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 September 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 October 30, 2015, was 3,697,193.

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	23
PART II.  Other Information	23
Item 1.  Legal Proceedings	23
Item 1A. Risk Factors	23
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 3.  Defaults Upon Senior Securities	23
Item 4.  Mine Safety Disclosures	23
Item 5.  Other Information	24
Item 6.  Exhibits	24
Signatures	25
Exhibit Index	26

UTG, Inc.

Condensed Consolidated Balance Sheets
ASSETS
		September 30,		December 31,
		2015		2014*
Investments:
Investments available for sale:
Fixed maturities, at fair value (amortized cost $186,904,228 and $188,634,364)	$	189,365,587	$	197,481,456
Equity securities, at fair value (cost $45,685,240 and $39,275,638)		45,505,510		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		11,043,041		14,060,930
Discounted mortgage loans on real estate at cost		4,403,072		9,101,052
Investment real estate		48,362,145		51,007,101
Policy loans		10,809,793		11,104,485
Short-term investments		3,633,629		4,382,181
Total investments		313,122,777		331,959,457
Cash and cash equivalents		14,225,434		13,977,443
Accrued investment income		2,652,983		2,662,865
Reinsurance receivables:
Future policy benefits		27,601,366		27,906,905
Policy claims and other benefits		4,167,679		3,788,294
Cost of Insurance acquired		8,367,281		9,047,984
Property and equipment, net of accumulated depreciation		2,130,410		2,475,829
Other assets		14,198,659		8,081,461
Total assets	$	386,466,589	$	399,900,238
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Policy liabilities and accruals:
Future policyholder benefits	$	270,834,431	$	275,044,909
Policy claims and benefits payable		2,877,482		3,208,324
Other policyholder funds		469,562		341,248
Dividend and endowment accumulations		14,263,790		14,239,054
Income taxes payable		733,967		1,983,243
Deferred income taxes		6,259,007		9,413,794
Notes payable		0		4,400,000
Trading securities, at fair value (proceeds $108,881 and $464,215)		47,603		23,853
Other liabilities		9,583,994		7,723,213
Total liabilities		305,069,836		316,327,638
Shareholders' equity:
Common stock - no par value, stated value $.001 per share.  Authorized 7,000,000 shares - 3,697,273 and 3,706,780 shares outstanding		3,697		3,706
Additional paid-in capital		42,972,617		43,122,944
Retained earnings		35,758,340		32,145,662
Accumulated other comprehensive income		1,468,189		6,853,974
Total UTG shareholders' equity		80,202,843		82,126,286
Noncontrolling interests		1,193,910		1,446,314
Total shareholders' equity		81,396,753		83,572,600
Total liabilities and shareholders' equity	$	386,466,589	$	399,900,238

* Balance sheet audited at December 31, 2014.

See accompanying notes.

UTG, Inc.

Condensed Consolidated Statements of Income

		Three Months Ended				Nine Months Ended
		September 30,		September 30,		September 30,		September 30,
		2015		2014		2015		2014
Revenue:
Premiums and policy fees	$	2,706,709	$	2,801,510	$	8,505,704	$	8,892,557
Ceded reinsurance premiums and policy fees		(825,134)		(769,490)		(2,382,376)		(2,377,513)
Net investment income		3,955,407		4,605,009		11,965,809		13,166,432
Other income		145,141		484,763		460,571		1,505,307
Revenues before realized gains		5,982,123		7,121,792		18,549,708		21,186,783
Realized investment gains (losses), net:
Other-than-temporary impairments		0		0		0		0
Other realized investment gains, net		3,305,835		2,510,130		7,732,155		4,481,591
Total realized investment gains (losses), net		3,305,835		2,510,130		7,732,155		4,481,591
Total revenue		9,287,958		9,631,922		26,281,863		25,668,374
Benefits and other expenses:
Benefits, claims and settlement expenses:
Life		5,484,256		4,006,105		15,357,486		17,137,960
Ceded Reinsurance benefits and claims		(1,447,479)		(368,224)		(2,569,732)		(2,694,770)
Annuity		263,198		(265,052)		793,432		297,187
Dividends to policyholders		92,660		103,473		344,258		369,790
Commissions and amortization of deferred policy acquisition costs		(47,886)		581,328		(132,162)		474,264
Amortization of cost of insurance acquired		226,901		246,412		680,703		739,236
Operating expenses		2,057,074		2,287,114		6,404,256		7,673,594
Interest expense		8,618		269,925		70,141		562,083
Total benefits and other expenses		6,637,342		6,861,081		20,948,382		24,559,344
Income before income taxes		2,650,616		2,770,841		5,333,481		1,109,030
Income tax (expense) benefit		(731,082)		502,364		(1,545,975)		969,751
Net income		1,919,534		3,273,205		3,787,506		2,078,781
Net income attributable to noncontrolling interests		(22,822)		(165,763)		(174,828)		(484,796)
Net loss attributable to common shareholders'	$	1,896,712	$	3,107,442		3,612,678		1,593,985
Amounts attributable to common shareholders'
Basic loss per share	$	0.51	$	0.83		0.97		0.42
Diluted income per share	$	0.51	$	0.83		0.97		0.42
Basic weighted average shares outstanding		3,700,180		3,756,857		3,706,741		3,764,578
Diluted weighted average shares outstanding		3,700,180		3,756,857		3,706,741		3,764,578

See accompanying notes.

UTG, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
		Three Months Ended				Nine Months Ended
		September 30,		September 30,		September 30,		September 30,
		2015		2014		2015		2014
Net income	$	1,919,534	$	3,273,205	$	3,787,506	$	2,078,781
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during period, pre-tax		(6,646,467)		(928,207)		(7,093,248)		8,373,858
Tax (expense) benefit on unrealized holding gains (losses) arising during the period		2,326,264		324,873		2,482,637		(2,930,850)
Unrealized holding gains (losses) arising during period, net of tax		(4,320,203)		(603,334)		(4,610,611)		5,443,008
Less reclassification adjustment for gains included in net income		(369,524)		(167,711)		(1,192,575)		(505,785)
Tax expense  for gains included in net income		129,333		58,699		417,401		177,025
Reclassification adjustment for gains included in net income, net of tax		(240,191)		(109,012)		(775,174)		(328,760)
Subtotal:  Other comprehensive income (loss), net of tax		(4,560,394)		(712,346)		(5,385,785)		5,114,248
Comprehensive income (loss)		(2,640,860)		2,560,859		(1,598,279)		7,193,029
Less comprehensive income attributable to noncontrolling interests		(22,822)		(165,763)		(174,828)		(484,796)
Comprehensive income (loss) attributable to UTG, Inc.	$	(2,663,682)	$	2,395,096	$	(1,773,107)	$	6,708,233

See accompanying notes.

UTG, Inc.

Condensed Consolidated Statements of Cash Flows

		Nine Months Ended
		September 30,		September 30,
		2015		2014
Cash flows from operating activities:
Net income (loss) attributable to common shareholders	$	3,612,678	$	1,593,985
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Amortization (accretion) of investments		(2,887,463)		(1,317,429)
Realized investment gains, net		(7,732,155)		(4,481,591)
Unrealized trading (gains) losses included in income		964,122		71,650
Amortization of deferred policy acquisition costs		0		369,786
Amortization of cost of insurance acquired		680,703		739,236
Depreciation		609,600		1,116,486
Net income attributable to noncontrolling interest		174,828		484,796
Charges for mortality and administration of universal life and annuity products		(4,980,737)		(5,001,163)
Interest credited to account balances		3,680,292		3,800,529
Change in accrued investment income		9,882		218,680
Change in reinsurance receivables		(73,846)		628,879
Change in policy liabilities and accruals		(2,906,385)		(4,940,058)
Change in income taxes receivable (payable)		(1,199,276)		(485,422)
Change in other assets and liabilities, net		(4,399,062)		2,984,740
Net cash used in operating activities		(14,446,819)		(4,216,896)
Cash flows from investing activities:
Proceeds from investments sold and matured:
Fixed maturities available for sale		19,216,266		20,787,523
Equity securities available for sale		7,128,725		6,303,763
Trading securities		125,774		1,051,502
Mortgage loans		11,980,171		1,762,505
Discounted mortgage loans		7,759,425		3,236,923
Real estate		17,041,627		19,525,094
Policy loans		2,228,637		2,590,935
Short-term investments		828,476		888,384
Total proceeds from investments sold and matured		66,309,101		56,146,629
Cost of investments acquired:
Fixed maturities available for sale		(16,641,310)		(19,580,517)
Equity securities available for sale		(9,531,330)		(6,554,165)
Trading securities		(463,895)		(22,524)
Mortgage loans		(11,226,324)		(1,727,681)
Discounted mortgage loans		(71,226)		(611,723)
Real estate		(6,395,223)		(7,111,362)
Policy loans		(1,933,945)		(1,934,852)
Short-term investments		(79,925)		(4,982,679)
Total cost of investments acquired		(46,343,178)		(42,525,503)
Purchase of property and equipement		0		(1,600,000)
Net cash provided by investing activities		19,965,923		12,021,126
Cash flows from financing activities:
Policyholder contract deposits		3,977,725		4,095,032
Policyholder contract withdrawals		(4,159,165)		(4,584,472)
Proceeds from notes payable/line of credit		0		1,600,000
Payments of principal on notes payable/line of credit		(4,400,000)		(1,500,000)
Purchase of treasury stock		(150,336)		(269,429)
Non controlling contributions (distributions) of consolidated subsidiary		(539,337)		(1,472,522)
Sale of block of business		0		(3,045,574)
Net cash used in financing activities		(5,271,113)		(5,176,965)
Net increase (decrease) in cash and cash equivalents		247,991		2,627,265
Cash and cash equivalents at beginning of period		13,977,443		19,838,618
Cash and cash equivalents at end of period	$	14,225,434	$	22,465,883

See accompanying notes.

UTG, Inc.

Notes to Condensed Consolidated Financial Statements

  Note 1 – Basis of Presentation

The accompanying Condensed Consolidated Financial Statements include the accounts of UTG, Inc. (the "Parent") 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.  All financial statements, audited and unaudited, 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 nine month periods ended September 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 the Registrant'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 September 30, 2015, Mr. Correll owns or controls directly and indirectly approximately 57.64 % 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:

September 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	$	21,630,407	$	1,748,014	$	0	$	23,378,421
U.S. special revenue and assessments		1,137,586		17,183		0		1,154,769
All other corporate bonds		164,136,235		5,307,464		(4,611,302)		164,832,397
		186,904,228		7,072,661		(4,611,302)		189,365,587
Equity securities		45,685,240		2,533,442		(2,713,172)		45,505,510
Total	$	232,589,468	$	9,606,103	$	(7,324,474)	$	234,871,097

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 September 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 September 30, 2015		Amortized Cost		Estimated Fair Value
Due in one year or less	$	5,533,578	$	5,620,065
Due after one year through five years		17,369,656		18,034,669
Due after five years through ten years		67,233,935		69,059,025
Due after ten years		96,767,059		96,651,828
Total	$	186,904,228	$	189,365,587

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

September 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	$	0	0	$	0	0
U.S. Special Revenue and Assessments		0	0		0	0		0	0
All other corporate bonds		59,290,095	(2,877,049)		14,561,519	(1,734,253)		73,851,614	(4,611,302)
Total fixed maturities	$	59,290,095	(2,877,049)	$	14,561,519	(1,734,253)	$	73,851,614	(4,611,302)
Equity securities	$	6,341,069	(2,199,739)	$	2,782,665	(513,433)	$	9,123,734	(2,713,172)

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 September 30, 2015
Fixed maturities	37	5	42
Equity securities	8	9	17
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 September 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 September 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 nine month period ended September 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   September 30, 2015 was $0 and $(47,603), 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. Subsequent unrealized gains/losses are reported as a component of comprehensive income.

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

		Three Months Ended
		September 30,
		2015		2014
Net unrealized gains (losses)	$	55,140	$	(87,272)
Net realized gains (losses)		0		120,296
Net unrealized and realized gains (losses)	$	55,140	$	33,024

		Nine Months Ended
		September 30,
		2015		2014
Net unrealized gains (losses)	$	(964,122)	$	(71,650)
Net realized gains (losses)		515,967		291,834
Net unrealized and realized gains (losses)	$	(448,155)	$	220,184

Mortgage Loans

As of September 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 $15,446,113 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 2014were 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 32% 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 September 30, 2015.

		Level 1		Level 2		Level 3		Total
Assets
Fixed Maturities, available for sale	$	11,869,514	$	176,470,393	$	1,025,680	$	189,365,587
Equity Securities, available for sale		13,268,458		5,828,827		26,408,225		45,505,510
Total	$	25,137,972	$	182,299,220	$	27,433,905	$	234,871,097
Liabilities
Trading Securities	$	47,603	$	0	$	0	$	47,603

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		209,806		399,929		609,735
Purchases		0		1,353,625		1,353,625
Sales		(53,851)		(4,223,963)		(4,277,814)
Balance at September 30, 2015	$	1,025,680	$	26,408,225	$	27,433,905

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.

		September 30, 2015				December 31, 2014
Assets		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Mortgage loans on real estate	$	11,043,041	$	11,493,760	$	14,060,930	$	14,236,676
Discounted mortgage loans		4,403,072		4,403,072		9,101,052		9,101,052
Investment real estate		48,362,145		48,362,145		51,007,101		51,007,101
Policy loans		10,809,793		10,809,793		11,104,485		11,104,485
Cash and cash equivalents		14,225,434		14,225,434		13,977,443		13,977,443
Short term investments		3,633,629		3,633,629		4,382,181		4,382,181
Collateral and non-collateral loans		7,404,405		7,404,405		5,612,560		5,612,560
Liabilities
Notes payable		0		0		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 September 30, 2015 and December 31, 2014, the Company had the following outstanding debt:

			Outstanding Principal Balance
Instrument	Issue Date	Maturity Date		September 30, 2015	December 31, 2014
Promissory Note:
UTG Avalon	12/29/2014	4/1/2018		0	4,400,000

Instrument	Issue Date	Maturity Date		Revolving Credit Limit		December 31, 2014	Borrowings	Repayments		September 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 carried 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.  This note was fully repaid during the third quarter of 2015.  The principal payments were paid by UTG and as a result of the payments; 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"). The Company is currently in the process of renewing this line of credit.

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.

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 nine month period ended  September 30, 2015, the Company repurchased 23,848 shares through the stock repurchase program for $344,304.  Through September30, 2015, UTG has spent $6,467,429 in the acquisition of 686,546 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 nine months ended September 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 September 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		1,656,000
Marcellus HBPI, LLP		1,800,000		141,300
Sovereign's Capital, LP Fund I		500,000		125,000
MM-Appalachia IV, LP		3,300,000		668,250
UGLIC, LLC		1,600,000		320,000
Sovereign's Capital, LP Fund II		1,000,000		900,000

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 II"), which invests in companies in emerging markets. Sovereign's II 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
		September 30,
		2015		2014
Interest	$	70,141	$	20,689
Federal income tax		0		4,000

		Nine Months Ended
		September 30,
		2015		2014
Interest	$	0	$	55,009
Federal income tax		3,000,000		4,000

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 nine months ended September 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 $3,613,000 for the nine month period ended September 30, 2015 and net income attributable to common shareholders' of $1,897,000 for the three month period ended September 30, 2015.  For the nine month period ended September 30, 2014, the Company reported  net income attributable to common shareholders' of $1,594,000 and for the three month period ended September 30, 2014, the Company reported net income attributable to common shareholders' of $3,107,000.

Revenues

The Company's total revenues increased by 2% when comparing the nine month periods ended September 30, 2015 and 2014.  The Company's revenue decreased 4% when comparing the three month periods ended September 30, 2015 and 2014.  The variance in total revenues reported for the three and nine month periods ended September 30, 2015 are attributable to fluctuations in net investment income and realized investment gains. Further analysis of the fluctuations in net investment income and realized investment gains is provided below.

Premium and policy fee revenues, net of reinsurance, decreased 6% when comparing the first nine months of 2015 to the same period in 2014.  Premium and policy fee revenues, net of reinsurance, decreased 7% when comparing the third quarter of 2015 to the same quarter in 2014. The Company writes minimal new business.  Premium and policy fee revenues, net of reinsurance, represented 23% and 26% of the Company's revenues as of September 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 nine month periods ended September 30, 2015:

		Three Months Ended				Nine Months Ended
		September 30,				September 30,
		2015		2014		2015		2014
Fixed maturities available for sale	$	2,147,874	$	2,146,626	$	6,340,727	$	6,154,877
Equity securities		64,157		757,867		1,372,941		2,359,390
Trading securities		55,140		33,024		(448,155)		220,184
Mortgage loans		184,952		214,944		601,270		684,328
Discounted mortgage loans		1,350,368		804,705		4,838,015		2,471,220
Real estate		917,362		2,463,408		1,504,845		6,719,638
Policy loans		161,403		199,993		477,905		563,950
Short-term		53,182		54,305		220,588		60,628
Cash and cash equivalents		70		65		636		372
Total consolidated investment income		4,934,508		6,674,937		14,908,772		19,234,587
Investment expenses		(979,101)		(2,069,928)		(2,942,963)		(6,068,155)
Consolidated net investment income	$	3,955,407	$	4,605,009	$	11,965,809	$	13,166,432

Net investment income represented 46% and 51% of the Company's total revenues as of September 30, 2015 and 2014, respectively.  The Company reported net investment income of $11,965,809 for the nine month period ended September 30, 2015, a decrease of 9% compared to the same period in 2014.  For the three month period ended September 30, 2015, net investment income decreased 14% compared to the same quarter in 2014.

The fluctuation in net investment income for the three and nine month periods ended September 30, 2015, compared to the same periods in 2014, is mainly attributable to variances in the earnings reported in the equity securities portfolio, the trading securities portfolio, the discounted mortgage loan portfolio and the real estate investment portfolio.

For the three and nine month periods ended September 30, 2015, income from the equity securities portfolio is down $694,000 and $986,000, respectively, compared to the same periods during 2014. During 2014, the interest rate on one of the Company's preferred stocks increased substantially, according to the terms of the contractual agreement, causing the increase in income reported in the equity securities portfolio. This specific preferred stock was redeemed in subsequent quarters; therefore, no longer providing the high interest rate yield.

The trading securities portfolio produced a loss of $(448,000) for the nine month period ended September 30, 2015 and income of $220,000 for the same period in 2014. The 2015 loss is mainly attributable to activity that occurred during the first quarter of 2015 as a result of activity related to an oil and gas investment.  Third quarter activity for the trading securities portfolio was comparable.

For the nine month period ended September 30, 2015, income from the discounted mortgage loan portfolio increased by $2,367,000 compared to the same period in 2014.  The increase is primarily attributable to events that occurred during the first and third quarters of 2015.  During the first quarter of 2015, the Company had two discounted mortgage loans that were repaid and one discounted mortgage loan that was repaid during the third quarter of 2015.  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. The discounted mortgage loan investment balance decreased 52% from December 31, 2014 to September 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 nine month periods ended September 30, 2015 and 2014, investment income from the real estate investment portfolio is down 63% and 78%, 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 $7,732,000 and $4,482,000 for the nine month periods ended September 30, 2015 and 2014, respectively.  Net realized investment gains reported during the third 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 and third quarters 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 $1,000,000 when comparing the nine month period ended September 30, 2015 to the same period in 2014 and by $340,000 when comparing the three month period ended September 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 $20,948,000 for the nine month period ended September 30, 2015, a decrease of 15% from the same period in 2014.  For the three month period ended September 30, 2015, total benefits and other expenses decreased 3%, compared to the same quarter in 2014.  Benefits, claims and settlement expenses represented approximately 67% of the Company's total expenses for the nine month period ended September 30, 2015 and 66% for the three month period ended September 30, 2015.  The other major expense category of the Company is operating expenses, which represented approximately 31% of the Company's total expenses for the three and nine month periods ended September 30, 2015, respectively.

Life benefits, claims and settlement expenses, net of reinsurance benefits and claims, decreased 8% during the nine month period ended September 30, 2015, compared to the same period in 2014.  For the three month period ended September 30, 2015, life benefits, claims and settlement expenses, net of reinsurance benefits and claims, increased 26% 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 decreased 8% during the nine month period ended September 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 decreased 17% in the nine month period ended September 30, 2015 in comparison to the same period in 2014.  Third quarter 2015 operating expenses were down 10% compared to operating expenses reported for the third 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 September 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 September 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 $(4,611,000) for the nine month period ended September 30, 2015 and $(4,320,000) for the third quarter of 2015.  Changes in the market value of available for sale securities resulted in net unrealized gains of $5,443,000 and net unrealized losses of $(603,000) for the three and nine month periods ended September 30, 2014, respectively. The variance in the net unrealized gains and losses is the result of normal market fluctuations mainly related to higher interest rates.

The Company's September 30, 2015 discounted mortgage loan asset balance decreased by 52% in comparison to the December 31, 2014 balance.  The decrease in the discounted mortgage loan balance is mainly attributable to three mortgage loans being fully repaid during the first and third quarters 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 decreased by 2% as of September 30, 2015 compared to December 31, 2014. Retained earnings increased 11% from December 31, 2014 to September 30, 2015 as a result of net income reported by the Company.  During the same time period, accumulated other comprehensive income decreased by 79% as a result of an increase in unrealized losses reported by the Company. As discussed in the Investment Information section above, the fluctuation in accumulated other comprehensive income is the result of normal market fluctuations mainly related to higher interest rates.

As of December 31, 2014, the Company had $4,400,000 of debt outstanding. This debt belonged to UTG Avalon, LLC a wholly owned subsidiary of UG. During 2015, UTG Avalon repaid 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 4% and 3% of total assets as of September 30, 2015 and December 31, 2014, respectively.  Fixed maturities represented 49% of the Company's total assets as of September 30, 2015 and December 31, 2014.

The Company currently has access to funds for operating liquidity.  UTG has an $8,000,000 revolving credit note with Illinois National Bank.  At September 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 $14,447,000 and $4,217,000 for the nine month periods ended September 30, 2015 and 2014, respectively.  Net cash used in operating activities was higher in during 2015 as a result of an increase in net realized investment gains and an increase in receivables. Net realized investment gains are expected to vary from quarter to quarter depending on market conditions and Management's ability to find and negotiate favorable investment contracts.

Net cash provided by investing activities was $19,966,000 and $12,021,000 for the nine month period ended September 30, 2015 and 2014, respectively. The total proceeds from investments sold and matured were $10,162,000 higher during 2015 and is mainly attributable to the settlement of three mortgage loans. Proceeds from the sale of other investment types were comparable. 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 $5,271,000 and $5,177,000 for the nine month period ended September 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. During 2015, the Company used cash of $4,400,000 to make principal payments on an outstanding note payable.

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 September 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 nine month period ended September 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:	November 12, 2015	By	/s/ James P. Rousey
			James P. Rousey
			President and Director

Date:	November 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:	November 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:	November 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 September 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:	November 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 September 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:	November 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	9 Months Ended
	Jul. 09, 2015	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Lines of Credit [Line Items]
Repayments		$ 0
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		0	0
2017		0	$ 0
Subsequent Event [Member]
Lines of Credit [Line Items]
Repayments	$ 0
HPG Acquisition 2007-02-07 [Member]
Debt Instrument [Line Items]
Issue Date			Dec. 29, 2014
Maturity Date			Apr. 01, 2018
Outstanding Principal Balance		0	$ 0	$ 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

9 Months Ended

Sep. 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:

September 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	$	21,630,407	$	1,748,014	$	0	$	23,378,421
U.S. special revenue and assessments		1,137,586		17,183		0		1,154,769
All other corporate bonds		164,136,235		5,307,464		(4,611,302)		164,832,397
		186,904,228		7,072,661		(4,611,302)		189,365,587
Equity securities		45,685,240		2,533,442		(2,713,172)		45,505,510
Total	$	232,589,468	$	9,606,103	$	(7,324,474)	$	234,871,097

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 September 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 September 30, 2015		Amortized Cost		Estimated Fair Value
Due in one year or less	$	5,533,578	$	5,620,065
Due after one year through five years		17,369,656		18,034,669
Due after five years through ten years		67,233,935		69,059,025
Due after ten years		96,767,059		96,651,828
Total	$	186,904,228	$	189,365,587

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

September 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	$	0	0	$	0	0
U.S. Special Revenue and Assessments		0	0		0	0		0	0
All other corporate bonds		59,290,095	(2,877,049)		14,561,519	(1,734,253)		73,851,614	(4,611,302)
Total fixed maturities	$	59,290,095	(2,877,049)	$	14,561,519	(1,734,253)	$	73,851,614	(4,611,302)
Equity securities	$	6,341,069	(2,199,739)	$	2,782,665	(513,433)	$	9,123,734	(2,713,172)

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 September 30, 2015
Fixed maturities	37	5	42
Equity securities	8	9	17
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 September 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 September 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 nine month period ended September 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   September 30, 2015 was $0 and $(47,603), 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. Subsequent unrealized gains/losses are reported as a component of comprehensive income.

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

		Three Months Ended
		September 30,
		2015		2014
Net unrealized gains (losses)	$	55,140	$	(87,272)
Net realized gains (losses)		0		120,296
Net unrealized and realized gains (losses)	$	55,140	$	33,024

		Nine Months Ended
		September 30,
		2015		2014
Net unrealized gains (losses)	$	(964,122)	$	(71,650)
Net realized gains (losses)		515,967		291,834
Net unrealized and realized gains (losses)	$	(448,155)	$	220,184

Mortgage Loans

As of September 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 $15,446,113 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 2014were 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 32% 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.

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OTHER CASH FLOW DISCLOSURES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
OTHER CASH FLOW DISCLOSURES [Abstract]
Interest expense paid	$ 70,141	$ 20,689	$ 0	$ 55,009
Federal income tax	0	$ 4,000	3,000,000	$ 4,000
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

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NEW ACCOUNTING STANDARDS

9 Months Ended

Sep. 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.

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Balance Sheet - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Investments available for sale:
Fixed maturities, at fair value (amortized cost $186,904,228 and $188,634,364)	$ 189,365,587	$ 197,481,456
Equity securities, at fair value (cost $45,685,240 and $39,275,638)	45,505,510	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	11,043,041	14,060,930
Discounted mortgage loans on real estate at cost	4,403,072	9,101,052
Investment real estate	48,362,145	51,007,101
Policy loans	10,809,793	11,104,485
Short-term investments	3,633,629	4,382,181
Total investments	313,122,777	331,959,457
Cash and cash equivalents	14,225,434	13,977,443
Accrued investment income	2,652,983	2,662,865
Reinsurance receivables:
Future policy benefits	27,601,366	27,906,905
Policy claims and other benefits	4,167,679	3,788,294
Cost of insurance acquired	8,367,281	9,047,984
Property and equipment, net of accumulated depreciation	2,130,410	2,475,829
Other assets	14,198,659	8,081,461
Total assets	386,466,589	399,900,238
Policy liabilities and accruals:
Future policyholder benefits	270,834,431	275,044,909
Policy claims and benefits payable	2,877,482	3,208,324
Other policyholder funds	469,562	341,248
Dividend and endowment accumulations	14,263,790	14,239,054
Income tax payable	733,967	1,933,243
Deferred income taxes	6,259,007	9,413,794
Notes payable	0	4,400,000
Trading securities, at fair value (proceeds $108,881 and $464,215)	47,603	23,853
Other liabilities	9,583,994	7,723,213
Total liabilities	305,069,836	316,327,638
Shareholders' equity:
Common stock - no par value, stated value $.001 per share. Authorized 7,000,000 shares - 3,697,273 and 3,706,780 shares outstanding	3,697	3,706
Additional paid-in capital	42,972,617	43,122,944
Retained earnings	35,758,340	32,145,662
Accumulated other comprehensive income	1,468,189	6,853,974
Total UTG shareholders' equity	80,202,843	82,126,286
Noncontrolling interests	1,193,910	1,446,314
Total shareholders' equity	81,396,753	83,572,600
Total liabilities and shareholders' equity	$ 386,466,589	$ 399,900,238

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Statement of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss attributable to common shareholders	$ 3,612,678	$ 1,593,985
Adjustments to reconcile net loss to net cash used in operating activities
Amortization (accretion) of investments	(2,887,463)	(1,317,429)
Realized investment gains, net	(7,732,155)	(4,481,591)
Unrealized trading (gains) losses included in income	964,122	71,650
Amortization of deferred policy acquisition costs	0	369,786
Amortization of cost of insurance acquired	680,703	739,236
Depreciation	609,600	1,116,486
Net income attributable to noncontrolling interest	174,828	484,796
Charges for mortality and administration of universal life and annuity products	(4,980,737)	(5,001,163)
Interest credited to account balances	3,680,292	3,800,529
Change in accrued investment income	9,882	218,680
Change in reinsurance receivables	(73,846)	628,879
Change in policy liabilities and accruals	(2,906,385)	(4,940,058)
Change in income taxes receivable (payable)	(1,199,276)	(485,422)
Change in other assets and liabilities, net	(4,399,062)	2,984,740
Net cash used in operating activities	(14,446,819)	(4,216,896)
Proceeds from investments sold and matured:
Fixed maturities available for sale	19,216,266	20,787,523
Equity securities available for sale	7,128,725	6,303,763
Trading securities	125,774	1,051,502
Mortgage loans	11,980,171	1,762,505
Discounted mortgage loans	7,759,425	3,236,923
Real estate	17,041,627	19,525,094
Policy loans	2,228,637	2,590,935
Short term investment	828,476	888,384
Total proceeds from investments sold and matured	66,309,101	56,146,629
Cost of investments acquired:
Fixed maturities available for sale	(16,641,310)	(19,580,517)
Equity securities available for sale	(9,531,330)	(6,554,165)
Trading securities	(463,895)	(22,524)
Mortgage loans	(11,226,324)	(1,727,681)
Discounted mortgage loans	(71,226)	(611,723)
Real estate	(6,395,223)	(7,111,362)
Policy loans	(1,933,945)	(1,934,852)
Short-term investments	(79,925)	(4,982,679)
Total cost of investments acquired	(46,343,178)	(42,525,503)
Sale of property and equipment	0	(1,600,000)
Net cash provided by investing activities	19,965,923	12,021,126
Cash flows from financing activities:
Proceeds From Policyholder Contract Deposits	3,977,725	4,095,032
Policyholder contract withdrawals	(4,159,165)	(4,584,472)
Proceeds from notes payable/line of credit	0	1,600,000
Payments of principal on notes payable/line of credit	(4,400,000)	(1,500,000)
Purchase of treasury stock	(150,336)	(269,429)
Non-controlling distributions of consolidated subsidiary	(539,337)	(1,472,522)
Sale of block of business	0	(3,045,574)
Net cash provided by (used in) financing activities	(5,271,113)	(5,176,965)
Net increase (decrease) in cash and cash equivalents	247,991	2,627,265
Cash and cash equivalents at beginning of period	13,977,443	19,838,618
Cash and cash equivalents at end of period	$ 14,225,434	$ 22,465,883

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BASIS OF PRESENTATION (Details)	9 Months Ended
	Sep. 30, 2015
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)	57.64%

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FAIR VALUE MEASUREMENTS (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Carrying Amount [Member]
Assets [Abstract]
Mortgage loans on real estate	$ 11,043,041	$ 11,043,041	$ 14,060,930
Discounted mortgage loans	4,403,072	4,403,072	9,101,052
Investment real estate	48,362,145	48,362,145	51,007,101
Policy Loans	10,809,793	10,809,793	11,104,485
Cash and cash equivalents	14,225,434	14,225,434	13,977,443
Other Assets, Fair Value Disclosure	3,633,629	3,633,629	4,382,181
Financing Receivable, Gross	7,404,405	7,404,405	5,612,560
Liabilities [Abstract]
Notes payable	0	0	4,400,000
Estimated Fair Value [Member]
Assets [Abstract]
Mortgage loans on real estate	11,493,760	11,493,760	14,236,676
Discounted mortgage loans	4,403,072	4,403,072	9,101,052
Investment real estate	48,362,145	48,362,145	51,007,101
Policy Loans	10,809,793	10,809,793	11,104,485
Cash and cash equivalents	14,225,434	14,225,434	13,977,443
Other Assets, Fair Value Disclosure	3,633,629	3,633,629	4,382,181
Financing Receivable, Gross	7,404,405	7,404,405	5,612,560
Liabilities [Abstract]
Notes payable	0	0	4,400,000
Fixed Maturities, available for sale	189,365,587	189,365,587	197,481,456
Trading Securities	0	0	3,826,250
Trading Securities	47,603	47,603	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	609,735
Purchases	1,353,625
Sales		(4,277,814)
Ending Balance	27,433,905	27,433,905
Discounted mortgage loans	4,403,072	4,403,072	9,101,052
Investment real estate	48,362,145	48,362,145	51,007,101
Cash and cash equivalents	14,225,434	$ 14,225,434	13,977,443	$ 22,465,883	$ 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	209,806
Purchases	0
Sales		(53,851)
Ending Balance	1,025,680	1,025,680
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	399,929
Purchases	1,353,625
Sales		(4,223,963)
Ending Balance	26,408,225	26,408,225
Measured on a recurring basis [Member]
Assets [Abstract]
Fixed Maturities, available for sale	189,365,587	189,365,587	197,481,456
Equity Securities, available for sale	45,505,510	45,505,510	40,996,002
Trading Securities	0	0	3,826,250
Total Financial Assets	234,871,097	234,871,097	242,303,708
Liabilities [Abstract]
Trading Securities	47,603	47,603	23,853
Measured on a recurring basis [Member] | Level 1 [Member]
Assets [Abstract]
Fixed Maturities, available for sale	11,869,514	11,869,514	13,374,878
Equity Securities, available for sale	13,268,458	13,268,458	4,756,292
Trading Securities	0	0	3,826,250
Total Financial Assets	25,137,972	25,137,972	21,957,420
Liabilities [Abstract]
Trading Securities	47,603	47,603	23,853
Measured on a recurring basis [Member] | Level 2 [Member]
Assets [Abstract]
Fixed Maturities, available for sale	176,470,393	176,470,393	183,236,853
Equity Securities, available for sale	5,828,827	5,828,827	7,361,076
Trading Securities	0	0	0
Total Financial Assets	182,299,220	182,299,220	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	1,025,680	1,025,680	869,725
Equity Securities, available for sale	26,408,225	26,408,225	28,878,634
Trading Securities	0	0	0
Total Financial Assets	27,433,905	27,433,905	29,748,359
Liabilities [Abstract]
Trading Securities	$ 0	$ 0	$ 0

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BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2015

BASIS OF PRESENTATION [Abstract]

BASIS OF PRESENTATION

  Note 1 – Basis of Presentation

The accompanying Condensed Consolidated Financial Statements include the accounts of UTG, Inc. (the "Parent") 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.  All financial statements, audited and unaudited, 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 nine month periods ended September 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 the Registrant'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 September 30, 2015, Mr. Correll owns or controls directly and indirectly approximately 57.64 % 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.

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Balance Sheet Parenthetical - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Investments available for sale:
Available-for-sale Debt Securities, Amortized Cost Basis	$ 186,904,228	$ 188,634,364
Equity securities, cost	45,685,240	39,275,638
Trading securities, cost	0	5,179,850
Liabilities:
Trading Securities, Proceeds	$ 108,881	$ 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)	3,697,273	3,706,780

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INVESTMENTS (Tables)

9 Months Ended

Sep. 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:

September 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	$	21,630,407	$	1,748,014	$	0	$	23,378,421
U.S. special revenue and assessments		1,137,586		17,183		0		1,154,769
All other corporate bonds		164,136,235		5,307,464		(4,611,302)		164,832,397
		186,904,228		7,072,661		(4,611,302)		189,365,587
Equity securities		45,685,240		2,533,442		(2,713,172)		45,505,510
Total	$	232,589,468	$	9,606,103	$	(7,324,474)	$	234,871,097

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 September 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 September 30, 2015		Amortized Cost		Estimated Fair Value
Due in one year or less	$	5,533,578	$	5,620,065
Due after one year through five years		17,369,656		18,034,669
Due after five years through ten years		67,233,935		69,059,025
Due after ten years		96,767,059		96,651,828
Total	$	186,904,228	$	189,365,587

Fair value of investments with sustained gross unrealized losses

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

September 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	$	0	0	$	0	0
U.S. Special Revenue and Assessments		0	0		0	0		0	0
All other corporate bonds		59,290,095	(2,877,049)		14,561,519	(1,734,253)		73,851,614	(4,611,302)
Total fixed maturities	$	59,290,095	(2,877,049)	$	14,561,519	(1,734,253)	$	73,851,614	(4,611,302)
Equity securities	$	6,341,069	(2,199,739)	$	2,782,665	(513,433)	$	9,123,734	(2,713,172)

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 September 30, 2015
Fixed maturities	37	5	42
Equity securities	8	9	17
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
		September 30,
		2015		2014
Net unrealized gains (losses)	$	55,140	$	(87,272)
Net realized gains (losses)		0		120,296
Net unrealized and realized gains (losses)	$	55,140	$	33,024

		Nine Months Ended
		September 30,
		2015		2014
Net unrealized gains (losses)	$	(964,122)	$	(71,650)
Net realized gains (losses)		515,967		291,834
Net unrealized and realized gains (losses)	$	(448,155)	$	220,184

XML

Document and Entity Information - USD ($)	9 Months Ended
	Sep. 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	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

XML

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 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 September 30, 2015.

		Level 1		Level 2		Level 3		Total
Assets
Fixed Maturities, available for sale	$	11,869,514	$	176,470,393	$	1,025,680	$	189,365,587
Equity Securities, available for sale		13,268,458		5,828,827		26,408,225		45,505,510
Total	$	25,137,972	$	182,299,220	$	27,433,905	$	234,871,097
Liabilities
Trading Securities	$	47,603	$	0	$	0	$	47,603

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		209,806		399,929		609,735
Purchases		0		1,353,625		1,353,625
Sales		(53,851)		(4,223,963)		(4,277,814)
Balance at September 30, 2015	$	1,025,680	$	26,408,225	$	27,433,905

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.

		September 30, 2015				December 31, 2014
Assets		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Mortgage loans on real estate	$	11,043,041	$	11,493,760	$	14,060,930	$	14,236,676
Discounted mortgage loans		4,403,072		4,403,072		9,101,052		9,101,052
Investment real estate		48,362,145		48,362,145		51,007,101		51,007,101
Policy loans		10,809,793		10,809,793		11,104,485		11,104,485
Cash and cash equivalents		14,225,434		14,225,434		13,977,443		13,977,443
Short term investments		3,633,629		3,633,629		4,382,181		4,382,181
Collateral and non-collateral loans		7,404,405		7,404,405		5,612,560		5,612,560
Liabilities
Notes payable		0		0		4,400,000		4,400,000

XML

Income Statement - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Premiums and policy fees	$ 2,706,709	$ 2,801,510	$ 8,505,704	$ 8,892,557
Ceded reinsurance premiums and policy fees	(825,134)	(769,490)	(2,382,376)	(2,377,513)
Net investment income	3,955,407	4,605,009	11,965,809	13,166,432
Other income	145,141	484,763	460,571	1,505,307
Revenues before realized gains	5,982,123	7,121,792	18,549,708	21,186,783
Realized investment gains (losses), net:
Other-than-temporary impairments	0	0	0	0
Other realized investment gains, net	3,305,835	2,510,130	7,732,155	4,481,591
Total realized investment gains, net	3,305,835	2,510,130	7,732,155	4,481,591
Total revenue	9,287,958	9,631,922	26,281,863	25,668,374
Benefits, claims and settlement expenses:
Life	5,484,256	4,006,105	15,357,486	17,137,960
Ceded Reinsurance benefits and claims	(1,447,479)	(368,224)	(2,569,732)	(2,694,770)
Annuity	263,198	(265,052)	793,432	297,187
Dividends to policyholders	92,660	103,473	344,258	369,790
Amortization of cost of insurance acquired	226,901	246,412	680,703	739,236
Commissions and amortization of deferred policy acquisition costs	(47,886)	581,328	(132,162)	474,264
Operating expenses	2,057,074	2,287,114	6,404,256	7,673,594
Interest expense	8,618	269,925	70,141	562,083
Total benefits and other expenses	6,637,342	6,861,081	20,948,382	24,559,344
Loss before income taxes	2,650,616	2,770,841	5,333,481	1,109,030
Income tax (expense) benefit	(731,082)	502,364	(1,545,975)	969,751
Net loss	1,919,534	3,273,205	3,787,506	2,078,781
Net income attributable to noncontrolling interests	(22,822)	(165,763)	(174,828)	(484,796)
Net loss attributable to common shareholders'	$ 1,896,712	$ 3,107,442	$ 3,612,678	$ 1,593,985
Amounts attributable to common shareholders':
Basic loss per share	$ 0.51	$ 0.83	$ 0.97	$ 0.42
Diluted loss per share	$ 0.51	$ 0.83	$ 0.97	$ 0.42
Basic weighted average shares outstanding	3,700,180	3,756,857	3,706,741	3,764,578
Diluted weighted average shares outstanding	3,700,180	3,756,857	3,706,741	3,764,578

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SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 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 nine month period ended  September 30, 2015, the Company repurchased 23,848 shares through the stock repurchase program for $344,304.  Through September30, 2015, UTG has spent $6,467,429 in the acquisition of 686,546 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 nine months ended September 30, 2015 and 2014, diluted earnings per share were the same as basic earnings per share since the Company had no dilutive instruments outstanding.

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CREDIT ARRANGEMENTS

9 Months Ended

Sep. 30, 2015

NOTES PAYABLE [Abstract]

CREDIT ARRANGEMENTS

Note 5 – Credit Arrangements

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

			Outstanding Principal Balance
Instrument	Issue Date	Maturity Date		September 30, 2015	December 31, 2014
Promissory Note:
UTG Avalon	12/29/2014	4/1/2018		0	4,400,000

Instrument	Issue Date	Maturity Date		Revolving Credit Limit		December 31, 2014	Borrowings	Repayments		September 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 carried 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.  This note was fully repaid during the third quarter of 2015.  The principal payments were paid by UTG and as a result of the payments; 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"). The Company is currently in the process of renewing this line of credit.

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.

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INVESTMENTS (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015 USD ($) Security Loans	Sep. 30, 2014 USD ($)	Sep. 30, 2015 USD ($) Security Loans	Sep. 30, 2014 USD ($)	Dec. 31, 2014 USD ($) Security Loans
Amortized cost and estimated value of debt securities, by contractual maturity [Abstract]
Due in one year or less	$ 5,620,065		$ 5,620,065
Due after one year through five years	18,034,669		18,034,669
Due after five years through ten years	69,059,025		69,059,025
Due after ten years	96,651,828		96,651,828
Collateralized mortgage obligations	0		0
Total	189,365,587		189,365,587
Fixed maturities [Abstract]
Original or Amortized Cost	232,589,468		232,589,468		$ 227,910,002
Gross Unrealized Gains			9,606,103	$ 13,020,260
Gross Unrealized Losses			(7,324,474)	(2,452,804)
Estimated Market Value	234,871,097		234,871,097		238,477,458
Amortized cost and estimated market value of debt securities, by contractual maturity [Abstract]
Due in one year or less	5,533,578		5,533,578
Due after one year through five years	17,369,656		17,369,656
Due after five years through ten years	67,233,935		67,233,935
Due after ten years	96,767,059		96,767,059
Collateralized mortgage obligation	0		0
Total	186,904,228		186,904,228		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	(47,603)		(47,603)		$ (23,853)
trading transfer to available for sale securities	3,224,000		3,224,000
Trading securities, net unrealized gain (loss)	55,140	$ (87,272)	(964,122)	(71,650)
Trading securities, realized gain (loss)	0	120,296	515,967	291,834
Increase (Decrease) in Trading Securities [Abstract]
Net Realized and Unrealized Gain (Loss) on Trading Securities	$ 55,140	33,024	$ (448,155)	220,184
Mortgages [Abstract]
Number of Mortgage Loans including Discounted Mortgage Loans | Loans	27		27		33
Mortgage Loans including Discounted Mortgage Loans	$ 15,446,113		$ 15,446,113		$ 23,161,982
Mortgage loans reserve
Average purchase price to outstanding loan (in hundredths)	32.00%
U.S. Government and Government Agencies and Authorities [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	$ 21,630,407		21,630,407		$ 23,036,161
Gross Unrealized Gains			1,748,014	1,970,791
Gross Unrealized Losses			0	(50,184)
Estimated Market Value	23,378,421		23,378,421		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	0		0		4,947,265
Twelve months or longer, Unrealized losses		(50,184)	0
Total Fair value	0		0		4,947,265
Total Unrealized losses		(50,184)	0
US Special Revenue and Assessments [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	1,137,586		1,137,586		1,137,702
Gross Unrealized Gains			17,183	13,739
Gross Unrealized Losses			0	(202,930)
Estimated Market Value	1,154,769		1,154,769		948,511
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		784,390
Twelve months or longer, Unrealized losses		(202,930)	0
Total Fair value	0		0		784,390
Total Unrealized losses		(202,930)	0
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	0		0		399,927
Gross Unrealized Gains			0	55,913
Gross Unrealized Losses			0	0
Estimated Market Value	0		0		455,840
Debt Securities [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	186,904,228		186,904,228		188,634,364
Gross Unrealized Gains			7,072,661	10,759,405
Gross Unrealized Losses			(4,611,302)	(1,912,313)
Estimated Market Value	189,365,587		189,365,587		197,481,456
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	59,290,095		59,290,095		28,954,477
Less than 12 months, Unrealized losses			(2,877,049)	(416,560)
Twelve months or longer, Fair value	14,561,519		14,561,519		9,267,873
Twelve months or longer, Unrealized losses			(1,734,253)	(1,495,753)
Total Fair value	$ 73,851,614		73,851,614		$ 38,222,350
Total Unrealized losses			$ (4,611,302)	(1,912,313)
Less than 12 months Number of Securities | Security	37		37		18
Twelve months or longer Number of Securities | Security	5		5		7
Total Number of Securities | Security	42		42		25
Equity Securities [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	$ 45,685,240		$ 45,685,240		$ 39,275,638
Gross Unrealized Gains			2,533,442	2,260,855
Gross Unrealized Losses			(2,713,172)	(540,491)
Estimated Market Value	45,505,510		45,505,510		40,996,002
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	6,341,069		6,341,069		6,067,132
Less than 12 months, Unrealized losses			(2,199,739)	(540,491)
Twelve months or longer, Fair value	2,782,665		2,782,665		0
Twelve months or longer, Unrealized losses			(513,433)	0
Total Fair value	$ 9,123,734		9,123,734		$ 6,067,132
Total Unrealized losses			$ (2,713,172)	(540,491)
Less than 12 months Number of Securities | Security	8		8		25
Twelve months or longer Number of Securities | Security	9		9		0
Total Number of Securities | Security	17		17		25
All Other Corporate Bonds [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	$ 164,136,235		$ 164,136,235		$ 162,960,493
Gross Unrealized Gains			5,307,464	8,624,486
Gross Unrealized Losses			(4,611,302)	(1,659,193)
Estimated Market Value	164,832,397		164,832,397		169,925,786
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	59,290,095		59,290,095		28,954,477
Less than 12 months, Unrealized losses			(2,877,049)	(416,560)
Twelve months or longer, Fair value	14,561,519		14,561,519		3,535,206
Twelve months or longer, Unrealized losses			(1,734,253)	(1,242,633)
Total Fair value	$ 73,851,614		73,851,614		$ 32,489,683
Total Unrealized losses			$ (4,611,302)	$ (1,659,193)

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CREDIT ARRANGEMENTS (Tables)

9 Months Ended

Sep. 30, 2015

NOTES PAYABLE [Abstract]

Schedule of promissory note

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

			Outstanding Principal Balance
Instrument	Issue Date	Maturity Date		September 30, 2015	December 31, 2014
Promissory Note:
UTG Avalon	12/29/2014	4/1/2018		0	4,400,000

Schedule of lines of credit

Instrument	Issue Date	Maturity Date		Revolving Credit Limit		December 31, 2014	Borrowings	Repayments		September 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

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CONCENTRATIONS

9 Months Ended

Sep. 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.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 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 September 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		1,656,000
Marcellus HBPI, LLP		1,800,000		141,300
Sovereign's Capital, LP Fund I		500,000		125,000
MM-Appalachia IV, LP		3,300,000		668,250
UGLIC, LLC		1,600,000		320,000
Sovereign's Capital, LP Fund II		1,000,000		900,000

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 II"), which invests in companies in emerging markets. Sovereign's II makes capital calls to investors as funds are needed

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OTHER CASH FLOW DISCLOSURES

9 Months Ended

Sep. 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
		September 30,
		2015		2014
Interest	$	70,141	$	20,689
Federal income tax		0		4,000

		Nine Months Ended
		September 30,
		2015		2014
Interest	$	0	$	55,009
Federal income tax		3,000,000		4,000

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NEW ACCOUNTING STANDARDS (Policies)

9 Months Ended

Sep. 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.

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OTHER CASH FLOW DISCLOSURES (Tables)

9 Months Ended

Sep. 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
		September 30,
		2015		2014
Interest	$	70,141	$	20,689
Federal income tax		0		4,000

		Nine Months Ended
		September 30,
		2015		2014
Interest	$	0	$	55,009
Federal income tax		3,000,000		4,000

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SHAREHOLDERS' EQUITY (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	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	23,848
Amount paid to repurchase shares during the year	$ 344,304
Amount of common stock repurchased	$ 6,467,429
Number of common stock acquired (in shares)	686,546

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Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Consolidated Statement of Comprehensive Income (Unaudited) [Abstract]
Net income (loss)	$ 1,919,534	$ 3,273,205	$ 3,787,506	$ 2,078,781
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses) arising during period	(6,646,467)	(928,207)	(7,093,248)	8,373,858
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	2,326,264	324,873	2,482,637	(2,930,850)
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	(4,320,203)	(603,334)	(4,610,611)	5,443,008
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax	(369,524)	(167,711)	(1,192,575)	(505,785)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	129,333	58,699	417,401	177,025
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	(240,191)	(109,012)	(775,174)	(328,760)
Subtotal: Other comprehensive income (loss), net of tax	(4,560,394)	(712,346)	(5,385,785)	5,114,248
Comprehensive income (loss)	(2,640,860)	2,560,859	(1,598,279)	7,193,029
Less comprehensive income attributable to noncontrolling interests	(22,822)	(165,763)	(174,828)	(484,796)
Comprehensive income (loss) attributable to UTG, Inc.	$ (2,663,682)	$ 2,395,096	$ (1,773,107)	$ 6,708,233

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FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 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 September 30, 2015.

		Level 1		Level 2		Level 3		Total
Assets
Fixed Maturities, available for sale	$	11,869,514	$	176,470,393	$	1,025,680	$	189,365,587
Equity Securities, available for sale		13,268,458		5,828,827		26,408,225		45,505,510
Total	$	25,137,972	$	182,299,220	$	27,433,905	$	234,871,097
Liabilities
Trading Securities	$	47,603	$	0	$	0	$	47,603

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		209,806		399,929		609,735
Purchases		0		1,353,625		1,353,625
Sales		(53,851)		(4,223,963)		(4,277,814)
Balance at September 30, 2015	$	1,025,680	$	26,408,225	$	27,433,905

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.

		September 30, 2015				December 31, 2014
Assets		Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Mortgage loans on real estate	$	11,043,041	$	11,493,760	$	14,060,930	$	14,236,676
Discounted mortgage loans		4,403,072		4,403,072		9,101,052		9,101,052
Investment real estate		48,362,145		48,362,145		51,007,101		51,007,101
Policy loans		10,809,793		10,809,793		11,104,485		11,104,485
Cash and cash equivalents		14,225,434		14,225,434		13,977,443		13,977,443
Short term investments		3,633,629		3,633,629		4,382,181		4,382,181
Collateral and non-collateral loans		7,404,405		7,404,405		5,612,560		5,612,560
Liabilities
Notes payable		0		0		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.

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COMMITMENTS AND CONTINGENCIES (Details) - 9 months ended Sep. 30, 2015 - USD ($)	Total	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	$ 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		1,656,000
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		125,000
Sovereign's Capital LP Fund II [Member]
Investment Commitment [Line Items]
Total Funding Commitment		1,000,000
Unfunded Commitment		900,000
MM-Appalachia IV, LP [Member]
Investment Commitment [Line Items]
Total Funding Commitment		3,300,000
Unfunded Commitment		668,250
UGLIC, LLC [Member]
Investment Commitment [Line Items]
Total Funding Commitment		1,600,000
Unfunded Commitment		$ 320,000

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COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 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 September 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		1,656,000
Marcellus HBPI, LLP		1,800,000		141,300
Sovereign's Capital, LP Fund I		500,000		125,000
MM-Appalachia IV, LP		3,300,000		668,250
UGLIC, LLC		1,600,000		320,000
Sovereign's Capital, LP Fund II		1,000,000		900,000