sovereign's Capital, LP Fund I ("Sovereign's"), which invests in companies in emerging markets. Sovereign's makes capital calls to investors as funds are needed.

During 2013, the Company committed to invest in MM-Appalachia IV, LP, which purchases land for leasing opportunities to those looking to harvest natural resources. MM-Appalachia IV, LP makes capital calls to investors as funds are needed for continued land purchases. During January of 2015, MM-Appalachia IV, LP called $371,250 of the unfunded commitment. Also, in January of 2015, the Company committed to invest an additional $825,000 in MM-Appalachia IV, LP.

During 2014, the Company committed to invest in UGLIC, LLC, which purchases real estate tax receivables.  UGLIC, LLC makes capital calls as funds are needed for additional purchases.

During 2015, the Company committed to invest in Sovereign's Capital, LP Fund II ("Sovereign's"), which invests in companies in emerging markets. Sovereign's makes capital calls to investors as funds are needed.

Note 8 – Other Cash Flow Disclosures

On a cash basis, the Company paid the following expenses:

		Three Months Ended
		June 30,
		2015		2014
Interest	$	0	$	14,648
Federal income tax		0		0

		Six Months Ended
		June 30,
		2015		2014
Interest	$	0	$	34,320
Federal income tax		3,000,000		0

Note 9 – Concentrations of Credit Risk

The Company maintains cash balances in financial institutions that at times may exceed federally insured limits.  The Company maintains its primary operating cash accounts with First Southern National Bank, an affiliate of the largest shareholder of UTG, Mr. Jesse Correll, the Company's CEO and Chairman.  The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations

The following is Management's discussion and analysis of the financial condition and results of operations of UTG, Inc. and its subsidiaries (collectively with the Parent, the "Company").  The following discussion of the financial condition and results of operations of the Company should be read in conjunction with, and is qualified in its entirety by reference to, the Consolidated Financial Statements of the Company and the related Notes thereto appearing in the Company's annual report on Form 10-K for the year ended December 31, 2014, as filed with the Securities and Exchange Commission, and our unaudited Condensed Consolidated Financial Statements and related Notes thereto appearing elsewhere in this quarterly report.

Cautionary Statement Regarding Forward-Looking Statements

This report on Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. We have based our forward-looking statements on our current expectations and projections about future events. Our forward-looking statements include information about possible or assumed future results of operations. All statements, other than statements of historical facts, included or incorporated by reference in this report that address activities, events or developments that we expect or anticipate may occur in the future, including such things as the growth of our business and operations, our business strategy, competitive strengths, goals, plans, future capital expenditures and references to future successes may be considered forward-looking statements. Also, when we use words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "probably," or similar expressions, we are making forward-looking statements.

Numerous risks and uncertainties may impact the matters addressed by our forward-looking statements, any of which could negatively and materially affect our future financial results and performance.

Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and, therefore, the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements that are included in this report, our inclusion of this information is not a representation by us or any other person that our objectives and plans will be achieved. In light of these risks, uncertainties and assumptions, any forward-looking event discussed in this report may not occur.  Our forward-looking statements speak only as of the date made, and we undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments, unless the securities laws require us to do so.

Overview

UTG, Inc., a Delaware corporation, is a life insurance holding company.  The Company's dominant business is individual life insurance, which includes the servicing of existing insurance policies in force, the acquisition of other companies in the life insurance business and the administration and processing of life insurance business for other entities.  The Company's focus for the future includes growing the administrative portion of the business.

Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts and related disclosures. Actual results could differ significantly from those estimates.  The Company has identified certain estimates that involve a higher degree of judgment and are subject to a significant degree of variability.  The Company's critical accounting policies and the related estimates considered most significant by Management are disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2014.  Management has identified the accounting policies related to cost of insurance acquired, assumptions and judgments utilized in determining if declines in fair values of investments are other-than-temporary, and valuation methods for investments that are not actively traded as those, due to the judgments, estimates and assumptions inherent in those policies, are critical to an understanding of the Company's Condensed Consolidated Financial Statements and this Management's Discussion and Analysis.

During the six months ended June 30, 2015, there were no additions to or changes in the critical accounting policies disclosed in the 2014 Form 10-K, except for recently adopted accounting standards discussed in Note 2 of the Notes to the Condensed Consolidated Financial Statements.

Results of Operations

On a consolidated basis, the Company reported net income attributable to common shareholders' of $1,716,000 for the six month period ended June 30, 2015 and a net loss attributable to common shareholders' of $(788,000) for the three month period ended June 30, 2015.  For the six month period ended June 30, 2014, the Company reported a net loss attributable to common shareholders' of $(1,513,000) and for the three month period ended June 30, 2014, the Company reported net income attributable to common shareholders' of $15,000.

Revenues

The Company's total revenues increased by 13% when comparing the six month periods ended June 30, 2015 and 2014.  The main driver of the increased revenues for the six month period ended June 30, 2015, compared to the same period in 2014, was realized investment gains.  The Company's revenue decreased 34% when comparing the three month periods ended June 30, 2015 and 2014 and was mainly attributable to a decrease in net investment income. See below for further analysis of the fluctuations in realized investment gains and net investment income.

Premium and policy fee revenues, net of reinsurance, decreased 5% when comparing the first six months of 2015 to the same period in 2014.  Premium and policy fee revenues, net of reinsurance, decreased 18% when comparing the second quarter of 2015 to the same quarter in 2014.  The Company writes minimal new business.  Premium and policy fee revenues, net of reinsurance, represented 25% and 28% of the Company's revenues as of June 30, 2015 and 2014, respectively.  Unless the Company acquires a new insurance company or a block of in-force business, Management expects premium revenue to continue to decline on the existing blocks of business at a rate consistent with prior experience.

The following table reflects net investment income of the Company for the three and six month periods ended June 30, 2015:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2015		2014		2015		2014
Fixed maturities available for sale	$	2,086,089	$	1,894,777	$	4,192,853	$	4,008,251
Equity securities		603,611		903,985		1,308,784		1,601,523
Trading securities		20,678		(94,664)		(503,295)		187,160
Mortgage loans		269,194		(496,064)		416,318		469,384
Discounted mortgage loans		116,608		1,440,740		3,487,647		1,666,515
Real estate		136,630		3,189,810		587,483		4,256,230
Policy loans		112,505		124,434		316,502		363,957
Short-term		56,370		6,323		167,406		6,323
Cash and cash equivalents		404		(556)		566		307
Total consolidated investment income		3,402,089		6,968,785		9,974,264		12,559,650
Investment expenses		(1,346,189)		(2,940,481)		(1,963,862)		(3,998,227)
Consolidated net investment income	$	2,055,900	$	4,028,304	$	8,010,402	$	8,561,423

Net investment income represented 47% and 53% of the Company's total revenues as of June 30, 2015 and 2014, respectively.  The Company reported net investment income of $8,010,000 for the six month period ended June 30, 2015, a decrease of 6% compared to the same period in 2014.  For the three month period ended June 30, 2015, net investment income decreased49% or $1,972,000, compared to the same quarter in 2014.

The fluctuation in net investment income for the three and six month periods ended June 30, 2015, compared to the same periods in 2014, is mainly attributable to variances in the earnings reported in the discounted mortgage loan and real estate investment portfolios. Investment income from the fixed maturities investment portfolio remains fairly consistent from quarter to quarter and continues to represent 30-40% of the gross investment income reported by the Company.

For the six month period ended June 30, 2015, income from the discounted mortgage loan portfolio increased by $1,821,000 compared to the same period in 2014.  The increase was primarily recognized in the first quarter of 2015, as the income during the second quarter of 2015 was $1,324,000 less than the same period in the prior year.  Income from the discounted mortgage loan portfolio, as well as the timing of the income recognition, is expected to vary from quarter to quarter, depending on when the discounted loans are repaid. During the first quarter of 2015, the Company had two discounted mortgage loans that were repaid.  The discounted mortgage loan investment balance decreased39% from December 31, 2014 to June 30, 2015 and is expected to continue trending downward as the Company does not anticipate acquiring any additional discounted loan portfolios in the near term.

In general, the discounted loans are non-performing and there is a significant amount of uncertainty surrounding the timing and amount of cash flows to be received by the Company.  Accordingly, the Company records its investment in the discounted loans at its original purchase price adjusted for any principal receipts received.  Management works with the borrower to reach a settlement on the loan or they foreclose on the underlying collateral which is primarily commercial real estate.  For loan settlements reached, the Company records the amount in excess of the carrying amount of the loan as a discount accretion to investment income at the closing date. 

When comparing the three and six month periods ended June 30, 2015 and 2014, investment income from the real estate investment portfolio is down 86% and 96%, respectively.  During the third quarter of 2014, one of the Company's consolidated subsidiaries sold all of the real estate it owned. Historically, this real estate generated annual net rental income of approximately $2,000,000. As a result of the 2014 sale, the Company no longer recognizes rental income from this real estate.

The Company reported net realized investment gains of $4,426,000 and $1,971,000 for the six month periods ended June 30, 2015 and 2014, respectively.  Net realized investment gains reported during the second quarter of 2015 and 2014 were comparable.  The 2015 net realized investment gains are mainly the result of the Company selling a parcel of real estate during the first quarter of 2015.  Realized investment gains are the result of one-time events and are expected to vary from quarter to quarter.

The Company's other income decreased $705,000 when comparing the six month period ended June 30, 2015 to the same period in 2014 and by $352,000 when comparing the three month period ended June 30, 2015 to the same period in 2014.  One of the main components of other income is revenue earned from providing third party administrative ("TPA") services. During the fourth quarter of 2014, Management did not renew its largest third party administration contract as a result of thin profit margins associated with this contract coupled with its labor intensity. The non-renewal of this contract did not have a material financial impact as the Company has recognized operating expense reductions similar to the lost revenues.

In summary, the Company's basis for future revenue growth is expected to come from the following primary sources: conservation of business currently in-force, the maximization of investment earnings and the acquisition of other companies or policy blocks in the life insurance business.  Management has placed a significant emphasis on the development of these revenue sources to enhance these opportunities.

Expenses

The Company reported total benefits and other expenses of $14,311,000 for the six month period ended June 30, 2015, a decrease of 19% from the same period in 2014.  For the three month period ended June 30, 2015, total benefits and other expenses decreased17%, compared to the same quarter in 2014.  Benefits, claims and settlement expenses represented approximately 67% of the Company's total expenses for the six month period ended June 30, 2015 and 68% for the three month period ended June 30, 2015.  The other major expense category of the Company is operating expenses, which represented approximately 30% and 29% of the Company's total expenses for the three and six month periods ended June 30, 2015, respectively.

Life benefits, claims and settlement expenses, net of reinsurance benefits and claims, decreased approximately 18% in the six month period ended June 30, 2015, compared to the same period in 2014.  For the three month period ended June 30, 2015, life benefits, claims and settlement expenses, net of reinsurance benefits and claims, decreased 13%, compared to the same quarter in 2014.  Policy claims vary from period to period and therefore, fluctuations in mortality are to be expected and are not considered unusual by Management.

In early 2013, the Company began a proactive analysis of its in-force business to try to reconnect with lost customers and verify its customers were not deceased.  In some instances, the Company found that the customer was indeed deceased, but no notification or claim was presented to the Company.  During 2014, the Company paid approximately $1,200,000 in death claim benefits as a result of this action. This project was completed during the second quarter of 2014. When comparing first quarter 2015 and 2014 benefit expenses, 2014 expenses were higher as a result of this project.

Net amortization of cost of insurance acquired decreased8% during the six month period ended June 30, 2015 compared to the same period in 2014.  Cost of insurance acquired is established when an insurance company is acquired or when the Company acquires a block of in-force business.  The Company assigns a portion of its cost to the right to receive future profits from insurance contracts existing at the date of the acquisition.  Cost of insurance acquired is amortized with interest in relation to expected future profits, including direct charge-offs for any excess of the unamortized asset over the projected future profits. The interest rates may vary due to risk analysis performed at the time of acquisition on the business acquired. The Company utilizes a 12% discount rate on the remaining unamortized business.  The amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised.  Amortization of cost of insurance acquired is particularly sensitive to changes in interest rate spreads and persistency of certain blocks of insurance in-force.  This expense is expected to decrease, unless the Company acquires a new block of business.

Operating expenses decreased19% in the six month period ended June 30, 2015 in comparison to the same period in 2014.  Second quarter 2015 operating expenses were down 21% compared to operating expenses reported in the second quarter of 2014. In comparison to the prior year, operating expenses were down in all major categories, except charitable contributions.

As previously discussed in the Revenues section of the MD&A, the Company terminated one of its TPA contracts, and as a result of this termination, the Company expected to recognize certain cost saving measures. These cost savings are reflected in the decline in operating expenses in 2015, compared to 2014.  The Company monitors operating expenses closely and continues to look for ways to gain efficiencies and thereby reducing operating expenses.

UTG has a strong philanthropic program. The Company generally allocates a portion of its GAAP net income to be used for its philanthropic efforts primarily targeted to Christ-centered organizations or organizations that help the weak or poor. Charitable contributions made by the Company are expected to vary from year to year depending on the earnings of the Company.

Financial Condition

Investment Information

Investments represent approximately 81% and 83% of total assets at June 30, 2015 and December 31, 2014, respectively.  Accordingly, investments are the largest asset group of the Company.  The Company's insurance subsidiary is regulated by insurance statutes and regulations as to the type of investments that it is permitted to make and the amount of funds that may be used for any one type of investment.  In light of these statutes and regulations, the majority of the Company's investment portfolio is invested in a diverse set of securities.

As of June 30, 2015, the carrying value of fixed maturity securities in default as to principal or interest was immaterial in the context of consolidated assets, shareholders' equity or results from operations.  To provide additional flexibility and liquidity, the Company has identified all fixed maturity securities as "investments available for sale".  Investments available for sale are carried at market, with changes in market value charged directly to shareholders' equity.  Changes in the market value of available for sale securities resulted in net unrealized losses of $(290,000) for the six month period ended June 30, 2015 and $(2,702,000) for the second quarter of 2015.  Changes in the market value of available for sale securities resulted in net unrealized gains of $6,046,000 and $2,590,000 for the three and six month periods ended June 30, 2014, respectively.

The Company's June 30, 2015 discounted mortgage loan asset balance decreased by 39% in comparison to the December 31, 2014 balance.  The decrease in the discounted mortgage loan balance is mainly attributable to two mortgage loans being fully repaid during the first quarter of 2015. The Company expects this investment balance to continue trending downward as the Company does not anticipate acquiring any additional discounted loan portfolios in the near term.

During the second quarter of 2015, the trading securities asset balance decreased while the equity securities balance increased. As disclosed in Note 3 of the Condensed Consolidated Financial Statements, as of June 30, 2015, the Company reclassified its remaining exchange-traded equity trading security to the available for sale category. The fair value of the security at the time of the reclassification was $3,224,000.  Trading securities are purchased and held primarily for purposes of selling them in the near term and reflect active and frequent buying and selling. Management analyzed the recent buying and selling activity related to the exchange-traded equity and deems the available for sale category to better reflect management's intent for this security going forward. Through June 30, 2015, unrealized gains and losses from this exchange-traded equity were recorded as a component of earnings. Future unrealized gains/losses will be reported as a component of comprehensive income.

Capital Resources

Total shareholders' equity increased by approximately 1% as of June 30, 2015 compared to December 31, 2014. The minor increase in total shareholders' equity was the result of a small increase in retained earnings, which was offset by a slight decrease in accumulated other comprehensive.

At June 30, 2015 and December 31, 2014, the Company had $2,400,000 and $4,400,000 of debt outstanding, respectively.  The outstanding debt belongs to UTG Avalon, LLC, a wholly owned subsidiary of UG.  During the second and third quarters of 2015, UTG Avalon repaid $2,000,000 and $1,500,000, respectively, of the outstanding principal balance on the promissory note.  The principal payments were paid by UTG and as a result of the payment; an intercompany promissory note receivable/payable was established.

The Company's investments are predominately in fixed maturity investments such as bonds, which provide sufficient return to cover future obligations.  The Company carries all of its fixed maturity holdings as available for sale, which are reported in the Condensed Consolidated Financial Statements at their market value.

Liquidity

The Company has three principal needs for cash - the insurance company's contractual obligations to policyholders, the payment of operating expenses and debt service.  Cash and cash equivalents represented 5% and 3% of total assets as of June 30, 2015 and December 31, 2014, respectively.  Fixed maturities as a percentage of total assets were approximately 48% and 49% as of June 30, 2015 and December 31, 2014, respectively.

The Company currently has access to funds for operating liquidity.  UTG has an $8,000,000 revolving credit note with Illinois National Bank.  At June 30, 2015, the Company had no outstanding borrowings against the UTG line of credit.

Future policy benefits are primarily long-term in nature and therefore, the Company's investments are predominantly in long-term fixed maturity investments such as bonds and mortgage loans which provide sufficient return to cover these obligations.

Many of the Company's products contain surrender charges and other features which reward persistency and penalize the early withdrawal of funds.  With respect to such products, surrender charges are generally sufficient to cover the Company's unamortized deferred policy acquisition costs with respect to the policy being surrendered.

Net cash used in operating activities was $7,457,000 and $4,518,000 for the six month periods ended June 30, 2015 and 2014, respectively.  During the fourth quarter of 2014, the Company recognized a significant profit and established an income tax liability related to this profit. The income taxes were paid during the first quarter of 2015.  Also, there was an increase in other assets during the first quarter of 2015.

Net cash provided by investing activities was $16,986,000 and $7,190,000 for the six month period ended June 30, 2015 and 2014, respectively. First quarter 2015 results were more favorable as a result of the settlement of the two discounted mortgage loans and the gain on the sale of the real estate parcel. The cash provided by investing activities is expected to vary from quarter to quarter depending on market conditions and Management's ability to find and negotiate favorable investment contracts.

Net cash used in financing activities was $2,862,000 and $4,605,000 for the six month period ended June 30, 2015 and 2014, respectively.  During the first quarter of 2014, the Company used cash of approximately $3,000,000 in the settlement of the sale of a small block of life insurance business.  The sale of this block of business was approved by the Ohio Department of Insurance during the first quarter of 2014.

UTG is a holding Company that has no day-to-day operations of its own.  Funds required to meet its expenses, generally costs associated with maintaining the Company in good standing with states in which it does business and the servicing of its debt, are primarily provided by its subsidiaries.  On a parent only basis, UTG's cash flow is dependent on Management fees received from its insurance subsidiary, stockholder dividends from its subsidiary and earnings received on cash balances.  At June 30, 2015, substantially all of the consolidated shareholders' equity represented net assets of its subsidiary.  The Company's insurance subsidiary has maintained adequate statutory capital and surplus.  The payment of cash dividends to shareholders by UTG is not legally restricted.  However, the state insurance department regulates insurance Company dividend payments where the Company is domiciled.  No dividends were paid to shareholders in 2014 or the six month period ended June 30, 2015.

UG is an Ohio domiciled insurance company, which requires notification within five business days to the insurance commissioner following the declaration of any ordinary dividend and at least ten calendar days prior to payment of such dividend.  Ordinary dividends are defined as the greater of:  a) prior year statutory net income or b) 10% of statutory capital and surplus.  For the year ended December 31, 2014, UG had statutory net income of $12,200,000.  At December 31, 2014 UG's statutory capital and surplus amounted to $41,147,000.  Extraordinary dividends (amounts in excess of ordinary dividend limitations) require prior approval of the insurance commissioner and are not restricted to a specific calculation.  During 2014, UG paid UTG ordinary dividends of $4,800,000.  UTG used the dividends received during 2014 to pay on its outstanding line of credit balance.   During the second quarter of 2015, UG paid UTG a dividend of $2,000,000. During the third quarter of 2015, UG paid UTG a second dividend in the amount of $2,000,000. UTG used the dividends received during 2015 for general operations of the Company.

ITEM 4.  CONTROLS AND PROCEDURES

The Company maintains a set of disclosure controls and procedures designed to ensure that information required to be disclosed in reports that it files or submits under the Securities Exchange Act of 1934, as amended (the Exchange Act), is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. In addition, the disclosure controls and procedures ensure that information required to be disclosed is accumulated and communicated to management, including the principal executive officer and principal financial officer, allowing timely decisions regarding required disclosure. Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Exchange Act. Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this quarterly report.

PART II.  OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

NONE

ITEM 1A.  RISK FACTORS

NONE

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

NONE

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

NONE

ITEM 4.  MINE SAFETY DISCLOSURES

NONE

ITEM 5.  OTHER INFORMATION

NONE

ITEM 6.  EXHIBITS

*31.1	Certification of Jesse T. Correll, Chief Executive Officer and Chairman of the Board of UTG, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*31.2	Certification of Theodore C. Miller, Chief Financial Officer, Senior Vice President and Corporate Secretary of UTG, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*32.1	Certificate of Jesse T. Correll, Chief Executive Officer and Chairman of the Board of UTG, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
*32.2	Certificate of Theodore C. Miller, Chief Financial Officer, Senior Vice President and Corporate Secretary of UTG, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
**101	Interactive Data File

*Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

UTG, INC.

(Registrant)

Date:	August 12, 2015	By	/s/ James P. Rousey
			James P. Rousey
			President and Director

Date:	August 12, 2015	By	/s/ Theodore C. Miller
			Theodore C. Miller
			Senior Vice President
			and Chief Financial Officer

EXHIBIT INDEX

Exhibit Number Description

*31.1	Certification of Jesse T. Correll, Chief Executive Officer and Chairman of the Board of UTG, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*31.2	Certification of Theodore C. Miller, Chief Financial Officer, Senior Vice President and Corporate Secretary of UTG, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*32.1	Certificate of Jesse T. Correll, Chief Executive Officer and Chairman of the Board of UTG, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
*32.2	Certificate of Theodore C. Miller, Chief Financial Officer, Senior Vice President and Corporate Secretary of UTG, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
**101	Interactive Data File

* Filed herewith

EX-31.1

Exhibit 31.1

CERTIFICATIONS
I, Jesse T. Correll, Chairman of the Board and Chief Executive Officer of UTG, Inc., certify that:
1.	I have reviewed this quarterly report on Form 10-Q of the registrant, UTG, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)and 15d-15(f)) for the registrant and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date:	August 12, 2015	By	/s/ Jesse T. Correll
			Chairman of the Board and
			Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS
I, Theodore C. Miller,  Senior Vice President, Corporate Secretary and Chief Financial Officer of UTG, Inc., certify that:
1.	I have reviewed this quarterly report on Form 10-Q of the registrant, UTG, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)and 15d-15(f)) for the registrant and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date:	August 12, 2015	By	/s/ Theodore C. Miller
			Senior Vice President, Corporate Secretary and
			Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of UTG, Inc. (the "Company") for the period ended June 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the "Report") I, Jesse T. Correll, Chairman of the Board and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company

Date:	August 12, 2015	By:	/s/ Jesse T. Correll
			Jesse T. Correll
			Chairman of the Board and
			Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of UTG, Inc. (the "Company") for the period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the "Report") I, Theodore C. Miller, Senior Vice President, Corporate Secretary and Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company

Date:	August 12, 2015	By:	/s/ Theodore C. Miller
			Theodore C. Miller
			Senior Vice President, Corporate
			Secretary and Chief Financial Officer

XML

CREDIT ARRANGEMENTS (Details) - USD ($)		3 Months Ended	6 Months Ended
	Jul. 09, 2015	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Lines of Credit [Line Items]
Repayments		$ 2,000,000
Frequency of Payments		quarterly
Scheduled principal reductions on notes payable for the next five years [Abstract]
2013		$ 0	$ 0
2014		0	0
2015		0	0
2016		2,400,000	2,400,000
2017		0	$ 0
Subsequent Event [Member]
Lines of Credit [Line Items]
Repayments	$ 1,500,000
HPG Acquisition 2007-02-07 [Member]
Debt Instrument [Line Items]
Issue Date			Dec. 29, 2014
Maturity Date			Apr. 01, 2018
Outstanding Principal Balance		2,400,000	$ 2,400,000	$ 4,400,000
UTG 2012-11-20 [Member]
Lines of Credit [Line Items]
Issue Date			Nov. 20, 2013
Maturity Date			Nov. 20, 2015
Revolving Credit Limit		8,000,000	$ 8,000,000
Outstanding Balance		0	0	0
Borrowings			0
Repayments			$ 0
Interest Rate			3.75%
Assets Pledged			100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company (“UG”).
UTG Avalon 2013-03-28 [Member]
Lines of Credit [Line Items]
Issue Date			Jun. 02, 2015
Maturity Date			May 19, 2016
Revolving Credit Limit		10,000,000	$ 10,000,000
Outstanding Balance		$ 0	0	$ 0
Borrowings			0
Repayments			$ 0
Interest Rate			3.50%

XML

INVESTMENTS

6 Months Ended

Jun. 30, 2015

INVESTMENTS [Abstract]

INVESTMENTS

Note 3 – Investments

Available for Sale Securities – Fixed Maturity and Equity Securities

The Company's insurance subsidiary is regulated by insurance statutes and regulations as to the type of investments they are permitted to make, and the amount of funds that may be used for any one type of investment.

Investments in available for sale securities are summarized as follows:

June 30, 2015		Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	21,624,172	$	1,777,869	$	(8,415)	$	23,393,626
U.S. special revenue and assessments		1,137,625		11,570		(790)		1,148,405
Public utilities		399,935		46,643		0		446,578
All other corporate bonds		162,601,444		6,783,429		(3,024,710)		166,360,163
		185,763,176		8,619,511		(3,033,915)		191,348,772
Equity securities		41,696,686		4,294,519		(582,494)		45,408,711
Total	$	227,459,862	$	12,914,030	$	(3,616,409)	$	236,757,483

December 31, 2014		Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	23,036,161	$	1,970,791	$	(50,184)	$	24,956,768
States, municipalities and political subdivisions		95,000		2,385		0		97,385
U.S. special revenue and assessments		1,137,702		13,739		(202,930)		948,511
Collateralized mortgage obligations		1,005,081		92,091		(6)		1,097,166
Public utilities		399,927		55,913		0		455,840
All other corporate bonds		162,960,493		8,624,486		(1,659,193)		169,925,786
		188,634,364		10,759,405		(1,912,313)		197,481,456
Equity securities		39,275,638		2,260,855		(540,491)		40,996,002
Total	$	227,910,002	$	13,020,260	$	(2,452,804)	$	238,477,458

The amortized cost and estimated market value of debt securities at June 30, 2015, by contractual maturity, is shown below.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Fixed Maturities Available for Sale June 30, 2015		Amortized Cost		Estimated Fair Value
Due in one year or less	$	4,260,506	$	4,345,587
Due after one year through five years		18,449,941		19,437,005
Due after five years through ten years		71,592,928		74,596,197
Due after ten years		91,459,801		92,969,983
Total	$	185,763,176	$	191,348,772

The fair value of investments with sustained gross unrealized losses at June 30, 2015 and December 31, 2014 are as follows:

June 30, 2015		Less than 12 months			12 months or longer			Total
		Fair value	Unrealized losses		Fair value	Unrealized losses		Fair value	Unrealized losses
U.S. Government and govt. agencies and authorities	$	0	0	$	4,989,455	(8,415)	$	4,989,455	(8,415)
U.S. Special Revenue and Assessments		986,530	(790)		0	0		986,530	(790)
All other corporate bonds		63,408,203	(1,843,917)		3,415,171	(1,180,793)		66,823,374	(3,024,710)
Total fixed maturities	$	64,394,733	(1,844,707)	$	8,404,626	(1,189,208)	$	72,799,359	(3,033,915)
Equity securities	$	3,173,588	(582,494)	$	0	0	$	3,173,588	(582,494)

December 31, 2014		Less than 12 months			12 months or longer			Total
		Fair value	Unrealized losses		Fair value	Unrealized losses		Fair value	Unrealized losses
U.S. Government and govt. agencies and authorities	$	0	0	$	4,947,265	(50,184)	$	4,947,265	(50,184)
U.S. special revenue and assessments		0	0		784,390	(202,930)		784,390	(202,930)
Collateralized mortgage obligations		0	0		1,012	(6)		1,012	(6)
All other corporate bonds		28,954,477	(416,560)		3,535,206	(1,242,633)		32,489,683	(1,659,193)
Total fixed maturities	$	28,954,477	(416,560)	$	9,267,873	(1,495,753)	$	38,222,350	(1,912,313)
Equity securities	$	6,067,132	(540,491)	$	0	0	$	6,067,132	(540,491)

Additional information regarding investments in an unrealized loss position is as follows:

	Less than 12 months	12 months or longer	Total
As of June 30, 2015
Fixed maturities	38	4	42
Equity securities	14	0	14
As of December 31, 2014
Fixed maturities	18	7	25
Equity securities	25	0	25

Substantially all of the unrealized losses on fixed maturities available for sale and equity securities at June 30, 2015 and December 31, 2014 are attributable to changes in market interest rates and general disruptions in the credit market subsequent to purchase.  The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position.  Based upon the Company's expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company's evaluation of other relevant factors, the Company deems these securities to be temporarily impaired as of June 30, 2015 and December 31, 2014.

The Company regularly reviews its investment securities for factors that may indicate that a decline in fair value of an investment is other than temporary.  The factors considered by Management in its regular review to identify and recognize other-than-temporary impairment losses on fixed maturities include, but are not limited to: the length of time and extent to which the fair value has been less than cost; the Company's intent to sell, or be required to sell, the debt security before the anticipated recovery of its remaining amortized cost basis; the financial condition and near-term prospects of the issuer; adverse changes in ratings announced by one or more rating agencies; subordinated credit support; whether the issuer of a debt security has remained current on principal and interest payments; current expected cash flows; whether the decline in fair value appears to be issuer specific or, alternatively, a reflection of general market or industry conditions, including the effect of changes in market interest rates.  If the Company intends to sell a debt security, or it is more likely than not that it would be required to sell a debt security before the recovery of its amortized cost basis, the entire difference between the security's amortized cost basis and its fair value at the balance sheet date would be recognized by a charge to other-than-temporary losses in the Condensed Consolidated Statements of Operations.

Equity securities may experience other-than-temporary impairments in the future based on the prospects for full recovery in value in a reasonable period of time and the Company's ability and intent to hold the security to recovery.  If a decline in fair value is judged by Management to be other-than-temporary or Management does not have the intent or ability to hold a security, a loss is recognized by a charge to other-than-temporary impairment losses in the Condensed Consolidated Statements of Operations.

Based on Management's review of the investment portfolio, the Company did not record any losses for other-than-temporary impairments in the Condensed Consolidated Statements of Operations for the six month period ended June 30, 2015 and 2014.

Trading Securities

Securities designated as trading securities are reported at fair value, with gains or losses resulting from changes in fair value recognized in net investment income on the Condensed Consolidated Statements of Operations.  Trading securities include exchange-traded equities and exchange-traded options.  Trading securities carried as liabilities are securities sold short. A gain, limited to the price at which the security was sold short, or a loss, potentially unlimited in size, will be recognized upon the termination of the short sale.  The fair value of derivatives included in trading security assets and trading security liabilities as of  June 30, 2015 was $0 and $(89,848), respectively. The fair value of derivatives included in trading security assets and trading security liabilities as of  December 31, 2014 was $6,250 and $(23,853), respectively.  Earnings from trading securities are classified in cash flows from operating activities. The derivatives held by the Company are for income generation purposes only.

As of June 30, 2015, the Company reclassified its remaining exchange-traded equity trading security to the available for sale category. The fair value of the security at the time of the reclassification was $3,224,000.  Trading securities are purchased and held primarily for purposes of selling them in the near term and reflect active and frequent buying and selling. Management analyzed the recent buying and selling activity related to the exchange-traded equity and deems the available for sale category to better reflect management's intent for this security going forward. Through June 30, 2015, unrealized gains and losses from this exchange-traded equity were recorded as a component of earnings. Future unrealized gains/losses will be reported as a component of comprehensive income.

Trading revenue charged to net investment income from trading securities was:

		Three Months Ended
		June 30,
		2015		2014
Net unrealized gains (losses)	$	71,632	$	(245,029)
Net realized gains (losses)		(92,310)		150,365
Net unrealized and realized gains (losses)	$	(20,678)	$	(94,664)

		Six Months Ended
		June 30,
		2015		2014
Net unrealized gains (losses)	$	1,019,262	$	15,622
Net realized gains (losses)		(515,967)		171,538
Net unrealized and realized gains (losses)	$	503,295	$	187,160

Mortgage Loans

As of June 30, 2015 and December 31, 2014, the Company's mortgage loan portfolio contained 27 and 33 mortgage loans, including discounted mortgage loans, with a carrying value of $15,285,625 and $23,161,982, respectively.

Changes in the current economy could have a negative impact on the loans, including the financial stability of the borrowers, the borrowers' ability to pay or to refinance, the value of the property held as collateral and the ability to find purchasers at favorable prices.  Given the uncertainty of the current market, Management has taken a conservative approach with the discounted mortgage loans and has classified all discounted mortgage loans held as non-accrual.  In such status, the Company is not recording any accrued interest income nor is it recording any accrual of discount on the loans held.  Discount accruals reported during 2015 and 2014 were the result of the loan basis already being fully paid.

On the remainder of the mortgage loan portfolio, interest accruals are analyzed based on the likelihood of repayment.  In no event will interest continue to accrue when accrued interest along with the outstanding principal exceeds the net realizable value of the property.  The Company does not utilize a specified number of days delinquent to cause an automatic non-accrual status.

A mortgage loan reserve is established and adjusted based on Management's quarterly analysis of the portfolio and any deterioration in value of the underlying property which would reduce the net realizable value of the property below its current carrying value.  The Company acquires the discounted mortgage loans at below contract value, and believes that it will fully recover its carrying value upon disposal, therefore no reserve for delinquent loans is deemed necessary.  Those loans not currently paying any interest or principal are being vigorously worked by Management.  The current discounted commercial mortgage loan portfolio has an average price of 34.26 %of face value and Management has determined that this deep discount provides a financial cushion or built in allowance for any of the loans that are not currently performing within the portfolio of loans purchased.

XML

OTHER CASH FLOW DISCLOSURES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
OTHER CASH FLOW DISCLOSURES [Abstract]
Interest expense paid	$ 0	$ 14,648	$ 0	$ 34,320
Federal income tax	0	$ 0	3,000,000	$ 0
Noncash transaction LOC	0		0
Cash to purchaser			0
Approximate future policyholder benefits			0
Approximate cost of insurance acquired	0
Noncash transaction short term investments	0		0
Noncash transaction real estate	$ 0		$ 0

XML

NEW ACCOUNTING STANDARDS

6 Months Ended

Jun. 30, 2015

NEW ACCOUNTING STANDARDS [Abstract]

NEW ACCOUNTING STANDARDS

Note 2 – Recently Issued Accounting Standards

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, ("ASU 2015-01"), which removes the concept of extraordinary items from U.S. GAAP.  Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual and occurs infrequently.  This separate, net-of-tax presentation will no longer be allowed.  The existing requirement to separately disclose events or transactions that are unusual or occur infrequently on a pre-tax basis within continuing operations in the income statement has been retained.  The new guidance requires similar separate presentation of items that are both unusual and infrequent.  The new standard is effective for periods beginning after December 15, 2015.  Early adoption is permitted, but only as of the beginning of the fiscal year of adoption.  Upon adoption, the Company will present transactions that are both unusual and infrequent, if any, on a pre-tax basis within continuing operations in the income statement.

In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which makes changes to both the variable interest model and voting interest model and eliminates the indefinite deferral of FASB Statement No. 167, included in ASU 2010-10, for certain investment funds. All reporting entities that hold a variable interest in other legal entities will need to re-evaluate their consolidation conclusions as well as disclosure requirements. This ASU is effective for annual periods beginning after December 15, 2015, and early adoption is permitted, including any interim period. This is not expected to have a material impact on the financial statements of the Company.

XML

Balance Sheet - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Investments available for sale:
Fixed maturities, at fair value (amortized cost $185,763,176 and $188,634,364)	$ 191,348,772	$ 197,481,456
Equity securities, at fair value (cost $41,696,686 and $39,275,638)	45,408,711	40,996,002
Trading securities, at fair value (cost $0 and $5,179,850)	0	3,826,250
Mortgage loans on real estate at amortized cost	9,769,560	14,060,930
Discounted mortgage loans on real estate at cost	5,516,065	9,101,052
Investment real estate	53,131,234	51,007,101
Policy loans	10,832,464	11,104,485
Short-term investments	4,012,988	4,382,181
Total investments	320,019,794	331,959,457
Cash and cash equivalents	20,644,252	13,977,443
Accrued investment income	2,791,394	2,662,865
Reinsurance receivables:
Future policy benefits	27,803,444	27,906,905
Policy claims and other benefits	3,974,728	3,788,294
Cost of insurance acquired	8,594,182	9,047,984
Deferred policy acquisition costs	0	0
Property and equipment, net of accumulated depreciation	2,245,082	2,475,829
Income tax receivable	608,895	0
Other assets	8,386,188	8,081,461
Total assets	395,067,959	399,900,238
Policy liabilities and accruals:
Future policyholder benefits	272,253,359	275,044,909
Policy claims and benefits payable	3,079,759	3,208,324
Other policyholder funds	482,350	341,248
Dividend and endowment accumulations	14,251,790	14,239,054
Income tax payable	0	1,933,243
Deferred income taxes	9,326,383	9,413,794
Notes payable	2,400,000	4,400,000
Trading securities, at fair value (proceeds $95,986 and $464,215)	89,848	23,853
Other liabilities	9,018,024	7,723,213
Total liabilities	310,901,513	316,327,638
Shareholders' equity:
Common stock - no par value, stated value $.001 per share. Authorized 7,000,000 shares - 3,705,263 and 3,706,780 shares outstanding	3,705	3,706
Additional paid-in capital	43,094,647	43,122,944
Retained earnings	33,861,628	32,145,662
Accumulated other comprehensive income	6,028,583	6,853,974
Total UTG shareholders' equity	82,988,563	82,126,286
Noncontrolling interests	1,177,883	1,446,314
Total shareholders' equity	84,166,446	83,572,600
Total liabilities and shareholders' equity	$ 395,067,959	$ 399,900,238

XML

Statement of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss attributable to common shareholders	$ 1,715,966	$ (1,513,457)
Adjustments to reconcile net loss to net cash used in operating activities
Amortization (accretion) of investments	(3,008,714)	(835,649)
Realized investment gains, net	(4,426,320)	(1,971,461)
Unrealized trading (gains) losses included in income	1,019,262	(15,622)
Amortization of deferred policy acquisition costs	0	25,828
Amortization of cost of insurance acquired	453,802	492,824
Depreciation	396,041	673,213
Net income attributable to noncontrolling interest	152,006	319,033
Charges for mortality and administration of universal life and annuity products	(3,325,645)	(3,352,060)
Interest credited to account balances	2,533,573	2,607,793
Change in accrued investment income	(128,529)	(34,623)
Change in reinsurance receivables	(82,973)	225,406
Change in policy liabilities and accruals	(1,672,749)	(3,004,690)
Change in income taxes receivable (payable)	(2,542,138)	12,582
Change in other assets and liabilities, net	1,459,220	1,852,980
Net cash used in operating activities	(7,457,198)	(4,517,903)
Proceeds from investments sold and matured:
Fixed maturities available for sale	10,878,924	14,200,536
Equity securities available for sale	5,697,643	4,120,242
Trading securities	112,879	1,116,500
Mortgage loans	9,291,371	1,154,443
Discounted mortgage loans	4,597,610	2,609,104
Real estate	9,713,102	8,599,113
Policy loans	958,134	1,700,041
Short term investment	388,392	0
Total proceeds from investments sold and matured	41,638,055	33,499,979
Cost of investments acquired:
Fixed maturities available for sale	(7,408,461)	(11,436,600)
Equity securities available for sale	(4,125,392)	(2,462,226)
Trading securities	(463,895)	(13,901)
Mortgage loans	(5,000,000)	(1,727,681)
Discounted mortgage loans	(44,175)	(16,723)
Real estate	(6,904,517)	(4,487,029)
Policy loans	(686,113)	(1,332,401)
Short-term investments	(19,200)	(4,832,980)
Total cost of investments acquired	(24,651,753)	(26,309,541)
Net cash provided by investing activities	16,986,302	7,190,438
Cash flows from financing activities:
Policyholder contract deposits	2,712,136	2,773,092
Policyholder contract withdrawals	(3,013,592)	(3,181,015)
Payments of principal on notes payable/line of credit	(2,000,000)	(900,000)
Purchase of treasury stock	(28,297)	(173,774)
Non-controlling distributions of consolidated subsidiary	(532,542)	(78,009)
Sale of block of business	0	(3,045,574)
Net cash provided by (used in) financing activities	(2,862,295)	(4,605,280)
Net increase (decrease) in cash and cash equivalents	6,666,809	(1,932,745)
Cash and cash equivalents at beginning of period	13,977,443	19,838,618
Cash and cash equivalents at end of period	$ 20,644,252	$ 17,905,873

XML

BASIS OF PRESENTATION (Details) - Jun. 30, 2015	Total
Subsidiary or Equity Method Investee [Line Items]
Ownership in subsidiary bank (in hundredths)	100.00%
Related Party Disclosure [Line Items]
Ownership or control of outstanding common stock directly or indirectly (in hundredths)	57.52%

XML

FAIR VALUE MEASUREMENTS (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Carrying Amount [Member]
Assets [Abstract]
Mortgage loans on real estate	$ 9,769,560	$ 9,769,560	$ 14,060,930
Discounted mortgage loans	5,516,065	5,516,065	9,101,052
Investment real estate	53,131,234	53,131,234	51,007,101
Policy Loans	10,832,464	10,832,464	11,104,485
Cash and cash equivalents	20,644,252	20,644,252	13,977,443
Other Assets, Fair Value Disclosure	4,012,988	4,012,988	4,382,181
Financing Receivable, Gross	5,212,560	5,212,560	5,612,560
Liabilities [Abstract]
Notes payable	2,400,000	2,400,000	4,400,000
Estimated Fair Value [Member]
Assets [Abstract]
Mortgage loans on real estate	10,103,835	10,103,835	14,236,676
Discounted mortgage loans	5,516,065	5,516,065	9,101,052
Investment real estate	53,131,234	53,131,234	51,007,101
Policy Loans	10,832,464	10,832,464	11,104,485
Cash and cash equivalents	20,644,252	20,644,252	13,977,443
Other Assets, Fair Value Disclosure	4,012,988	4,012,988	4,382,181
Financing Receivable, Gross	5,212,560	5,212,560	5,612,560
Liabilities [Abstract]
Notes payable	2,400,000	2,400,000	4,400,000
Fixed Maturities, available for sale	191,348,772	191,348,772	197,481,456
Trading Securities	0	0	3,826,250
Trading Securities	89,848	89,848	23,853
Beginning Balance		29,748,359
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unobservable Input, Realized Gain (Loss), Total	0
Total Unrealized Gains (Losses) Included in Other Comprehensive Income	473,248
Purchases	1,005,625
Sales		(2,778,338)
Ending Balance	28,448,894	28,448,894
Discounted mortgage loans	5,516,065	5,516,065	9,101,052
Investment real estate	53,131,234	53,131,234	51,007,101
Cash and cash equivalents	20,644,252	$ 20,644,252	13,977,443	$ 17,905,873	$ 19,838,618
Policy loan interest rate, minimum (in hundredths)		4.00%
Policy loan interest rate, maximum (in hundredths)		8.00%
Fixed Maturities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		$ 869,725
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unobservable Input, Realized Gain (Loss), Total	0
Total Unrealized Gains (Losses) Included in Other Comprehensive Income	57,474
Purchases	0
Sales		0
Ending Balance	927,199	927,199
Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		28,878,634
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unobservable Input, Realized Gain (Loss), Total	0
Total Unrealized Gains (Losses) Included in Other Comprehensive Income	415,774
Purchases	1,005,625
Sales		(2,778,338)
Ending Balance	27,521,695	27,521,695
Measured on a recurring basis [Member]
Assets [Abstract]
Fixed Maturities, available for sale	191,348,772	191,348,772	197,481,456
Equity Securities, available for sale	45,408,711	45,408,711	40,996,002
Trading Securities	0	0	3,826,250
Total Financial Assets	236,757,483	236,757,483	242,303,708
Liabilities [Abstract]
Trading Securities	89,848	89,848	23,853
Measured on a recurring basis [Member] | Level 1 [Member]
Assets [Abstract]
Fixed Maturities, available for sale	11,889,848	11,889,848	13,374,878
Equity Securities, available for sale	10,751,651	10,751,651	4,756,292
Trading Securities	0	0	3,826,250
Total Financial Assets	22,641,499	22,641,499	21,957,420
Liabilities [Abstract]
Trading Securities	89,848	89,848	23,853
Measured on a recurring basis [Member] | Level 2 [Member]
Assets [Abstract]
Fixed Maturities, available for sale	178,531,725	178,531,725	183,236,853
Equity Securities, available for sale	7,135,365	7,135,365	7,361,076
Trading Securities	0	0	0
Total Financial Assets	185,667,090	185,667,090	190,597,929
Liabilities [Abstract]
Trading Securities	0	0	0
Measured on a recurring basis [Member] | Level 3 [Member]
Assets [Abstract]
Fixed Maturities, available for sale	927,199	927,199	869,725
Equity Securities, available for sale	27,521,695	27,521,695	28,878,634
Trading Securities	0	0	0
Total Financial Assets	28,448,894	28,448,894	29,748,359
Liabilities [Abstract]
Trading Securities	$ 0	$ 0	$ 0

XML

BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2015

BASIS OF PRESENTATION [Abstract]

BASIS OF PRESENTATION

  Note 1 – Basis of Presentation

The accompanying Condensed Consolidated Balance Sheet as ofDecember 31, 2014, which has been derived from audited consolidated financial statements, and the unaudited interim Condensed Consolidated Financial Statements include the accounts of UTG, Inc. (the "Parent" or "UTG") and its subsidiaries (collectively with the Parent, the "Company").  All significant intercompany accounts and transactions have been eliminated in consolidation.  The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 8 of regulation S-X.  Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements.  The information furnished includes all adjustments and accruals of a normal recurring nature, which in the opinion of Management, are necessary for a fair presentation of the results for the interim periods.  The unaudited Condensed Consolidated Financial Statements included herein and these related notes should be read in conjunction with the Company's consolidated financial statements, and the notes thereto, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014.  The Company's results of operations for the three and six month periods ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or for any other future period.

This document at times will refer to UTG's largest shareholder, Mr. Jesse T. Correll and certain companies controlled by Mr. Correll.  Mr. Correll holds a majority ownership of First Southern Funding, LLC ("FSF"), a Kentucky corporation, and First Southern Bancorp, Inc. ("FSBI"), a financial services holding company.  FSBI operates through its   100 %owned subsidiary bank, First Southern National Bank ("FSNB").  Banking activities are conducted through multiple locations within south-central and western Kentucky.  Mr. Correll is Chief Executive Officer and Chairman of the Board of Directors of UTG and is currently UTG's largest shareholder through his ownership control of FSF, FSBI and affiliates.  At June 30, 2015, Mr. Correll owns or controls directly and indirectly approximately  57.52% of UTG's outstanding stock.

UTG's life insurance subsidiary, Universal Guaranty Life Insurance Company ("UG"), has several wholly-owned and majority-owned subsidiaries.  The subsidiaries were formed to hold certain real estate investments.  The real estate investments were placed into the limited liability companies and partnerships to provide additional protection to the policyholders and to UG.

XML

Balance Sheet Parenthetical - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Investments available for sale:
Available-for-sale Debt Securities, Amortized Cost Basis	$ 185,763,176	$ 188,634,364
Equity securities, cost	41,696,686	39,275,638
Trading securities, cost	0	5,179,850
Liabilities:
Trading Securities, Proceeds	$ 95,986	$ 464,215
Shareholders' equity:
Common stock, stated value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	7,000,000	7,000,000
Common stock, outstanding (in shares)	3,705,263	3,706,780

XML

INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2015

INVESTMENTS [Abstract]

Amortized cost and estimated values of investments in securities including investments held for sale

Investments in available for sale securities are summarized as follows:

June 30, 2015		Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	21,624,172	$	1,777,869	$	(8,415)	$	23,393,626
U.S. special revenue and assessments		1,137,625		11,570		(790)		1,148,405
Public utilities		399,935		46,643		0		446,578
All other corporate bonds		162,601,444		6,783,429		(3,024,710)		166,360,163
		185,763,176		8,619,511		(3,033,915)		191,348,772
Equity securities		41,696,686		4,294,519		(582,494)		45,408,711
Total	$	227,459,862	$	12,914,030	$	(3,616,409)	$	236,757,483

December 31, 2014		Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	23,036,161	$	1,970,791	$	(50,184)	$	24,956,768
States, municipalities and political subdivisions		95,000		2,385		0		97,385
U.S. special revenue and assessments		1,137,702		13,739		(202,930)		948,511
Collateralized mortgage obligations		1,005,081		92,091		(6)		1,097,166
Public utilities		399,927		55,913		0		455,840
All other corporate bonds		162,960,493		8,624,486		(1,659,193)		169,925,786
		188,634,364		10,759,405		(1,912,313)		197,481,456
Equity securities		39,275,638		2,260,855		(540,491)		40,996,002
Total	$	227,910,002	$	13,020,260	$	(2,452,804)	$	238,477,458

Amortized cost and estimated market value of debt securities, by contractual maturity

The amortized cost and estimated market value of debt securities at June 30, 2015, by contractual maturity, is shown below.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Fixed Maturities Available for Sale June 30, 2015		Amortized Cost		Estimated Fair Value
Due in one year or less	$	4,260,506	$	4,345,587
Due after one year through five years		18,449,941		19,437,005
Due after five years through ten years		71,592,928		74,596,197
Due after ten years		91,459,801		92,969,983
Total	$	185,763,176	$	191,348,772

Fair value of investments with sustained gross unrealized losses

The fair value of investments with sustained gross unrealized losses at June 30, 2015 and December 31, 2014 are as follows:

June 30, 2015		Less than 12 months			12 months or longer			Total
		Fair value	Unrealized losses		Fair value	Unrealized losses		Fair value	Unrealized losses
U.S. Government and govt. agencies and authorities	$	0	0	$	4,989,455	(8,415)	$	4,989,455	(8,415)
U.S. Special Revenue and Assessments		986,530	(790)		0	0		986,530	(790)
All other corporate bonds		63,408,203	(1,843,917)		3,415,171	(1,180,793)		66,823,374	(3,024,710)
Total fixed maturities	$	64,394,733	(1,844,707)	$	8,404,626	(1,189,208)	$	72,799,359	(3,033,915)
Equity securities	$	3,173,588	(582,494)	$	0	0	$	3,173,588	(582,494)

December 31, 2014		Less than 12 months			12 months or longer			Total
		Fair value	Unrealized losses		Fair value	Unrealized losses		Fair value	Unrealized losses
U.S. Government and govt. agencies and authorities	$	0	0	$	4,947,265	(50,184)	$	4,947,265	(50,184)
U.S. special revenue and assessments		0	0		784,390	(202,930)		784,390	(202,930)
Collateralized mortgage obligations		0	0		1,012	(6)		1,012	(6)
All other corporate bonds		28,954,477	(416,560)		3,535,206	(1,242,633)		32,489,683	(1,659,193)
Total fixed maturities	$	28,954,477	(416,560)	$	9,267,873	(1,495,753)	$	38,222,350	(1,912,313)
Equity securities	$	6,067,132	(540,491)	$	0	0	$	6,067,132	(540,491)

Additional information regarding investments in an unrealized loss position is as follows:

	Less than 12 months	12 months or longer	Total
As of June 30, 2015
Fixed maturities	38	4	42
Equity securities	14	0	14
As of December 31, 2014
Fixed maturities	18	7	25
Equity securities	25	0	25

Trading revenue charged to investment

Trading revenue charged to net investment income from trading securities was:

		Three Months Ended
		June 30,
		2015		2014
Net unrealized gains (losses)	$	71,632	$	(245,029)
Net realized gains (losses)		(92,310)		150,365
Net unrealized and realized gains (losses)	$	(20,678)	$	(94,664)

		Six Months Ended
		June 30,
		2015		2014
Net unrealized gains (losses)	$	1,019,262	$	15,622
Net realized gains (losses)		(515,967)		171,538
Net unrealized and realized gains (losses)	$	503,295	$	187,160

XML

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2014	Jun. 30, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	UTG INC
Entity Central Index Key	0000832480
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		0
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015

XML

FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2015

FAIR VALUE MEASUREMENTS [Abstract]

Financial assets and liabilities measured on recurring basis

The following table presents the Company's assets and liabilities measured at fair value in the Condensed Consolidated Balance Sheet on a recurring basis as of June 30, 2015.

		Level 1		Level 2		Level 3		Total
Assets
Fixed Maturities, available for sale	$	11,889,848	$	178,531,725	$	927,199	$	191,348,772
Equity Securities, available for sale		10,751,651		7,135,365		27,521,695		45,408,711
Total	$	22,641,499	$	185,667,090	$	28,448,894	$	236,757,483
Liabilities
Trading Securities	$	89,848	$	0	$	0	$	89,848

The following table presents the Company's assets and liabilities measured at fair value in the Condensed Consolidated Balance Sheet on a recurring basis as of December 31, 2014.

		Level 1		Level 2		Level 3		Total
Assets
Fixed Maturities, available for sale	$	13,374,878	$	183,236,853	$	869,725	$	197,481,456
Equity Securities, available for sale		4,756,292		7,361,076		28,878,634		40,996,002
Trading Securities		3,826,250		0		0		3,826,250
Total	$	21,957,420	$	190,597,929	$	29,748,359	$	242,303,708
Liabilities
Trading Securities	$	23,853	$	0	$	0	$	23,853

The following table provides reconciliations for Level 3 assets measured at fair value on a recurring basis. Transfers into and out of Level 3 are recognized as of the end of the quarter in which they occur.

		Fixed Maturities, Available for Sale		Equity Securities, Available for Sale		Total
Balance at December 31, 2014	$	869,725	$	28,878,634	$	29,748,359
Total unrealized gains (losses):
Included in realized gains(losses)		0		0		0
Included in other comprehensive income		57,474		415,774		473,248
Purchases		0		1,005,625		1,005,625
Sales	$	0	$	(2,778,338)	$	(2,778,338)
Balance at June 30, 2015		927,199		27,521,695		28,448,894

Estimated fair value of financial instruments required to be valued by ASC 820

The carrying values and estimated fair values of certain of the Company's financial instruments not recorded at fair value in the Condensed Consolidated Balance Sheets are shown below. Because the fair value for all Condensed Consolidated Balance Sheet items are not required to be disclosed, the aggregate fair value amounts presented below are not reflective of the underlying value of the Company.

		June 30, 2015				December 31, 2014
Assets		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Mortgage loans on real estate	$	9,769,560	$	10,103,835	$	14,060,930	$	14,236,676
Discounted mortgage loans		5,516,065		5,516,065		9,101,052		9,101,052
Investment real estate		53,131,234		53,131,234		51,007,101		51,007,101
Policy loans		10,832,464		10,832,464		11,104,485		11,104,485
Cash and cash equivalents		20,644,252		20,644,252		13,977,443		13,977,443
Short term investments		4,012,988		4,012,988		4,382,181		4,382,181
Collateral and non-collateral loans		5,212,560		5,212,560		5,612,560		5,612,560
Liabilities
Notes payable		2,400,000		2,400,000		4,400,000		4,400,000

XML

Income Statement - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Premiums and policy fees	$ 2,861,481	$ 3,357,360	$ 5,798,995	$ 6,091,047
Ceded reinsurance premiums and policy fees	(777,916)	(827,040)	(1,557,242)	(1,608,023)
Net investment income	2,055,900	4,028,304	8,010,402	8,561,423
Other income	148,037	500,113	315,430	1,020,544
Revenues before realized gains	4,287,502	7,058,737	12,567,585	14,064,991
Realized investment gains (losses), net:
Other-than-temporary impairments	0	0	0	0
Other realized investment gains, net	1,522,414	1,694,037	4,426,320	1,971,461
Total realized investment gains, net	1,522,414	1,694,037	4,426,320	1,971,461
Total revenue	5,809,916	8,752,774	16,993,905	16,036,452
Benefits, claims and settlement expenses:
Life	5,197,017	6,445,808	9,873,230	13,131,855
Ceded Reinsurance benefits and claims	(627,557)	(1,124,076)	(1,122,253)	(2,326,546)
Annuity	280,984	283,662	530,234	562,239
Dividends to policyholders	120,962	130,145	251,598	266,317
Amortization of cost of insurance acquired	226,901	246,412	453,802	492,824
Commissions and amortization of deferred policy acquisition costs	(42,051)	(5,927)	(84,276)	(107,064)
Operating expenses	2,148,087	2,730,362	4,347,182	5,386,480
Interest expense	23,550	110,326	61,523	292,158
Total benefits and other expenses	7,327,893	8,816,712	14,311,040	17,698,263
Loss before income taxes	(1,517,977)	(63,938)	2,682,865	(1,661,811)
Income tax (expense) benefit	646,356	274,876	(814,893)	467,387
Net loss	(871,621)	210,938	1,867,972	(1,194,424)
Net income attributable to noncontrolling interests	83,832	(196,079)	(152,006)	(319,033)
Net loss attributable to common shareholders'	$ (787,789)	$ 14,859	$ 1,715,966	$ (1,513,457)
Amounts attributable to common shareholders':
Basic loss per share	$ (0.21)	$ 0.00	$ 0.46	$ (0.40)
Diluted loss per share	$ (0.21)	$ 0.00	$ 0.46	$ (0.40)
Basic weighted average shares outstanding	3,712,325	3,765,354	3,710,038	3,768,643
Diluted weighted average shares outstanding	3,712,325	3,765,354	3,710,038	3,768,643

XML

SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2015

CAPITAL STOCK TRANSACTIONS [Abstract]

CAPITAL STOCK TRANSACTIONS

Note 6 – Shareholders' Equity

Stock Repurchase Programs

The Board of Directors of UTG has authorized the repurchase in the open market or in privately negotiated transactions of UTG's common stock. At a meeting of the Board of Directors on June 3, 2015, the Board of Directors of UTG authorized the repurchase of up to an additional $1,000,000 of UTG's common stock, for a total repurchase of $8,000,000. Repurchased shares are available for future issuance for general corporate purposes.  This program can be suspended or terminated at any time without further notice.  Open market purchases are made based on the last available market price and are generally limited to a maximum per share price of the most recent reported per share GAAP equity book value of the Company.  During the six month period ended   June 30, 2015, the Company repurchased 15,858 shares through the stock repurchase program for $222,266.  Through June 30, 2015, UTG has spent $6,345,392 in the acquisition of 678,556 shares under this program.

On July 20, 2015, the Board of Directors of UTG also clarified and amended the terms on which UTG may repurchase shares in the program and gave Company management broad authority to operate the program, including the discretion of whether to purchase shares and the ability to suspend or terminate the program. The program may be suspended or terminated at any time without further notice.

Earnings Per Share Calculations

Earnings per share are based on the weighted average number of common shares outstanding during each period.  For the three and six months ended June 30, 2015 and 2014, diluted earnings per share were the same as basic earnings per share since the Company had no dilutive instruments outstanding.

XML

CREDIT ARRANGEMENTS

6 Months Ended

Jun. 30, 2015

NOTES PAYABLE [Abstract]

CREDIT ARRANGEMENTS

Note 5 – Credit Arrangements

At June 30, 2015 and December 31, 2014, the Company had the following outstanding debt:

			Outstanding Principal Balance
Instrument	Issue Date	Maturity Date		June 30, 2015	December 31, 2014
Promissory Note:
UTG Avalon	12/29/2014	4/1/2018		2,400,000	4,400,000

Instrument	Issue Date	Maturity Date		Revolving Credit Limit		December 31, 2014	Borrowings	Repayments		June 30, 2015
Lines of Credit:
UTG	2013-11-20	2015-11-20	$	8,000,000	$	0	0	0	$	0
UG	2015-06-02	2016-05-19		10,000,000		0	0	0		0

The UTG Avalon promissory note issued on December 29, 2014 carries interest at a rate of 3.5 % with interest payable quarterly beginning in July of 2015.  The interest is a variable rate that is equal to the lowest of the U.S. Prime Rates as published in the money section of the Wall Street Journal.  The interest rate is subject to change monthly and any change in interest rate is effective the first day of the month following the rate change. Principal is due upon maturity of the note.  During the second and third quarters of 2015, UTG Avalon repaid $2,000,000 and $1,500,000, respectively, of the outstanding principal balance on the promissory note.  The principal payments were paid by UTG and as a result of the payment, intercompany promissory notes receivable/payable were established.

The UTG line of credit carries interest at a fixed rate of  3.75% and is payable monthly. As collateral, UTG has pledged  100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company ("UG"). .

During June of 2015, the Federal Home Loan Bank approved UG's Cash Management Advance Application ("CMA"). The CMA gives the Company the option of selecting a variable rate of interest for up to 90 days or a fixed rate for a maximum of 30 days. The variable rate CMA is prepayable at any time without a fee, while the fixed CMA is not prepayable prior to maturity.

The consolidated scheduled principal reductions on the notes payable for the next five years are as follows:

Year		Amount
2015	$	0
2016		0
2017		0
2018		2,400,000
2019		0

XML

INVESTMENTS (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) Security Loans	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) Security Loans	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($) Security Loans
Amortized cost and estimated value of debt securities, by contractual maturity [Abstract]
Due in one year or less	$ 4,345,587		$ 4,345,587
Due after one year through five years	19,437,005		19,437,005
Due after five years through ten years	74,596,197		74,596,197
Due after ten years	92,969,983		92,969,983
Collateralized mortgage obligations	0		0
Total	191,348,772		191,348,772
Fixed maturities [Abstract]
Original or Amortized Cost	227,459,862		227,459,862		$ 227,910,002
Gross Unrealized Gains			12,914,030	$ 13,020,260
Gross Unrealized Losses			(3,616,409)	(2,452,804)
Estimated Market Value	236,757,483		236,757,483		238,477,458
Amortized cost and estimated market value of debt securities, by contractual maturity [Abstract]
Due in one year or less	4,260,506		4,260,506
Due after one year through five years	18,449,941		18,449,941
Due after five years through ten years	71,592,928		71,592,928
Due after ten years	91,459,801		91,459,801
Collateralized mortgage obligation	0		0
Total	185,763,176		185,763,176		188,634,364
Trading Securities [Abstract]
Fair value, derivatives included in trading security assets	0		0		6,250
Fair value, derivative included in trading security liabilities	(89,848)		(89,848)		$ (23,853)
trading transfer to available for sale securities	3,224,000		3,224,000
Trading securities, net unrealized gain (loss)	71,632	$ (245,029)	1,019,262	15,622
Trading securities, realized gain (loss)	(92,310)	150,365	(515,967)	171,538
Increase (Decrease) in Trading Securities [Abstract]
Net Realized and Unrealized Gain (Loss) on Trading Securities	$ (20,678)	(94,664)	$ 503,295	187,160
Mortgages [Abstract]
Number of Mortgage Loans including Discounted Mortgage Loans | Loans	27		27		33
Mortgage Loans including Discounted Mortgage Loans	$ 15,285,625		$ 15,285,625		$ 23,161,982
Mortgage loans reserve
Average purchase price to outstanding loan (in hundredths)	34.26%
U.S. Government and Government Agencies and Authorities [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	$ 21,624,172		21,624,172		$ 23,036,161
Gross Unrealized Gains			1,777,869	1,970,791
Gross Unrealized Losses			(8,415)	(50,184)
Estimated Market Value	23,393,626		23,393,626		24,956,768
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	0		0		0
Less than 12 months, Unrealized losses			0	0
Twelve months or longer, Fair value	4,989,455		4,989,455		4,947,265
Twelve months or longer, Unrealized losses		(50,184)	(8,415)
Total Fair value	4,989,455		4,989,455		4,947,265
Total Unrealized losses		(50,184)	(8,415)
US Special Revenue and Assessments [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	1,137,625		1,137,625		1,137,702
Gross Unrealized Gains			11,570	13,739
Gross Unrealized Losses			(790)	(202,930)
Estimated Market Value	1,148,405		1,148,405		948,511
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	986,530		986,530		0
Less than 12 months, Unrealized losses			(790)	0
Twelve months or longer, Fair value	0		0		784,390
Twelve months or longer, Unrealized losses		(202,930)	0
Total Fair value	986,530		986,530		784,390
Total Unrealized losses		(202,930)	(790)
States, Municipalities and Political Subdivisions [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	0		0		95,000
Gross Unrealized Gains			0	2,385
Gross Unrealized Losses			0	0
Estimated Market Value	0		0		97,385
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value					0
Less than 12 months, Unrealized losses				0
Twelve months or longer, Fair value					0
Twelve months or longer, Unrealized losses		0
Total Fair value					0
Total Unrealized losses		$ 0
Collateralized Mortgage Obligations [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	0		0		1,005,081
Gross Unrealized Gains			0	92,091
Gross Unrealized Losses			0	(6)
Estimated Market Value	0		0		1,097,166
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	0		0		0
Less than 12 months, Unrealized losses			0	0
Twelve months or longer, Fair value	0		0		1,012
Twelve months or longer, Unrealized losses			0	(6)
Total Fair value	0		0		1,012
Total Unrealized losses			0	(6)
Public Utilities [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	399,935		399,935		399,927
Gross Unrealized Gains			46,643	55,913
Gross Unrealized Losses			0	0
Estimated Market Value	446,578		446,578		455,840
Debt Securities [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	185,763,176		185,763,176		188,634,364
Gross Unrealized Gains			8,619,511	10,759,405
Gross Unrealized Losses			(3,033,915)	(1,912,313)
Estimated Market Value	191,348,772		191,348,772		197,481,456
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	64,394,733		64,394,733		28,954,477
Less than 12 months, Unrealized losses			(1,844,707)	(416,560)
Twelve months or longer, Fair value	8,404,626		8,404,626		9,267,873
Twelve months or longer, Unrealized losses			(1,189,208)	(1,495,753)
Total Fair value	$ 72,799,359		72,799,359		$ 38,222,350
Total Unrealized losses			$ (3,033,915)	(1,912,313)
Less than 12 months Number of Securities | Security	38		38		18
Twelve months or longer Number of Securities | Security	4		4		7
Total Number of Securities | Security	42		42		25
Equity Securities [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	$ 41,696,686		$ 41,696,686		$ 39,275,638
Gross Unrealized Gains			4,294,519	2,260,855
Gross Unrealized Losses			(582,494)	(540,491)
Estimated Market Value	45,408,711		45,408,711		40,996,002
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	3,173,588		3,173,588		6,067,132
Less than 12 months, Unrealized losses			(582,494)	(540,491)
Twelve months or longer, Fair value	0		0		0
Twelve months or longer, Unrealized losses			0	0
Total Fair value	$ 3,173,588		3,173,588		$ 6,067,132
Total Unrealized losses			$ (582,494)	(540,491)
Less than 12 months Number of Securities | Security	14		14		25
Twelve months or longer Number of Securities | Security	0		0		0
Total Number of Securities | Security	14		14		25
All Other Corporate Bonds [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	$ 162,601,444		$ 162,601,444		$ 162,960,493
Gross Unrealized Gains			6,783,429	8,624,486
Gross Unrealized Losses			(3,024,710)	(1,659,193)
Estimated Market Value	166,360,163		166,360,163		169,925,786
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	63,408,203		63,408,203		28,954,477
Less than 12 months, Unrealized losses			(1,843,917)	(416,560)
Twelve months or longer, Fair value	3,415,171		3,415,171		3,535,206
Twelve months or longer, Unrealized losses			(1,180,793)	(1,242,633)
Total Fair value	$ 66,823,374		66,823,374		$ 32,489,683
Total Unrealized losses			$ (3,024,710)	$ (1,659,193)

XML

CREDIT ARRANGEMENTS (Tables)

6 Months Ended

Jun. 30, 2015

NOTES PAYABLE [Abstract]

Schedule of promissory note

At June 30, 2015 and December 31, 2014, the Company had the following outstanding debt:

			Outstanding Principal Balance
Instrument	Issue Date	Maturity Date		June 30, 2015	December 31, 2014
Promissory Note:
UTG Avalon	12/29/2014	4/1/2018		2,400,000	4,400,000

Schedule of lines of credit

Instrument	Issue Date	Maturity Date		Revolving Credit Limit		December 31, 2014	Borrowings	Repayments		June 30, 2015
Lines of Credit:
UTG	2013-11-20	2015-11-20	$	8,000,000	$	0	0	0	$	0
UG	2015-06-02	2016-05-19		10,000,000		0	0	0		0

Scheduled principal reduction on notes payable for the next five years

The consolidated scheduled principal reductions on the notes payable for the next five years are as follows:

Year		Amount
2015	$	0
2016		0
2017		0
2018		2,400,000
2019		0

XML

CONCENTRATIONS

6 Months Ended

Jun. 30, 2015

CONCENTRATIONS [Abstract]

CONCENTRATIONS

Note 9 – Concentrations of Credit Risk

The Company maintains cash balances in financial institutions that at times may exceed federally insured limits.  The Company maintains its primary operating cash accounts with First Southern National Bank, an affiliate of the largest shareholder of UTG, Mr. Jesse Correll, the Company's CEO and Chairman.  The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

XML

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2015

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

Note 7 – Commitments and Contingencies

The insurance industry has experienced a number of civil jury verdicts which have been returned against life and health insurers in the jurisdictions in which the Company does business involving the insurers' sales practices, alleged agent misconduct, failure to properly supervise agents, and other matters.  Some of the lawsuits have resulted in the award of substantial judgments against the insurer, including material amounts of punitive damages.  In some states, juries have substantial discretion in awarding punitive damages in these circumstances.  In the normal course of business, the Company is involved from time to time in various legal actions and other state and federal proceedings.  Management is of the opinion that the ultimate disposition of the matters will not have a materially adverse effect on the Company's results of operations or financial position.

Under the insurance guaranty fund laws in most states, insurance companies doing business in a participating state can be assessed up to prescribed limits for policyholder losses incurred by insolvent or failed insurance companies.  Although the Company cannot predict the amount of any future assessments, most insurance guaranty fund laws currently provide that an assessment may be excused or deferred if it would threaten an insurer's financial strength.  Mandatory assessments may be partially recovered through a reduction in future premium tax in some states. The Company does not believe such assessments will be materially different from amounts already provided for in the condensed consolidated financial statements, though the Company has no control over such assessments.

Within the Company's trading accounts, certain trading securities carried as liabilities represent securities sold short.  A gain, limited to the price at which the security was sold short, or a loss, potentially unlimited in size, will be recognized upon the termination of the short sale.

The following table represents the total funding commitments and the unfunded commitment as of June 30, 2015 related to certain investments:

		Total Funding		Unfunded
		Commitment		Commitment
RLF III, LLC	$	4,000,000	$	398,120
Llano Music, LLC		4,000,000		1,904,000
Marcellus HBPI, LLP		1,800,000		141,300
Sovereign's Capital, LP Fund I		500,000		185,000
MM-Appalachia IV, LP		3,300,000		825,000
UGLIC, LLC		1,600,000		320,000
Sovereign's Capital, LP Fund II		1,000,000		950,000

During 2006, the Company committed to invest in RLF III, LLC ("RLF"), which makes land-based investments in undervalued assets. RLF makes capital calls as funds are needed for continued land purchases.

During 2010, the Company made a commitment to invest in Llano Music, LLC ("Llano"), which invests in music royalties. Llano makes capital calls to its investors as funds are needed to acquire the royalty rights.

During 2012, the Company committed to invest in Marcellus HBPI, LLP, which purchases land for leasing opportunities to those looking to harvest natural resources. Marcellus HPBI, LLP makes capital calls to investors as funds are needed for continued land purchases.

During 2012, the Company committed to invest in Sovereign's Capital, LP Fund I ("Sovereign's"), which invests in companies in emerging markets. Sovereign's makes capital calls to investors as funds are needed.

During 2013, the Company committed to invest in MM-Appalachia IV, LP, which purchases land for leasing opportunities to those looking to harvest natural resources. MM-Appalachia IV, LP makes capital calls to investors as funds are needed for continued land purchases. During January of 2015, MM-Appalachia IV, LP called $371,250 of the unfunded commitment. Also, in January of 2015, the Company committed to invest an additional $825,000 in MM-Appalachia IV, LP.

During 2014, the Company committed to invest in UGLIC, LLC, which purchases real estate tax receivables.  UGLIC, LLC makes capital calls as funds are needed for additional purchases.

During 2015, the Company committed to invest in Sovereign's Capital, LP Fund II ("Sovereign's"), which invests in companies in emerging markets. Sovereign's makes capital calls to investors as funds are needed.

XML

OTHER CASH FLOW DISCLOSURES

6 Months Ended

Jun. 30, 2015

OTHER CASH FLOW DISCLOSURES [Abstract]

OTHER CASH FLOW DISCLOSURES

Note 8 – Other Cash Flow Disclosures

On a cash basis, the Company paid the following expenses:

		Three Months Ended
		June 30,
		2015		2014
Interest	$	0	$	14,648
Federal income tax		0		0

		Six Months Ended
		June 30,
		2015		2014
Interest	$	0	$	34,320
Federal income tax		3,000,000		0

XML

NEW ACCOUNTING STANDARDS (Policies)

6 Months Ended

Jun. 30, 2015

NEW ACCOUNTING STANDARDS [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

Note 2 – Recently Issued Accounting Standards

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, ("ASU 2015-01"), which removes the concept of extraordinary items from U.S. GAAP.  Under the existing guidance, an entity is required to separately disclose extraordinary items, net of tax, in the income statement after income from continuing operations if an event or transaction is unusual and occurs infrequently.  This separate, net-of-tax presentation will no longer be allowed.  The existing requirement to separately disclose events or transactions that are unusual or occur infrequently on a pre-tax basis within continuing operations in the income statement has been retained.  The new guidance requires similar separate presentation of items that are both unusual and infrequent.  The new standard is effective for periods beginning after December 15, 2015.  Early adoption is permitted, but only as of the beginning of the fiscal year of adoption.  Upon adoption, the Company will present transactions that are both unusual and infrequent, if any, on a pre-tax basis within continuing operations in the income statement.

In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis, which makes changes to both the variable interest model and voting interest model and eliminates the indefinite deferral of FASB Statement No. 167, included in ASU 2010-10, for certain investment funds. All reporting entities that hold a variable interest in other legal entities will need to re-evaluate their consolidation conclusions as well as disclosure requirements. This ASU is effective for annual periods beginning after December 15, 2015, and early adoption is permitted, including any interim period. This is not expected to have a material impact on the financial statements of the Company.

XML

OTHER CASH FLOW DISCLOSURES (Tables)

6 Months Ended

Jun. 30, 2015

OTHER CASH FLOW DISCLOSURES [Abstract]

Expenses paid on a cash basis

On a cash basis, the Company paid the following expenses:

		Three Months Ended
		June 30,
		2015		2014
Interest	$	0	$	14,648
Federal income tax		0		0

		Six Months Ended
		June 30,
		2015		2014
Interest	$	0	$	34,320
Federal income tax		3,000,000		0

XML

SHAREHOLDERS' EQUITY (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 03, 2015
STOCK REPURCHASE PROGRAM [Abstract]
Stock repurchase program authorized amount	$ 8,000,000,000,000	$ 1,000,000
Treasury Stock, Shares, Acquired	15,858
Amount paid to repurchase shares during the year	$ 222,266
Amount of common stock repurchased	$ 6,345,392
Number of common stock acquired (in shares)	678,556

XML

Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statement of Comprehensive Income (Unaudited) [Abstract]
Net income (loss)	$ (871,621)	$ 210,938	$ 1,867,972	$ (1,194,424)
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses) arising during period	(4,156,380)	3,985,260	(446,781)	9,302,065
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	1,454,733	(1,394,841)	156,373	(3,255,723)
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	(2,701,647)	2,590,419	(290,408)	6,046,342
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax	(706,760)	(86,066)	(823,051)	(338,074)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	247,366	30,123	288,068	118,326
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	(459,394)	(55,943)	(534,983)	(219,748)
Subtotal: Other comprehensive income (loss), net of tax	(3,161,041)	2,534,476	(825,391)	5,826,594
Comprehensive income (loss)	(4,032,662)	2,745,414	1,042,581	4,632,170
Less comprehensive income attributable to noncontrolling interests	83,832	(196,079)	(152,006)	(319,033)
Comprehensive income (loss) attributable to UTG, Inc.	$ (3,948,830)	$ 2,549,335	$ 890,575	$ 4,313,137

XML

FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2015

FAIR VALUE MEASUREMENTS [Abstract]

FAIR VALUE MEASUREMENTS

Note 4 – Fair Value Measurements

The Company measures its assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets based on the framework set forth in the GAAP fair value accounting guidance.  The framework establishes a fair value hierarchy of three levels based upon the transparency of information used in measuring the fair value of assets or liabilities as of the measurement date.  The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three categories.

Level 1 – Valuation is based upon quoted prices for identical assets or liabilities in active markets that the Company is able to access.  Level 1 fair value is not subject to valuation adjustments.

Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active. In addition, the Company may use various valuation techniques or pricing models that use observable inputs to measure fair value.

Level 3 – Valuation is based upon unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability.

The Company determines the existence of an active market for an asset or liability based on its judgment as to whether transactions for the asset or liability occur in such market with sufficient frequency and volume to provide reliable pricing information.  If the Company concludes that there has been a significant decrease in the volume and level of activity for an investment in relation to normal market activity for such investment, adjustments to transactions and quoted prices are made to estimate fair value.

The inputs used in the valuation techniques employed by the Company are provided by nationally recognized pricing services, external investment managers and internal resources.  To assess these inputs, the Company's review process includes, but is not limited to, quantitative analysis including benchmarking, initial and ongoing evaluations of methodologies used by external parties to calculate fair value, and ongoing evaluations of fair value estimates based on the Company's knowledge and monitoring of market conditions.

The Company periodically reviews the pricing service provider's policies and procedures for valuing securities.  The assumptions underlying the valuations from external service providers, including unobservable inputs, are generally not readily available as this information is often deemed proprietary.  Accordingly, the Company is unable to obtain comprehensive information regarding these assumptions and methodologies.

The Company's investments in fixed maturity securities available for sale, equity securities available for sale and trading securities assets and liabilities are carried at fair value.  The following are the Company's methodologies and valuation techniques for assets and liabilities measured at fair value.

Fixed maturities available for sale mainly consist of U.S. treasury securities and corporate debt securities. The Company employs a market approach to the valuation of securities where there are sufficient market transactions involving identical or comparable assets. If sufficient market data is not available for identical or comparable assets, the Company uses an income approach to valuation. The majority of the financial instruments included in fixed maturity securities available for sale are evaluated utilizing observable inputs; accordingly, they are categorized in either Level 1 or Level 2 of the fair value hierarchy. However, in instances where significant inputs utilized in valuation of the securities are unobservable, the securities are categorized in Level 3 of the fair value hierarchy.

Corporate securities primarily include fixed rate corporate bonds. Inputs utilized in connection with the Company's valuation techniques relating to this class of securities include recently executed transactions, market price quotations, benchmark yields and issuer spreads. Corporate securities are categorized in Level 2 of the fair value hierarchy.

U.S. treasury securities are based on quoted prices in active markets and are generally categorized in Level 1 of the fair value hierarchy.

Equity securities available for sale consist of common and preferred stocks mainly in private equity investments, financial institutions and insurance companies. Equity securities for which there is sufficient market data are categorized as Level 1 or 2 in the fair value hierarchy.  For the equity securities in which quoted market prices are not available, the transaction price is used as the best estimate of fair value at inception.  When evidence is believed to support a change to the carrying value from the transaction price, adjustments are made to reflect the expected exit values. The Company performs ongoing reviews of the underlying investments. The reviews consist of the evaluations of expected cash flows, material events and market data. These investments are included in Level 3 of the fair value hierarchy.

Securities designated as trading securities consist of exchange traded equities and exchange traded options.  These securities are primarily valued at quoted active market prices, and are therefore categorized as Level 1 in the fair value hierarchy.

The following table presents the Company's assets and liabilities measured at fair value in the Condensed Consolidated Balance Sheet on a recurring basis as of June 30, 2015.

		Level 1		Level 2		Level 3		Total
Assets
Fixed Maturities, available for sale	$	11,889,848	$	178,531,725	$	927,199	$	191,348,772
Equity Securities, available for sale		10,751,651		7,135,365		27,521,695		45,408,711
Total	$	22,641,499	$	185,667,090	$	28,448,894	$	236,757,483
Liabilities
Trading Securities	$	89,848	$	0	$	0	$	89,848

The following table presents the Company's assets and liabilities measured at fair value in the Condensed Consolidated Balance Sheet on a recurring basis as of December 31, 2014.

		Level 1		Level 2		Level 3		Total
Assets
Fixed Maturities, available for sale	$	13,374,878	$	183,236,853	$	869,725	$	197,481,456
Equity Securities, available for sale		4,756,292		7,361,076		28,878,634		40,996,002
Trading Securities		3,826,250		0		0		3,826,250
Total	$	21,957,420	$	190,597,929	$	29,748,359	$	242,303,708
Liabilities
Trading Securities	$	23,853	$	0	$	0	$	23,853

The following table provides reconciliations for Level 3 assets measured at fair value on a recurring basis. Transfers into and out of Level 3 are recognized as of the end of the quarter in which they occur.

		Fixed Maturities, Available for Sale		Equity Securities, Available for Sale		Total
Balance at December 31, 2014	$	869,725	$	28,878,634	$	29,748,359
Total unrealized gains (losses):
Included in realized gains(losses)		0		0		0
Included in other comprehensive income		57,474		415,774		473,248
Purchases		0		1,005,625		1,005,625
Sales	$	0	$	(2,778,338)	$	(2,778,338)
Balance at June 30, 2015		927,199		27,521,695		28,448,894

The Level 3 securities include collateralized debt obligations of trust preferred securities issued by banks and insurance companies and certain equity securities with unobservable inputs.  The Company computed fair value of Level 3 investments based on a review of current financial information, earnings trends and similar companies in the same industries.

Certain assets are not carried at fair value on a recurring basis, including investments such as mortgage loans and policy loans. Accordingly such investments are only included in the fair value hierarchy disclosure when the investment is subject to re-measurement at fair value after initial recognition and the resulting re-measurement is reflected in the Condensed Consolidated Financial Statements.

The carrying values and estimated fair values of certain of the Company's financial instruments not recorded at fair value in the Condensed Consolidated Balance Sheets are shown below. Because the fair value for all Condensed Consolidated Balance Sheet items are not required to be disclosed, the aggregate fair value amounts presented below are not reflective of the underlying value of the Company.

		June 30, 2015				December 31, 2014
Assets		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Mortgage loans on real estate	$	9,769,560	$	10,103,835	$	14,060,930	$	14,236,676
Discounted mortgage loans		5,516,065		5,516,065		9,101,052		9,101,052
Investment real estate		53,131,234		53,131,234		51,007,101		51,007,101
Policy loans		10,832,464		10,832,464		11,104,485		11,104,485
Cash and cash equivalents		20,644,252		20,644,252		13,977,443		13,977,443
Short term investments		4,012,988		4,012,988		4,382,181		4,382,181
Collateral and non-collateral loans		5,212,560		5,212,560		5,612,560		5,612,560
Liabilities
Notes payable		2,400,000		2,400,000		4,400,000		4,400,000

The above estimated fair value amounts have been determined based upon the following valuation methodologies. Considerable judgment was required to interpret market data in order to develop these estimates. Accordingly, the estimates are not necessarily indicative of the amounts which could be realized in a current market exchange.  The use of different market assumptions or estimation methodologies may have a material effect on the fair value amounts.

The fair values of mortgage loans on real estate are estimated using discounted cash flow analyses and interest rates being offered for similar loans to borrowers with similar credit ratings.  The inputs used to measure the fair value of our mortgage loans on real estate are classified as Level 3 within the fair value hierarchy.

The Company has purchased non-performing discounted mortgage loans at a deep discount through an auction process led by the federal government.  In general, the discounted loans are non-performing and there is a significant amount of uncertainty surrounding the timing and amount of cash flows to be received by the Company.  Accordingly, the Company records its investment in the discounted loans at its original purchase price, which Management believes approximates fair value.  The inputs used to measure the fair value of our discounted mortgage loans are classified as Level 3 within the fair value hierarchy.

Investment real estate is recorded at the lower of the net investment in the real estate or the fair value of the real estate less costs to sell.  The determination of fair value assessments are performed on a periodic, non-recurring basis by external appraisal and assessment of property values by Management.  The inputs used to measure the fair value of our investment real estate are classified as Level 3 within the fair value hierarchy.

Policy loans are carried at the aggregate unpaid principal balances in the consolidated balance sheets which approximate fair value, and earn interest at rates ranging from 4 % to 8 %. Individual policy liabilities in all cases equal or exceed outstanding policy loan balances.  The inputs used to measure the fair value of our policy loans are classified as Level 3 within the fair value hierarchy.

The carrying amount of cash and cash equivalents in the condensed consolidated financial statements approximates fair value given the highly liquid nature of the instruments.  The inputs used to measure the fair value of our cash and cash equivalents are classified as Level 1 within the fair value hierarchy.

The carrying amount of short term investments in the condensed consolidated financial statements approximates fair value.  The inputs used to measure the fair value of our short term investments are classified as Level 3 within the fair value hierarchy.

The Company invests in collateral and non-collateral loans that are reported in the other assets balance on the Company's Consolidated Balance Sheets.  The loans are carried at their unpaid principal balances, which approximates fair value. The inputs used to measure the fair value of the loans are classified as Level 3 within the fair value hierarchy.

The carrying value is a reasonable estimate of fair value for notes payable subject to floating rates of interest.  The fair value of notes payable with fixed rate borrowings is determined based on the borrowing rates currently available to the Company for loans with similar terms and average maturities.  The inputs used to measure the fair value of our notes payable are classified as Level 2 within the fair value hierarchy.

XML

COMMITMENTS AND CONTINGENCIES (Details) - Jun. 30, 2015 - USD ($) None in scaling factor is -9223372036854775296	Total
Liability for contingent costs [Line Items]
Litigation Settlement, Amount	$ 0
ACAP [Member]
Liability for contingent costs [Line Items]
Loss Contingency Accrual, Ending Balance	0
Loss Contingency	$ 0
Share Conversion
RLF III, LLC [Member]
Investment Commitment [Line Items]
Total Funding Commitment	$ 4,000,000
Unfunded Commitment	398,120
Llano Music, LLC [Member]
Investment Commitment [Line Items]
Total Funding Commitment	4,000,000
Unfunded Commitment	1,904,000
Marcellus HBPI, LLP [Member]
Investment Commitment [Line Items]
Total Funding Commitment	1,800,000
Unfunded Commitment	141,300
Sovereign's Capital, LP Fund I [Member]
Investment Commitment [Line Items]
Total Funding Commitment	500,000
Unfunded Commitment	185,000
Sovereign's Capital LP Fund II [Member]
Investment Commitment [Line Items]
Total Funding Commitment	1,000,000
Unfunded Commitment	950,000
MM-Appalachia IV, LP [Member]
Investment Commitment [Line Items]
Total Funding Commitment	3,300,000
Unfunded Commitment	825,000
UGLIC, LLC [Member]
Investment Commitment [Line Items]
Total Funding Commitment	1,600,000
Unfunded Commitment	$ 320,000

XML

COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2015

COMMITMENTS AND CONTINGENCIES [Abstract]

Funding commitment and unfunded commitment

The following table represents the total funding commitments and the unfunded commitment as of June 30, 2015 related to certain investments:

		Total Funding		Unfunded
		Commitment		Commitment
RLF III, LLC	$	4,000,000	$	398,120
Llano Music, LLC		4,000,000		1,904,000
Marcellus HBPI, LLP		1,800,000		141,300
Sovereign's Capital, LP Fund I		500,000		185,000
MM-Appalachia IV, LP		3,300,000		825,000
UGLIC, LLC		1,600,000		320,000
Sovereign's Capital, LP Fund II		1,000,000		950,000