10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended June 30, 2022

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. 000-16867

	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.)
	205 North Depot Street
	Stanford, KY 40484
	(Address of principal executive offices) (Zip Code)

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

Securities registered pursuant to Section 12(b) of the Act:
Title of each class	Name of each exchange on which registered
None	None

Securities registered pursuant to Section 12(g) of the Act:

Title of class

Common Stock, stated value $.001 per share

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 every Interactive Data File required to be submitted 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 such files). Yes ⌧ No □

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company.  See the definitions of “large accelerated filer,” accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer □	Accelerated filer □
Non-accelerated filer □	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. □

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐    No ☒

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

The number of shares outstanding of the registrant’s common stock as of July 31, 2022 was 3,167,698.

UTG, Inc.

(The “Company”)

TABLE OF CONTENTS

PART I.   Financial Information	4
Item 1.  Financial Statements	4
Condensed Consolidated Balance Sheets	4
Condensed Consolidated Statements of Operations	5
Condensed Consolidated Statements of Comprehensive Income (Loss)	6
Condensed Consolidated Statements of Shareholders’ Equity	7
Condensed Consolidated Statements of Cash Flows	8
Notes to Condensed Consolidated Financial Statements	9
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 4.  Controls and Procedures	29
PART II.  Other Information	29
Item 1.  Legal Proceedings	29
Item 1A. Risk Factors	29
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3.  Defaults Upon Senior Securities	29
Item 4.  Mine Safety Disclosures	29
Item 5.  Other Information	29
Item 6.  Exhibits	29
Signatures	30

Part 1.   Financial Information.

Item 1.  Financial Statements.

UTG, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

	June 30, 2022			December 31, 2021*
ASSETS
Investments:
Investments available for sale:
Fixed maturities, at fair value (amortized cost $121,435,668 and $127,949,963)	$	118,136,543		$	140,963,881
Equity securities, at fair value (cost $72,291,234 and $68,403,168)		133,462,075			122,229,121
Equity securities, at cost		14,543,343			14,543,343
Mortgage loans on real estate at amortized cost		29,787,180			29,183,562
Investment real estate		37,879,631			39,748,261
Notes receivable		17,712,550			17,722,976
Policy loans		7,322,454			7,390,497
Total investments		358,843,776			371,781,641
Cash and cash equivalents		19,049,190			30,787,278
Accrued investment income		1,278,020			1,264,159
Reinsurance receivables:
Future policy benefits		24,446,269			24,740,562
Policy claims and other benefits		3,889,077			4,426,997
Cost of insurance acquired		3,042,327			3,386,501
Income tax receivable		908,638			975,373
Other assets		567,633			1,097,246
Total assets	$	412,024,930		$	438,459,757
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Policy liabilities and accruals:
Future policyholder benefits	$	232,537,561		$	235,367,680
Policy claims and benefits payable		3,517,179			3,941,305
Other policyholder funds		340,253			345,248
Dividend and endowment accumulations		14,746,845			14,686,166
Deferred income taxes		11,560,222			13,680,396
Notes payable		7,000,000			24,000,000
Trading securities, at fair value (proceeds $0 and $2,202)		0			1,116
Other liabilities		5,410,367			5,193,039
Total liabilities		275,112,427			297,214,950
Shareholders' equity:
Common stock - no par value, stated value $0.001 per share.  Authorized 7,000,000 shares - 3,169,243 and 3,166,669 shares outstanding		3,170			3,167
Additional paid-in capital		32,854,050			32,780,587
Retained earnings		106,158,464			97,731,347
Accumulated other comprehensive income		(2,634,157	)		10,253,151
Total UTG shareholders' equity		136,381,527			140,768,252
Noncontrolling interests		530,976			476,555
Total shareholders' equity		136,912,503			141,244,807
Total liabilities and shareholders' equity	$	412,024,930		$	438,459,757

* Balance sheet audited at December 31, 2021.

See accompanying notes.

UTG, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021
Revenue:
Premiums and policy fees	$	2,155,643		$	2,296,481		$	4,308,704		$	4,595,544
Ceded reinsurance premiums and policy fees		(721,650	)		(696,061	)		(1,367,799	)		(1,288,535	)
Net investment income		4,440,186			2,082,359			8,899,554			4,042,026
Other income		93,713			94,470			155,036			189,205
Revenue before net investment gains (losses)		5,967,892			3,777,249			11,995,495			7,538,240
Net investment gains (losses):
Other-than-temporary impairments		0			(411,584	)		0			(411,584	)
Other realized investment gains, net		79,109			4,287,461			4,859,258			4,432,507
Change in fair value of equity securities		(790,338	)		195,136			7,364,291			20,375,015
Total net investment gains (losses)		(711,229	)		4,071,013			12,223,549			24,395,938
Total revenue		5,256,663			7,848,262			24,219,044			31,934,178
Benefits and other expenses:
Benefits, claims and settlement expenses:
Life		3,609,121			4,025,758			8,269,918			8,020,609
Ceded reinsurance benefits and claims		245,841			(577,515	)		(741,590	)		(986,666	)
Annuity		256,188			255,538			519,230			493,093
Dividends to policyholders		85,933			86,476			173,092			174,284
Commissions and amortization of deferred policy acquisition costs		(26,290	)		(30,754	)		(51,959	)		(56,908	)
Amortization of cost of insurance acquired		172,087			179,102			344,174			357,845
Operating expenses		1,899,338			1,734,156			4,817,661			3,837,533
Interest expense		23,306			0			35,280			0
Total benefits and other expenses		6,265,524			5,672,761			13,365,806			11,839,790
Income before income taxes		(1,008,861	)		2,175,501			10,853,238			20,094,388
Income tax expense (benefit)		(270,762	)		350,499			2,372,300			4,070,667
Net income (loss)		(738,099	)		1,825,002			8,480,938			16,023,721
Net income attributable to noncontrolling interests		(27,107	)		(26,502	)		(53,821	)		(56,255	)
Net income (loss) attributable to common shareholders	$	(765,206	)	$	1,798,500		$	8,427,117		$	15,967,466
Amounts attributable to common shareholders
Basic income (loss) per share	$	(0.24	)	$	0.57		$	2.66		$	5.03
Diluted income (loss) per share	$	(0.24	)	$	0.57		$	2.66		$	5.03
Basic weighted average shares outstanding		3,172,243			3,175,027			3,171,667			3,176,012
Diluted weighted average shares outstanding		3,172,243			3,175,027			3,171,667			3,176,012

See accompanying notes.

UTG, Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021
Net income (loss)	$	(738,099	)	$	1,825,002		$	8,480,938		$	16,023,721
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during period, pre-tax		(7,129,016	)		2,505,067			(16,313,575	)		(4,975,001	)
Tax (expense) benefit on unrealized holding gains (losses) arising during the period		1,497,094			(526,064	)		3,425,851			1,044,750
Unrealized holding gains (losses) arising during period, net of tax		(5,631,922	)		1,979,003			(12,887,724	)		(3,930,251	)
Less reclassification adjustment for (gains) losses included in net income		4,896			377,348			527			377,348
Tax expense (benefit) for gains included in net income (loss)		(1,029	)		(79,243	)		(111	)		(79,243	)
Reclassification adjustment for (gains) losses included in net income, net of tax		3,867			298,105			416			298,105
Subtotal: Other comprehensive income (loss), net of tax		(5,628,055	)		2,277,108			(12,887,308	)		(3,632,146	)
Comprehensive income (loss)		(6,366,154	)		4,102,110			(4,406,370	)		12,391,575
Less comprehensive income attributable to noncontrolling interests		(27,107	)		(26,502	)		(53,821	)		(56,255	)
Comprehensive income (loss) attributable to UTG, Inc.	$	(6,393,261	)	$	4,075,608		$	(4,460,191	)	$	12,335,320

See accompanying notes.

UTG, Inc.

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

Three Months Ended June 30, 2022	Common Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income			Noncontrolling Interest		Total Shareholders’ Equity
Balance at March 31, 2022	$	3,176		$	32,999,942		$	106,923,670		$	2,993,898		$	503,266	$	143,423,952
Common stock issued during year		0			0			0			0			0		0
Treasury shares acquired		(6	)		(145,892	)		0			0			0		(145,898	)
Net income (loss) attributable to common shareholders		0			0			(765,206	)		0			0		(765,206	)
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes		0			0			0			(5,628,055	)		0		(5,628,055	)
Contributions		0			0			0			0			0		0
Distributions		0			0			0			0			603		603
Gain attributable to noncontrolling interest		0			0			0			0			27,107		27,107
Balance at June 30, 2022	$	3,170		$	32,854,050		$	106,158,464		$	(2,634,157	)	$	530,976	$	136,912,503

Six Months Ended June 30, 2022	Common Stock			Additional Paid-In Capital			Retained Earnings		Accumulated Other Comprehensive Income			Noncontrolling Interest		Total Shareholders’ Equity
Balance at December 31, 2021	$	3,167		$	32,780,587		$	97,731,347	$	10,253,151		$	476,555	$	141,244,807
Common stock issued during year		18			486,779			0		0			0		486,797
Treasury shares acquired		(15	)		(413,316	)		0		0			0		(413,331	)
Net income (loss) attributable to common shareholders		0			0			8,427,117		0			0		8,427,117
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes		0			0			0		(12,887,308	)		0		(12,887,308	)
Contributions		0			0			0		0			0		0
Distributions		0			0			0		0			600		600
Gain attributable to noncontrolling interest		0			0			0		0			53,821		53,821
Balance at June 30, 2022	$	3,170		$	32,854,050		$	106,158,464	$	(2,634,157	)	$	530,976	$	136,912,503

See accompanying notes.

UTG, Inc.

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

Three Months Ended June 30, 2021	Common Stock			Additional Paid-In Capital			Retained Earnings		Accumulated Other Comprehensive Income		Noncontrolling Interest		Total Shareholders’ Equity
Balance at March 31, 2021	$	3,178		$	33,065,925		$	102,237,250	$	9,674,987	$	490,525	$	145,471,865
Common stock issued during year		1			16,772			0		0		0		16,773
Treasury shares acquired		(5	)		(126,110	)		0		0		0		(126,115	)
Net income attributable to common shareholders		0			0			1,798,500		0		0		1,798,500
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes		0			0			0		2,277,108		0		2,277,108
Contributions		0			0			0		0		0		0
Distributions		0			0			0		0		0		0
Gain attributable to noncontrolling interest		0			0			0		0		26,502		26,502
Balance at June 30, 2021	$	3,174		$	32,956,587		$	104,035,750	$	11,952,095	$	517,027	$	149,464,633

Six Months Ended June 30, 2021	Common Stock			Additional Paid-In Capital			Retained Earnings		Accumulated Other Comprehensive Income			Noncontrolling Interest		Total Shareholders’ Equity
Balance at December 31, 2020	$	3,176		$	33,025,018		$	88,068,284	$	15,584,241		$	460,772	$	137,141,491
Common stock issued during year		7			170,531			0		0			0		170,538
Treasury shares acquired		(9	)		(238,962	)		0		0			0		(238,971	)
Net income attributable to common shareholders		0			0			15,967,466		0			0		15,967,466
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes		0			0			0		(3,632,146	)		0		(3,632,146	)
Contributions		0			0			0		0			0		0
Distributions		0			0			0		0			0		0
Gain attributable to noncontrolling interest		0			0			0		0			56,255		56,255
Balance at June 30, 2021	$	3,174		$	32,956,587		$	104,035,750	$	11,952,095		$	517,027	$	149,464,633

See accompanying notes.

UTG, Inc.

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Six Months Ended
	June 30,		June 30,
	2022		2021
Cash flows from operating activities:
Net income (loss)	$	8,480,938	$	16,023,721
Adjustments to reconcile net income to net cash used in operating activities:
Amortization (accretion) of investments		(6,865)		27,843
Other-than-temporary impairments		0		411,584
Realized investment gains (losses), net		(4,859,258)		(4,432,507)
Change in fair value of equity securities		(7,364,291)		(20,375,015)
Unrealized trading (gains) losses included in income		0		(950)
Realized trading (gains) losses included in income		13,283		(18,304)
Amortization of cost of insurance acquired		344,174		357,845
Depreciation and depletion		918,168		1,260,915
Stock-based compensation		486,797		170,538
Charges for mortality and administration of universal life and annuity products		(2,995,235)		(3,216,269)
Interest credited to account balances		1,891,086		1,970,895
Change in accrued investment income		(13,861)		14,833
Change in reinsurance receivables		832,213		246,433
Change in policy liabilities and accruals		(2,016,166)		(2,293,954)
Change in income taxes receivable (payable)		66,735		(1,071,762)
Change in other assets and liabilities, net		2,052,502		4,632,604
Net cash used in operating activities		(2,169,780)		(6,291,550)
Cash flows from investing activities:
Proceeds from investments sold and matured:
Fixed maturities available for sale		7,628,136		14,542,087
Equity securities		2,806,561		5,161,155
Trading securities		17,983		241
Mortgage loans		961,672		7,569,346
Real estate		8,794,081		4,350,324
Notes receivable		3,921,082		581,329
Policy loans		591,084		559,398
Total proceeds from investments sold and matured		24,720,599		32,763,880
Cost of investments acquired:
Fixed maturities available for sale		(1,112,505)		(20,000)
Equity securities		(6,387,281)		(24,990,946)
Trading securities		(32,382)		(358)
Mortgage loans		(1,560,291)		(747,941)
Real estate		(3,271,775)		(1,402,593)
Notes receivable		(3,910,657)		(6,000,000)
Policy loans		(523,039)		(452,004)
Total cost of investments acquired		(16,797,930)		(33,613,842)
Net cash provided by (used in) investing activities		7,922,669		(849,962)
Cash flows from financing activities:
Policyholder contract deposits		2,444,662		2,343,191
Policyholder contract withdrawals		(2,522,908)		(3,007,581)
Proceeds from notes payable/line of credit		9,500,000		0
Payments of principal on notes payable/line of credit		(26,500,000)		0
Purchase of treasury stock		(413,331)		(238,971)
Non controlling contributions (distributions) of consolidated subsidiary		600		0
Net cash used in financing activities		(17,490,977)		(903,361)
Net increase (decrease) in cash and cash equivalents		(11,738,088)		(8,044,873)
Cash and cash equivalents at beginning of period		30,787,278		39,025,754
Cash and cash equivalents at end of period	$	19,049,190	$	30,980,881

See accompanying notes.

UTG, Inc.

Notes to Condensed Consolidated Financial Statements

 (Unaudited)

Note 1 – Basis of Presentation

The accompanying Condensed Consolidated Balance Sheet as of June 30, 2022, which has been derived from audited consolidated financial statements, and the unaudited interim Condensed Consolidated Financial Statements include the accounts of UTG, Inc. (the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”).  All significant intercompany accounts and transactions have been eliminated in consolidation.  The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of regulation S-X.  Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements.  The information furnished includes all adjustments and accruals of a normal recurring nature, which in the opinion of Management, are necessary for a fair presentation of the results for the interim periods.  The unaudited Condensed Consolidated Financial Statements included herein and these related notes should be read in conjunction with the Company’s consolidated financial statements, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.  The Company’s results of operations for the six-months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or for any other future period.

During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted the economic conditions in the U.S. and globally, accelerating during the first half of March, as federal, state, and local governments reacted to the public health crisis, creating significant uncertainties in the U.S. economy. The Company has not experienced a slow-down in activities, however government restrictions and client-imposed delays are evaluated regularly and this could change. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The Company cannot at this time predict the ultimate impact the pandemic will have on its results of operations, financial position, liquidity, or capital resources but such impact could be material.

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 June 30, 2022, Mr. Correll owns or controls directly and indirectly approximately 65.33% 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

During the six months ended June 30, 2022, there were no additions to or changes in the critical accounting policies disclosed in the 2021 Form 10-K.

Note 3 – Investments

Available for Sale Securities – Fixed Maturity Securities

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

Investments in available for sale securities are summarized as follows:

June 30, 2022	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	21,312,711	$	0	$	(726,455	)	$	20,586,256
U.S. special revenue and assessments		7,537,981		985,555		0			8,523,536
All other corporate bonds		92,584,976		322,474		(3,880,699	)		89,026,751
	$	121,435,668	$	1,308,029	$	(4,607,154	)	$	118,136,543

December 31, 2021	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	25,312,358	$	355,623	$	(17,078	)	$	25,650,903
U.S. special revenue and assessments		7,540,867		982,668		0			8,523,535
All other corporate bonds		95,096,738		11,692,705		0			106,789,443
	$	127,949,963	$	13,030,996	$	(17,078	)	$	140,963,881

The amortized cost and estimated market value of debt securities at June 30, 2022, by contractual maturity, is shown below.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Fixed Maturities Available for Sale June 30, 2022	Amortized Cost		Fair Value
Due in one year or less	$	7,501,776	$	7,494,055
Due after one year through five years		44,835,101		44,068,821
Due after five years through ten years		20,027,750		20,942,277
Due after ten years		22,092,801		20,516,755
Fixed maturities with no single maturity date		26,978,240		25,114,635
Total	$	121,435,668	$	118,136,543

The fair value of investments with sustained gross unrealized losses are as follows:

June 30, 2022	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		$	20,586,256		(726,455	)		0		0		20,586,256		$	(726,455	)
All other corporate bonds			74,322,835		(3,880,699	)		0		0		74,322,835			(3,880,699	)
Total fixed maturities		$	94,909,091		(4,607,154	)		0		0		94,909,091		$	(4,607,154	)

December 31, 2021	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		$	4,042,825		(17,078	)		0		0		4,042,825		$	(17,078	)
Total fixed maturities		$	4,042,825		(17,078	)		0		0		4,042,825		$	(17,078	)

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

	Less than 12 months		12 months or longer		Total
As of June 30, 2022
Fixed maturities		47		0		47
As of December 31, 2021
Fixed maturities		3		0		3

Substantially all of the unrealized losses on fixed maturities at June 30, 2022 and December 31, 2021 are attributable to changes in market interest rates and general disruptions in the credit market subsequent to purchase.  The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position.  Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, the Company deems these securities to be temporarily impaired as of  June 30, 2022 and December 31, 2021.

Net Investment Gains (Losses)

The following table presents net investment gains (losses) and the change in net unrealized gains (losses) on investments. 

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
Realized gains:
Sales of fixed maturities	$	314		$	34,236		$	4,683		$	34,236
Sales of equity securities		12,223			3,006,835			397,581			3,019,207
Sales of real estate		113,398			1,247,193			4,571,840			1,383,252
Total realized gains		125,935			4,288,264			4,974,104			4,436,695
Realized losses:
Sales of fixed maturities		(5,210	)		0			(5,210	)		0
Sales of equity securities		(41,616	)		(803	)		(109,636	)		(4,188	)
Other-than-temporary impairments		0			(411,584	)		0			(411,584	)
Total realized losses		(46,826	)		(412,387	)		(114,846	)		(415,772	)
Net realized investment gains (losses)		79,109			3,875,877			4,859,258			4,020,923
Change in fair value of equity securities:
Change in fair value of equity securities held at the end of the period		(790,338	)		195,136			7,364,291			20,375,015
Change in fair value of equity securities		(790,338	)		195,136			7,364,291			20,375,015
Net investment gains (losses)	$	(711,229	)	$	4,071,013		$	12,223,549		$	24,395,938
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income:
Fixed maturities	$	(7,129,016	)	$	2,505,067		$	(16,313,575	)	$	(4,975,001	)
Net increase (decrease)	$	(7,129,016	)	$	2,505,067		$	(16,313,575	)	$	(4,975,001	)

Other-Than-Temporary Impairments

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.

Management regularly reviews its real estate portfolio in comparison to appraisal valuations and current market conditions for indications of other-than-temporary impairments. If a decline in value is judged by Management to be other-than-temporary, a loss is recognized by a charge to other-than-temporary impairment losses in the Condensed Consolidated Statements of Operations.

The Company did not recognize any other-than-temporary impairments during the six-month period ended June 30, 2022. The Company recognized an other-than-temporary impairment on one fixed maturing secuirty during the second quarter of 2021. The other-than-temporary impairment was recognized due to the length of time the investment remained in an unrealized loss position.

Cost Method Investments

The Company held equity investments with an aggregate cost of $14,543,343 at June 30, 2022 and December 31, 2021.  These equity investments were not reported at fair value because it is not practicable to estimate their fair values due to insufficient information being available. Management did not identify any events or changes in circumstances that might have a significant adverse effect on the reported value of those investments.  Based on Management’s evaluation of the expected cash flow of the investments, and the Company’s ability and intent to hold the investments for a reasonable period of time, the Company does not deem an other-than-temporary impairment necessary at June 30, 2022.

Trading Securities

Securities designated as trading securities are reported at fair value, with gains or losses resulting from changes in fair value recognized in net investment income on the Condensed Consolidated Statements of Operations.  Trading securities include exchange-traded equities and exchange-traded options.  Trading securities carried as liabilities are securities sold short. A gain, limited to the price at which the security was sold short, or a loss, potentially unlimited in size, will be recognized upon the termination of the short sale.  The fair value of derivatives included in trading security assets and trading security liabilities as of June 30, 2022 was $0. The fair value of derivatives included in trading security assets and trading security liabilities as of  December 31, 2021 was $0 and $1,116, 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.

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

	Three Months Ended
	June 30,
	2022			2021
Net unrealized gains (losses)	$	0		$	(1,784	)
Net realized gains (losses)		(10,767	)		7,350
Net unrealized and realized gains (losses)	$	(10,767	)	$	5,566

	Six Months Ended
	June 30,
	2022			2021
Net unrealized gains (losses)	$	0		$	950
Net realized gains (losses)		(13,283	)		18,304
Net unrealized and realized gains (losses)	$	(13,283	)	$	19,254

Mortgage Loans

The Company, from time to time, acquires mortgage loans through participation agreements with FSNB.  FSNB has been able to provide the Company with additional expertise and experience in underwriting commercial and residential mortgage loans, which provide more attractive yields than the traditional bond market.  The Company is able to receive participations from FSNB for three primary reasons:  1) FSNB has already reached its maximum lending limit to a single borrower, but the borrower is still considered a suitable risk; 2) the interest rate on a particular loan may be fixed for a long period that is more suitable for UG given its asset-liability structure; and 3) FSNB’s loan growth might at times outpace its deposit growth, resulting in FSNB participating such excess loan growth rather than turning customers away.  For originated loans, the Company’s Management is responsible for the final approval of such loans after evaluation.  Before a new loan is issued, the applicant is subject to certain criteria set forth by Company Management to ensure quality control.  These criteria include, but are not limited to, a credit report, personal financial information such as outstanding debt, sources of income, and personal equity.  Once the loan is approved, the Company directly funds the loan to the borrower.  The Company bears all risk of loss associated with the terms of the mortgage with the borrower.

During the six months ended June 30, 2022 and 2021, the Company acquired $1,560,291 and $747,941 in mortgage loans, respectively.  FSNB services the majority of the Company’s mortgage loan portfolio.  The Company pays FSNB a 0.25% servicing fee on these loans and a one-time fee at loan origination of 0.50% of the original loan cost to cover costs incurred by FSNB relating to the processing and establishment of the loan.

During 2022 and 2021, the maximum and minimum lending rates for mortgage loans were:

	2022						2021
	Maximum rate			Minimum rate			Maximum rate			Minimum rate
Farm Loans		6.00	%		4.50	%		6.00	%		4.50	%
Commercial Loans		6.00	%		4.10	%		5.50	%		4.10	%
Residential Loans		5.00	%		4.15	%		5.00	%		4.15	%

Most mortgage loans are first position loans.  Loans issued are generally limited to no more than 80% of the appraised value of the property.

The Company has in place a monitoring system to provide Management with information regarding potential troubled loans.  Letters are sent to each mortgagee when the loan becomes 30 days or more delinquent.  Management is provided with a monthly listing of loans that are 60 days or more past due along with a brief description of what steps are being taken to resolve the delinquency.  All loans 90 days or more past due are placed on a non-performing status and classified as delinquent loans.  Quarterly, coinciding with external financial reporting, the Company reviews each delinquent loan and determines how each delinquent loan should be classified.  Management believes the current internal controls surrounding the mortgage loan selection process provide a quality portfolio with minimal risk of foreclosure and/or negative financial impact.

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.  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 mortgage loan reserve was $0 at June 30, 2022 and December 31, 2021.

The following table summarizes the mortgage loan holdings of the Company for the periods ended:

	June 30, 2022		December 31, 2021
In good standing	$	27,706,407	$	27,102,789
Overdue interest over 90 days		2,080,773		2,080,773
Total mortgage loans	$	29,787,180	$	29,183,562

Investment Real Estate

Real estate held-for-investment is stated at cost less accumulated depreciation. Depreciation is computed on a straight-line basis for financial reporting purposes using estimated useful lives of 3 to 30 years. The Company periodically reviews its real estate held-for-investment for impairment and tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable. During the six months ended June 30, 2022, no impairments were recognized on the investment real estate.

Note 4 - Fair Value Measurements of the Condensed Consolidated Financial Statements provides further information regarding the fair value of financial instruments that are not measured at fair value. The investment real estate owned by the Company is included in this portion of the Note 4 - Fair Value Measurements disclosure.

The following table provides an allocation of the Company’s investment real estate by type:

	June 30, 2022		December 31, 2021
Raw land	$	12,345,613	$	14,538,507
Commercial		5,229,742		4,347,423
Residential		4,745,295		3,813,936
Land, minerals and royalty interests		15,558,981		17,048,395
Total investment real estate	$	37,879,631	$	39,748,261

The Company’s investment real estate portfolio includes ownership in oil and gas royalties. As of June 30, 2022 and December 31, 2021, investments in oil and gas royalties represented 41% and 43%, respectively, of the total investment real estate portfolio.  See Note 9 – Concentrations of Credit Risk of the Condensed Consolidated Financial Statements for additional information regarding the allocation of the oil and gas investment real estate holdings by industry type.

Gains and losses recognized on the disposition of the properties are recorded as realized gains and losses in the Condensed Consolidated Statements of Operations. During the six months ended  June 30, 2022 and 2021, the Company acquired $3,271,775 and $1,402,593 of investment real estate, respectively.

Notes Receivable

Notes receivable represent collateral loans and promissory notes issued by the Company and are reported at their unpaid principal balances, adjusted for valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. The valuation allowance as of  June 30, 2022 and December 31, 2021 was $0. Interest accruals are analyzed based on the likelihood of repayment.  The Company does not utilize a specified number of days delinquent to cause an automatic non-accrual status. During the six months ended June 30, 2022 and 2021 the Company acquired  $3,910,657 and $6,000,000 of notes receivable, respectively.

Before a new note is issued, the applicant is subject to certain criteria set forth by Company Management to ensure quality control.  Once the note is approved, the Company directly funds the note to the borrower. Several of the notes have participation agreements in place, whereas the Company has reduced its investment in the note receivable by participating a portion of the note to a third party.

Similar to the mortgage loans, FSNB services several of the notes receivable. The Company, and the participants in the notes, share in the risk of loss associated with the terms of the note with the borrower, based upon their ownership percentage in the note.  The Company has in place a monitoring system to provide Management with information regarding potential troubled loans. 

Note 4 – Fair Value Measurements

Fair Value Measurements on a Recurring Basis

Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three levels based on the observability of valuation inputs:

Level 1 – Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – Valuation methodologies include quoted prices for similar assets and liabilities in active markets or quoted prices for identical, quoted prices for identical or similar assets or liabilities in markets that are not active, or 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.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used:

June 30, 2022	Level 1		Level 2		Level 3		Net Asset Value		Total
Financial assets:
Fixed maturities available for sale:
U.S. Government and government agencies and authorities	$	20,586,256	$	0	$	0	$	0	$	20,586,256
U.S. special revenue and assessments		0		8,523,535		0		0		8,523,535
Corporate securities		0		89,026,752		0		0		89,026,752
Total fixed maturities		20,586,256		97,550,287		0		0		118,136,543
Equity securities:
Common stocks		46,878,831		14,251,937		6,114,394		64,969,913		132,215,075
Preferred stocks		0		0		1,247,000		0		1,247,000
Total equity securities		46,878,831		14,251,937		7,361,394		64,969,913		133,462,075
Total financial assets	$	67,465,087	$	111,802,224	$	7,361,394	$	64,969,913	$	251,598,618
Liabilities
Trading securities	$	0	$	0	$	0	$	0	$	0

December 31, 2021	Level 1			Level 2		Level 3		Net Asset Value		Total
Financial assets:
Fixed maturities available for sale:
U.S. Government and government agencies and authorities	$	25,650,903		$	0	$	0	$	0	$	25,650,903
U.S. special revenue and assessments		0			8,523,535		0		0		8,523,535
Corporate securities		0			106,789,443		0		0		106,789,443
Total fixed maturities		25,650,903			115,312,978		0		0		140,963,881
Equity securities:
Common stocks		40,784,660			16,711,180		5,861,486		57,603,597		120,960,923
Preferred stocks		0			21,198		1,247,000		0		1,268,198
Total equity securities		40,784,660			16,732,378		7,108,486		57,603,597		122,229,121
Total financial assets	$	66,435,563		$	132,045,356	$	7,108,486	$	57,603,597	$	263,193,002
Liabilities
Trading securities	$	(1,116	)	$	0	$	0	$	0	$	(1,116	)

The following is a description of the valuation techniques used the by Company to measure assets reported at fair value on a recurring basis. There have been no significant changes in the valuation techniques utilized by the Company for the six months ended June 30, 2022.

Available for Sale Securities

Securities classified as available for sale are recorded at fair value on a recurring basis. Securities classified as Level 1 utilized fair value measurements based upon quoted market prices, when available. If quoted market prices are not available, the Company obtains fair value measurements from recently executed transactions, market price quotations, benchmark yields and issuer spreads to value Level 2 securities. In certain instances where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Fair value determinations for Level 3 measurements are estimated on a quarterly basis where assumptions used are reviewed to ensure the estimated fair value complies with accounting standard generally accepted in the United States.

Equity Securities at Fair Value

Equity securities consist of common stocks mainly in private equity investments, financial institutions and publicly traded corporations. 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 Company uses industry standard pricing methodologies, including discounted cash flow models that may incorporate various inputs such as payment expectations, risk of the investment, market data, and health of the underlying company. The inputs are based upon Management’s assumptions and available market information. When evidence is believed to support a change to the carrying value from the transaction price, adjustments are made to reflect the expected cash flows, material events and market data. These investments are included in Level 3 of the fair value hierarchy.

Equity Securities at Net Asset Value

Certain equity securities carried at fair value, which do not have readily determinable fair values, use net asset value (“NAV”) and are excluded from the fair value hierarchy. These investments are generally not readily redeemable by the investee. See Note 7 – Commitments and Contingencies for additional information regarding unfunded commitments.

Trading Securities

Trading securities are recorded at fair value. They are classified as Level 1 and utilize fair value measurements based upon quoted market prices.

Change in Level 3 Recurring Fair Value Measurements

The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities.

	Equity Securities at Fair Value			Equity Securities at Net Asset Value			Total
Balance at December 31, 2021	$	7,108,486		$	57,603,597		$	64,712,083
Realized gains (losses)		198,125			327,863			525,988
Unrealized gains (losses)		(1,926	)		6,142,178			6,140,252
Purchases		257,834			3,415,980			3,673,814
Sales		(201,125	)		(2,519,705	)		(2,720,830	)
Balance at June 30, 2022	$	7,361,394		$	64,969,913		$	72,331,307

Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at June 30, 2022 and December 31, 2021 may include changes in fair value that were attributable to both observable and unobservable inputs.

Quantitative Information About Level 3 Fair Value Measurements

The following table presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and include only those instruments for which information about the inputs is reasonably available to the Company, such as data from independent third-party valuation service providers and from internal valuation models.

Financial Assets	Fair Value at June 30, 2022		Fair Value at December 31, 2021		Valuation Technique
Equities	$	64,969,913	$	57,603,597	Net Asset Value
Equities		7,361,394		7,108,486	Pricing Model
Total	$	72,331,307	$	64,712,083

Uncertainty of Fair Value Measurements

The significant unobservable inputs used in the determination of the fair value of assets classified as Level 3 have an inherent measurement uncertainty that if changed could result in higher or lower fair value measurements of these assets as of the reporting date.

Equity Securities at Fair Value

Fair market value for equity securities is derived based on unobservable inputs, such as projected normalized revenues and industry standard multiples of revenue for the equity securities valued using pricing model.  Significant increases (decreases) in either of those inputs in isolation would result in a significantly higher (lower) fair value measurement.

Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share

Investment Company	Fair Value at June 30, 2022		Unfunded Commitments		Redemption Frequency		Redemption Notice Period
Common Stocks
Growth Equity
Redeemable	$	33,694,525	$	0	Quarterly		45 days
Non-Redeemable		31,275,388		8,720,678		n/a		n/a
Total	$	64,969,913	$	8,720,678

Investment Company	Fair Value at December 31, 2021		Unfunded Commitments		Redemption Frequency		Redemption Notice Period
Common Stocks
Growth Equity
Redeemable	$	28,546,227	$	0	Quarterly		45 days
Non-Redeemable		29,057,370		5,288,967		n/a		n/a
Total	$	57,603,597	$	5,288,967

Fair Value Measurements on a Nonrecurring Basis

Certain assets are not carried at fair value on a recurring basis. 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 Company did not recognize any re-measurements or impairments of financial instruments at June 30, 2022 or December 31, 2021.

Fair Value Information About Financial Instruments Not Measured at Fair Value

Certain assets are not carried at fair value on a recurring basis. 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 following table presents the carrying amount and estimated fair values of the Company’s financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

	Carrying		Estimated
June 30, 2022	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Common stock, at cost	$	5,860,000		5,860,000		0		0		5,860,000
Preferred stock, at cost		8,683,343		8,683,343		0		0		8,683,343
Mortgage loans on real estate		29,787,180		29,485,963		0		0		29,485,963
Investment real estate		37,879,631		93,789,571		0		0		93,789,571
Notes receivable		17,712,550		17,933,489		0		0		17,933,489
Policy loans		7,322,454		7,322,454		0		0		7,322,454
Liabilities
Notes payable		7,000,000		7,000,000		0		7,000,000		0

	Carrying		Estimated
December 31, 2021	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Common stock, at cost	$	5,860,000		5,860,000		0		0		5,860,000
Preferred stock, at cost		8,683,343		8,683,343		0		0		8,683,343
Mortgage loans on real estate		29,183,562		29,183,562		0		0		29,183,562
Investment real estate		39,748,261		96,463,112		0		0		96,463,112
Notes receivable		17,722,976		17,722,976		0		0		17,722,976
Policy loans		7,390,497		7,390,497		0		0		7,390,497
Liabilities
Notes payable		24,000,000		24,000,000		0		24,000,000		0

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.

A portion of the mortgage loans balance consists of discounted mortgage loans. The Company has historically 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.

The fair values of notes receivable 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 the notes receivable are classified as Level 3 within the fair value hierarchy.

Policy loans are carried at the aggregate unpaid principal balances in the Condensed 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.

Note 5 – Credit Arrangements

Instrument	Issue Date	Maturity Date	Revolving Credit Limit		December 31, 2021		Borrowings	Repayments	June 30, 2022
Lines of Credit:
UTG	11/20/2013	11/20/2022	$	8,000,000		0	0	0	$	0
UG - CMA	10/21/2021	10/7/2022		25,000,000		24,000,000	9,500,000	26,500,000		7,000,000
UG - REPO	10/21/2021	10/7/2022		25,000,000		0	0	0		0

The UTG line of credit carries interest at a fixed rate of 3.750% 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.

During October of 2021, the Federal Home Loan Bank approved UG's Cash Management Advance ("CMA"). The CMA gives the Company the option of selecting a variable rate of interest for up to 90 days or a fixed rate for a maximum of 30 days. The variable rate CMA is prepayable at any time without a fee, while the fixed CMA is not prepayable prior to maturity. The Company has pledged bonds with a collateral lendable value of $20,018,737.  During the third quarter of 2022, the Company borrowed an additional $2 million on the CMA and repaid $4 million. The interest rate on the borrowed funds is variable and currently is 2.35%.

The CMA is a source of overnight liquidity utilized to address the day-to-day cash needs of a Company. In order to provide the Company with multiple lending options, Management also applied for, and the FHLB approved, the Company's Repurchase ("REPO") Advance Application for $25 million. The REPO Advance requires a minimum borrowing of $15 million and provides financing for one day to one year at a fixed rate of interest. The Company has enough qualifying investments for collateral pledging of $25 million total against these two borrowing vehicles.

Note 6 – Shareholders’ Equity

Stock Repurchase Program – 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 in March of 2022, the Board of Directors of UTG authorized the repurchase of up to an additional $2 million of UTG’s common stock, for a total  repurchase of up to $22 million of UTG’s common stock in the open market or in privately negotiated transactions. Company Management has broad authority to operate the program, including the discretion of whether to purchase shares and the ability to suspend or terminate the program. Open market purchases are made based on the last available market price but may be limited.  During the six months ended June 30, 2022, the Company repurchased 15,389 shares through the stock repurchase program for $413,331. Through June 30, 2022, UTG has spent $19,036,961 in the acquisition of 1,317,294 shares under this program.

During 2022, the Company issued 17,963 shares of stock to management and employees as compensation at a cost of $486,797. These awards are determined at the discretion of the Board of Directors.

Earnings Per Share Calculations

Earnings per share are based on the weighted average number of common shares outstanding during each period.  For the six months ended June 30, 2022 and 2021, 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.

The following table represents the total funding commitments and the unfunded commitment as of June 30, 2022 related to certain investments:

	Total Funding Commitment		Unfunded Commitment
RLF III, LLC	$	4,000,000	$	398,120
Sovereign’s Capital, LP Fund I		500,000		13,000
Sovereign's Capital, LP Fund II		1,000,000		92,034
Sovereign's Capital, LP Fund III		3,000,000		641,440
Macritchie Storage II, LP		7,000,750		833,358
Garden City Companies, LLC		2,000,000		1,496,507
Carrizo Springs Music, LLC		5,000,000		189,711
Legacy Venture X, LLC		3,000,000		1,740,000
QCC Investment Co., LLC		1,500,000		150,000
Great American Media Group, LLC		4,000,000		3,200,000
Sovereign's Capital Evergreen Fund I, LLC		3,000,000		300,454
PBEX, LLC		2,000,000		1,199,343
Sovereign's Capital Lower Middle Market Fund II, LP		3,000,000		3,087,900
Elisha's Properties, LLC		1,096,750		491,823
Granite Shoals Music, LLC		6,500,000		6,242,166
Legacy Venture XI, LLC		2,000,000		2,000,000

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 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 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.

During 2018, the Company committed to invest in Sovereign’s Capital, LP Fund III (“Sovereign’s III”), which invests in companies in emerging markets. Sovereign’s III makes capital calls to investors as funds are needed.

During 2018, the Company committed to fund a mortgage loan for Macritchie Storage II, LP (“Macritchie”). Macritchie makes draw requests on the loan as funds are needed to fund the construction project.

During 2020, the Company committed to invest in Garden City Companies, LLC (“Garden City”), which invests primarily in companies in the healthcare, inspection/testing services and maintenance service arena. Garden City makes capital calls to investors as funds are needed.

During 2020, the Company committed to invest in Carrizo Springs Music, LLC (“Carrizo”), which invests in music royalties.  Carrizo makes capital calls to its investors as funds are needed to acquire the royalty rights.

During 2020, the Company committed to invest in Legacy Venture X, LLC (“Legacy Venture X”), which is a fund of funds. Legacy Venture X makes capital calls to its investors as funds are needed.

During 2021, the Company committed to invest in QCC Investment Co., LLC (“QCC”). The funds are being utilized to purchase a manufacturing entity. QCC makes capital calls to its investors as funds are needed.

During 2021, the Company committed to fund a collateral loan for Great American Media Group, LLC (“GAM”). GAM makes draw requests on the loan as funds are needed to fund the operating needs of the Company.

During 2021, the Company committed to invest in Sovereign's Capital Evergreen Fund I, LLC ("Evergreen"), which invests in companies in emerging markets. Evergreen makes capital calls to investors as funds are needed.

During 2022, the Company committed to fund a collateral loan for PBEX, LLC (“PBEX"). PBEX makes draw requests on the loan as funds are needed to fund the operating needs of the Company.

During 2022, the Company committed to invest in Sovereign's Capital Lower Middle Market Fund II, LP ("Sovereign's LMM"), which invests in companies in emerging markets. Sovereign's LMM makes capital calls to investors as funds are needed.

During 2022, the Company committed to invest in Elisha's Properties, LLC ("Elisha's"), which investment in real estate properties. Elisha's makes capital calls as funds are needed.

During 2022, the Company committed to invest in Granite Shoals Music, LLC (“Granite”), which invests in music royalties.  Granite makes capital calls to its investors as funds are needed to acquire the royalty rights.

During 2022, the Company committed to invest in Legacy Venture XI, LLC (“Legacy Venture XI”), which is a fund of funds. Legacy Venture XI makes capital calls to its investors as funds are needed.

Note 8 – Other Cash Flow Disclosures

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

	Three Months Ended
	June 30,
	2022			2021
Interest		$	18,387		$	0
Federal income tax			0			0

	Six Months Ended
	June 30,
	2022			2021
Interest		$	30,196		$	0
Federal income tax			1,000,000			1,202,000

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.

Because UTG serves primarily individuals located in four states, the ability of our customers to pay their insurance premiums is impacted by the economic conditions in these areas.  As of June 30, 2022 and 2021, approximately 51% and 52%, respectively, of the Company’s total direct premium was collected from Illinois, Ohio, Texas and West Virginia. Thus, results of operations are heavily dependent upon the strength of these economies.

The Company reinsures that portion of insurance risk which is in excess of its retention limits. Retention limits range up to $125,000 per life.  Life insurance ceded represented 22% and 20% of total life insurance in force at June 30, 2022 and  December 31, 2021, respectively.  Insurance ceded represented 39% and 36% of premium income for the six months ended June 30, 2022 and 2021, respectively. The Company would be liable for the reinsured risks ceded to other companies to the extent that such reinsuring companies are unable to meet their obligations.

The Company owns a variety of investments associated with the oil and gas industry. These investments represent approximately 28% and 22% of the Company’s total invested assets as of June 30, 2022 and December 31, 2021, respectively. The following table provides an allocation of the oil and gas investments by type.

June 30, 2022	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,100,210	$	1,100,210
Equity securities, at fair value		77,008,407		0		77,008,407
Investment real estate		15,558,983		0		15,558,983
Notes receivable		5,800,657		0		5,800,657
Total	$	98,368,047	$	1,100,210	$	99,468,257

December 31, 2021	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,249,040	$	1,249,040
Equity securities, at fair value		60,932,033		0		60,932,033
Investment real estate		16,351,500		0		16,351,500
Notes receivable		5,000,000		0		5,000,000
Total	$	82,283,533	$	1,249,040	$	83,532,573

At June 30, 2022 and December 31, 2021, the Company owned two equity securities that represented approximately 53% of the total investments associated with the oil and gas industry.

The Company’s results of operations and financial condition have in the past been, and may in the future be, adversely affected by the degree of certain industry specific concentrations in the Company’s investment portfolio. The Company has significant exposure to investments associated with the oil and gas industry. Events or developments that have a negative effect on the oil and gas industry may adversely affect the valuation of our investments in this specific industry. The Company’s ability to sell its investments associated with the oil and gas industry may be limited.

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, 2021, 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, the acquisition of blocks of business and the administration and processing of life insurance business for other entities. 

UTG has a strong philanthropic program.  The Company generally allocates a portion of its earnings to be used for its philanthropic efforts primarily targeted to Christ-centered organizations or organizations that help the weak or poor.  The Company also encourages its staff to be involved on a personal level through monetary giving, volunteerism, and use of their talents to assist those less fortunate than themselves. Through these efforts, the Company hopes to make a positive difference in the local community, state, nation and world.

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, 2021.  Management has identified the accounting policies related to cost of insurance acquired, assumptions and judgments utilized in determining if declines in fair values of investments are other-than-temporary, and valuation methods for investments that are not actively traded as those, due to the judgments, estimates and assumptions inherent in those policies, are critical to an understanding of the Company’s Condensed Consolidated Financial Statements and this Management’s Discussion and Analysis.

During the six months ended June 30, 2022, there were no additions to or changes in the critical accounting policies disclosed in the 2021 Form 10-K.

Results of Operations

During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted the economic conditions in the U.S. and globally, accelerating during the first half of March, as federal, state, and local governments reacted to the public health crisis, creating significant uncertainties in the U.S. economy. The Company has not experienced a slow-down in activities, however government restrictions and client-imposed delays are evaluated regularly, and this could change. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The Company cannot at this time predict the ultimate impact the pandemic will have on its results of operations, financial position, liquidity, or capital resources but such impact could be material.  During the six-month period ended June 30, 2022 the Company incurred 59 Covid claims totaling $984,696.  The Company incurred 165 claims totaling $1,293,125 during the year ended December 31, 2021.

On a consolidated basis, the Company reported net income attributable to common shareholders of approximately $8.4 million for the six-month period ended June 30, 2022, and a net loss attributable to common shareholders’ of approximately $(0.8) million for the three-month period ended June 30, 2022.

For the six-month period ended June 30, 2021, the Company reported net income attributable to common shareholders’ of approximately $16.0 million and net income attributable to common shareholders’ of approximately $1.8 million for the three-month period ended June 30, 2021.

Revenues

For the six-month period ended June 30, 2022, the Company reported total revenues of approximately $24.2 million and for the same period in 2021 total revenues of approximately $31.9 million. The variance in total revenue between periods is primarily the result of a decrease in the change in the fair value of equity securities. This line item is material to the results reported in the consolidated statements of operations.  This line item can also be extremely volatile, reflecting changes in the stock market.  While both six-month periods within 2022 and 2021 reflected positive results, 2021 results were close to triple of that of 2022.  The Company reported total revenues of approximately $5.3 million for the three-month period ended June 30, 2022, and total revenues of $7.8 million for the same period of 2021.  As stated in the six-month periods, changes in the fair value of equity securities were the primary reason for the variance, with second quarter of 2022 actually showing a small loss in value on its equity securities.  While these results can be material and volatile, most of the equity holdings of the Company were acquired with a long-term view, thus making these intermediate changes in value of less concern to Management.  Management monitors its equity holdings looking more at the specific entity and market it is in relative to performance and less to changes due to general market swings that occur over the holding period of the investment.

The Company reported revenue before net investment gains (losses) of approximately $12.0 million and $7.5 million for the six-month periods ended June 30, 2022 and 2021, respectively. Revenue before net investment gains (losses) increased primarily due to an increase in net investment income when comparing current year and prior year results.  For the three months ended June 30, 2022 the Company reported approximately $6.0 million and $3.8 million for 2022 and 2021, respectively.

Premium and policy fee revenues, net of reinsurance, declined 11% for the six-months ended June 30, 2022 and 2021 and declined 10% for the second quarter ended June 30, 2022 and 2021.  The Company writes minimal new business.  Unless the Company acquires a new company or a block of in-force business, Management expects premium revenue to continue to decline on the existing block of business at a rate consistent with prior experience.  Premium and policy fee revenues, net of reinsurance, was reported at approximately $2.9 million and $3.3 million for the six-months ended June 30, 2022, and 2021.  For the second quarter ended June 30, 2022 these amounts were $1.4 million and $1.6 million in 2022 and 2021, respectively.

The following table summarizes our investment performance.

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2022		2021		2022		2021
Net investment income	$	4,440,186	$	2,082,359	$	8,899,554	$	4,042,026
Net investment gains (losses)	$	(711,229)	$	4,071,013	$	12,223,549	$	24,395,938
Change in net unrealized investment gains (losses) on available for sale securities, pre-tax	$	(7,124,119)	$	2,882,416	$	(16,313,043)	$	(4,597,654)

The following table reflects net investment income of the Company:

		Three Months Ended June 30,				Six Months Ended June 30,
		2022		2021		2022		2021
Fixed maturities available for sale	$	1,032,842	$	1,176,332	$	2,099,822	$	2,379,814
Equity securities		954,825		273,353		1,338,033		570,952
Trading securities		(10,297)		5,566		(13,283)		19,254
Mortgage loans		311,574		111,817		599,792		381,621
Real estate		2,985,660		778,605		6,178,745		1,333,329
Notes receivable		129,086		299,999		385,648		493,870
Policy loans		141,477		163,705		248,200		296,499
Cash and cash equivalents		9,222		586		9,934		1,148
Total consolidated investment income		5,554,389		2,809,963		10,846,891		5,476,487
Investment expenses		(1,114,203)		(727,604)		(1,947,337)		(1,434,461)
Consolidated net investment income	$	4,440,186	$	2,082,359	$	8,899,554	$	4,042,026

Net investment income represented 74% and 54% of the Company's revenue before net investment gains (losses) for the six-month period ended June 30, 2022 and June 30, 2021, respectively.    For the second quarter only ended June 30, net investment income represented 74% and 55% of revenue before net investment gains (losses) for 2022 and 2021, respectively.  When comparing current and prior year results, net investment income was comparable in a majority of the investment categories outside of the equity securities and real estate investment portfolio.  Investment income earned by the real estate investment portfolio for both the six months and the three months ended June 30, 2022, was materially larger than prior periods due to distributions from specific real estate investments, primarily related to the oil & gas & timber industries. Investment income earned by the fixed maturities, equity securities, and real estate investment portfolios represented approximately 89% and 78% of the total consolidated investment income for the six months ended June 30, 2022 and 2021, respectively.

In March 2020, with the onset of the pandemic in America, financial markets became jittery experiencing a significant drop in the major market indices. In response, the Federal Reserve dropped interest rates to near zero. This action resulted in a drop in all other interest rates in the marketplace. While this increased the fair value of the Company’s current fixed income holdings, it made finding investments to acquire with any type of historic yield nearly impossible. In recent periods our economy has heated up with inflation running at higher than desired levels by Federal Reserve standards.  In this regard, the Federal Reserve has begun increasing interest rates in recent months with more increases currently being predicted.  This has resulted in an increase in the yields available in the bond market and drives the unrealized loss on the bond portfolio.

When comparing earnings from the fixed maturities portfolio for the six months ended June 30, 2022 and 2021 income was down approximately 12% or $280,000.  Income for the three-month period ended June 30 was also down by the same 12% from the prior year.  This decrease can be primarily attributed to the maturity of several investments that were not replaced within the portfolio.  Rather the proceeds were used to pay down the Company’s outstanding debt or reinvested in a different asset class. Fixed maturities continue to represent one of the largest investment types and asset classes owned by the Company. As of June 30, 2022, fixed maturities represented 33% of the total investments owned by the Company.

Earnings from the equity securities investment portfolio represented approximately 12% and 10% of the total consolidated investment income report by the Company during the six months ended June 30, 2022 and 2021, respectively.  Income from the equity securities portfolio was up approximately 134% or $767,000 when comparing year to date 2022 and 2021 results.  Second quarter only results show an increase in the equity securities earnings of 249% or $681,000 when comparing 2022 to 2021.  This increase is primarily due to dividend increases seen in 2022 from equity positions held by the Company in oil and gas and from additional investments in dividend paying equities in the last year.

The earnings reported by the real estate investment portfolio represented 57% and 24% of the total consolidated investment income reported by the Company during the six months ended June 30, 2022 and 2021, respectively. Earnings from the real estate investment portfolio were up approximately 363% or $4.8 million when comparing 2022 and 2021 results. Second quarter only results were up 283% when comparing 2022 and 2021.  The earnings from the real estate investment portfolio are expected to vary depending on the real estate activities and the potential distributions that may occur.  The earnings reported by the real estate investment portfolio are primarily related to the oil & gas and timber industries.  With the world economies beginning to reopen, demand for oil and gas and other commodities has substantially increased, which in turn has resulted in increases in prices in the marketplace.  Add to this the issues related to the Russian invasion of Ukraine; even more upward price pressure is being felt.  The Company holds several long-term investments within these industries that have benefitted in recent periods from a rise in prices seen both in real estate in general, but specifically within the Company’s concentrated industries.  Oil has increased in 2022 averaging $107 per barrel compared to an average price of $42 in 2020 and $70 in 2021.  This change has significantly increased the cashflow the Company is receiving from the royalty interests it holds.  While oil has recently dropped below $100 per barrel, it remains well above recent historic levels.

The earnings reported by the mortgage loan investment portfolio represented 6% and 7% of the total consolidated investment income reported by the Company during the six months ended June 30, 2022 and 2021, respectively, and represented 6% and 4% for the three months ended June 30, 2022 and 2021, respectively.   The earnings from the mortgage loan portfolio have increased due to the increase in size of the portfolio. The mortgage loan investment portfolio increased by approximately 2% through the first six months of 2022.  With the low investment rates currently available in the bond market, the Company has placed more emphasis on loans to improve investment yields.

The following table reflects net realized investment gains (losses):

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2022		2021		2022		2021
Other-than-temporary impairments	$	0	$	(411,584)	$	0	$	(411,584)
Fixed maturities available for sale		(4,896)		34,236		(527)		34,236
Equity securities		(29,393)		3,006,032		287,945		3,015,019
Real estate		113,398		1,247,193		4,571,840		1,383,252
Consolidated net realized investment gains		79,109		3,875,877		4,859,258		4,020,923
Change in fair value of equity securities		(790,338)		195,136		7,364,291		20,375,015
	$	(711,229)	$	4,071,013	$	12,223,549	$	24,395,938

Realized investment gains are the result of one-time events and are expected to vary from year to year.

The sale of one equity security represents approximately $370,000 of the realized investment gains from equity securities during 2022, this gain was offset by the sale for a realized loss of a few smaller equity securities resulting in the net realized gain of approximately $288,000

The 2022 real estate gains are the result of the sales of real estate in Kentucky and Georgia, primarily occurring in the first quarter of 2022. The sale of a land parcel in Kentucky produced a gain of approximately $3.5 million, additionally, the Company sold a real estate parcel located in Georgia that produced gains of approximately $812,000.  The Company also sold a few additional smaller properties in Kentucky that produced the remaining gains in this category.

The Company reported a change in fair value of equity securities of approximately $7.4 million and $20.4 million for the six months ended June 30, 2022, and 2021, respectively.  For the second quarter ended June 30, the Company reported a loss of $(0.8) million and gain of $0.2 million in 2022 and 2021, respectively.  This line item is material to the results reported in the consolidated statements of operations.  This line item can also be extremely volatile, reflecting changes in the stock market.  While both six-month periods within 2022 and 2021 reflected positive results, 2021 results were almost triple that of 2022.  While these results can be material and volatile, most of the equity holdings of the Company were acquired with a long-term view, thus making these intermediate changes in value of less concern to Management.  Management monitors its equity holdings looking more at the specific entity and market it is in relative to performance and less to changes due to general market swings that occur over the holding period of the investment.

While the Company has seen significant positive results on its equity investments in the last two years, a pull back or downward market adjustment could slow these gains or even result in losses in future periods.  Management believes its current equity investments continue to be solid investments for the Company and have further growth potential; however, changes in market conditions could cause volatility in market prices.

In summary, the Company’s basis for future revenue 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 approximately $13.4 million for the six-month period ended June 30, 2022, an increase of approximately 13% from the same period in 2021.  Benefits, claims and settlement expenses represented approximately 61% and 65% of the Company's total expenses for the six-month periods ended June 30, 2022, and 2021, respectively. The other major expense category of the Company is operating expenses, which represented approximately 36% and 32% of the Company's total expenses for the six-month periods ended June 30, 2022, and 2021, respectively.

Life benefits, claims and settlement expenses, net of reinsurance benefits and claims were up approximately 7% or $519,000 when comparing the six months ended June 30, 2022, and 2021.  Policy claims vary from period to period and therefore, fluctuations in mortality are to be expected and are not considered unusual by Management.

Early in the COVID-19 pandemic, the Company implemented a process to monitor death claims resulting from COVID-19. Prior to the pandemic, death benefits were $12,624,000, $12,831,000 and $12,403,000 in 2017, 2018 and 2019, respectively. During the two plus years of the pandemic, total death benefits were $14,293,000 and $15,985,000 in 2020 and 2021, respectively.  First six-months of 2022 continued with higher than historic claims of $7,665,000 including total COVID related deaths of approximately $985,000. Death benefits of the Company have been higher than recent past experience, even when adjusting for the identified COVID-19 claims. This anomaly is showing throughout the entire U.S. insurance industry. Industry experts believe this increase in death benefits while not always directly related to COVID-19, are caused indirectly by the pandemic due to delays in medical care as a result of the lockdown in 2020 and then later, people’s fears of seeking out treatment and trouble making up appointments. This is further compounded by depression from isolation. June and July claims experience have declined from recent levels, returning closer to historic levels.  While we hope the worst of the pandemic is behind us, if too early to determine with certainty.

Changes in policyholder reserves, or future policy benefits, also impact this line item.  Reserves are calculated on an individual policy basis and generally increase over the life of the policy as a result of additional premium payments and acknowledgment of increased risk as the insured continues to age.

The short-term impact of policy surrenders is negligible since a reserve for future policy benefits payable is held which is, at a minimum, equal to and generally greater than the cash surrender value of a policy.  The benefit of fewer policy surrenders is primarily received over a longer time period through the retention of the Company’s asset base. The surrender process has been impacted by temporary state rulings that were implemented as a result of COVID-19 and in some cases did not allow life insurance companies to lapse policies temporarily.  The rulings varied by state and had all expired by July 1, 2021.

Operating expenses increased approximately 26% in the six-month period ended June 30, 2022 as compared to the same period in 2021, and increased approximately 10% for the second quarter period ended June 30, 2022 as compared to the same period in 2021.  This increase for both compared periods is primarily due to increased charitable contribution accruals based upon the Company’s taxable income which was significantly higher in 2022 compared to 2021. Additionally, the Company incurred a large maintenance expense relating to the Company’s partially owned aircraft. Expenses in the remaining categories are largely comparable between years.

Effective January 1, 2017, the Company and FSNB began sharing certain services. The shared services focuses on departments commonly utilized by both organizations such as financial accounting, human resources and information technology.  The shared services did not initially make a noticeable difference in operating expenses, but provides a larger team, which enhances capabilities and quality.

As mentioned above in the Overview section of the Management Discussion and Analysis, UTG has a strong philanthropic program.  The Company generally allocates a portion of its earnings 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.

Net amortization of cost of insurance acquired decreased approximately 4% when comparing current and prior year activity.  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.

Management continues to place significant emphasis on expense monitoring and cost containment. Maintaining administrative efficiencies directly impacts net income.

Financial Condition

Investment Information

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 they are permitted to make, and the amount of funds that may be used for any one type of investment.

The Company's investments are generally managed to match related insurance and policyholder liabilities.  The comparison of investment return with insurance or investment product crediting rates establishes an interest spread.  Interest crediting rates on adjustable-rate policies have been reduced to their guaranteed minimum rates, and as such, cannot be lowered any further.  Policy interest crediting rate changes and expense load changes become effective on an individual policy basis on the next policy anniversary.  Therefore, it takes a full year from the time the change was determined for the full impact of such change to be realized.  If interest rates decline in the future, the Company will not be able to lower rates and both net investment income and net income will be impacted negatively.

The Company’s total investments represented 87% and 85% of the Company’s total assets as of June 30, 2022, and December 31, 2021, respectively. Fixed maturities consistently represented a substantial portion, 33% and 38%, respectively, of the total investments during 2022 and 2021.  The overall investment mix, as a percentage of total investments, remained fairly consistent when comparing the respective investments held as of June 30, 2022 and December 31, 2021.

As of June 30, 2022, 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 value, with changes in market value charged directly to the other comprehensive component of shareholders' equity.  Changes in the market value of available for sale securities resulted in net unrealized gains (losses) of approximately $(12.9) and $(3.9) million as of June 30, 2022 and 2021, respectively. The variance in the net unrealized gains and losses is the result of normal market fluctuations mainly related to changes in interest rates in the marketplace.

Management continues to view the Company’s investment portfolio with utmost priority. Significant time has been spent internally researching the Company’s risk and communicating with outside investment advisors about the current investment environment and ways to ensure preservation of capital and mitigate losses.  Management has put extensive efforts into evaluating the investment holdings.  Additionally, members of the Company’s Board of Directors and investment committee have been solicited for advice and provided with information.  Management reviews the Company’s entire portfolio on a security level basis to be sure all understand our holdings, potential risks and underlying credit supporting the investments.  Management intends to continue its close monitoring of its bond holdings and other investments for possible deterioration or market condition changes.  Future events may result in Management’s determination that certain current investment holdings may need to be sold which could result in gains or losses in future periods.  Such future events could also result in other than temporary declines in value that could result in future period impairment losses.

There are a number of significant risks and uncertainties inherent in the process of monitoring impairments and determining if impairment is other-than-temporary. These risks and uncertainties related to Management’s assessment of other-than-temporary declines in value include but are not limited to: the risk that Company's assessment of an issuer's ability to meet all of its contractual obligations will change based on changes in the credit characteristics of that issuer; the risk that the economic outlook will be worse than expected or have more of an impact on the issuer than anticipated; the risk that fraudulent information could be provided to the Company's investment professionals who determine the fair value estimates.

Capital Resources

Total shareholders' equity decreased by approximately 3% as of June 30, 2022, compared to December 31, 2021. The decrease is mainly attributable to the decline in market value of the Company’s fixed income portfolio due to current rate increases in the marketplace.  This was partially offset by an increase in retained earnings, which is the result of the current year net income reported by the Company.

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.

The Company had $7 million and $24 million of debt outstanding as of June 30, 2022 and December 31, 2021, respectively.

Liquidity

Liquidity provides the Company with the ability to meet on demand the cash commitments required by its business operations and financial obligations.  The Company’s liquidity is primarily derived from cash balances, a portfolio of marketable securities and line of credit facilities.  The Company has two principal needs for cash – the insurance company’s contractual obligations to policyholders and the payment of operating expenses.

Parent Company Liquidity - UTG is a holding company that has no day-to-day operations of its own.  Cash flows from UTG’s insurance subsidiary, UG, are used to pay costs associated with maintaining the Company in good standing with states in which it does business and purchasing outstanding shares of UTG stock.  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.  As of June 30, 2022, and December 31, 2021, substantially all of the consolidated shareholders’ equity represents net assets of its subsidiaries.  On June 29^th The Company’s Board of Directors approved the declaration of  a $1 million cash dividend that was paid to UTG on July 14, 2022.  UG had not paid a dividend to UTG through June 30, 2021.  Certain restrictions exist on the payment of dividends from the insurance subsidiary to the Parent company.  For further information regarding the restrictions on the payment of dividends by the insurance subsidiary, see Note 9 – Shareholders’ Equity in the Notes to the Consolidated Financial Statements.  Although these restrictions exist, dividend availability from the insurance subsidiary has historically been sufficient to meet the cash flow needs of the Parent company.

Insurance Subsidiary Liquidity - Sources of cash flows for the insurance subsidiary primarily consist of premium and investment income.  Cash outflows from operations include policy benefit payments, administrative expenses, taxes and dividends to the Parent company.

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, 2021, UG had statutory net income of approximately $451,000.  At December 31, 2021 UG's statutory capital and surplus amounted to approximately $64.7 million.  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 2021, UG paid UTG ordinary dividends of $5 million. During the third quarter of 2022, UG paid UTG a dividend of $1 million. UTG used the dividends received during 2021 and 2022 to purchase outstanding shares of UTG stock and for general operations of the Company.

Short-Term Borrowings - During the fourth quarter of 2021, Management made the business decision to pledge additional collateral to the Federal Home Loan Bank in order to increase the Company's borrowing capacity. The Company submitted, and the Federal Home Loan Bank approved, a new Cash Management Advance (CMA) with a collateral lendable value of $25 million This CMA replaces the CMA that was approved in May of 2021 for $10 million. During the fourth quarter 2021, the Company borrowed $24 million on the CMA and Management utilized the funds for investing activities. The interest rate on the borrowed funds is variable.  During the first six months of 2022 the Company repaid $26.5 million and borrowed $9.5 million on the CMA leaving $7 million outstanding on June 30, 2022.  In July of 2022, the Company drew $2.0 million and repaid $4.0 million on this line bringing the total outstanding borrowings to $5.0 million.

The CMA is a source of overnight liquidity utilized to address the day-to-day cash needs of a Company. In order to provide the Company with multiple lending options, Management also applied for, and the FHLB approved, the Company's Repurchase (REPO) Advance Application for $25 million. The REPO Advance requires a minimum borrowing of $15 million and provides financing for one day to one year at a fixed rate of interest.  The Company has enough qualifying investments for collateral pledging of $19.3 million total against these two borrowing vehicles.

Consolidated Liquidity

Cash used in operating activities was approximately $2.2 million and $6.3 million in 2022 and 2021, respectively.  Sources of operating cash flows of the Company, as with most insurance entities, is comprised primarily of premiums received on life insurance products and income earned on investments.  Uses of operating cash flows consist primarily of payments of benefits to policyholders and beneficiaries and operating expenses.  The Company has not marketed any significant new products for several years.  As such, premium revenues continue to decline.  Management anticipates future cash flows from operations to remain similar to historic trends.

During 2022 and 2021, the Company’s investing activities provided net cash of approximately $7.9 million and $(0.8) million, respectively. The Company recognized proceeds of approximately $24.7 million and $32.8 million from investments sold and matured in 2022 and 2021, respectively.  The Company used approximately $16.8 million and $33.6 million to acquire investments during 2022 and 2021, respectively.  The net cash provided by investing activities is expected to vary from year to year depending on market conditions and management’s ability to find and negotiate favorable investment contracts.

Net cash used in financing activities was approximately $17.5 million and $0.9 million during 2022 and 2021, respectively. As of June 30, 2022 the Company had $7 million in debt outstanding with third parties.  Subsequent to the end of the quarter, the Company paid an additional $2 million on its borrowings leaving $5 million outstanding.

The Company had cash and cash equivalents of approximately $19.0 million as of June 30, 2022.  The Company has a portfolio of marketable fixed maturity securities that could be sold, if an unexpected event were to occur.  These securities had a fair value of approximately $118.1 million at June 30, 2022. However, the strong cash flows from investing activities, investment maturities and the availability of the line of credit facilities make it unlikely that the Company would need to sell securities for liquidity purposes.  See Note 2 – Investments in the Notes to the Consolidated Financial Statements for detailed disclosures regarding the Company’s investment portfolio.

Management believes the overall sources of liquidity available will be sufficient to satisfy its financial obligations.

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

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 and Senior Vice President 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 and Senior Vice President of UTG, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
**101	The following financial statements from the Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Shareholders' Equity, (v) Condensed Consolidated Statements of Cash Flows and (vi) Notes to the Condensed Consolidated Financial Statements (detail tagged).
**104	Cover Page Interactive Data File (formatted in iXBRL and included in exhibit 101).

* Filed herewith

SIGNATURES

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

UTG, INC.

(Registrant)

Date:	August 12, 2022	By	/s/ James P. Rousey
			James P. Rousey
			President and Director

Date:	August 12, 2022	By	/s/ Theodore C. Miller
			Theodore C. Miller
			Senior Vice President and Chief Financial Officer

EX-31.1

Exhibit 31.1 CERTIFICATIONS
I, Jesse T. Correll, Chairman of the Board and Chief Executive Officer of UTG, Inc., certify that:
1.	I have reviewed this quarterly report on Form 10-Q of the registrant, UTG, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)and 15d-15(f)) for the registrant and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date:	August 12, 2022	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 and Chief Financial Officer of UTG, Inc., certify that:
1.	I have reviewed this quarterly report on Form 10-Q of the registrant, UTG, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)and 15d-15(f)) for the registrant and have:
	a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c.	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d.	Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.	The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
	a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
	b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date:	August 12, 2022	By:	/s/ Theodore C. Miller
			Senior Vice President and
			Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

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

In connection with the Quarterly Report on Form 10-Q of UTG, Inc. (the "Company") for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the "Report") I, Jesse T. Correll, Chairman of the Board and Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

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

Date:	August 12, 2022	By:	/s/ Jesse T. Correll
			Jesse T. Correll
			Chairman of the Board and
			Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

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

In connection with the Quarterly Report on Form 10-Q of UTG, Inc. (the "Company") for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the "Report") I, Theodore C. Miller, Senior Vice President and Chief Financial Officer of the Company, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

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

Date:	August 12, 2022	By:	/s/ Theodore C. Miller
			Theodore C. Miller
			Senior Vice President and
			Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Jul. 31, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Document Transition Report	false
Entity File Number	000-16867
Entity Registrant Name	UTG, INC.
Entity Central Index Key	0000832480
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-2907892
Entity Address, Address Line One	205 North Depot Street
Entity Address, City or Town	Stanford
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40484
City Area Code	217
Local Phone Number	241-6300
Title of 12(g) Security	Common Stock, stated value $.001 per share
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,167,698

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2022	Dec. 31, 2021	[1]
Investments available for sale:
Fixed maturities, at fair value (amortized cost $121,435,668 and $127,949,963)	$ 118,136,543	$ 140,963,881
Equity securities, at fair value (cost $72,291,234 and $68,403,168)	133,462,075	122,229,121
Equity securities, at cost	14,543,343	14,543,343
Mortgage loans on real estate at amortized cost	29,787,180	29,183,562
Investment real estate	37,879,631	39,748,261
Notes receivable	17,712,550	17,722,976
Policy loans	7,322,454	7,390,497
Total investments	358,843,776	371,781,641
Cash and cash equivalents	19,049,190	30,787,278
Accrued investment income	1,278,020	1,264,159
Reinsurance receivables:
Future policy benefits	24,446,269	24,740,562
Policy claims and other benefits	3,889,077	4,426,997
Cost of insurance acquired	3,042,327	3,386,501
Income tax receivable	908,638	975,373
Other assets	567,633	1,097,246
Total assets	412,024,930	438,459,757
Policy liabilities and accruals:
Future policyholder benefits	232,537,561	235,367,680
Policy claims and benefits payable	3,517,179	3,941,305
Other policyholder funds	340,253	345,248
Dividend and endowment accumulations	14,746,845	14,686,166
Deferred income taxes	11,560,222	13,680,396
Notes payable	7,000,000	24,000,000
Trading securities, at fair value (proceeds $0 and $2,202)	0	1,116
Other liabilities	5,410,367	5,193,039
Total liabilities	275,112,427	297,214,950
Shareholders' equity:
Common stock - no par value, stated value $.001 per share. Authorized 7,000,000 shares - 3,169,243 and 3,166,669 shares issued	3,170	3,167
Additional paid-in capital	32,854,050	32,780,587
Retained earnings	106,158,464	97,731,347
Accumulated other comprehensive income	(2,634,157)	10,253,151
Total UTG shareholders' equity	136,381,527	140,768,252
Noncontrolling interests	530,976	476,555
Total shareholders' equity	136,912,503	141,244,807
Total liabilities and shareholders' equity	$ 412,024,930	$ 438,459,757

[1] Balance sheet audited at December 31, 2021.

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Investments available for sale:
Fixed maturities, amortized cost	$ 121,435,668	$ 127,949,963
Equity securities, cost	72,291,234	68,403,168
Liabilities:
Trading securities, proceeds	$ 0	$ 2,202
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0	$ 0
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)	3,169,243	3,166,669

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Revenue:
Premiums and policy fees	$ 2,155,643	$ 2,296,481	$ 4,308,704	$ 4,595,544
Ceded reinsurance premiums and policy fees	(721,650)	(696,061)	(1,367,799)	(1,288,535)
Net investment income	4,440,186	2,082,359	8,899,554	4,042,026
Other income	93,713	94,470	155,036	189,205
Revenue before net investment gains (losses)	5,967,892	3,777,249	11,995,495	7,538,240
Net investment gains (losses):
Other-than-temporary impairments	0	(411,584)	0	(411,584)
Other realized investment gains, net	79,109	4,287,461	4,859,258	4,432,507
Change in fair value of equity securities	(790,338)	195,136	7,364,291	20,375,015
Total net investment gains (losses)	(711,229)	4,071,013	12,223,549	24,395,938
Total revenue	5,256,663	7,848,262	24,219,044	31,934,178
Benefits, claims and settlement expenses:
Life	3,609,121	4,025,758	8,269,918	8,020,609
Ceded reinsurance benefits and claims	245,841	(577,515)	(741,590)	(986,666)
Annuity	256,188	255,538	519,230	493,093
Dividends to policyholders	85,933	86,476	173,092	174,284
Commissions and amortization of deferred policy acquisition costs	(26,290)	(30,754)	(51,959)	(56,908)
Amortization of cost of insurance acquired	172,087	179,102	344,174	357,845
Operating expenses	1,899,338	1,734,156	4,817,661	3,837,533
Interest expense	23,306	0	35,280	0
Total benefits and other expenses	6,265,524	5,672,761	13,365,806	11,839,790
Income before income taxes	(1,008,861)	2,175,501	10,853,238	20,094,388
Income tax expense (benefit)	(270,762)	350,499	2,372,300	4,070,667
Net income (loss)	(738,099)	1,825,002	8,480,938	16,023,721
Net income attributable to noncontrolling interests	(27,107)	(26,502)	(53,821)	(56,255)
Net income (loss) attributable to common shareholders	$ (765,206)	$ 1,798,500	$ 8,427,117	$ 15,967,466
Amounts attributable to common shareholders
Basic income (loss) per share (in dollars per share)	$ (0.24)	$ 0.57	$ 2.66	$ 5.03
Diluted income (loss) per share (in dollars per share)	$ (0.24)	$ 0.57	$ 2.66	$ 5.03
Basic weighted average shares outstanding (in shares)	3,172,243	3,175,027	3,171,667	3,176,012
Diluted weighted average shares outstanding (in shares)	3,172,243	3,175,027	3,171,667	3,176,012

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract]
Net income (loss)	$ (738,099)	$ 1,825,002	$ 8,480,938	$ 16,023,721
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during period, pre-tax	(7,129,016)	2,505,067	(16,313,575)	(4,975,001)
Tax (expense) benefit on unrealized holding gains (losses) arising during the period	1,497,094	(526,064)	3,425,851	1,044,750
Unrealized holding gains (losses) arising during period, net of tax	(5,631,922)	1,979,003	(12,887,724)	(3,930,251)
Less reclassification adjustment for (gains) losses included in net income	4,896	377,348	527	377,348
Tax expense (benefit) for gains included in net income (loss)	(1,029)	(79,243)	(111)	(79,243)
Reclassification adjustment for (gains) losses included in net income, net of tax	3,867	298,105	416	298,105
Subtotal: Other comprehensive income (loss), net of tax	(5,628,055)	2,277,108	(12,887,308)	(3,632,146)
Comprehensive income (loss)	(6,366,154)	4,102,110	(4,406,370)	12,391,575
Less comprehensive income attributable to noncontrolling interests	(27,107)	(26,502)	(53,821)	(56,255)
Comprehensive income (loss) attributable to UTG, Inc.	$ (6,393,261)	$ 4,075,608	$ (4,460,191)	$ 12,335,320

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Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Noncontrolling Interest [Member]	Total
Balance at Dec. 31, 2020	$ 3,176	$ 33,025,018	$ 88,068,284	$ 15,584,241	$ 460,772	$ 137,141,491
Common stock issued during year	7	170,531	0	0	0	170,538
Treasury shares acquired	(9)	(238,962)	0	0	0	(238,971)
Net income (loss) attributable to common shareholders	0	0	15,967,466	0	0	15,967,466
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes	0	0	0	(3,632,146)	0	(3,632,146)
Contributions	0	0	0	0	0	0
Distributions	0	0	0	0	0	0
Gain attributable to noncontrolling interest	0	0	0	0	56,255	56,255
Balance at Jun. 30, 2021	3,174	32,956,587	104,035,750	11,952,095	517,027	149,464,633
Balance at Mar. 31, 2021	3,178	33,065,925	102,237,250	9,674,987	490,525	145,471,865
Common stock issued during year	1	16,772	0	0	0	16,773
Treasury shares acquired	(5)	(126,110)	0	0	0	(126,115)
Net income (loss) attributable to common shareholders	0	0	1,798,500	0	0	1,798,500
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes	0	0	0	2,277,108	0	2,277,108
Contributions	0	0	0	0	0	0
Distributions	0	0	0	0	0	0
Gain attributable to noncontrolling interest	0	0	0	0	26,502	26,502
Balance at Jun. 30, 2021	3,174	32,956,587	104,035,750	11,952,095	517,027	149,464,633
Balance at Dec. 31, 2021	3,167	32,780,587	97,731,347	10,253,151	476,555	141,244,807	[1]
Common stock issued during year	18	486,779	0	0	0	486,797
Treasury shares acquired	(15)	(413,316)	0	0	0	(413,331)
Net income (loss) attributable to common shareholders	0	0	8,427,117	0	0	8,427,117
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes	0	0	0	(12,887,308)	0	(12,887,308)
Contributions	0	0	0	0	0	0
Distributions	0	0	0	0	600	600
Gain attributable to noncontrolling interest	0	0	0	0	53,821	53,821
Balance at Jun. 30, 2022	3,170	32,854,050	106,158,464	(2,634,157)	530,976	136,912,503
Balance at Mar. 31, 2022	3,176	32,999,942	106,923,670	2,993,898	503,266	143,423,952
Common stock issued during year	0	0	0	0	0	0
Treasury shares acquired	(6)	(145,892)	0	0	0	(145,898)
Net income (loss) attributable to common shareholders	0	0	(765,206)	0	0	(765,206)
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes	0	0	0	(5,628,055)	0	(5,628,055)
Contributions	0	0	0	0	0	0
Distributions	0	0	0	0	603	603
Gain attributable to noncontrolling interest	0	0	0	0	27,107	27,107
Balance at Jun. 30, 2022	$ 3,170	$ 32,854,050	$ 106,158,464	$ (2,634,157)	$ 530,976	$ 136,912,503

[1] Balance sheet audited at December 31, 2021.

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows from operating activities:
Net income (loss)	$ 8,480,938	$ 16,023,721
Adjustments to reconcile net income to net cash used in operating activities:
Amortization (accretion) of investments	(6,865)	27,843
Other-than-temporary impairments	(0)	411,584
Realized investment gains (losses), net	(4,859,258)	(4,432,507)
Change in fair value of equity securities	(7,364,291)	(20,375,015)
Unrealized trading (gains) losses included in income	0	(950)
Realized trading (gains) losses included in income	13,283	(18,304)
Amortization of cost of insurance acquired	344,174	357,845
Depreciation and depletion	918,168	1,260,915
Stock-based compensation	486,797	170,538
Charges for mortality and administration of universal life and annuity products	(2,995,235)	(3,216,269)
Interest credited to account balances	1,891,086	1,970,895
Change in accrued investment income	(13,861)	14,833
Change in reinsurance receivables	832,213	246,433
Change in policy liabilities and accruals	(2,016,166)	(2,293,954)
Change in income taxes receivable (payable)	66,735	(1,071,762)
Change in other assets and liabilities, net	2,052,502	4,632,604
Net cash used in operating activities	(2,169,780)	(6,291,550)
Proceeds from investments sold and matured:
Fixed maturities available for sale	7,628,136	14,542,087
Equity securities	2,806,561	5,161,155
Trading securities	17,983	241
Mortgage loans	961,672	7,569,346
Real estate	8,794,081	4,350,324
Notes receivable	3,921,082	581,329
Policy loans	591,084	559,398
Total proceeds from investments sold and matured	24,720,599	32,763,880
Cost of investments acquired:
Fixed maturities available for sale	(1,112,505)	(20,000)
Equity securities	(6,387,281)	(24,990,946)
Trading securities	(32,382)	(358)
Mortgage loans	(1,560,291)	(747,941)
Real estate	(3,271,775)	(1,402,593)
Notes receivable	(3,910,657)	(6,000,000)
Policy loans	(523,039)	(452,004)
Total cost of investments acquired	(16,797,930)	(33,613,842)
Net cash provided by (used in) investing activities	7,922,669	(849,962)
Cash flows from financing activities:
Policyholder contract deposits	2,444,662	2,343,191
Policyholder contract withdrawals	(2,522,908)	(3,007,581)
Proceeds from notes payable/line of credit	9,500,000	0
Payments of principal on notes payable/line of credit	(26,500,000)	0
Purchase of treasury stock	(413,331)	(238,971)
Non controlling contributions (distributions) of consolidated subsidiary	600	0
Net cash used in financing activities	(17,490,977)	(903,361)
Net increase (decrease) in cash and cash equivalents	(11,738,088)	(8,044,873)
Cash and cash equivalents at beginning of period	30,787,278	39,025,754
Cash and cash equivalents at end of period	$ 19,049,190	$ 30,980,881

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Basis of Presentation

6 Months Ended

Jun. 30, 2022

Basis of Presentation [Abstract]

Basis of Presentation

Note 1 – Basis of Presentation

The accompanying Condensed Consolidated Balance Sheet as of June 30, 2022, which has been derived from audited consolidated financial statements, and the unaudited interim Condensed Consolidated Financial Statements include the accounts of UTG, Inc. (the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”).  All significant intercompany accounts and transactions have been eliminated in consolidation.  The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of regulation S-X.  Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements.  The information furnished includes all adjustments and accruals of a normal recurring nature, which in the opinion of Management, are necessary for a fair presentation of the results for the interim periods.  The unaudited Condensed Consolidated Financial Statements included herein and these related notes should be read in conjunction with the Company’s consolidated financial statements, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.  The Company’s results of operations for the six-months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or for any other future period.

During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted the economic conditions in the U.S. and globally, accelerating during the first half of March, as federal, state, and local governments reacted to the public health crisis, creating significant uncertainties in the U.S. economy. The Company has not experienced a slow-down in activities, however government restrictions and client-imposed delays are evaluated regularly and this could change. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The Company cannot at this time predict the ultimate impact the pandemic will have on its results of operations, financial position, liquidity, or capital resources but such impact could be material.

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 June 30, 2022, Mr. Correll owns or controls directly and indirectly approximately 65.33% 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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Recently Issued Accounting Standards

6 Months Ended

Jun. 30, 2022

Recently Issued Accounting Standards [Abstract]

Recently Issued Accounting Standards

Note 2 – Recently Issued Accounting Standards

During the six months ended June 30, 2022, there were no additions to or changes in the critical accounting policies disclosed in the 2021 Form 10-K.

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Investments

6 Months Ended

Jun. 30, 2022

Investments [Abstract]

Investments

Note 3 – Investments

Available for Sale Securities – Fixed Maturity Securities

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

Investments in available for sale securities are summarized as follows:

June 30, 2022	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	21,312,711	$	0	$	(726,455	)	$	20,586,256
U.S. special revenue and assessments		7,537,981		985,555		0			8,523,536
All other corporate bonds		92,584,976		322,474		(3,880,699	)		89,026,751
	$	121,435,668	$	1,308,029	$	(4,607,154	)	$	118,136,543

December 31, 2021	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	25,312,358	$	355,623	$	(17,078	)	$	25,650,903
U.S. special revenue and assessments		7,540,867		982,668		0			8,523,535
All other corporate bonds		95,096,738		11,692,705		0			106,789,443
	$	127,949,963	$	13,030,996	$	(17,078	)	$	140,963,881

The amortized cost and estimated market value of debt securities at June 30, 2022, by contractual maturity, is shown below.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Fixed Maturities Available for Sale June 30, 2022	Amortized Cost		Fair Value
Due in one year or less	$	7,501,776	$	7,494,055
Due after one year through five years		44,835,101		44,068,821
Due after five years through ten years		20,027,750		20,942,277
Due after ten years		22,092,801		20,516,755
Fixed maturities with no single maturity date		26,978,240		25,114,635
Total	$	121,435,668	$	118,136,543

The fair value of investments with sustained gross unrealized losses are as follows:

June 30, 2022	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		$	20,586,256		(726,455	)		0		0		20,586,256		$	(726,455	)
All other corporate bonds			74,322,835		(3,880,699	)		0		0		74,322,835			(3,880,699	)
Total fixed maturities		$	94,909,091		(4,607,154	)		0		0		94,909,091		$	(4,607,154	)

December 31, 2021	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		$	4,042,825		(17,078	)		0		0		4,042,825		$	(17,078	)
Total fixed maturities		$	4,042,825		(17,078	)		0		0		4,042,825		$	(17,078	)

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

	Less than 12 months		12 months or longer		Total
As of June 30, 2022
Fixed maturities		47		0		47
As of December 31, 2021
Fixed maturities		3		0		3

Substantially all of the unrealized losses on fixed maturities at June 30, 2022 and December 31, 2021 are attributable to changes in market interest rates and general disruptions in the credit market subsequent to purchase.  The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position.  Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, the Company deems these securities to be temporarily impaired as of  June 30, 2022 and December 31, 2021.

Net Investment Gains (Losses)

The following table presents net investment gains (losses) and the change in net unrealized gains (losses) on investments. 

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
Realized gains:
Sales of fixed maturities	$	314		$	34,236		$	4,683		$	34,236
Sales of equity securities		12,223			3,006,835			397,581			3,019,207
Sales of real estate		113,398			1,247,193			4,571,840			1,383,252
Total realized gains		125,935			4,288,264			4,974,104			4,436,695
Realized losses:
Sales of fixed maturities		(5,210	)		0			(5,210	)		0
Sales of equity securities		(41,616	)		(803	)		(109,636	)		(4,188	)
Other-than-temporary impairments		0			(411,584	)		0			(411,584	)
Total realized losses		(46,826	)		(412,387	)		(114,846	)		(415,772	)
Net realized investment gains (losses)		79,109			3,875,877			4,859,258			4,020,923
Change in fair value of equity securities:
Change in fair value of equity securities held at the end of the period		(790,338	)		195,136			7,364,291			20,375,015
Change in fair value of equity securities		(790,338	)		195,136			7,364,291			20,375,015
Net investment gains (losses)	$	(711,229	)	$	4,071,013		$	12,223,549		$	24,395,938
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income:
Fixed maturities	$	(7,129,016	)	$	2,505,067		$	(16,313,575	)	$	(4,975,001	)
Net increase (decrease)	$	(7,129,016	)	$	2,505,067		$	(16,313,575	)	$	(4,975,001	)

Other-Than-Temporary Impairments

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.

Management regularly reviews its real estate portfolio in comparison to appraisal valuations and current market conditions for indications of other-than-temporary impairments. If a decline in value is judged by Management to be other-than-temporary, a loss is recognized by a charge to other-than-temporary impairment losses in the Condensed Consolidated Statements of Operations.

The Company did not recognize any other-than-temporary impairments during the six-month period ended June 30, 2022. The Company recognized an other-than-temporary impairment on one fixed maturing secuirty during the second quarter of 2021. The other-than-temporary impairment was recognized due to the length of time the investment remained in an unrealized loss position.

Cost Method Investments

The Company held equity investments with an aggregate cost of $14,543,343 at June 30, 2022 and December 31, 2021.  These equity investments were not reported at fair value because it is not practicable to estimate their fair values due to insufficient information being available. Management did not identify any events or changes in circumstances that might have a significant adverse effect on the reported value of those investments.  Based on Management’s evaluation of the expected cash flow of the investments, and the Company’s ability and intent to hold the investments for a reasonable period of time, the Company does not deem an other-than-temporary impairment necessary at June 30, 2022.

Trading Securities

Securities designated as trading securities are reported at fair value, with gains or losses resulting from changes in fair value recognized in net investment income on the Condensed Consolidated Statements of Operations.  Trading securities include exchange-traded equities and exchange-traded options.  Trading securities carried as liabilities are securities sold short. A gain, limited to the price at which the security was sold short, or a loss, potentially unlimited in size, will be recognized upon the termination of the short sale.  The fair value of derivatives included in trading security assets and trading security liabilities as of June 30, 2022 was $0. The fair value of derivatives included in trading security assets and trading security liabilities as of  December 31, 2021 was $0 and $1,116, 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.

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

	Three Months Ended
	June 30,
	2022			2021
Net unrealized gains (losses)	$	0		$	(1,784	)
Net realized gains (losses)		(10,767	)		7,350
Net unrealized and realized gains (losses)	$	(10,767	)	$	5,566

	Six Months Ended
	June 30,
	2022			2021
Net unrealized gains (losses)	$	0		$	950
Net realized gains (losses)		(13,283	)		18,304
Net unrealized and realized gains (losses)	$	(13,283	)	$	19,254

Mortgage Loans

The Company, from time to time, acquires mortgage loans through participation agreements with FSNB.  FSNB has been able to provide the Company with additional expertise and experience in underwriting commercial and residential mortgage loans, which provide more attractive yields than the traditional bond market.  The Company is able to receive participations from FSNB for three primary reasons:  1) FSNB has already reached its maximum lending limit to a single borrower, but the borrower is still considered a suitable risk; 2) the interest rate on a particular loan may be fixed for a long period that is more suitable for UG given its asset-liability structure; and 3) FSNB’s loan growth might at times outpace its deposit growth, resulting in FSNB participating such excess loan growth rather than turning customers away.  For originated loans, the Company’s Management is responsible for the final approval of such loans after evaluation.  Before a new loan is issued, the applicant is subject to certain criteria set forth by Company Management to ensure quality control.  These criteria include, but are not limited to, a credit report, personal financial information such as outstanding debt, sources of income, and personal equity.  Once the loan is approved, the Company directly funds the loan to the borrower.  The Company bears all risk of loss associated with the terms of the mortgage with the borrower.

During the six months ended June 30, 2022 and 2021, the Company acquired $1,560,291 and $747,941 in mortgage loans, respectively.  FSNB services the majority of the Company’s mortgage loan portfolio.  The Company pays FSNB a 0.25% servicing fee on these loans and a one-time fee at loan origination of 0.50% of the original loan cost to cover costs incurred by FSNB relating to the processing and establishment of the loan.

During 2022 and 2021, the maximum and minimum lending rates for mortgage loans were:

	2022						2021
	Maximum rate			Minimum rate			Maximum rate			Minimum rate
Farm Loans		6.00	%		4.50	%		6.00	%		4.50	%
Commercial Loans		6.00	%		4.10	%		5.50	%		4.10	%
Residential Loans		5.00	%		4.15	%		5.00	%		4.15	%

Most mortgage loans are first position loans.  Loans issued are generally limited to no more than 80% of the appraised value of the property.

The Company has in place a monitoring system to provide Management with information regarding potential troubled loans.  Letters are sent to each mortgagee when the loan becomes 30 days or more delinquent.  Management is provided with a monthly listing of loans that are 60 days or more past due along with a brief description of what steps are being taken to resolve the delinquency.  All loans 90 days or more past due are placed on a non-performing status and classified as delinquent loans.  Quarterly, coinciding with external financial reporting, the Company reviews each delinquent loan and determines how each delinquent loan should be classified.  Management believes the current internal controls surrounding the mortgage loan selection process provide a quality portfolio with minimal risk of foreclosure and/or negative financial impact.

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.  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 mortgage loan reserve was $0 at June 30, 2022 and December 31, 2021.

The following table summarizes the mortgage loan holdings of the Company for the periods ended:

	June 30, 2022		December 31, 2021
In good standing	$	27,706,407	$	27,102,789
Overdue interest over 90 days		2,080,773		2,080,773
Total mortgage loans	$	29,787,180	$	29,183,562

Investment Real Estate

Real estate held-for-investment is stated at cost less accumulated depreciation. Depreciation is computed on a straight-line basis for financial reporting purposes using estimated useful lives of 3 to 30 years. The Company periodically reviews its real estate held-for-investment for impairment and tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable. During the six months ended June 30, 2022, no impairments were recognized on the investment real estate.

Note 4 - Fair Value Measurements of the Condensed Consolidated Financial Statements provides further information regarding the fair value of financial instruments that are not measured at fair value. The investment real estate owned by the Company is included in this portion of the Note 4 - Fair Value Measurements disclosure.

The following table provides an allocation of the Company’s investment real estate by type:

	June 30, 2022		December 31, 2021
Raw land	$	12,345,613	$	14,538,507
Commercial		5,229,742		4,347,423
Residential		4,745,295		3,813,936
Land, minerals and royalty interests		15,558,981		17,048,395
Total investment real estate	$	37,879,631	$	39,748,261

The Company’s investment real estate portfolio includes ownership in oil and gas royalties. As of June 30, 2022 and December 31, 2021, investments in oil and gas royalties represented 41% and 43%, respectively, of the total investment real estate portfolio.  See Note 9 – Concentrations of Credit Risk of the Condensed Consolidated Financial Statements for additional information regarding the allocation of the oil and gas investment real estate holdings by industry type.

Gains and losses recognized on the disposition of the properties are recorded as realized gains and losses in the Condensed Consolidated Statements of Operations. During the six months ended  June 30, 2022 and 2021, the Company acquired $3,271,775 and $1,402,593 of investment real estate, respectively.

Notes Receivable

Notes receivable represent collateral loans and promissory notes issued by the Company and are reported at their unpaid principal balances, adjusted for valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. The valuation allowance as of  June 30, 2022 and December 31, 2021 was $0. Interest accruals are analyzed based on the likelihood of repayment.  The Company does not utilize a specified number of days delinquent to cause an automatic non-accrual status. During the six months ended June 30, 2022 and 2021 the Company acquired  $3,910,657 and $6,000,000 of notes receivable, respectively.

Before a new note is issued, the applicant is subject to certain criteria set forth by Company Management to ensure quality control.  Once the note is approved, the Company directly funds the note to the borrower. Several of the notes have participation agreements in place, whereas the Company has reduced its investment in the note receivable by participating a portion of the note to a third party.

Similar to the mortgage loans, FSNB services several of the notes receivable. The Company, and the participants in the notes, share in the risk of loss associated with the terms of the note with the borrower, based upon their ownership percentage in the note.  The Company has in place a monitoring system to provide Management with information regarding potential troubled loans. 

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Fair Value Measurements

6 Months Ended

Jun. 30, 2022

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 4 – Fair Value Measurements

Fair Value Measurements on a Recurring Basis

Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three levels based on the observability of valuation inputs:

Level 1 – Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 – Valuation methodologies include quoted prices for similar assets and liabilities in active markets or quoted prices for identical, quoted prices for identical or similar assets or liabilities in markets that are not active, or 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.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used:

June 30, 2022	Level 1		Level 2		Level 3		Net Asset Value		Total
Financial assets:
Fixed maturities available for sale:
U.S. Government and government agencies and authorities	$	20,586,256	$	0	$	0	$	0	$	20,586,256
U.S. special revenue and assessments		0		8,523,535		0		0		8,523,535
Corporate securities		0		89,026,752		0		0		89,026,752
Total fixed maturities		20,586,256		97,550,287		0		0		118,136,543
Equity securities:
Common stocks		46,878,831		14,251,937		6,114,394		64,969,913		132,215,075
Preferred stocks		0		0		1,247,000		0		1,247,000
Total equity securities		46,878,831		14,251,937		7,361,394		64,969,913		133,462,075
Total financial assets	$	67,465,087	$	111,802,224	$	7,361,394	$	64,969,913	$	251,598,618
Liabilities
Trading securities	$	0	$	0	$	0	$	0	$	0

December 31, 2021	Level 1			Level 2		Level 3		Net Asset Value		Total
Financial assets:
Fixed maturities available for sale:
U.S. Government and government agencies and authorities	$	25,650,903		$	0	$	0	$	0	$	25,650,903
U.S. special revenue and assessments		0			8,523,535		0		0		8,523,535
Corporate securities		0			106,789,443		0		0		106,789,443
Total fixed maturities		25,650,903			115,312,978		0		0		140,963,881
Equity securities:
Common stocks		40,784,660			16,711,180		5,861,486		57,603,597		120,960,923
Preferred stocks		0			21,198		1,247,000		0		1,268,198
Total equity securities		40,784,660			16,732,378		7,108,486		57,603,597		122,229,121
Total financial assets	$	66,435,563		$	132,045,356	$	7,108,486	$	57,603,597	$	263,193,002
Liabilities
Trading securities	$	(1,116	)	$	0	$	0	$	0	$	(1,116	)

The following is a description of the valuation techniques used the by Company to measure assets reported at fair value on a recurring basis. There have been no significant changes in the valuation techniques utilized by the Company for the six months ended June 30, 2022.

Available for Sale Securities

Securities classified as available for sale are recorded at fair value on a recurring basis. Securities classified as Level 1 utilized fair value measurements based upon quoted market prices, when available. If quoted market prices are not available, the Company obtains fair value measurements from recently executed transactions, market price quotations, benchmark yields and issuer spreads to value Level 2 securities. In certain instances where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Fair value determinations for Level 3 measurements are estimated on a quarterly basis where assumptions used are reviewed to ensure the estimated fair value complies with accounting standard generally accepted in the United States.

Equity Securities at Fair Value

Equity securities consist of common stocks mainly in private equity investments, financial institutions and publicly traded corporations. 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 Company uses industry standard pricing methodologies, including discounted cash flow models that may incorporate various inputs such as payment expectations, risk of the investment, market data, and health of the underlying company. The inputs are based upon Management’s assumptions and available market information. When evidence is believed to support a change to the carrying value from the transaction price, adjustments are made to reflect the expected cash flows, material events and market data. These investments are included in Level 3 of the fair value hierarchy.

Equity Securities at Net Asset Value

Certain equity securities carried at fair value, which do not have readily determinable fair values, use net asset value (“NAV”) and are excluded from the fair value hierarchy. These investments are generally not readily redeemable by the investee. See Note 7 – Commitments and Contingencies for additional information regarding unfunded commitments.

Trading Securities

Trading securities are recorded at fair value. They are classified as Level 1 and utilize fair value measurements based upon quoted market prices.

Change in Level 3 Recurring Fair Value Measurements

The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities.

	Equity Securities at Fair Value			Equity Securities at Net Asset Value			Total
Balance at December 31, 2021	$	7,108,486		$	57,603,597		$	64,712,083
Realized gains (losses)		198,125			327,863			525,988
Unrealized gains (losses)		(1,926	)		6,142,178			6,140,252
Purchases		257,834			3,415,980			3,673,814
Sales		(201,125	)		(2,519,705	)		(2,720,830	)
Balance at June 30, 2022	$	7,361,394		$	64,969,913		$	72,331,307

Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at June 30, 2022 and December 31, 2021 may include changes in fair value that were attributable to both observable and unobservable inputs.

Quantitative Information About Level 3 Fair Value Measurements

The following table presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and include only those instruments for which information about the inputs is reasonably available to the Company, such as data from independent third-party valuation service providers and from internal valuation models.

Financial Assets	Fair Value at June 30, 2022		Fair Value at December 31, 2021		Valuation Technique
Equities	$	64,969,913	$	57,603,597	Net Asset Value
Equities		7,361,394		7,108,486	Pricing Model
Total	$	72,331,307	$	64,712,083

Uncertainty of Fair Value Measurements

The significant unobservable inputs used in the determination of the fair value of assets classified as Level 3 have an inherent measurement uncertainty that if changed could result in higher or lower fair value measurements of these assets as of the reporting date.

Equity Securities at Fair Value

Fair market value for equity securities is derived based on unobservable inputs, such as projected normalized revenues and industry standard multiples of revenue for the equity securities valued using pricing model.  Significant increases (decreases) in either of those inputs in isolation would result in a significantly higher (lower) fair value measurement.

Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share

Investment Company	Fair Value at June 30, 2022		Unfunded Commitments		Redemption Frequency		Redemption Notice Period
Common Stocks
Growth Equity
Redeemable	$	33,694,525	$	0	Quarterly		45 days
Non-Redeemable		31,275,388		8,720,678		n/a		n/a
Total	$	64,969,913	$	8,720,678

Investment Company	Fair Value at December 31, 2021		Unfunded Commitments		Redemption Frequency		Redemption Notice Period
Common Stocks
Growth Equity
Redeemable	$	28,546,227	$	0	Quarterly		45 days
Non-Redeemable		29,057,370		5,288,967		n/a		n/a
Total	$	57,603,597	$	5,288,967

Fair Value Measurements on a Nonrecurring Basis

Certain assets are not carried at fair value on a recurring basis. 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 Company did not recognize any re-measurements or impairments of financial instruments at June 30, 2022 or December 31, 2021.

Fair Value Information About Financial Instruments Not Measured at Fair Value

Certain assets are not carried at fair value on a recurring basis. 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 following table presents the carrying amount and estimated fair values of the Company’s financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

	Carrying		Estimated
June 30, 2022	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Common stock, at cost	$	5,860,000		5,860,000		0		0		5,860,000
Preferred stock, at cost		8,683,343		8,683,343		0		0		8,683,343
Mortgage loans on real estate		29,787,180		29,485,963		0		0		29,485,963
Investment real estate		37,879,631		93,789,571		0		0		93,789,571
Notes receivable		17,712,550		17,933,489		0		0		17,933,489
Policy loans		7,322,454		7,322,454		0		0		7,322,454
Liabilities
Notes payable		7,000,000		7,000,000		0		7,000,000		0

	Carrying		Estimated
December 31, 2021	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Common stock, at cost	$	5,860,000		5,860,000		0		0		5,860,000
Preferred stock, at cost		8,683,343		8,683,343		0		0		8,683,343
Mortgage loans on real estate		29,183,562		29,183,562		0		0		29,183,562
Investment real estate		39,748,261		96,463,112		0		0		96,463,112
Notes receivable		17,722,976		17,722,976		0		0		17,722,976
Policy loans		7,390,497		7,390,497		0		0		7,390,497
Liabilities
Notes payable		24,000,000		24,000,000		0		24,000,000		0

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.

A portion of the mortgage loans balance consists of discounted mortgage loans. The Company has historically 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.

The fair values of notes receivable 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 the notes receivable are classified as Level 3 within the fair value hierarchy.

Policy loans are carried at the aggregate unpaid principal balances in the Condensed 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.

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Credit Arrangements

6 Months Ended

Jun. 30, 2022

Credit Arrangements [Abstract]

Credit Arrangements

Note 5 – Credit Arrangements

Instrument	Issue Date	Maturity Date	Revolving Credit Limit		December 31, 2021		Borrowings	Repayments	June 30, 2022
Lines of Credit:
UTG	11/20/2013	11/20/2022	$	8,000,000		0	0	0	$	0
UG - CMA	10/21/2021	10/7/2022		25,000,000		24,000,000	9,500,000	26,500,000		7,000,000
UG - REPO	10/21/2021	10/7/2022		25,000,000		0	0	0		0

The UTG line of credit carries interest at a fixed rate of 3.750% 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.

During October of 2021, the Federal Home Loan Bank approved UG's Cash Management Advance ("CMA"). The CMA gives the Company the option of selecting a variable rate of interest for up to 90 days or a fixed rate for a maximum of 30 days. The variable rate CMA is prepayable at any time without a fee, while the fixed CMA is not prepayable prior to maturity. The Company has pledged bonds with a collateral lendable value of $20,018,737.  During the third quarter of 2022, the Company borrowed an additional $2 million on the CMA and repaid $4 million. The interest rate on the borrowed funds is variable and currently is 2.35%.

The CMA is a source of overnight liquidity utilized to address the day-to-day cash needs of a Company. In order to provide the Company with multiple lending options, Management also applied for, and the FHLB approved, the Company's Repurchase ("REPO") Advance Application for $25 million. The REPO Advance requires a minimum borrowing of $15 million and provides financing for one day to one year at a fixed rate of interest. The Company has enough qualifying investments for collateral pledging of $25 million total against these two borrowing vehicles.

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Shareholders' Equity

6 Months Ended

Jun. 30, 2022

Shareholders' Equity [Abstract]

Shareholders' Equity

Note 6 – Shareholders’ Equity

Stock Repurchase Program – 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 in March of 2022, the Board of Directors of UTG authorized the repurchase of up to an additional $2 million of UTG’s common stock, for a total  repurchase of up to $22 million of UTG’s common stock in the open market or in privately negotiated transactions. Company Management has broad authority to operate the program, including the discretion of whether to purchase shares and the ability to suspend or terminate the program. Open market purchases are made based on the last available market price but may be limited.  During the six months ended June 30, 2022, the Company repurchased 15,389 shares through the stock repurchase program for $413,331. Through June 30, 2022, UTG has spent $19,036,961 in the acquisition of 1,317,294 shares under this program.

During 2022, the Company issued 17,963 shares of stock to management and employees as compensation at a cost of $486,797. These awards are determined at the discretion of the Board of Directors.

Earnings Per Share Calculations

Earnings per share are based on the weighted average number of common shares outstanding during each period.  For the six months ended June 30, 2022 and 2021, diluted earnings per share were the same as basic earnings per share since the Company had no dilutive instruments outstanding.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2022

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.

The following table represents the total funding commitments and the unfunded commitment as of June 30, 2022 related to certain investments:

	Total Funding Commitment		Unfunded Commitment
RLF III, LLC	$	4,000,000	$	398,120
Sovereign’s Capital, LP Fund I		500,000		13,000
Sovereign's Capital, LP Fund II		1,000,000		92,034
Sovereign's Capital, LP Fund III		3,000,000		641,440
Macritchie Storage II, LP		7,000,750		833,358
Garden City Companies, LLC		2,000,000		1,496,507
Carrizo Springs Music, LLC		5,000,000		189,711
Legacy Venture X, LLC		3,000,000		1,740,000
QCC Investment Co., LLC		1,500,000		150,000
Great American Media Group, LLC		4,000,000		3,200,000
Sovereign's Capital Evergreen Fund I, LLC		3,000,000		300,454
PBEX, LLC		2,000,000		1,199,343
Sovereign's Capital Lower Middle Market Fund II, LP		3,000,000		3,087,900
Elisha's Properties, LLC		1,096,750		491,823
Granite Shoals Music, LLC		6,500,000		6,242,166
Legacy Venture XI, LLC		2,000,000		2,000,000

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 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 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.

During 2018, the Company committed to invest in Sovereign’s Capital, LP Fund III (“Sovereign’s III”), which invests in companies in emerging markets. Sovereign’s III makes capital calls to investors as funds are needed.

During 2018, the Company committed to fund a mortgage loan for Macritchie Storage II, LP (“Macritchie”). Macritchie makes draw requests on the loan as funds are needed to fund the construction project.

During 2020, the Company committed to invest in Garden City Companies, LLC (“Garden City”), which invests primarily in companies in the healthcare, inspection/testing services and maintenance service arena. Garden City makes capital calls to investors as funds are needed.

During 2020, the Company committed to invest in Carrizo Springs Music, LLC (“Carrizo”), which invests in music royalties.  Carrizo makes capital calls to its investors as funds are needed to acquire the royalty rights.

During 2020, the Company committed to invest in Legacy Venture X, LLC (“Legacy Venture X”), which is a fund of funds. Legacy Venture X makes capital calls to its investors as funds are needed.

During 2021, the Company committed to invest in QCC Investment Co., LLC (“QCC”). The funds are being utilized to purchase a manufacturing entity. QCC makes capital calls to its investors as funds are needed.

During 2021, the Company committed to fund a collateral loan for Great American Media Group, LLC (“GAM”). GAM makes draw requests on the loan as funds are needed to fund the operating needs of the Company.

During 2021, the Company committed to invest in Sovereign's Capital Evergreen Fund I, LLC ("Evergreen"), which invests in companies in emerging markets. Evergreen makes capital calls to investors as funds are needed.

During 2022, the Company committed to fund a collateral loan for PBEX, LLC (“PBEX"). PBEX makes draw requests on the loan as funds are needed to fund the operating needs of the Company.

During 2022, the Company committed to invest in Sovereign's Capital Lower Middle Market Fund II, LP ("Sovereign's LMM"), which invests in companies in emerging markets. Sovereign's LMM makes capital calls to investors as funds are needed.

During 2022, the Company committed to invest in Elisha's Properties, LLC ("Elisha's"), which investment in real estate properties. Elisha's makes capital calls as funds are needed.

During 2022, the Company committed to invest in Granite Shoals Music, LLC (“Granite”), which invests in music royalties.  Granite makes capital calls to its investors as funds are needed to acquire the royalty rights.

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Other Cash Flow Disclosures

6 Months Ended

Jun. 30, 2022

Other Cash Flow Disclosures [Abstract]

Other Cash Flow Disclosures

Note 8 – Other Cash Flow Disclosures

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

	Three Months Ended
	June 30,
	2022			2021
Interest		$	18,387		$	0
Federal income tax			0			0

	Six Months Ended
	June 30,
	2022			2021
Interest		$	30,196		$	0
Federal income tax			1,000,000			1,202,000

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Concentrations of Credit Risk

6 Months Ended

Jun. 30, 2022

Concentrations of Credit Risk [Abstract]

Concentrations of Credit Risk

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.

Because UTG serves primarily individuals located in four states, the ability of our customers to pay their insurance premiums is impacted by the economic conditions in these areas.  As of June 30, 2022 and 2021, approximately 51% and 52%, respectively, of the Company’s total direct premium was collected from Illinois, Ohio, Texas and West Virginia. Thus, results of operations are heavily dependent upon the strength of these economies.

The Company reinsures that portion of insurance risk which is in excess of its retention limits. Retention limits range up to $125,000 per life.  Life insurance ceded represented 22% and 20% of total life insurance in force at June 30, 2022 and  December 31, 2021, respectively.  Insurance ceded represented 39% and 36% of premium income for the six months ended June 30, 2022 and 2021, respectively. The Company would be liable for the reinsured risks ceded to other companies to the extent that such reinsuring companies are unable to meet their obligations.

The Company owns a variety of investments associated with the oil and gas industry. These investments represent approximately 28% and 22% of the Company’s total invested assets as of June 30, 2022 and December 31, 2021, respectively. The following table provides an allocation of the oil and gas investments by type.

June 30, 2022	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,100,210	$	1,100,210
Equity securities, at fair value		77,008,407		0		77,008,407
Investment real estate		15,558,983		0		15,558,983
Notes receivable		5,800,657		0		5,800,657
Total	$	98,368,047	$	1,100,210	$	99,468,257

December 31, 2021	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,249,040	$	1,249,040
Equity securities, at fair value		60,932,033		0		60,932,033
Investment real estate		16,351,500		0		16,351,500
Notes receivable		5,000,000		0		5,000,000
Total	$	82,283,533	$	1,249,040	$	83,532,573

At June 30, 2022 and December 31, 2021, the Company owned two equity securities that represented approximately 53% of the total investments associated with the oil and gas industry.

The Company’s results of operations and financial condition have in the past been, and may in the future be, adversely affected by the degree of certain industry specific concentrations in the Company’s investment portfolio. The Company has significant exposure to investments associated with the oil and gas industry. Events or developments that have a negative effect on the oil and gas industry may adversely affect the valuation of our investments in this specific industry. The Company’s ability to sell its investments associated with the oil and gas industry may be limited.

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2022

Basis of Presentation [Abstract]

Basis of Presentation

The accompanying Condensed Consolidated Balance Sheet as of June 30, 2022, which has been derived from audited consolidated financial statements, and the unaudited interim Condensed Consolidated Financial Statements include the accounts of UTG, Inc. (the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”).  All significant intercompany accounts and transactions have been eliminated in consolidation.  The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of regulation S-X.  Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements.  The information furnished includes all adjustments and accruals of a normal recurring nature, which in the opinion of Management, are necessary for a fair presentation of the results for the interim periods.  The unaudited Condensed Consolidated Financial Statements included herein and these related notes should be read in conjunction with the Company’s consolidated financial statements, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.  The Company’s results of operations for the six-months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022 or for any other future period.

During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted the economic conditions in the U.S. and globally, accelerating during the first half of March, as federal, state, and local governments reacted to the public health crisis, creating significant uncertainties in the U.S. economy. The Company has not experienced a slow-down in activities, however government restrictions and client-imposed delays are evaluated regularly and this could change. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The Company cannot at this time predict the ultimate impact the pandemic will have on its results of operations, financial position, liquidity, or capital resources but such impact could be material.

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Recently Issued Accounting Standards (Policies)

6 Months Ended

Jun. 30, 2022

Recently Issued Accounting Standards [Abstract]

Recently Issued Accounting Standards

During the six months ended June 30, 2022, there were no additions to or changes in the critical accounting policies disclosed in the 2021 Form 10-K.

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Investments (Tables)

6 Months Ended

Jun. 30, 2022

Investments [Abstract]

Available for Sale Securities

Investments in available for sale securities are summarized as follows:

June 30, 2022	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	21,312,711	$	0	$	(726,455	)	$	20,586,256
U.S. special revenue and assessments		7,537,981		985,555		0			8,523,536
All other corporate bonds		92,584,976		322,474		(3,880,699	)		89,026,751
	$	121,435,668	$	1,308,029	$	(4,607,154	)	$	118,136,543

December 31, 2021	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	25,312,358	$	355,623	$	(17,078	)	$	25,650,903
U.S. special revenue and assessments		7,540,867		982,668		0			8,523,535
All other corporate bonds		95,096,738		11,692,705		0			106,789,443
	$	127,949,963	$	13,030,996	$	(17,078	)	$	140,963,881

Debt Securities by Contractual Maturity

The amortized cost and estimated market value of debt securities at June 30, 2022, by contractual maturity, is shown below.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Fixed Maturities Available for Sale June 30, 2022	Amortized Cost		Fair Value
Due in one year or less	$	7,501,776	$	7,494,055
Due after one year through five years		44,835,101		44,068,821
Due after five years through ten years		20,027,750		20,942,277
Due after ten years		22,092,801		20,516,755
Fixed maturities with no single maturity date		26,978,240		25,114,635
Total	$	121,435,668	$	118,136,543

Fair Value of Investments with Sustained Gross Unrealized Losses

The fair value of investments with sustained gross unrealized losses are as follows:

June 30, 2022	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		$	20,586,256		(726,455	)		0		0		20,586,256		$	(726,455	)
All other corporate bonds			74,322,835		(3,880,699	)		0		0		74,322,835			(3,880,699	)
Total fixed maturities		$	94,909,091		(4,607,154	)		0		0		94,909,091		$	(4,607,154	)

December 31, 2021	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		$	4,042,825		(17,078	)		0		0		4,042,825		$	(17,078	)
Total fixed maturities		$	4,042,825		(17,078	)		0		0		4,042,825		$	(17,078	)

Securities in Continuous Unrealized Loss Position

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

	Less than 12 months		12 months or longer		Total
As of June 30, 2022
Fixed maturities		47		0		47
As of December 31, 2021
Fixed maturities		3		0		3

Net Investment Gains (Losses) and Change in Net Unrealized Gains (Losses) on Investments

The following table presents net investment gains (losses) and the change in net unrealized gains (losses) on investments. 

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2022			2021			2022			2021
Realized gains:
Sales of fixed maturities	$	314		$	34,236		$	4,683		$	34,236
Sales of equity securities		12,223			3,006,835			397,581			3,019,207
Sales of real estate		113,398			1,247,193			4,571,840			1,383,252
Total realized gains		125,935			4,288,264			4,974,104			4,436,695
Realized losses:
Sales of fixed maturities		(5,210	)		0			(5,210	)		0
Sales of equity securities		(41,616	)		(803	)		(109,636	)		(4,188	)
Other-than-temporary impairments		0			(411,584	)		0			(411,584	)
Total realized losses		(46,826	)		(412,387	)		(114,846	)		(415,772	)
Net realized investment gains (losses)		79,109			3,875,877			4,859,258			4,020,923
Change in fair value of equity securities:
Change in fair value of equity securities held at the end of the period		(790,338	)		195,136			7,364,291			20,375,015
Change in fair value of equity securities		(790,338	)		195,136			7,364,291			20,375,015
Net investment gains (losses)	$	(711,229	)	$	4,071,013		$	12,223,549		$	24,395,938
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income:
Fixed maturities	$	(7,129,016	)	$	2,505,067		$	(16,313,575	)	$	(4,975,001	)
Net increase (decrease)	$	(7,129,016	)	$	2,505,067		$	(16,313,575	)	$	(4,975,001	)

Trading Revenue Charged to Investment Income from Trading Securities

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

	Three Months Ended
	June 30,
	2022			2021
Net unrealized gains (losses)	$	0		$	(1,784	)
Net realized gains (losses)		(10,767	)		7,350
Net unrealized and realized gains (losses)	$	(10,767	)	$	5,566

	Six Months Ended
	June 30,
	2022			2021
Net unrealized gains (losses)	$	0		$	950
Net realized gains (losses)		(13,283	)		18,304
Net unrealized and realized gains (losses)	$	(13,283	)	$	19,254

Maximum and Minimum Lending Rates for Mortgage Loan

During 2022 and 2021, the maximum and minimum lending rates for mortgage loans were:

	2022						2021
	Maximum rate			Minimum rate			Maximum rate			Minimum rate
Farm Loans		6.00	%		4.50	%		6.00	%		4.50	%
Commercial Loans		6.00	%		4.10	%		5.50	%		4.10	%
Residential Loans		5.00	%		4.15	%		5.00	%		4.15	%

Mortgage Loan Holdings

The following table summarizes the mortgage loan holdings of the Company for the periods ended:

	June 30, 2022		December 31, 2021
In good standing	$	27,706,407	$	27,102,789
Overdue interest over 90 days		2,080,773		2,080,773
Total mortgage loans	$	29,787,180	$	29,183,562

Investment Real Estate by Type

The following table provides an allocation of the Company’s investment real estate by type:

	June 30, 2022		December 31, 2021
Raw land	$	12,345,613	$	14,538,507
Commercial		5,229,742		4,347,423
Residential		4,745,295		3,813,936
Land, minerals and royalty interests		15,558,981		17,048,395
Total investment real estate	$	37,879,631	$	39,748,261

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Fair Value Measurements [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used:

June 30, 2022	Level 1		Level 2		Level 3		Net Asset Value		Total
Financial assets:
Fixed maturities available for sale:
U.S. Government and government agencies and authorities	$	20,586,256	$	0	$	0	$	0	$	20,586,256
U.S. special revenue and assessments		0		8,523,535		0		0		8,523,535
Corporate securities		0		89,026,752		0		0		89,026,752
Total fixed maturities		20,586,256		97,550,287		0		0		118,136,543
Equity securities:
Common stocks		46,878,831		14,251,937		6,114,394		64,969,913		132,215,075
Preferred stocks		0		0		1,247,000		0		1,247,000
Total equity securities		46,878,831		14,251,937		7,361,394		64,969,913		133,462,075
Total financial assets	$	67,465,087	$	111,802,224	$	7,361,394	$	64,969,913	$	251,598,618
Liabilities
Trading securities	$	0	$	0	$	0	$	0	$	0

December 31, 2021	Level 1			Level 2		Level 3		Net Asset Value		Total
Financial assets:
Fixed maturities available for sale:
U.S. Government and government agencies and authorities	$	25,650,903		$	0	$	0	$	0	$	25,650,903
U.S. special revenue and assessments		0			8,523,535		0		0		8,523,535
Corporate securities		0			106,789,443		0		0		106,789,443
Total fixed maturities		25,650,903			115,312,978		0		0		140,963,881
Equity securities:
Common stocks		40,784,660			16,711,180		5,861,486		57,603,597		120,960,923
Preferred stocks		0			21,198		1,247,000		0		1,268,198
Total equity securities		40,784,660			16,732,378		7,108,486		57,603,597		122,229,121
Total financial assets	$	66,435,563		$	132,045,356	$	7,108,486	$	57,603,597	$	263,193,002
Liabilities
Trading securities	$	(1,116	)	$	0	$	0	$	0	$	(1,116	)

Reconciliation for Level 3 Assets Measured at Fair Value on a Recurring Basis

Change in Level 3 Recurring Fair Value Measurements

The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities.

	Equity Securities at Fair Value			Equity Securities at Net Asset Value			Total
Balance at December 31, 2021	$	7,108,486		$	57,603,597		$	64,712,083
Realized gains (losses)		198,125			327,863			525,988
Unrealized gains (losses)		(1,926	)		6,142,178			6,140,252
Purchases		257,834			3,415,980			3,673,814
Sales		(201,125	)		(2,519,705	)		(2,720,830	)
Balance at June 30, 2022	$	7,361,394		$	64,969,913		$	72,331,307

Quantitative Information About Level 3 Fair Value Measurements

Quantitative Information About Level 3 Fair Value Measurements

The following table presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and include only those instruments for which information about the inputs is reasonably available to the Company, such as data from independent third-party valuation service providers and from internal valuation models.

Financial Assets	Fair Value at June 30, 2022		Fair Value at December 31, 2021		Valuation Technique
Equities	$	64,969,913	$	57,603,597	Net Asset Value
Equities		7,361,394		7,108,486	Pricing Model
Total	$	72,331,307	$	64,712,083

Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share

Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share

Investment Company	Fair Value at June 30, 2022		Unfunded Commitments		Redemption Frequency		Redemption Notice Period
Common Stocks
Growth Equity
Redeemable	$	33,694,525	$	0	Quarterly		45 days
Non-Redeemable		31,275,388		8,720,678		n/a		n/a
Total	$	64,969,913	$	8,720,678

Investment Company	Fair Value at December 31, 2021		Unfunded Commitments		Redemption Frequency		Redemption Notice Period
Common Stocks
Growth Equity
Redeemable	$	28,546,227	$	0	Quarterly		45 days
Non-Redeemable		29,057,370		5,288,967		n/a		n/a
Total	$	57,603,597	$	5,288,967

Carrying Values and Estimated Fair Values of Financial Instruments not Recorded at Fair Value

The following table presents the carrying amount and estimated fair values of the Company’s financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:

	Carrying		Estimated
June 30, 2022	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Common stock, at cost	$	5,860,000		5,860,000		0		0		5,860,000
Preferred stock, at cost		8,683,343		8,683,343		0		0		8,683,343
Mortgage loans on real estate		29,787,180		29,485,963		0		0		29,485,963
Investment real estate		37,879,631		93,789,571		0		0		93,789,571
Notes receivable		17,712,550		17,933,489		0		0		17,933,489
Policy loans		7,322,454		7,322,454		0		0		7,322,454
Liabilities
Notes payable		7,000,000		7,000,000		0		7,000,000		0

	Carrying		Estimated
December 31, 2021	Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Common stock, at cost	$	5,860,000		5,860,000		0		0		5,860,000
Preferred stock, at cost		8,683,343		8,683,343		0		0		8,683,343
Mortgage loans on real estate		29,183,562		29,183,562		0		0		29,183,562
Investment real estate		39,748,261		96,463,112		0		0		96,463,112
Notes receivable		17,722,976		17,722,976		0		0		17,722,976
Policy loans		7,390,497		7,390,497		0		0		7,390,497
Liabilities
Notes payable		24,000,000		24,000,000		0		24,000,000		0

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Credit Arrangements (Tables)

6 Months Ended

Jun. 30, 2022

Credit Arrangements [Abstract]

Credit Arrangements

Instrument	Issue Date	Maturity Date	Revolving Credit Limit		December 31, 2021		Borrowings	Repayments	June 30, 2022
Lines of Credit:
UTG	11/20/2013	11/20/2022	$	8,000,000		0	0	0	$	0
UG - CMA	10/21/2021	10/7/2022		25,000,000		24,000,000	9,500,000	26,500,000		7,000,000
UG - REPO	10/21/2021	10/7/2022		25,000,000		0	0	0		0

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies [Abstract]

Total Funding Commitments and Unfunded Commitment

The following table represents the total funding commitments and the unfunded commitment as of June 30, 2022 related to certain investments:

	Total Funding Commitment		Unfunded Commitment
RLF III, LLC	$	4,000,000	$	398,120
Sovereign’s Capital, LP Fund I		500,000		13,000
Sovereign's Capital, LP Fund II		1,000,000		92,034
Sovereign's Capital, LP Fund III		3,000,000		641,440
Macritchie Storage II, LP		7,000,750		833,358
Garden City Companies, LLC		2,000,000		1,496,507
Carrizo Springs Music, LLC		5,000,000		189,711
Legacy Venture X, LLC		3,000,000		1,740,000
QCC Investment Co., LLC		1,500,000		150,000
Great American Media Group, LLC		4,000,000		3,200,000
Sovereign's Capital Evergreen Fund I, LLC		3,000,000		300,454
PBEX, LLC		2,000,000		1,199,343
Sovereign's Capital Lower Middle Market Fund II, LP		3,000,000		3,087,900
Elisha's Properties, LLC		1,096,750		491,823
Granite Shoals Music, LLC		6,500,000		6,242,166
Legacy Venture XI, LLC		2,000,000		2,000,000

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Other Cash Flow Disclosures (Tables)

6 Months Ended

Jun. 30, 2022

Other Cash Flow Disclosures [Abstract]

Expenses Paid on a Cash Basis

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

	Three Months Ended
	June 30,
	2022			2021
Interest		$	18,387		$	0
Federal income tax			0			0

	Six Months Ended
	June 30,
	2022			2021
Interest		$	30,196		$	0
Federal income tax			1,000,000			1,202,000

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Concentrations of Credit Risk (Tables)

6 Months Ended

Jun. 30, 2022

Concentrations of Credit Risk [Abstract]

Allocation of Oil and Gas Investments by Type

The Company owns a variety of investments associated with the oil and gas industry. These investments represent approximately 28% and 22% of the Company’s total invested assets as of June 30, 2022 and December 31, 2021, respectively. The following table provides an allocation of the oil and gas investments by type.

June 30, 2022	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,100,210	$	1,100,210
Equity securities, at fair value		77,008,407		0		77,008,407
Investment real estate		15,558,983		0		15,558,983
Notes receivable		5,800,657		0		5,800,657
Total	$	98,368,047	$	1,100,210	$	99,468,257

December 31, 2021	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,249,040	$	1,249,040
Equity securities, at fair value		60,932,033		0		60,932,033
Investment real estate		16,351,500		0		16,351,500
Notes receivable		5,000,000		0		5,000,000
Total	$	82,283,533	$	1,249,040	$	83,532,573

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Basis of Presentation (Details)	Jun. 30, 2022
Chief Executive Officer and Chairman of the Board [Member]
Ownership Interest [Abstract]
Ownership interest percentage	65.33%
FSBI [Member] | FSNB [Member]
Ownership Interest [Abstract]
Ownership in subsidiary bank	100.00%

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Investments, Available for Sale Securities (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Fixed maturities [Abstract]
Original or amortized cost	$ 121,435,668	$ 127,949,963
Gross unrealized gains	1,308,029	13,030,996
Gross unrealized losses	(4,607,154)	(17,078)
Fair value	118,136,543	140,963,881	[1]
U.S. Government and Govt. Agencies and Authorities [Member]
Fixed maturities [Abstract]
Original or amortized cost	21,312,711	25,312,358
Gross unrealized gains	0	355,623
Gross unrealized losses	(726,455)	(17,078)
Fair value	20,586,256	25,650,903
U.S. Special Revenue and Assessments [Member]
Fixed maturities [Abstract]
Original or amortized cost	7,537,981	7,540,867
Gross unrealized gains	985,555	982,668
Gross unrealized losses	0	0
Fair value	8,523,536	8,523,535
All Other Corporate Bonds [Member]
Fixed maturities [Abstract]
Original or amortized cost	92,584,976	95,096,738
Gross unrealized gains	322,474	11,692,705
Gross unrealized losses	(3,880,699)	0
Fair value	$ 89,026,751	$ 106,789,443

[1] Balance sheet audited at December 31, 2021.

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Investments, Debt Securities by Contractual Maturity (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Amortized cost [Abstract]
Due in one year or less	$ 7,501,776
Due after one year through five years	44,835,101
Due after five years through ten years	20,027,750
Due after ten years	22,092,801
Fixed maturities with no single maturity date	26,978,240
Original or amortized cost	121,435,668	$ 127,949,963
Fair value [Abstract]
Due in one year or less	7,494,055
Due after one year through five years	44,068,821
Due after five years through ten years	20,942,277
Due after ten years	20,516,755
Fixed maturities with no single maturity date	25,114,635
Fair value	$ 118,136,543	$ 140,963,881	[1]

[1] Balance sheet audited at December 31, 2021.

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Investments, Securities in Continuous Unrealized Loss Position (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Fair Value of Investments with Sustained Gross Unrealized Losses [Abstract]
Less than 12 months, fair value	$ 94,909,091	$ 4,042,825
12 months or longer, fair value	0	0
Total	94,909,091	4,042,825
Less than 12 months, unrealized losses	(4,607,154)	(17,078)
12 months or longer, unrealized losses	0	0
Total	(4,607,154)	(17,078)
U.S. Government and Govt. Agencies and Authorities [Member]
Fair Value of Investments with Sustained Gross Unrealized Losses [Abstract]
Less than 12 months, fair value	20,586,256	4,042,825
12 months or longer, fair value	0	0
Total	20,586,256	4,042,825
Less than 12 months, unrealized losses	(726,455)	(17,078)
12 months or longer, unrealized losses	0	0
Total	(726,455)	$ (17,078)
All Other Corporate Bonds [Member]
Fair Value of Investments with Sustained Gross Unrealized Losses [Abstract]
Less than 12 months, fair value	74,322,835
12 months or longer, fair value	0
Total	74,322,835
Less than 12 months, unrealized losses	(3,880,699)
12 months or longer, unrealized losses	0
Total	$ (3,880,699)

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Investments, Number of Securities in Unrealized Loss Position (Details) - Security	Jun. 30, 2022	Dec. 31, 2021
Fixed Maturities, Number of Securities in Unrealized Loss Position [Abstract]
Less than 12 months, number of securities	47	3
12 months or longer, number of securities	0	0
Total	47	3

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Investments, Net Investment Gains (Losses) and Change in Net Unrealized Gains (Losses) on Investments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Realized gains on available-for-sale investments [Abstract]
Total realized gains	$ 125,935	$ 4,288,264	$ 4,974,104	$ 4,436,695
Realized losses on available-for-sale investments [Abstract]
Other-than-temporary impairments	0	(411,584)	0	(411,584)
Total realized losses	(46,826)	(412,387)	(114,846)	(415,772)
Net realized investment gains (losses)	79,109	3,875,877	4,859,258	4,020,923
Change in fair value of equity securities [Abstract]
Change in fair value of equity securities held at the end of the period	(790,338)	195,136	7,364,291	20,375,015
Change in fair value of equity securities	(790,338)	195,136	7,364,291	20,375,015
Total net investment gains (losses)	(711,229)	4,071,013	12,223,549	24,395,938
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income [Abstract]
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income	(7,129,016)	2,505,067	(16,313,575)	(4,975,001)
Fixed Maturities [Member]
Realized gains on available-for-sale investments [Abstract]
Total realized gains	314	34,236	4,683	34,236
Realized losses on available-for-sale investments [Abstract]
Total realized losses	(5,210)	0	(5,210)	0
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income [Abstract]
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income	(7,129,016)	2,505,067	(16,313,575)	(4,975,001)
Equity Securities [Member]
Realized gains on available-for-sale investments [Abstract]
Total realized gains	12,223	3,006,835	397,581	3,019,207
Realized losses on available-for-sale investments [Abstract]
Total realized losses	(41,616)	(803)	(109,636)	(4,188)
Real Estate [Member]
Realized gains on available-for-sale investments [Abstract]
Total realized gains	$ 113,398	$ 1,247,193	$ 4,571,840	$ 1,383,252

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Investments, Cost Method Investments (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Investments [Abstract]
Equity securities, at cost	$ 14,543,343	$ 14,543,343	[1]

[1] Balance sheet audited at December 31, 2021.

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Investments, Trading Securities (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Trading Securities [Abstract]
Fair value, derivatives included in trading security assets	$ 0		$ 0		$ 0
Fair value, derivative included in trading security liabilities	0		0		$ 1,116
Trading Revenue Charged to Net Investment Income from Trading Securities [Abstract]
Net unrealized gains (losses)	0	$ (1,784)	(0)	$ 950
Net realized gains (losses)	(10,767)	7,350	(13,283)	18,304
Net unrealized and realized gains (losses)	$ (10,767)	$ 5,566	$ (13,283)	$ 19,254

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Investments, Mortgage Loans, Investment Real Estate, Notes Receivable, and Short-Term Investments (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Mortgage Loans [Abstract]
Mortgage loans acquired, including discounted mortgage loans	$ 1,560,291	$ 747,941
Servicing fee on loan	0.25%
Loan origination	0.50%
Loan limit threshold for appraised property value	80.00%
Mortgage loans reserve	$ 0		$ 0
Mortgage loan holdings [Abstract]
Total mortgage loans	29,787,180		29,183,562	[1]
Investment Real Estate [Abstract]
Impairment on investment real estate	0
Total investment real estate	$ 37,879,631		$ 39,748,261	[1]
Oil & Gas Royalties - as a % of total Inv RE	41.00%		43.00%
Investment real estate acquired	$ 3,271,775	1,402,593
Notes Receivable [Abstract]
Valuation allowance	0		$ 0
Notes receivable acquired	$ 3,910,657	$ 6,000,000
Minimum [Member]
Mortgage Loans [Abstract]
Loan delinquent period after which letters are sent to mortgagee	30 days
Loan delinquent period after which monthly listing of loans are provided to management	60 days
Loan delinquent period after which loans are placed on non-performing status and classified as delinquent loans	90 days
Investment Real Estate [Abstract]
Estimated useful life	3 years
Maximum [Member]
Investment Real Estate [Abstract]
Estimated useful life	30 years
Raw Land [Member]
Investment Real Estate [Abstract]
Total investment real estate	$ 12,345,613		14,538,507
Commercial [Member]
Investment Real Estate [Abstract]
Total investment real estate	5,229,742		4,347,423
Residential [Member]
Investment Real Estate [Abstract]
Total investment real estate	4,745,295		3,813,936
Land, Minerals and Royalty Interests [Member]
Investment Real Estate [Abstract]
Total investment real estate	15,558,981		17,048,395
In Good Standing [Member]
Mortgage loan holdings [Abstract]
Total mortgage loans	27,706,407		27,102,789
Overdue Interest over 90 Days [Member]
Mortgage loan holdings [Abstract]
Total mortgage loans	$ 2,080,773		$ 2,080,773
Farm Loans [Member] | Minimum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	4.50%		4.50%
Farm Loans [Member] | Maximum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	6.00%		6.00%
Commercial Loans [Member] | Minimum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	4.10%		4.10%
Commercial Loans [Member] | Maximum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	6.00%		5.50%
Residential Loans [Member] | Minimum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	4.15%		4.15%
Residential Loans [Member] | Maximum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	5.00%		5.00%

[1] Balance sheet audited at December 31, 2021.

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Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Assets [Abstract]
Fixed maturities available for sale	$ 118,136,543	$ 140,963,881	[1]
Equity securities	133,462,075	122,229,121	[1]
Liabilities [Abstract]
Trading Securities	0	(1,116)
U.S. Government and Government Agencies and Authorities [Member]
Assets [Abstract]
Fixed maturities available for sale	20,586,256	25,650,903
Net Asset Value [Member]
Assets [Abstract]
Equity securities	64,969,913	57,603,597
Measured on a Recurring Basis [Member]
Assets [Abstract]
Fixed maturities available for sale	118,136,543	140,963,881
Equity securities	133,462,075	122,229,121
Total financial assets	251,598,618	263,193,002
Liabilities [Abstract]
Trading Securities	0	(1,116)
Measured on a Recurring Basis [Member] | U.S. Government and Government Agencies and Authorities [Member]
Assets [Abstract]
Fixed maturities available for sale	20,586,256	25,650,903
Measured on a Recurring Basis [Member] | U.S. Special Revenue and Assessments [Member]
Assets [Abstract]
Fixed maturities available for sale	8,523,535	8,523,535
Measured on a Recurring Basis [Member] | Corporate Securities [Member]
Assets [Abstract]
Fixed maturities available for sale	89,026,752	106,789,443
Measured on a Recurring Basis [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities	132,215,075	120,960,923
Measured on a Recurring Basis [Member] | Preferred Stock [Member]
Assets [Abstract]
Equity securities	1,247,000	1,268,198
Measured on a Recurring Basis [Member] | Net Asset Value [Member]
Assets [Abstract]
Fixed maturities available for sale	0	0
Equity securities	64,969,913	57,603,597
Total financial assets	64,969,913	57,603,597
Liabilities [Abstract]
Trading Securities	0	0
Measured on a Recurring Basis [Member] | Net Asset Value [Member] | U.S. Government and Government Agencies and Authorities [Member]
Assets [Abstract]
Fixed maturities available for sale	0	0
Measured on a Recurring Basis [Member] | Net Asset Value [Member] | U.S. Special Revenue and Assessments [Member]
Assets [Abstract]
Fixed maturities available for sale	0	0
Measured on a Recurring Basis [Member] | Net Asset Value [Member] | Corporate Securities [Member]
Assets [Abstract]
Fixed maturities available for sale	0	0
Measured on a Recurring Basis [Member] | Net Asset Value [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities	64,969,913	57,603,597
Measured on a Recurring Basis [Member] | Net Asset Value [Member] | Preferred Stock [Member]
Assets [Abstract]
Equity securities	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member]
Assets [Abstract]
Fixed maturities available for sale	20,586,256	25,650,903
Equity securities	46,878,831	40,784,660
Total financial assets	67,465,087	66,435,563
Liabilities [Abstract]
Trading Securities	0	(1,116)
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | U.S. Government and Government Agencies and Authorities [Member]
Assets [Abstract]
Fixed maturities available for sale	20,586,256	25,650,903
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | U.S. Special Revenue and Assessments [Member]
Assets [Abstract]
Fixed maturities available for sale	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Corporate Securities [Member]
Assets [Abstract]
Fixed maturities available for sale	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities	46,878,831	40,784,660
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Preferred Stock [Member]
Assets [Abstract]
Equity securities	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member]
Assets [Abstract]
Fixed maturities available for sale	97,550,287	115,312,978
Equity securities	14,251,937	16,732,378
Total financial assets	111,802,224	132,045,356
Liabilities [Abstract]
Trading Securities	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | U.S. Government and Government Agencies and Authorities [Member]
Assets [Abstract]
Fixed maturities available for sale	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | U.S. Special Revenue and Assessments [Member]
Assets [Abstract]
Fixed maturities available for sale	8,523,535	8,523,535
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Corporate Securities [Member]
Assets [Abstract]
Fixed maturities available for sale	89,026,752	106,789,443
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities	14,251,937	16,711,180
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Preferred Stock [Member]
Assets [Abstract]
Equity securities	0	21,198
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member]
Assets [Abstract]
Fixed maturities available for sale	0	0
Equity securities	7,361,394	7,108,486
Total financial assets	7,361,394	7,108,486
Liabilities [Abstract]
Trading Securities	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | U.S. Government and Government Agencies and Authorities [Member]
Assets [Abstract]
Fixed maturities available for sale	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | U.S. Special Revenue and Assessments [Member]
Assets [Abstract]
Fixed maturities available for sale	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Corporate Securities [Member]
Assets [Abstract]
Fixed maturities available for sale	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities	6,114,394	5,861,486
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Preferred Stock [Member]
Assets [Abstract]
Equity securities	$ 1,247,000	$ 1,247,000

[1] Balance sheet audited at December 31, 2021.

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Fair Value Measurements, Reconciliation for Level 3 Assets Measured at Fair Value on a Recurring Basis (Details)	6 Months Ended
	Jun. 30, 2022 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 64,712,083
Total unrealized gain or (losses) [Abstract]
Realized gains (losses)	525,988
Unrealized gains (losses)	6,140,252
Purchases	3,673,814
Sales	(2,720,830)
Ending Balance	72,331,307
Beginning Balance	64,712,083
Purchases
Ending Balance	72,331,307
Equity Securities [Member]
Total unrealized gain or (losses) [Abstract]
Beginning Balance	7,108,486
Purchases
Realized gains (losses)	198,125
Unrealized gains (losses)	(1,926)
Purchases	257,834
Sales	(201,125)
Ending Balance	7,361,394
Equity Securities at Net Asset Value [Member]
Total unrealized gain or (losses) [Abstract]
Beginning Balance	57,603,597
Purchases
Realized gains (losses)	327,863
Unrealized gains (losses)	6,142,178
Purchases	3,415,980
Sales	(2,519,705)
Ending Balance	$ 64,969,913

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Fair Value Measurements, Quantitative Information About Level 3 and Investments in Certain Entities Carried at Fair Value (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2022	Dec. 31, 2021
Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract]
Financial assets, fair value	$ 72,331,307	$ 64,712,083
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract]
Equity securities	133,462,075	122,229,121	[1]
Unfunded commitments	8,720,678	5,288,967
Growth Equity Redeemable [Member]
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract]
Unfunded commitments	$ 0	$ 0
Redemption frequency	Quarterly
Redemption notice period	45 days	45 days
Growth Equity Non-Redeemable [Member]
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract]
Unfunded commitments	$ 8,720,678	$ 5,288,967
Net Asset Value [Member]
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract]
Equity securities	64,969,913	57,603,597
Net Asset Value [Member] | Growth Equity Redeemable [Member]
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract]
Equity securities	33,694,525	28,546,227
Net Asset Value [Member] | Growth Equity Non-Redeemable [Member]
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract]
Equity securities	31,275,388	29,057,370
Net Asset Value [Member] | Common Stock [Member]
Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract]
Financial assets, fair value	64,969,913	57,603,597
Pricing Model [Member] | Common Stock [Member]
Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract]
Financial assets, fair value	$ 7,361,394	$ 7,108,486

[1] Balance sheet audited at December 31, 2021.

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Fair Value Measurements, Carrying Values and Estimated Fair Values of Financial Instruments not Recorded at Fair Value (Details) - USD ($)	Jun. 30, 2022	Dec. 31, 2021
Carrying Amount [Member]
Assets [Abstract]
Mortgage loans on real estate	$ 29,787,180	$ 29,183,562
Investment real estate	37,879,631	39,748,261
Notes receivable	17,712,550	17,722,976
Policy loans	7,322,454	7,390,497
Liabilities [Abstract]
Notes Payable	7,000,000	24,000,000
Carrying Amount [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities, at cost	5,860,000	5,860,000
Carrying Amount [Member] | Preferred Stock [Member]
Assets [Abstract]
Equity securities, at cost	8,683,343	8,683,343
Estimated Fair Value [Member]
Assets [Abstract]
Mortgage loans on real estate	29,485,963	29,183,562
Investment real estate	93,789,571	96,463,112
Notes receivable	17,933,489	17,722,976
Policy loans	7,322,454	7,390,497
Liabilities [Abstract]
Notes Payable	7,000,000	24,000,000
Estimated Fair Value [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities, at cost	5,860,000	5,860,000
Estimated Fair Value [Member] | Preferred Stock [Member]
Assets [Abstract]
Equity securities, at cost	8,683,343	8,683,343
Equity securities, at cost	$ 14,543,343	14,543,343	[1]
Minimum [Member]
Liabilities [Abstract]
Policy loan interest rate	4.00%
Maximum [Member]
Liabilities [Abstract]
Policy loan interest rate	8.00%
Level 1 [Member]
Assets [Abstract]
Mortgage loans on real estate	$ 0	0
Investment real estate	0	0
Notes receivable	0	0
Policy loans	0	0
Liabilities [Abstract]
Notes Payable	0	0
Level 2 [Member]
Assets [Abstract]
Mortgage loans on real estate	0	0
Investment real estate	0	0
Notes receivable	0	0
Policy loans	0	0
Liabilities [Abstract]
Notes Payable	7,000,000	24,000,000
Level 3 [Member]
Assets [Abstract]
Mortgage loans on real estate	29,485,963	29,183,562
Investment real estate	93,789,571	96,463,112
Notes receivable	17,933,489	17,722,976
Policy loans	7,322,454	7,390,497
Liabilities [Abstract]
Notes Payable	0	0
Common Stock [Member] | Level 1 [Member]
Assets [Abstract]
Equity securities, at cost	0	0
Common Stock [Member] | Level 2 [Member]
Assets [Abstract]
Equity securities, at cost	0	0
Common Stock [Member] | Level 3 [Member]
Assets [Abstract]
Equity securities, at cost	5,860,000	5,860,000
Preferred Stock [Member] | Level 1 [Member]
Assets [Abstract]
Equity securities, at cost	0	0
Preferred Stock [Member] | Level 2 [Member]
Assets [Abstract]
Equity securities, at cost	0	0
Preferred Stock [Member] | Level 3 [Member]
Assets [Abstract]
Equity securities, at cost	$ 8,683,343	$ 8,683,343

[1] Balance sheet audited at December 31, 2021.

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Credit Arrangements (Details)	1 Months Ended	3 Months Ended	6 Months Ended
	Oct. 31, 2021 USD ($) Vehicle	Sep. 30, 2022 USD ($)	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)
Line of Credit Facility [Abstract]
Number of borrowing vehicles | Vehicle	2
UTG 2013-11-20 [Member]
Line of Credit Facility [Abstract]
Issue Date			Nov. 20, 2013
Maturity Date			Nov. 20, 2022
Revolving Credit Limit			$ 8,000,000
Outstanding Balance			0	$ 0
Borrowings			0
Repayments			$ 0
Interest Rate			3.75%
Frequency of payments			monthly
Assets Pledged			common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company.
UTG 2013-11-20 [Member] | UG [Member]
Line of Credit Facility [Abstract]
Percentage of common voting stock pledged			100.00%
Cash Management Advance [Member]
Line of Credit Facility [Abstract]
Revolving Credit Limit	$ 25,000,000
Cash Management Advance [Member] | Subsequent Event [Member]
Line of Credit Facility [Abstract]
Borrowings		$ 2,000,000
Repayments		$ 4,000,000
Cash Management Advance [Member] | Variable Rate [Member] | Maximum [Member]
Line of Credit Facility [Abstract]
Period of interest under CMA			90 days
Cash Management Advance [Member] | Variable Rate [Member] | Subsequent Event [Member]
Line of Credit Facility [Abstract]
Interest Rate		2.35%
Cash Management Advance [Member] | Fixed Rate [Member] | Maximum [Member]
Line of Credit Facility [Abstract]
Period of interest under CMA			30 days
Cash Management Advance [Member] | UG [Member]
Line of Credit Facility [Abstract]
Issue Date			Oct. 21, 2021
Maturity Date			Oct. 07, 2022
Revolving Credit Limit			$ 25,000,000
Outstanding Balance			7,000,000	24,000,000
Borrowings			9,500,000
Repayments			26,500,000
Cash Management Advance [Member] | Asset Pledged as Collateral [Member]
Line of Credit Facility [Abstract]
Pledged bonds			$ 20,018,737
Repurchase ("REPO") Advance [Member]
Line of Credit Facility [Abstract]
Revolving Credit Limit	25,000,000
Repurchase ("REPO") Advance [Member] | Minimum [Member]
Line of Credit Facility [Abstract]
Required borrowings to provide financing	$ 15,000,000
Repurchase ("REPO") Advance [Member] | Fixed Rate [Member] | Minimum [Member]
Line of Credit Facility [Abstract]
Period of interest under CMA	1 day
Repurchase ("REPO") Advance [Member] | Fixed Rate [Member] | Maximum [Member]
Line of Credit Facility [Abstract]
Period of interest under CMA	1 year
Repurchase ("REPO") Advance [Member] | UG [Member]
Line of Credit Facility [Abstract]
Issue Date			Oct. 21, 2021
Maturity Date			Oct. 07, 2022
Revolving Credit Limit			$ 25,000,000
Outstanding Balance			0	$ 0
Borrowings			0
Repayments			$ 0

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Shareholders' Equity (Details) - USD ($)	1 Months Ended	6 Months Ended
	Mar. 31, 2022	Jun. 30, 2022	Jun. 30, 2021
Stock Repurchase Program [Abstract]
Stock repurchase program, additional amount authorized	$ 2,000,000
Stock repurchase program authorized amount		$ 22,000,000
Stock repurchased during period (in shares)		15,389
Amount paid to repurchase shares during the year		$ 413,331	$ 238,971
Amount of common stock repurchased		$ 19,036,961
Number of common stock acquired (in shares)		1,317,294
Number of shares issued (in shares)		17,963
Cost of shares issued		$ 486,797
Earnings Per Share Calculations [Abstract]
Dilutive instruments outstanding (in shares)		0	0

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Commitments and Contingencies (Details)	Jun. 30, 2022 USD ($)
RLF III, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	$ 4,000,000
Unfunded Commitment	398,120
Sovereign's Capital, LP Fund I [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	500,000
Unfunded Commitment	13,000
Sovereign's Capital, LP Fund II [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	1,000,000
Unfunded Commitment	92,034
Sovereign's Capital, LP Fund III [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	3,000,000
Unfunded Commitment	641,440
Macritchie Storage II, LP [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	7,000,750
Unfunded Commitment	833,358
Garden City Companies, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	2,000,000
Unfunded Commitment	1,496,507
Carrizo Springs Music, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	5,000,000
Unfunded Commitment	189,711
Legacy Venture X, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	3,000,000
Unfunded Commitment	1,740,000
Legacy Venture XI, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	2,000,000
Unfunded Commitment	2,000,000
QCC Investment Co., LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	1,500,000
Unfunded Commitment	150,000
Great American Media Group, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	4,000,000
Unfunded Commitment	3,200,000
Sovereign's Capital Evergreen Fund I, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	3,000,000
Unfunded Commitment	300,454
PBEX, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	2,000,000
Unfunded Commitment	1,199,343
Sovereign's Capital Lower Middle Market Fund II, LP [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	3,000,000
Unfunded Commitment	3,087,900
Elisha's Properties, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	1,096,750
Unfunded Commitment	491,823
Granite Shoals Music, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	6,500,000
Unfunded Commitment	$ 6,242,166

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Other Cash Flow Disclosures (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Other Cash Flow Disclosures [Abstract]
Interest	$ 18,387	$ 0	$ 30,196	$ 0
Federal income tax	$ 0	$ 0	$ 1,000,000	$ 1,202,000

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Concentrations of Credit Risk (Details)	6 Months Ended		12 Months Ended
	Jun. 30, 2022 USD ($) Security State	Jun. 30, 2021	Dec. 31, 2021 USD ($) Security
Concentrations [Abstract]
Number of states by which entity primarily serves | State	4
Maximum retention limits per life	$ 125,000
Allocation of Oil and Gas Investments [Abstract]
Fixed maturities available for sale	118,136,543		$ 140,963,881	[1]
Equity securities, at fair value	133,462,075		122,229,121	[1]
Investment real estate	37,879,631		39,748,261	[1]
Notes receivable	17,712,550		17,722,976	[1]
Total investments	$ 358,843,776		$ 371,781,641	[1]
Equity Securities [Member]
Concentrations [Abstract]
Number of equity securities owned | Security	2		2
Oil and Gas Industry [Member]
Allocation of Oil and Gas Investments [Abstract]
Fixed maturities available for sale	$ 1,100,210		$ 1,249,040
Equity securities, at fair value	77,008,407		60,932,033
Investment real estate	15,558,983		16,351,500
Notes receivable	5,800,657		5,000,000
Total investments	99,468,257		83,532,573
Oil and Gas Industry [Member] | Land, Minerals & Royalty Interests [Member]
Allocation of Oil and Gas Investments [Abstract]
Fixed maturities available for sale	0		0
Equity securities, at fair value	77,008,407		60,932,033
Investment real estate	15,558,983		16,351,500
Notes receivable	5,800,657		5,000,000
Total investments	98,368,047		82,283,533
Oil and Gas Industry [Member] | Exploration [Member]
Allocation of Oil and Gas Investments [Abstract]
Fixed maturities available for sale	1,100,210		1,249,040
Equity securities, at fair value	0		0
Investment real estate	0		0
Notes receivable	0		0
Total investments	$ 1,100,210		$ 1,249,040
Reinsurer Concentration Risk [Member] | Life Insurance Ceded [Member]
Concentrations [Abstract]
Percentage of gross insurance in force	22.00%		20.00%
Percentage of premium income	39.00%	36.00%
Direct Premium Collected [Member] | Geographic Concentration Risk [Member] | Illinois, Ohio, Texas and West Virginia [Member]
Concentrations [Abstract]
Concentration risk, percentage	51.00%	52.00%
Invested Assets [Member] | Customer Concentration Risk [Member] | Oil and Gas Industry [Member]
Concentrations [Abstract]
Concentration risk, percentage	28.00%		22.00%
Invested Assets [Member] | Customer Concentration Risk [Member] | Oil and Gas Industry [Member] | Equity Securities [Member]
Concentrations [Abstract]
Concentration risk, percentage	53.00%		53.00%

[1] Balance sheet audited at December 31, 2021.