QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Exact name of registrant as specified in its charter) |
||
(State or other jurisdiction of |
(I.R.S. Employer |
|
incorporation or organization) |
Identification No.) |
|
(Address of principal executive offices) (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: |
|
Title of each class |
Name of each exchange on which registered |
None |
None |
Large accelerated filer □ |
Accelerated filer □ |
Smaller reporting company |
|
Emerging growth company |
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 |
9 |
Notes to Condensed Consolidated Financial Statements |
10 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
25 |
Item 4. Controls and Procedures |
33 |
Part II. Other Information |
33 |
Item 1. Legal Proceedings |
33 |
Item 1A. Risk Factors |
33 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
33 |
Item 3. Defaults Upon Senior Securities |
33 |
Item 4. Mine Safety Disclosures |
33 |
Item 5. Other Information |
33 |
Item 6. Exhibits |
33 |
Signatures |
34 |
September 30, 2023 |
December 31, 2022* |
|||||||
ASSETS |
||||||||
Investments: |
||||||||
Investments, available for sale: |
||||||||
Fixed maturities, at fair value (amortized cost $ |
$ |
$ |
||||||
Equity securities, at fair value (cost $ |
||||||||
Equity securities, at cost |
||||||||
Mortgage loans on real estate at amortized cost |
||||||||
Investment real estate |
||||||||
Notes receivable |
||||||||
Policy loans |
||||||||
Short-term investments |
||||||||
Total investments |
||||||||
Cash and cash equivalents |
||||||||
Accrued investment income |
||||||||
Reinsurance receivables: |
||||||||
Future policy benefits |
||||||||
Policy claims and other benefits |
||||||||
Cost of insurance acquired |
||||||||
Income tax receivable |
||||||||
Other assets |
||||||||
Total assets |
$ |
$ |
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Liabilities: |
||||||||
Policy liabilities and accruals: |
||||||||
Future policyholder benefits |
$ |
$ |
||||||
Policy claims and benefits payable |
||||||||
Other policyholder funds |
||||||||
Dividend and endowment accumulations |
||||||||
Income taxes payable |
||||||||
Deferred income taxes |
||||||||
Notes payable |
||||||||
Other liabilities |
||||||||
Total liabilities |
||||||||
Shareholders' equity: |
||||||||
Common stock - |
||||||||
Additional paid-in capital |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive income (loss) |
( |
) |
( |
) |
||||
Total UTG shareholders' equity |
||||||||
Noncontrolling interests |
||||||||
Total shareholders' equity |
||||||||
Total liabilities and shareholders' equity |
$ |
$ |
||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Revenue: |
||||||||||||||||
Premiums and policy fees |
$ |
$ |
$ |
$ |
||||||||||||
Ceded reinsurance premiums and policy fees |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net investment income |
||||||||||||||||
Other income |
||||||||||||||||
Revenue before net investment gains (losses) |
||||||||||||||||
Net investment gains (losses): |
||||||||||||||||
Other realized investment gains, net |
||||||||||||||||
Change in fair value of equity securities |
( |
) |
( |
) |
||||||||||||
Total net investment gains (losses) |
||||||||||||||||
Total revenue |
||||||||||||||||
Benefits and other expenses: |
||||||||||||||||
Benefits, claims and settlement expenses: |
||||||||||||||||
Life |
||||||||||||||||
Ceded reinsurance benefits and claims |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Annuity |
||||||||||||||||
Dividends to policyholders |
||||||||||||||||
Commissions and amortization of deferred policy acquisition costs |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Amortization of cost of insurance acquired |
||||||||||||||||
Operating expenses |
||||||||||||||||
Interest expense |
||||||||||||||||
Total benefits and other expenses |
||||||||||||||||
Income (loss) before income taxes |
( |
) |
||||||||||||||
Income tax expense (benefit) |
( |
) |
||||||||||||||
Net income (loss) |
( |
) |
||||||||||||||
Net income attributable to noncontrolling interests |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net income (loss) attributable to common shareholders |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
Amounts attributable to common shareholders |
||||||||||||||||
Basic income (loss) per share |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
Diluted income (loss) per share |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
Basic weighted average shares outstanding |
||||||||||||||||
Diluted weighted average shares outstanding |
||||||||||||||||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Net income (loss) |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
Other comprehensive income (loss): |
||||||||||||||||
Unrealized holding gains (losses) arising during period, pre-tax |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Tax (expense) benefit on unrealized holding gains (losses) arising during the period |
||||||||||||||||
Unrealized holding gains (losses) arising during period, net of tax |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Less reclassification adjustment for (gains) losses included in net income |
( |
) |
( |
) |
||||||||||||
Tax expense (benefit) for gains included in net income (loss) |
( |
) |
||||||||||||||
Reclassification adjustment for (gains) losses included in net income, net of tax |
( |
) |
( |
) |
||||||||||||
Subtotal: Other comprehensive income (loss), net of tax |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Comprehensive income (loss) |
( |
) |
( |
) |
||||||||||||
Less comprehensive income attributable to noncontrolling interests |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Comprehensive income (loss) attributable to UTG, Inc. |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
||||||||
Three Months Ended September 30, 2023 |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Noncontrolling Interest |
Total Shareholders’ Equity |
||||||||||||||||||
Balance at June 30, 2023 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Common stock issued during year |
||||||||||||||||||||||||
Treasury shares acquired |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Net income (loss) attributable to common shareholders |
||||||||||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes |
( |
) |
( |
) |
||||||||||||||||||||
Contributions |
||||||||||||||||||||||||
Distributions |
||||||||||||||||||||||||
Gain attributable to noncontrolling interest |
||||||||||||||||||||||||
Balance at September 30, 2023 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Nine Months Ended September 30, 2023 |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Noncontrolling Interest |
Total Shareholders’ Equity |
||||||||||||||||||
Balance at December 31, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Adoption of new accounting standard |
( |
) |
( |
) |
||||||||||||||||||||
( |
) |
|||||||||||||||||||||||
Common stock issued during year |
||||||||||||||||||||||||
Treasury shares acquired |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Net income (loss) attributable to common shareholders |
( |
) |
( |
) |
||||||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes |
( |
) |
( |
) |
||||||||||||||||||||
Contributions |
||||||||||||||||||||||||
Distributions |
||||||||||||||||||||||||
Gain attributable to noncontrolling interest |
||||||||||||||||||||||||
Balance at September 30, 2023 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Three Months Ended September 30, 2022 |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Noncontrolling Interest |
Total Shareholders’ Equity |
||||||||||||||||||
Balance at June 30, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Common stock issued during year |
||||||||||||||||||||||||
Treasury shares acquired |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Net income attributable to common shareholders |
||||||||||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes |
( |
) |
( |
) |
||||||||||||||||||||
Contributions |
||||||||||||||||||||||||
Distributions |
( |
) |
( |
) |
||||||||||||||||||||
Gain attributable to noncontrolling interest |
||||||||||||||||||||||||
Balance at September 30, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Nine Months Ended September 30, 2022 |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Noncontrolling Interest |
Total Shareholders’ Equity |
||||||||||||||||||
Balance at December 31, 2021 |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Common stock issued during year |
||||||||||||||||||||||||
Treasury shares acquired |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Net income attributable to common shareholders |
||||||||||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes |
( |
) |
( |
) |
||||||||||||||||||||
Contributions |
||||||||||||||||||||||||
Distributions |
||||||||||||||||||||||||
Gain attributable to noncontrolling interest |
||||||||||||||||||||||||
Balance at September 30, 2022 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Nine Months Ended |
||||||||
September 30, |
September 30, |
|||||||
2023 |
2022 |
|||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ |
( |
) |
$ |
||||
Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
Amortization (accretion) of investments |
( |
) |
||||||
Realized investment gains, net |
( |
) |
( |
) |
||||
Change in fair value of equity securities |
( |
) |
||||||
Realized trading losses included in income |
||||||||
Amortization of cost of insurance acquired |
||||||||
Depreciation and depletion |
||||||||
Stock-based compensation |
||||||||
Charges for mortality and administration of universal life and annuity products |
( |
) |
( |
) |
||||
Interest credited to account balances |
||||||||
Change in accrued investment income |
||||||||
Change in reinsurance receivables |
||||||||
Change in policy liabilities and accruals |
( |
) |
( |
) |
||||
Change in income taxes receivable (payable) |
( |
) |
||||||
Change in other assets and liabilities, net |
||||||||
Net cash used in operating activities |
( |
) |
( |
) |
||||
Cash flows from investing activities: |
||||||||
Proceeds from investments sold and matured: |
||||||||
Fixed maturities available for sale |
||||||||
Equity securities |
||||||||
Trading securities |
||||||||
Mortgage loans |
||||||||
Real estate |
||||||||
Notes receivable |
||||||||
Policy loans |
||||||||
Short-term investments |
||||||||
Total proceeds from investments sold and matured |
||||||||
Cost of investments acquired: |
||||||||
Fixed maturities available for sale |
( |
) |
||||||
Equity securities |
( |
) |
( |
) |
||||
Trading securities |
( |
) |
||||||
Mortgage loans |
( |
) |
( |
) |
||||
Real estate |
( |
) |
( |
) |
||||
Notes receivable |
( |
) |
( |
) |
||||
Policy loans |
( |
) |
( |
) |
||||
Short-term investments |
( |
) |
||||||
Total cost of investments acquired |
( |
) |
( |
) |
||||
Net cash provided by investing activities |
||||||||
Cash flows from financing activities: |
||||||||
Policyholder contract deposits |
||||||||
Policyholder contract withdrawals |
( |
) |
( |
) |
||||
Proceeds from notes payable/line of credit |
||||||||
Payments of principal on notes payable/line of credit |
( |
) |
( |
) |
||||
Purchase of treasury stock |
( |
) |
( |
) |
||||
Non controlling contributions (distributions) of consolidated subsidiary |
||||||||
Net cash used in financing activities |
( |
) |
( |
) |
||||
Net decrease in cash and cash equivalents |
( |
) |
( |
) |
||||
Cash and cash equivalents at beginning of period |
||||||||
Cash and cash equivalents at end of period |
$ |
$ |
||||||
September 30, 2023 |
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 |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
U.S. special revenue and assessments |
( |
) |
||||||||||||||
All other corporate bonds |
( |
) |
||||||||||||||
$ |
$ |
$ |
( |
) |
$ |
|||||||||||
December 31, 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 |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
U.S. special revenue and assessments |
( |
) |
||||||||||||||
All other corporate bonds |
( |
) |
||||||||||||||
$ |
$ |
$ |
( |
) |
$ |
|||||||||||
Fixed Maturities Available for Sale September 30, 2023 |
Amortized Cost |
Fair Value |
||||||
Due in one year or less |
$ |
$ |
||||||
Due after one year through five years |
||||||||
Due after five years through ten years |
||||||||
Due after ten years |
||||||||
Fixed maturities with no single maturity date |
||||||||
Total |
$ |
$ |
||||||
September 30, 2023 |
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 |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
|||||||||||||||
U.S. Special Revenue and Assessments |
( |
) |
( |
) |
||||||||||||||||||||
All other corporate bonds |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Total fixed maturities |
$ |
( |
) |
( |
) |
$ |
( |
) |
||||||||||||||||
December 31, 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 |
$ |
( |
) |
$ |
$ |
( |
) |
|||||||||||||||||
U.S. special revenue and assessments |
( |
) |
( |
) |
||||||||||||||||||||
All other corporate bonds |
( |
) |
( |
) |
||||||||||||||||||||
Total fixed maturities |
$ |
( |
) |
$ |
$ |
( |
) |
|||||||||||||||||
Less than 12 months |
12 months or longer |
Total |
||||||||||
As of September 30, 2023 |
||||||||||||
Fixed maturities |
||||||||||||
As of December 31, 2022 |
||||||||||||
Fixed maturities |
||||||||||||
September 30, 2023 |
December 31, 2022 |
|||||||
Unrealized appreciation (depreciation) on available-for-sale securities |
$ |
( |
) |
$ |
( |
) |
||
Deferred income taxes |
||||||||
Net unrealized appreciation (depreciation) on available-for-sale securities |
$ |
( |
) |
$ |
( |
) |
||
Three Months Ended |
Nine Months Ended |
|||||||||||||||
September 30, |
September 30, |
|||||||||||||||
2023 |
2022 |
2023 |
2022 |
|||||||||||||
Realized gains: |
||||||||||||||||
Sales of fixed maturities |
$ |
$ |
$ |
$ |
||||||||||||
Sales of equity securities |
||||||||||||||||
Sales of real estate |
||||||||||||||||
Sales of short-term investments |
||||||||||||||||
Total realized gains |
||||||||||||||||
Realized losses: |
||||||||||||||||
Sales of fixed maturities |
( |
) |
||||||||||||||
Sales of equity securities |
( |
) |
( |
) |
||||||||||||
Sales of real estate |
( |
) |
( |
) |
||||||||||||
Sales of short-term investments |
( |
) |
( |
) |
||||||||||||
Total realized losses |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net realized investment gains (losses) |
||||||||||||||||
Change in fair value of equity securities: |
||||||||||||||||
Change in fair value of equity securities held at the end of the period |
( |
) |
( |
) |
||||||||||||
Change in fair value of equity securities |
( |
) |
( |
) |
||||||||||||
Net investment gains (losses) |
$ |
$ |
$ |
$ |
||||||||||||
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income: |
||||||||||||||||
Fixed maturities |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
||||
Net increase (decrease) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
||||
Three Months Ended |
||||||||
September 30, |
||||||||
2023 |
2022 |
|||||||
Net unrealized gains (losses) |
$ |
$ |
||||||
Net realized gains (losses) |
||||||||
Net unrealized and realized gains (losses) |
$ |
$ |
||||||
Nine Months Ended |
||||||||
September 30, |
||||||||
2023 |
2022 |
|||||||
Net unrealized gains (losses) |
$ |
$ |
||||||
Net realized gains (losses) |
( |
) |
||||||
Net unrealized and realized gains (losses) |
$ |
$ |
( |
) |
||||
2023 |
2022 |
|||||||||||||||
Maximum rate |
Minimum rate |
Maximum rate |
Minimum rate |
|||||||||||||
Farm Loans |
% |
% |
% |
% |
||||||||||||
Commercial Loans |
% |
% |
% |
% |
||||||||||||
Residential Loans |
% |
% |
% |
% |
||||||||||||
September 30, 2023 |
December 31, 2022 |
|||||||
Farm |
$ |
$ |
||||||
Commercial |
||||||||
Residential |
||||||||
Total mortgage loans |
||||||||
Less allowance for credit losses |
( |
) |
||||||
Total mortgage loans, net |
$ |
$ |
||||||
September 30, 2023 |
December 31, 2022 |
|||||||
Notes receivable |
$ |
$ |
||||||
Less allowance for credit losses |
( |
) |
||||||
Total notes receivable, net |
$ |
$ |
||||||
September 30, 2023 |
December 31, 2022 |
|||||||
Raw land |
$ |
$ |
||||||
Commercial |
||||||||
Residential |
||||||||
Land, minerals and royalty interests |
||||||||
Total investment real estate |
$ |
$ |
||||||
September 30, 2023 |
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 |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
U.S. special revenue and assessments |
||||||||||||||||||||
Corporate securities |
||||||||||||||||||||
Total fixed maturities |
||||||||||||||||||||
Equity securities: |
||||||||||||||||||||
Common stocks |
||||||||||||||||||||
Preferred stocks |
||||||||||||||||||||
Total equity securities |
||||||||||||||||||||
Total financial assets |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
December 31, 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 |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
U.S. special revenue and assessments |
||||||||||||||||||||
Corporate securities |
||||||||||||||||||||
Total fixed maturities |
||||||||||||||||||||
Equity securities: |
||||||||||||||||||||
Common stocks |
||||||||||||||||||||
Preferred stocks |
||||||||||||||||||||
Total equity securities |
||||||||||||||||||||
Total financial assets |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Equity Securities at Fair Value |
Equity Securities at Net Asset Value |
Total |
||||||||||
Balance at December 31, 2022 |
$ |
$ |
$ |
|||||||||
Realized gains (losses) |
||||||||||||
Unrealized gains (losses) |
( |
) |
( |
) |
( |
) |
||||||
Purchases |
||||||||||||
Sales |
( |
) |
( |
) |
( |
) |
||||||
Balance at September 30, 2023 |
$ |
$ |
$ |
|||||||||
Financial Assets |
Fair Value at September 30, 2023 |
Fair Value at December 31, 2022 |
Valuation Technique |
||||||
Equities |
$ |
$ |
Net Asset Value |
||||||
Equities |
Pricing Model |
||||||||
Total |
$ |
$ |
|||||||
Investment Company |
Fair Value at September 30, 2023 |
Unfunded Commitments |
Redemption Frequency |
Redemption Notice Period |
||||||||||||
Common Stocks |
||||||||||||||||
Growth Equity |
||||||||||||||||
Redeemable |
$ |
$ |
||||||||||||||
Non-Redeemable |
n/a |
n/a |
||||||||||||||
Total |
$ |
$ |
||||||||||||||
Investment Company |
Fair Value at December 31, 2022 |
Unfunded Commitments |
Redemption Frequency |
Redemption Notice Period |
||||||||||||
Common Stocks |
||||||||||||||||
Growth Equity |
||||||||||||||||
Redeemable |
$ |
$ |
||||||||||||||
Non-Redeemable |
n/a |
n/a |
||||||||||||||
Total |
$ |
$ |
||||||||||||||
Carrying |
Estimated |
|||||||||||||||||||
September 30, 2023 |
Amount |
Fair Value |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||||
Assets |
||||||||||||||||||||
Preferred stock, at cost |
$ |
|||||||||||||||||||
Mortgage loans on real estate |
||||||||||||||||||||
Investment real estate |
||||||||||||||||||||
Notes receivable |
||||||||||||||||||||
Policy loans |
||||||||||||||||||||
Carrying |
Estimated |
|||||||||||||||||||
December 31, 2022 |
Amount |
Fair Value |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||||
Assets |
||||||||||||||||||||
Preferred stock, at cost |
$ |
|||||||||||||||||||
Mortgage loans on real estate |
||||||||||||||||||||
Investment real estate |
||||||||||||||||||||
Notes receivable |
||||||||||||||||||||
Policy loans |
||||||||||||||||||||
Liabilities |
||||||||||||||||||||
Notes payable |
||||||||||||||||||||
Instrument |
Issue Date |
Maturity Date |
Revolving Credit Limit |
December 31, 2022 |
Borrowings |
Repayments |
September 30, 2023 |
||||||||||
Lines of Credit: |
|||||||||||||||||
UTG |
$ |
$ |
|||||||||||||||
UG - CMA |
|||||||||||||||||
Total Funding Commitment |
Unfunded Commitment |
|||||||
RLF III, LLC |
$ |
$ |
||||||
Sovereign’s Capital, LP Fund I |
||||||||
Sovereign's Capital, LP Fund II |
||||||||
Sovereign's Capital, LP Fund III |
||||||||
Garden City Companies, LLC |
||||||||
Carrizo Springs Music, LLC |
||||||||
Legacy Venture X, LLC |
||||||||
QCC Investment Co., LLC |
||||||||
Sovereign's Capital Evergreen Fund I, LLC |
||||||||
Sovereign's Capital Lower Middle Market Fund II, LP |
||||||||
Elisha's Properties, LLC |
||||||||
Granite Shoals Music, LLC |
||||||||
Legacy Venture XI, LLC |
||||||||
Great American Media Group, LLC |
||||||||
Three Months Ended |
||||||||
September 30, |
||||||||
2023 |
2022 |
|||||||
Interest |
$ |
$ |
||||||
Federal income tax |
||||||||
Nine Months Ended |
||||||||
September 30, |
||||||||
2023 |
2022 |
|||||||
Interest |
$ |
$ |
||||||
Federal income tax |
||||||||
September 30, 2023 |
Land, Minerals & Royalty Interests |
Exploration |
Total |
|||||||||
Fixed maturities, at fair value |
$ |
$ |
$ |
|||||||||
Equity securities, at fair value |
||||||||||||
Investment real estate |
||||||||||||
Notes receivable |
||||||||||||
Total |
$ |
$ |
$ |
|||||||||
December 31, 2022 |
Land, Minerals & Royalty Interests |
Exploration |
Total |
|||||||||
Fixed maturities, at fair value |
$ |
$ |
$ |
|||||||||
Equity securities, at fair value |
||||||||||||
Investment real estate |
||||||||||||
Notes receivable |
||||||||||||
Total |
$ |
$ |
$ |
|||||||||
Three Months Ended |
Nine Months Ended |
||||||||||
September 30, |
September 30, |
||||||||||
2023 |
2022 |
2023 |
2022 |
||||||||
Net investment income |
$ |
3,432,684 |
$ |
6,266,722 |
$ |
9,994,645 |
$ |
15,166,276 |
|||
Net investment gains (losses) |
$ |
7,938,232 |
$ |
1,900,458 |
$ |
8,973,842 |
$ |
6,759,716 |
|||
Change in net unrealized investment gains (losses) on equity securities, pre-tax |
$ |
(23,403) |
$ |
7,097,738 |
$ |
(7,209,399) |
$ |
14,462,029 |
|||
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||
2023 |
2022 |
2023 |
2022 |
|||||
Fixed maturities available for sale |
$ |
1,012,577 |
$ |
1,025,578 |
$ |
3,032,835 |
$ |
3,125,400 |
Equity securities |
250,435 |
719,953 |
949,096 |
2,057,986 |
||||
Trading securities |
0 |
0 |
0 |
(13,283) |
||||
Mortgage loans |
242,073 |
307,492 |
916,524 |
907,284 |
||||
Real estate |
2,926,082 |
4,924,772 |
7,021,560 |
11,103,517 |
||||
Notes receivable |
354,125 |
273,376 |
1,087,103 |
659,024 |
||||
Policy loans |
103,137 |
121,097 |
327,353 |
369,297 |
||||
Short-term investments |
114,244 |
0 |
213,447 |
0 |
||||
Cash and cash equivalents |
333,643 |
43,812 |
700,182 |
53,746 |
||||
Total consolidated investment income |
5,336,316 |
7,416,080 |
14,248,100 |
18,262,971 |
||||
Investment expenses |
(1,903,632) |
(1,149,358) |
(4,253,455) |
(3,096,695) |
||||
Consolidated net investment income |
$ |
3,432,684 |
$ |
6,266,722 |
$ |
9,994,645 |
$ |
15,166,276 |
Three Months Ended |
Nine Months Ended |
|||||||
September 30, |
September 30, |
|||||||
2023 |
2022 |
2023 |
2022 |
|||||
Fixed maturities available for sale |
12,500 |
0 |
58,333 |
(527) |
||||
Equity securities |
110,742 |
1,485,872 |
351,250 |
1,773,817 |
||||
Real estate |
7,815,364 |
414,586 |
8,541,124 |
4,986,426 |
||||
Short-term investments |
(374) |
0 |
23,135 |
0 |
||||
Consolidated net realized investment gains |
7,938,232 |
1,900,458 |
8,973,842 |
6,759,716 |
||||
Change in fair value of equity securities |
(23,403) |
7,097,738 |
(7,209,399) |
14,462,029 |
||||
$ |
7,914,829 |
$ |
8,998,196 |
$ |
1,764,443 |
$ |
21,221,745 |
|
September 30, 2023 |
As a % of Total Investments |
As a % of Total Assets |
|||||
Fixed maturities |
$ |
101,674,112 |
29% |
24% |
|||
Equity securities, at fair value |
144,207,758 |
41% |
35% |
||||
Equity securities, at cost |
15,683,343 |
4% |
4% |
||||
Mortgage loans |
14,785,687 |
4% |
4% |
||||
Real Estate |
31,609,218 |
9% |
8% |
||||
Notes receivable |
13,182,860 |
4% |
3% |
||||
Policy loans |
6,160,290 |
2% |
1% |
||||
Short-term |
23,393,115 |
7% |
6% |
||||
Total investments |
$ |
350,696,383 |
100% |
85% |
December 31, 2022 |
As a % of Total Investments |
As a % of Total Assets |
|||||
Fixed maturities |
$ |
108,313,059 |
30% |
24% |
|||
Equity securities, at fair value |
150,053,686 |
41% |
33% |
||||
Equity securities, at cost |
15,683,343 |
4% |
4% |
||||
Mortgage loans |
30,698,694 |
8% |
7% |
||||
Real Estate |
34,934,352 |
10% |
8% |
||||
Notes receivable |
14,424,127 |
4% |
3% |
||||
Policy loans |
6,567,434 |
2% |
1% |
||||
Short-term |
3,596,941 |
1% |
1% |
||||
Total investments |
$ |
364,271,636 |
100% |
81% |
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 September 30, 2023, 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). |
Date: |
November 13, 2023 |
By |
/s/ Jesse T. Correll |
|
Jesse T. Correll |
||||
Chairman of the Board, Chief Executive Officer, President and Director (Principal Executive Officer) |
Date: |
November 13, 2023 |
By |
/s/ Theodore C. Miller |
|
Theodore C. Miller |
||||
Chief Financial Officer and Senior Vice President (Principal Financial and Accounting Officer) |
|
Exhibit 31.1
CERTIFICATIONS
|
|||||||
|
I, Jesse T. Correll, Chairman of the Board, Chief Executive Officer, and President of UTG, Inc., certify that:
|
|||||||
|
1.
|
I have reviewed this quarterly report on Form 10-Q of the registrant, UTG, Inc.;
|
||||||
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
||||||
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects
the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
||||||
|
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)and 15d-15(f)) for the registrant and have:
|
||||||
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
||||||
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
||||||
|
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
||||||
|
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most
recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
||||||
|
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial
reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
||||||
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
||||||
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls
over financial reporting.
|
||||||
|
Date:
|
November 13, 2023 |
By:
|
/s/ Jesse T. Correll
|
|
Chairman of the Board,
|
|||
|
Chief Executive Officer, and President
|
|||
|
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:
|
November 13, 2023 |
By:
|
/s/ Theodore C. Miller
|
|
Senior Vice President and
|
|||
|
Chief Financial Officer
|
|||
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company
|
|
Date:
|
November 13, 2023
|
By:
|
/s/ Jesse T. Correll
|
|
Jesse T. Correll
|
|||
|
Chairman of the Board,
|
|||
|
Chief Executive Officer, and President
|
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company
|
|
Date:
|
November 13, 2023 |
By:
|
/s/ Theodore C. Miller
|
|
Theodore C. Miller
|
|||
|
Senior Vice President and
|
|||
|
Chief Financial Officer
|
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Investments, available for sale: | ||
| Fixed maturities, amortized cost | $ 113,208,324 | $ 117,279,820 |
| Equity securities, cost | $ 80,536,585 | $ 77,015,688 |
| 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) | 3,164,857 | 3,164,809 |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Revenue: | ||||
| Premiums and policy fees | $ 1,855,251 | $ 2,025,092 | $ 5,999,868 | $ 6,333,796 |
| Ceded reinsurance premiums and policy fees | (601,994) | (676,460) | (1,926,975) | (2,044,259) |
| Net investment income | 3,432,684 | 6,266,722 | 9,994,645 | 15,166,276 |
| Other income | 69,901 | 88,035 | 176,719 | 243,071 |
| Revenue before net investment gains (losses) | 4,755,842 | 7,703,389 | 14,244,257 | 19,698,884 |
| Net investment gains (losses): | ||||
| Other realized investment gains, net | 7,938,232 | 1,900,458 | 8,973,842 | 6,759,716 |
| Change in fair value of equity securities | (23,403) | 7,097,738 | (7,209,399) | 14,462,029 |
| Total net investment gains (losses) | 7,914,829 | 8,998,196 | 1,764,443 | 21,221,745 |
| Total revenue | 12,670,671 | 16,701,585 | 16,008,700 | 40,920,629 |
| Benefits, claims and settlement expenses: | ||||
| Life | 3,773,579 | 3,343,438 | 11,922,019 | 11,613,356 |
| Ceded reinsurance benefits and claims | (461,207) | (486,899) | (1,958,223) | (1,228,489) |
| Annuity | 259,299 | 252,079 | 768,742 | 771,309 |
| Dividends to policyholders | 61,770 | 63,632 | 230,472 | 236,724 |
| Commissions and amortization of deferred policy acquisition costs | (30,318) | (34,352) | (84,472) | (86,311) |
| Amortization of cost of insurance acquired | 165,304 | 172,087 | 495,943 | 516,261 |
| Operating expenses | 3,136,691 | 2,733,470 | 7,444,106 | 7,551,131 |
| Interest expense | 0 | 36,748 | 16,820 | 72,028 |
| Total benefits and other expenses | 6,905,118 | 6,080,203 | 18,835,407 | 19,446,009 |
| Income (loss) before income taxes | 5,765,553 | 10,621,382 | (2,826,707) | 21,474,620 |
| Income tax expense (benefit) | 531,882 | 2,542,701 | (1,257,308) | 4,915,001 |
| Net income (loss) | 5,233,671 | 8,078,681 | (1,569,399) | 16,559,619 |
| Net income attributable to noncontrolling interests | (28,994) | (26,825) | (88,506) | (80,646) |
| Net income (loss) attributable to common shareholders | $ 5,204,677 | $ 8,051,856 | $ (1,657,905) | $ 16,478,973 |
| Amounts attributable to common shareholders | ||||
| Basic income (loss) per share (in dollars per share) | $ 1.64 | $ 2.54 | $ (0.52) | $ 5.2 |
| Diluted income (loss) per share (in dollars per share) | $ 1.64 | $ 2.54 | $ (0.52) | $ 5.2 |
| Basic weighted average shares outstanding (in shares) | 3,169,466 | 3,165,842 | 3,181,306 | 3,169,704 |
| Diluted weighted average shares outstanding (in shares) | 3,169,466 | 3,165,842 | 3,181,306 | 3,169,704 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Condensed Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||
| Net income (loss) | $ 5,233,671 | $ 8,078,681 | $ (1,569,399) | $ 16,559,619 |
| Other comprehensive income (loss): | ||||
| Unrealized holding gains (losses) arising during period, pre-tax | (3,606,251) | (7,122,856) | (2,521,367) | (23,436,431) |
| Tax (expense) benefit on unrealized holding gains (losses) arising during the period | 759,387 | 1,495,712 | 539,165 | 4,921,563 |
| Unrealized holding gains (losses) arising during period, net of tax | (2,846,864) | (5,627,144) | (1,982,202) | (18,514,868) |
| Less reclassification adjustment for (gains) losses included in net income | (12,500) | 0 | (58,333) | 527 |
| Tax expense (benefit) for gains included in net income (loss) | 2,625 | 0 | 12,250 | (111) |
| Reclassification adjustment for (gains) losses included in net income, net of tax | (9,875) | 0 | (46,083) | 416 |
| Subtotal: Other comprehensive income (loss), net of tax | (2,856,739) | (5,627,144) | (2,028,285) | (18,514,452) |
| Comprehensive income (loss) | 2,376,932 | 2,451,537 | (3,597,684) | (1,954,833) |
| Less comprehensive income attributable to noncontrolling interests | (28,994) | (26,825) | (88,506) | (80,646) |
| Comprehensive income (loss) attributable to UTG, Inc. | $ 2,347,938 | $ 2,424,712 | $ (3,686,190) | $ (2,035,479) |
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) |
Common Stock [Member] |
Additional Paid-In Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Noncontrolling Interest [Member] |
Total |
Cumulative Effect, Period of Adoption, Adjustment [Member]
Common Stock [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Additional Paid-In Capital [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Retained Earnings [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member]
Noncontrolling Interest [Member]
|
Cumulative Effect, Period of Adoption, Adjustment [Member] |
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Common Stock [Member]
|
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Additional Paid-In Capital [Member]
|
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Retained Earnings [Member]
|
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
|
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Noncontrolling Interest [Member]
|
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] |
|||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at Dec. 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 | (21) | (605,209) | 0 | 0 | 0 | (605,230) | |||||||||||||||
| Net income (loss) attributable to common shareholders | 0 | 0 | 16,478,973 | 0 | 0 | 16,478,973 | |||||||||||||||
| Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | (18,514,452) | 0 | (18,514,452) | |||||||||||||||
| Contributions | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Distributions | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 80,646 | 80,646 | |||||||||||||||
| Balance at Sep. 30, 2022 | 3,164 | 32,662,157 | 114,210,320 | (8,261,301) | 557,201 | 139,171,541 | |||||||||||||||
| Balance at Jun. 30, 2022 | 3,170 | 32,854,050 | 106,158,464 | (2,634,157) | 530,976 | 136,912,503 | |||||||||||||||
| Common stock issued during year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Treasury shares acquired | (6) | (191,893) | 0 | 0 | 0 | (191,899) | |||||||||||||||
| Net income (loss) attributable to common shareholders | 0 | 0 | 8,051,856 | 0 | 0 | 8,051,856 | |||||||||||||||
| Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | (5,627,144) | 0 | (5,627,144) | |||||||||||||||
| Contributions | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Distributions | 0 | 0 | 0 | 0 | (600) | (600) | |||||||||||||||
| Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 26,825 | 26,825 | |||||||||||||||
| Balance at Sep. 30, 2022 | 3,164 | 32,662,157 | 114,210,320 | (8,261,301) | 557,201 | 139,171,541 | |||||||||||||||
| Balance at Dec. 31, 2022 | 3,166 | 32,693,972 | 131,989,352 | (7,111,586) | 453,472 | 158,028,376 | [1] | ||||||||||||||
| Balance (ASU 2016-13 [Member]) at Dec. 31, 2022 | $ 0 | $ 0 | $ (454,250) | $ 0 | $ 0 | $ (454,250) | |||||||||||||||
| Common stock issued during year | 27 | 674,363 | 0 | 0 | 0 | 674,390 | |||||||||||||||
| Treasury shares acquired | (26) | (765,022) | 0 | 0 | 0 | (765,048) | |||||||||||||||
| Net income (loss) attributable to common shareholders | 0 | 0 | (1,657,905) | 0 | 0 | (1,657,905) | |||||||||||||||
| Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | (2,028,285) | 0 | (2,028,285) | |||||||||||||||
| Contributions | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Distributions | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 88,506 | 88,506 | |||||||||||||||
| Balance at Sep. 30, 2023 | 3,167 | 32,603,313 | 129,877,197 | (9,139,871) | 541,978 | 153,885,784 | $ 3,166 | $ 32,693,972 | $ 131,535,102 | $ (7,111,586) | $ 453,472 | $ 157,574,126 | |||||||||
| Balance at Jun. 30, 2023 | 3,184 | 33,136,764 | 124,672,520 | (6,283,132) | 512,984 | 152,042,320 | |||||||||||||||
| Common stock issued during year | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Treasury shares acquired | (17) | (533,451) | 0 | 0 | 0 | (533,468) | |||||||||||||||
| Net income (loss) attributable to common shareholders | 0 | 0 | 5,204,677 | 0 | 0 | 5,204,677 | |||||||||||||||
| Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | (2,856,739) | 0 | (2,856,739) | |||||||||||||||
| Contributions | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Distributions | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||
| Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 28,994 | 28,994 | |||||||||||||||
| Balance at Sep. 30, 2023 | $ 3,167 | $ 32,603,313 | $ 129,877,197 | $ (9,139,871) | $ 541,978 | $ 153,885,784 | $ 3,166 | $ 32,693,972 | $ 131,535,102 | $ (7,111,586) | $ 453,472 | $ 157,574,126 | |||||||||
| |||||||||||||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) |
9 Months Ended | |
|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Cash flows from operating activities: | ||
| Net income (loss) | $ (1,569,399) | $ 16,559,619 |
| Adjustments to reconcile net income to net cash used in operating activities: | ||
| Amortization (accretion) of investments | (149,951) | 24,741 |
| Realized investment gains, net | (8,973,842) | (6,759,716) |
| Change in fair value of equity securities | 7,209,399 | (14,462,029) |
| Realized trading losses included in income | 0 | 13,283 |
| Amortization of cost of insurance acquired | 495,943 | 516,261 |
| Depreciation and depletion | 447,698 | 1,635,706 |
| Stock-based compensation | 674,390 | 486,797 |
| Charges for mortality and administration of universal life and annuity products | (4,288,294) | (4,480,817) |
| Interest credited to account balances | 2,741,851 | 2,831,885 |
| Change in accrued investment income | 133,627 | 31,527 |
| Change in reinsurance receivables | 865,679 | 827,435 |
| Change in policy liabilities and accruals | (3,464,745) | (3,074,992) |
| Change in income taxes receivable (payable) | (6,611,271) | 1,378,658 |
| Change in other assets and liabilities, net | 2,764,428 | 4,194,376 |
| Net cash used in operating activities | (9,724,487) | (277,266) |
| Proceeds from investments sold and matured: | ||
| Fixed maturities available for sale | 4,058,333 | 8,628,136 |
| Equity securities | 6,861,942 | 10,735,510 |
| Trading securities | 0 | 17,983 |
| Mortgage loans | 17,601,131 | 1,443,119 |
| Real estate | 15,533,712 | 11,387,025 |
| Notes receivable | 4,650,509 | 3,984,614 |
| Policy loans | 1,106,310 | 903,696 |
| Short-term investments | 9,740,815 | 0 |
| Total proceeds from investments sold and matured | 59,552,752 | 37,100,083 |
| Cost of investments acquired: | ||
| Fixed maturities available for sale | 0 | (1,112,505) |
| Equity securities | (7,874,161) | (12,540,638) |
| Trading securities | 0 | (32,382) |
| Mortgage loans | (2,050,124) | (1,755,496) |
| Real estate | (4,115,151) | (4,236,603) |
| Notes receivable | (3,579,241) | (5,870,657) |
| Policy loans | (699,167) | (728,348) |
| Short-term investments | (29,300,034) | 0 |
| Total cost of investments acquired | (47,617,878) | (26,276,629) |
| Net cash provided by investing activities | 11,934,874 | 10,823,454 |
| Cash flows from financing activities: | ||
| Policyholder contract deposits | 3,144,884 | 3,455,489 |
| Policyholder contract withdrawals | (3,315,173) | (3,400,630) |
| Proceeds from notes payable/line of credit | 2,500,000 | 19,500,000 |
| Payments of principal on notes payable/line of credit | (21,500,000) | (35,500,000) |
| Purchase of treasury stock | (765,048) | (605,230) |
| Non controlling contributions (distributions) of consolidated subsidiary | 0 | 0 |
| Net cash used in financing activities | (19,935,337) | (16,550,371) |
| Net decrease in cash and cash equivalents | (17,724,950) | (6,004,183) |
| Cash and cash equivalents at beginning of period | 45,290,385 | 30,787,278 |
| Cash and cash equivalents at end of period | $ 27,565,435 | $ 24,783,095 |
Basis of Presentation |
9 Months Ended |
|---|---|
Sep. 30, 2023 | |
| Basis of Presentation [Abstract] | |
| Basis of Presentation |
Note 1 – Basis of Presentation
The accompanying Condensed Consolidated Balance Sheet as of September 30, 2023, 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, 2022. The Company’s results of operations for the nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or for any other future period.
This document at times will refer to the Registrant’s largest shareholder, Mr. Jesse T. Correll and certain companies controlled by Mr. Correll. Mr. Correll holds a majority ownership of First Southern Funding, LLC (“FSF”), a Kentucky corporation, and First Southern Bancorp, Inc. (“FSBI”), a financial services holding company. FSBI operates through its 100% owned subsidiary bank, First Southern National Bank (“FSNB”). Banking activities are conducted through multiple locations within south-central and western Kentucky. Mr. Correll is Chairman of the Board of Directors, Chief Executive Officer, President, and a Director of UTG and is currently UTG’s largest shareholder through his ownership control of FSF, FSBI and affiliates. At September 30, 2023, Mr. Correll owns or controls directly and indirectly approximately 65.79% 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.
Certain amounts in prior periods have been reclassified to conform with the current period presentation.
|
Recently Issued Accounting Standards |
9 Months Ended |
|---|---|
Sep. 30, 2023 | |
| Recently Issued Accounting Standards [Abstract] | |
| Recently Issued Accounting Standards |
Note 2 – Recently Issued Accounting Standards
In the first quarter of 2023, the Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASC 326). This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss ("CECL") methodology. CECL requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities, and some off-balance sheet credit exposure such as unfunded commitments to extend credit. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses.
The Company adopted ASC 326 and all related subsequent amendments thereto using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposure. The transition adjustment of the adoption of CECL included an increase in the allowance for credit losses on loans of $540,000, which is presented as a reduction to net loans outstanding, and an increase in the allowance for credit losses on unfunded commitments of $35,000, which is recorded within other liabilities. The Company recorded a net decrease to retained earnings of $454,250 as of January 1, 2023 for the cumulative effect of adopting CECL, which reflects the transition adjustments noted above, net of the applicable deferred tax assets recorded. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable accounting standards ("Incurred Loss").
The updated guidance also amended the current other-than-temporary model for available-for-sale securities and requires the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized costs basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists.
The following are changes to the Company’s Significant Accounting Policies as result of the adoption of ASU No. 2016-13:
Fixed maturity securities comprised of bonds are classified as available-for-sale and are carried at fair value with unrealized gains and losses, net of applicable income taxes, reported in accumulated other comprehensive income. The amortized cost of fixed maturity securities available-for-sale is adjusted for amortization of premium and accretion of discount to maturity. The amortized cost of fixed maturity securities available-for-sale are written down to fair value when a decline is considered to be other-than-temporary.
The Company evaluates the difference between the cost or amortized cost and estimated fair value of its fixed maturity securities to determine whether any decline in value is the result of a credit loss or other factors. An allowance for credit losses is recorded against available-for-sale securities to reflect the amount of an unrealized loss attributed to credit. This impairment is limited by the amount the fair value is less than the amortized cost basis. Any remaining unrealized loss is recognized in other comprehensive income (loss) with no change to the cost basis of the security. This determination involves a degree of uncertainty. Changes in the allowance for credit losses are recognized in earnings.
The assessment and determination of whether or not a credit loss exists is based on consideration of the cash flows expected to be collected from the fixed maturity security. The Company develops those expectations after considering various factors such as agency ratings, the financial condition of the issuer or underlying obligors, payment history, payment structure of the security, industry and market conditions, underlying collateral, and other factors that may be relevant based on the facts and circumstances pertaining to individual securities.
If the Company intends to sell the fixed maturity or will be more likely than not required to sell the fixed maturity security before recovery of the amortized cost basis, then any allowance for credit losses, if previously recorded, is written off and the fixed maturity security’s amortized cost is written down to the security’s fair value as of the reporting dates with any incremental impairment recorded as a charge to noninterest income.
Prior to 2023, the Company evaluated the difference between the cost or amortized cost and estimated fair value of its fixed maturity securities to determine whether any decline is value was other-than-temporary in nature. That determination involved a degree of uncertainty. If a decline in the fair value of a security was determined to be temporary, the decline was recorded as an unrealized loss in shareholders’ equity. If a decline in a security’s fair value is considered to be other-than-temporary, the Company then determined the proper treatment for the other-than-temporary impairment. The amount of any other-than-temporary impairment related to a credit loss was recognized in earnings and reflected as a reduction in the cost basis of the security; and the amount of any other-than-temporary impairment related to other factors is recognized in other comprehensive income (loss) with no change to the cost basis of the security. If an other-than-temporary impairment related to a credit loss occurs with respect to a bond, the Company amortized the reduced book value back to the security’s expected recovery value over the remaining term of the bond. The Company continued to review the security for further impairment that would prompt another write-down in the value.
Mortgage loans are carried at unpaid balances, net of unamortized premium or discount. This measurement of mortgage loans on an amortized cost basis reduced by an allowance for credit losses representing a valuation allowance that is deducted from the amortized cost basis of mortgage loans to present the net carrying value at the amount expected to be collected on the mortgage loans.
Notes receivable are carried at unpaid balances, net of unamortized premium or discount. This measurement of notes receivable on an amortized cost basis reduced by an allowance for credit losses representing a valuation allowance that is deducted from the amortized cost basis of notes receivable to present the net carrying value at the amount expected to be collected on the notes receivable.
The Statement of Operations reflects the measurement of credit losses for newly recognized mortgage loans and notes receivable as well as the expected increases or decreases of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported mortgage loan balances. The Company uses judgment in determining the relevant information and estimation methods that are appropriate in establishing the valuation allowance for credit losses.The allowance for credit losses for mortgage loans and notes receivable with a more-than-insignificant amount of credit determination since origination is determined and the initial allowance for credit losses should be added to the purchase price of the mortgage loans rather than being reported as a credit loss expense.
While the Company utilizes its best judgment and information available, the ultimate adequacy of this allowance is dependent upon a variety of factors beyond our control, including the performance of the mortgage loan and notes receivable portfolios, the economy, and interest rates. The allowance for possible loan losses consists of specific valuation allowances established for probable losses on specific loans and a portfolio reserve for probably incurred but not specifically identified loans.
|
Investments |
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| 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:
The amortized cost and estimated market value of debt securities at September 30, 2023, 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.
The fair value of investments with sustained gross unrealized losses are as follows:
Additional information regarding investments in an unrealized loss position is as follows:
Substantially all of the unrealized losses on fixed maturities at September 30, 2023 and December 31, 2022 are attributable to changes in market interest rates and general disruptions in the credit market subsequent to purchase. Based upon Management’s review of the fixed maturity available-for-sale portfolio, an allowance for credit losses is not deemed necessary as of September 30, 2023.
There were no impairment losses recognized by the Company during the nine moths ended September 30, 2023. Management believes that the Company will fully recover its cost basis in the securities held as of September 30, 2023, and Management does not have the intent to sell nor is it more likely than not the Company will be required to sell such securities until they recover or mature.
Net unrealized losses included in other comprehensive income (loss) for investments classifies as available-for-sale, net of the effect of deferred income taxes, assuming that the depreciation had been realized as of September 30, 2023 and December 31, 2022:
Net Investment Gains (Losses)
The following table presents net investment gains (losses) and the change in net unrealized gains (losses) on investments.
Cost Method Investments
The Company held equity investments with an aggregate cost of $15,683,343 at September 30, 2023 and December 31, 2022. 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 September 30, 2023.
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 Consolidated Statements of Operations. Trading Securities included exchange-traded equities and exchange-traded options. Trading securities carried as liabilities were securities sold short. A gain, limited to the price at which the security was sold short, or a loss, potentially unlimited in size, will be recognized upon the termination of the short sale. The fair value of derivatives included in trading security assets and trading security liabilities as of September 30, 2023 was $0. The fair value of derivatives included in trading security assets and trading security liabilities as of December 31, 2022 was $0. 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:
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 nine months ended September 30, 2023 and 2022, the Company acquired $2,050,124 and $1,755,496 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 2023 and 2022, the maximum and minimum lending rates for the mortgage loan portfolio were:
Most mortgage loans are first position loans. Loans issued are generally limited to no more than 80% of the appraised value of the property.
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.
The following is a summary of the mortgage loans outstanding and the related allowance for credit losses:
There were no past due loans as of September 30, 2023 and December 31, 2022.
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. 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 nine months ended September 30, 2023 and 2022 the Company acquired $3,579,241 and $5,870,657 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 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.
The following is a summary of the notes receivable outstanding and the related allowance for credit losses:
Allowance for Credit Losses - Loans
The allowance for credit losses is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when Management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.
The allowance for credit losses represents Management's estimate of lifetime credit losses inherent in loans as of the balance sheet date. The allowance for credit losses is estimated by Management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.
The Company measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. The Company has identified the following portfolio segments - mortgage loans on real estate and notes receivable.
The allowance for credit losses calculation includes subjective adjustments for qualitative risk factors that are likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments may increase or reduce reserve levels and include adjustments for risk tolerance, loan review and audit results, asset quality and portfolio trends, industry concentrations, external factors and economic conditions.
Loans that do not share risk characteristics are evaluated on an individual bases, When Management determines that foreclosure is probable and the borrower is experiencing financial difficulty, the expected credit losses are based on the fair value of collateral at the reporting date unadjusted for selling costs as appropriate.
Allowance for Credit Losses - Unfunded Commitments
Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit issued to meet customer financing needs. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded.
The Company records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to provision for unfunded commitments in the Company's income statements. The allowance for credit losses on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur as well a any third-party guarantees. The allowance for unfunded commitments is included in other liabilities on the Company's consolidated balance sheets.
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 nine months ended September 30, 2023, 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:
The Company’s investment real estate portfolio includes ownership in oil and gas royalties. As of September 30, 2023 and December 31, 2022, investments in oil and gas royalties represented 43% and 42%, 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 nine months ended September 30, 2023 and 2022, the Company acquired $4,115,151 and $4,236,603 of investment real estate, respectively.
Short-Term Investments
Short-term investments have remaining maturities exceeding three months and under 12 months at the time of purchase and are stated at amortized cost, which approximates fair value. The short-term investments consist of United States Treasury securities.
During 2023 and 2022, the Company acquired $29,300,034 and $0, respectively, in short-term investments.
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Fair Value Measurements |
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| 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:
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 nine months ended September 30, 2023.
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 Recurring Fair Value Measurements
The following table presents the changes in Level 3 equity securities measured at fair value on a recurring basis and equity securities measured at net asset value, and the and related to the equity securities.
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 September 30, 2023 and December 31, 2022 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.
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
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 September 30, 2023 or December 31, 2022.
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:
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.
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 |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Arrangements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Arrangements |
Note 5 – Credit Arrangements
The UTG line of credit carries interest at a fixed rate of 6.500% 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. UTG is in the process of renewing this line of credit.
During October of 2023, the Federal Home Loan Bank approved UG’s Cash Management Advance Application (“CMA”). The CMA gives the Company the option of selecting a variable rate of interest for up to 90 days or a fixed rate for a maximum of 30 days. The variable rate CMA is prepayable at any time without a fee, while the fixed CMA is not prepayable prior to maturity. The Company has pledged bonds with a collateral lendable value of $18,946,634.
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Shareholders' Equity |
9 Months Ended |
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Sep. 30, 2023 | |
| 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 nine months ended September 30, 2023, the Company repurchased 26,863 shares through the stock repurchase program for $765,048. Through September 30, 2023, UTG has spent $20,074,486 in the acquisition of 1,353,076 shares under this program.
During 2023, the Company issued 26,911 shares of stock to management and employees as compensation at a cost of $674,390. 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 nine months ended September 30, 2023 and 2022, 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 |
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| 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 September 30, 2023 related to certain investments:
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 2020, the Company committed to invest in Garden City Companies, LLC (“Garden City”), which invests primarily in companies in the health care, 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 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 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.
During 2023, the Company committed to fund a collateral loan for Great American Media Group, LLC ("GAMG"). GAMG makes draw requests on the loan as funds are needed to fund the operating needs of the Company.
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Other Cash Flow Disclosures |
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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:
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Concentrations of Credit Risk |
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| 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 three states, the ability of the Company's customers to pay their insurance premiums is impacted by the economic conditions in these areas. As of September 30, 2023 and 2022, approximately 51% and 49%, respectively, of the Company’s total direct premium was collected from Illinois, Ohio, and Texas. 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 September 30, 2023 and December 31, 2022, respectively. Insurance ceded represented 39% of premium income for the nine months ended September 30, 2023 and 2022. 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 31% of the Company’s total invested assets as of September 30, 2023 and December 31, 2022, respectively. The following table provides an allocation of the oil and gas investments by type.
At September 30, 2023 and December 31, 2022, the Company owned two equity securities that represented approximately 48% and 50%, respectively, 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) |
9 Months Ended |
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Sep. 30, 2023 | |
| Basis of Presentation [Abstract] | |
| Basis of Presentation |
The accompanying Condensed Consolidated Balance Sheet as of September 30, 2023, 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, 2022. The Company’s results of operations for the nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 or for any other future period.
This document at times will refer to the Registrant’s largest shareholder, Mr. Jesse T. Correll and certain companies controlled by Mr. Correll. Mr. Correll holds a majority ownership of First Southern Funding, LLC (“FSF”), a Kentucky corporation, and First Southern Bancorp, Inc. (“FSBI”), a financial services holding company. FSBI operates through its 100% owned subsidiary bank, First Southern National Bank (“FSNB”). Banking activities are conducted through multiple locations within south-central and western Kentucky. Mr. Correll is Chairman of the Board of Directors, Chief Executive Officer, President, and a Director of UTG and is currently UTG’s largest shareholder through his ownership control of FSF, FSBI and affiliates. At September 30, 2023, Mr. Correll owns or controls directly and indirectly approximately 65.79% of UTG’s outstanding stock.
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Recently Issued Accounting Standards (Policies) |
9 Months Ended |
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Sep. 30, 2023 | |
| Recently Issued Accounting Standards [Abstract] | |
| Recently Issued Accounting Standards |
In the first quarter of 2023, the Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASC 326). This standard replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss ("CECL") methodology. CECL requires an estimate of credit losses for the remaining estimated life of the financial asset using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities, and some off-balance sheet credit exposure such as unfunded commitments to extend credit. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses.
The Company adopted ASC 326 and all related subsequent amendments thereto using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposure. The transition adjustment of the adoption of CECL included an increase in the allowance for credit losses on loans of $540,000, which is presented as a reduction to net loans outstanding, and an increase in the allowance for credit losses on unfunded commitments of $35,000, which is recorded within other liabilities. The Company recorded a net decrease to retained earnings of $454,250 as of January 1, 2023 for the cumulative effect of adopting CECL, which reflects the transition adjustments noted above, net of the applicable deferred tax assets recorded. Results for reporting periods beginning after January 1, 2023 are presented under CECL while prior period amounts continue to be reported in accordance with previously applicable accounting standards ("Incurred Loss").
The updated guidance also amended the current other-than-temporary model for available-for-sale securities and requires the recognition of impairments relating to credit losses through an allowance account and limits the amount of credit loss to the difference between a security’s amortized costs basis and its fair value. In addition, the length of time a security has been in an unrealized loss position will no longer impact the determination of whether a credit loss exists.
The following are changes to the Company’s Significant Accounting Policies as result of the adoption of ASU No. 2016-13:
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Investments (Tables) |
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| Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Available for Sale Securities |
Investments in available for sale securities are summarized as follows:
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| Debt Securities by Contractual Maturity |
The amortized cost and estimated market value of debt securities at September 30, 2023, 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.
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| Fair Value of Investments with Sustained Gross Unrealized Losses |
The fair value of investments with sustained gross unrealized losses are as follows:
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| Securities in Continuous Unrealized Loss Position |
Additional information regarding investments in an unrealized loss position is as follows:
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| Net Unrealized Losses Included in Other Comprehensive Income (Loss) |
Net unrealized losses included in other comprehensive income (loss) for investments classifies as available-for-sale, net of the effect of deferred income taxes, assuming that the depreciation had been realized as of September 30, 2023 and December 31, 2022:
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| 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.
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| Trading Revenue Charged to Investment Income from Trading Securities |
Trading revenue charged to net investment income from trading securities was:
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| Maximum and Minimum Lending Rates for Mortgage Loan |
During 2023 and 2022, the maximum and minimum lending rates for the mortgage loan portfolio were:
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| Summary of Mortgage Loans Outstanding and Related Allowance for Credit Losses |
The following is a summary of the mortgage loans outstanding and the related allowance for credit losses:
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| Notes Receivables |
The following is a summary of the notes receivable outstanding and the related allowance for credit losses:
|
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| Investment Real Estate by Type |
The following table provides an allocation of the Company’s investment real estate by type:
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Fair Value Measurements (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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:
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| Reconciliation for Level 3 Assets Measured at Fair Value on a Recurring Basis |
Change in Recurring Fair Value Measurements
The following table presents the changes in Level 3 equity securities measured at fair value on a recurring basis and equity securities measured at net asset value, and the and related to the equity securities.
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| 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.
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| 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
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| 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:
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Credit Arrangements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Arrangements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Arrangements |
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Commitments and Contingencies (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Funding Commitments and Unfunded Commitment |
The following table represents the total funding commitments and the unfunded commitment as of September 30, 2023 related to certain investments:
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Other Cash Flow Disclosures (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Cash Flow Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Expenses Paid on a Cash Basis |
On a cash basis, the Company paid the following expenses:
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Concentrations of Credit Risk (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 31% of the Company’s total invested assets as of September 30, 2023 and December 31, 2022, respectively. The following table provides an allocation of the oil and gas investments by type.
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Basis of Presentation (Details) |
Sep. 30, 2023 |
|---|---|
| Chief Executive Officer and Chairman of the Board [Member] | |
| Ownership Interest [Abstract] | |
| Ownership interest percentage | 65.79% |
| FSBI [Member] | FSNB [Member] | |
| Ownership Interest [Abstract] | |
| Ownership in subsidiary bank | 100.00% |
Recently Issued Accounting Standards (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
|||
|---|---|---|---|---|---|
| Recently Issued Accounting Standards [Abstract] | |||||
| Allowance for credit loss | $ 170,000 | $ (0) | |||
| Retained earnings | $ (129,877,197) | (131,989,352) | [1] | ||
| ASU 2016-13 [Member] | |||||
| Recently Issued Accounting Standards [Abstract] | |||||
| Allowance for credit loss | 540,000 | ||||
| ASU 2016-13 [Member] | Unfunded Loan Commitments [Member] | |||||
| Recently Issued Accounting Standards [Abstract] | |||||
| Allowance for credit loss | 35,000 | ||||
| Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member] | |||||
| Recently Issued Accounting Standards [Abstract] | |||||
| Retained earnings | $ (454,250) | ||||
| |||||
Investments, Available for Sale Securities (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
|||
|---|---|---|---|---|---|
| Fixed maturities [Abstract] | |||||
| Original or amortized cost | $ 113,208,324 | $ 117,279,820 | |||
| Gross unrealized gains | 37,216 | 65,529 | |||
| Gross unrealized losses | (11,571,428) | (9,032,290) | |||
| Fair value | 101,674,112 | 108,313,059 | [1] | ||
| U.S. Government and Govt. Agencies and Authorities [Member] | |||||
| Fixed maturities [Abstract] | |||||
| Original or amortized cost | 16,317,458 | 18,315,321 | |||
| Gross unrealized gains | 0 | 0 | |||
| Gross unrealized losses | (1,044,198) | (1,104,146) | |||
| Fair value | 15,273,260 | 17,211,175 | |||
| U.S. Special Revenue and Assessments [Member] | |||||
| Fixed maturities [Abstract] | |||||
| Original or amortized cost | 7,530,519 | 7,535,018 | |||
| Gross unrealized gains | 0 | 0 | |||
| Gross unrealized losses | (487,454) | (335,918) | |||
| Fair value | 7,043,065 | 7,199,100 | |||
| All Other Corporate Bonds [Member] | |||||
| Fixed maturities [Abstract] | |||||
| Original or amortized cost | 89,360,347 | 91,429,481 | |||
| Gross unrealized gains | 37,216 | 65,529 | |||
| Gross unrealized losses | (10,039,776) | (7,592,226) | |||
| Fair value | $ 79,357,787 | $ 83,902,784 | |||
| |||||
Investments, Debt Securities by Contractual Maturity (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
|||
|---|---|---|---|---|---|
| Amortized cost [Abstract] | |||||
| Due in one year or less | $ 8,499,821 | ||||
| Due after one year through five years | 51,497,869 | ||||
| Due after five years through ten years | 4,182,082 | ||||
| Due after ten years | 21,892,608 | ||||
| Fixed maturities with no single maturity date | 27,135,944 | ||||
| Original or amortized cost | 113,208,324 | $ 117,279,820 | |||
| Fair value [Abstract] | |||||
| Due in one year or less | 8,429,455 | ||||
| Due after one year through five years | 48,657,990 | ||||
| Due after five years through ten years | 3,988,524 | ||||
| Due after ten years | 18,524,135 | ||||
| Fixed maturities with no single maturity date | 22,074,008 | ||||
| Fair value | $ 101,674,112 | $ 108,313,059 | [1] | ||
| |||||
Investments, Securities in Continuous Unrealized Loss Position (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Fixed Maturities, Fair Value [Abstract] | ||
| Less than 12 months | $ 9,062,114 | $ 104,554,839 |
| 12 months or longer, fair value | 91,581,313 | 0 |
| Total | 100,643,427 | 104,554,839 |
| Fixed Maturities, Unrealized Losses [Abstract] | ||
| Less than 12 months | (235,625) | (9,032,290) |
| 12 months or longer | (11,335,803) | 0 |
| Total | (11,571,428) | (9,032,290) |
| U.S. Government and Govt. Agencies and Authorities [Member] | ||
| Fixed Maturities, Fair Value [Abstract] | ||
| Less than 12 months | 1,476,590 | 17,211,175 |
| 12 months or longer, fair value | 13,796,670 | 0 |
| Total | 15,273,260 | 17,211,175 |
| Fixed Maturities, Unrealized Losses [Abstract] | ||
| Less than 12 months | (24,645) | (1,104,146) |
| 12 months or longer | (1,019,553) | 0 |
| Total | (1,044,198) | (1,104,146) |
| U.S. Special Revenue and Assessments [Member] | ||
| Fixed Maturities, Fair Value [Abstract] | ||
| Less than 12 months | 0 | 7,199,100 |
| 12 months or longer, fair value | 7,043,065 | 0 |
| Total | 7,043,065 | 7,199,100 |
| Fixed Maturities, Unrealized Losses [Abstract] | ||
| Less than 12 months | 0 | (335,918) |
| 12 months or longer | (487,454) | 0 |
| Total | (487,454) | (335,918) |
| All Other Corporate Bonds [Member] | ||
| Fixed Maturities, Fair Value [Abstract] | ||
| Less than 12 months | 7,585,524 | 80,144,564 |
| 12 months or longer, fair value | 70,741,578 | 0 |
| Total | 78,327,102 | 80,144,564 |
| Fixed Maturities, Unrealized Losses [Abstract] | ||
| Less than 12 months | (210,980) | (7,592,226) |
| 12 months or longer | (9,828,796) | 0 |
| Total | $ (10,039,776) | $ (7,592,226) |
Investments, Number of Securities in Unrealized Loss Position (Details) - Security |
Sep. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Fixed Maturities, Number of Securities in Unrealized Loss Position [Abstract] | ||
| Less than 12 months | 7 | 57 |
| 12 months or longer | 47 | 0 |
| Total | 54 | 57 |
Investments, Net Unrealized Losses Included in Other Comprehensive Income (Loss) (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
|---|---|---|
| Net Unrealized Losses Included in Other Comprehensive Income (Loss) for Investments Classifies as Available-for-Sale [Abstract] | ||
| Unrealized appreciation (depreciation) on available-for-sale securities | $ (11,534,212) | $ (8,996,761) |
| Deferred income taxes | 2,422,185 | 1,889,320 |
| Net unrealized appreciation (depreciation) on available-for-sale securities | $ (9,112,027) | $ (7,107,441) |
Investments, Net Investment Gains (Losses) and Change in Net Unrealized Gains (Losses) on Investments (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Realized gains on available-for-sale investments [Abstract] | ||||
| Total realized gains | $ 7,938,606 | $ 1,935,005 | $ 8,982,182 | $ 6,909,109 |
| Realized losses on available-for-sale investments [Abstract] | ||||
| Total realized losses | (374) | (34,547) | (8,340) | (149,393) |
| Net realized investment gains (losses) | 7,938,232 | 1,900,458 | 8,973,842 | 6,759,716 |
| Change in fair value of equity securities [Abstract] | ||||
| Change in fair value of equity securities held at the end of the period | (23,403) | 7,097,738 | (7,209,399) | 14,462,029 |
| Change in fair value of equity securities | (23,403) | 7,097,738 | (7,209,399) | 14,462,029 |
| Total net investment gains (losses) | 7,914,829 | 8,998,196 | 1,764,443 | 21,221,745 |
| 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 | (3,606,251) | (7,122,856) | (2,521,367) | (23,436,431) |
| Short-Term Investments [Member] | ||||
| Realized gains on available-for-sale investments [Abstract] | ||||
| Total realized gains | 0 | 0 | 23,509 | 0 |
| Realized losses on available-for-sale investments [Abstract] | ||||
| Total realized losses | (374) | 0 | (374) | 0 |
| Fixed Maturities [Member] | ||||
| Realized gains on available-for-sale investments [Abstract] | ||||
| Total realized gains | 12,500 | 0 | 58,333 | 4,683 |
| Realized losses on available-for-sale investments [Abstract] | ||||
| Total realized losses | 0 | 0 | 0 | (5,210) |
| 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 | (3,606,251) | (7,122,856) | (2,521,367) | (23,436,431) |
| Equity Securities [Member] | ||||
| Realized gains on available-for-sale investments [Abstract] | ||||
| Total realized gains | 110,742 | 1,485,872 | 359,216 | 1,883,453 |
| Realized losses on available-for-sale investments [Abstract] | ||||
| Total realized losses | 0 | 0 | (7,966) | (109,636) |
| Real Estate [Member] | ||||
| Realized gains on available-for-sale investments [Abstract] | ||||
| Total realized gains | 7,815,364 | 449,133 | 8,541,124 | 5,020,973 |
| Realized losses on available-for-sale investments [Abstract] | ||||
| Total realized losses | $ 0 | $ (34,547) | $ 0 | $ (34,547) |
Investments, Cost Method Investments (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
|||
|---|---|---|---|---|---|
| Investments [Abstract] | |||||
| Preferred stock, at cost | $ 15,683,343 | $ 15,683,343 | [1] | ||
| |||||
Investments, Trading Securities (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
|
| Trading Securities [Abstract] | |||||
| Fair value, derivatives included in trading security assets | $ 0 | $ 0 | $ 0 | ||
| Fair value, derivative included in trading security liabilities | 0 | 0 | $ 0 | ||
| Trading Revenue Charged to Net Investment Income from Trading Securities [Abstract] | |||||
| Net unrealized gains (losses) | 0 | $ 0 | 0 | $ 0 | |
| Net realized gains (losses) | 0 | 0 | (0) | (13,283) | |
| Net unrealized and realized gains (losses) | $ 0 | $ 0 | $ 0 | $ (13,283) | |
Investments, Mortgage Loans, Investment Real Estate, Notes Receivable, and Short-Term Investments (Details) - USD ($) |
9 Months Ended | 12 Months Ended | ||||
|---|---|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Dec. 31, 2022 |
||||
| Mortgage Loans [Abstract] | ||||||
| Mortgage loans acquired, including discounted mortgage loans | $ 2,050,124 | $ 1,755,496 | ||||
| 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] | ||||||
| Mortgage loans, gross | 15,155,687 | 30,698,694 | ||||
| Less allowance for credit losses | (370,000) | 0 | ||||
| Mortgage loans, net | 14,785,687 | 30,698,694 | [1] | |||
| Investment Real Estate [Abstract] | ||||||
| Impairment on investment real estate | 0 | |||||
| Total investment real estate | $ 31,609,218 | $ 34,934,352 | [1] | |||
| Oil & Gas Royalties - as a % of total Inv RE | 43.00% | 42.00% | ||||
| Investment real estate acquired | $ 4,115,151 | 4,236,603 | ||||
| Notes Receivable [Abstract] | ||||||
| Notes receivable acquired | 3,579,241 | 5,870,657 | ||||
| Notes receivable | 13,352,860 | $ 14,424,127 | ||||
| Less allowance for credit losses | (170,000) | 0 | ||||
| Total notes receivable, net | 13,182,860 | 14,424,127 | [1] | |||
| Short-Term Investments [Abstract] | ||||||
| Short-term investments acquired | $ 29,300,034 | $ (0) | ||||
| Minimum [Member] | ||||||
| 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 | $ 7,471,926 | 11,634,472 | ||||
| Commercial [Member] | ||||||
| Investment Real Estate [Abstract] | ||||||
| Total investment real estate | 5,847,661 | 5,124,847 | ||||
| Residential [Member] | ||||||
| Investment Real Estate [Abstract] | ||||||
| Total investment real estate | 4,738,882 | 3,402,502 | ||||
| Land, Minerals and Royalty Interests [Member] | ||||||
| Investment Real Estate [Abstract] | ||||||
| Total investment real estate | 13,550,749 | 14,772,531 | ||||
| Farm Loans [Member] | ||||||
| Mortgage loan holdings [Abstract] | ||||||
| Mortgage loans, gross | $ 338,207 | $ 383,278 | ||||
| Farm Loans [Member] | Minimum [Member] | ||||||
| Mortgage Loans [Abstract] | ||||||
| Interest rate on mortgage loans | 5.00% | 4.50% | ||||
| Farm Loans [Member] | Maximum [Member] | ||||||
| Mortgage Loans [Abstract] | ||||||
| Interest rate on mortgage loans | 5.00% | 5.00% | ||||
| Commercial Loans [Member] | ||||||
| Mortgage loan holdings [Abstract] | ||||||
| Mortgage loans, gross | $ 14,610,583 | $ 30,102,775 | ||||
| Commercial Loans [Member] | Minimum [Member] | ||||||
| Mortgage Loans [Abstract] | ||||||
| Interest rate on mortgage loans | 4.00% | 4.00% | ||||
| Commercial Loans [Member] | Maximum [Member] | ||||||
| Mortgage Loans [Abstract] | ||||||
| Interest rate on mortgage loans | 8.75% | 7.00% | ||||
| Residential Loans [Member] | ||||||
| Mortgage loan holdings [Abstract] | ||||||
| Mortgage loans, gross | $ 206,897 | $ 212,641 | ||||
| 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% | ||||
| ||||||
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
|||
|---|---|---|---|---|---|
| Assets [Abstract] | |||||
| Fixed maturities available for sale | $ 101,674,112 | $ 108,313,059 | [1] | ||
| Equity securities | 144,207,758 | 150,053,686 | [1] | ||
| Liabilities [Abstract] | |||||
| Trading Securities | 0 | 0 | |||
| U.S. Government and Government Agencies and Authorities [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities available for sale | 15,273,260 | 17,211,175 | |||
| Net Asset Value [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities | 92,615,146 | 89,434,766 | |||
| Measured on a Recurring Basis [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities available for sale | 101,674,112 | 108,313,059 | |||
| Equity securities | 144,207,758 | 150,053,686 | |||
| Total financial assets | 245,881,870 | 258,366,745 | |||
| Measured on a Recurring Basis [Member] | U.S. Government and Government Agencies and Authorities [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities available for sale | 15,273,260 | 17,211,175 | |||
| Measured on a Recurring Basis [Member] | U.S. Special Revenue and Assessments [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities available for sale | 7,043,065 | 7,199,100 | |||
| Measured on a Recurring Basis [Member] | Corporate Securities [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities available for sale | 79,357,787 | 83,902,784 | |||
| Measured on a Recurring Basis [Member] | Common Stock [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities | 142,960,758 | 148,806,686 | |||
| Measured on a Recurring Basis [Member] | Preferred Stock [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities | 1,247,000 | 1,247,000 | |||
| Measured on a Recurring Basis [Member] | Net Asset Value [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities available for sale | 0 | 0 | |||
| Equity securities | 92,615,146 | 89,434,766 | |||
| Total financial assets | 92,615,146 | 89,434,766 | |||
| 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 | 92,615,146 | 89,434,766 | |||
| 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 | 15,273,260 | 17,211,175 | |||
| Equity securities | 38,069,750 | 45,999,477 | |||
| Total financial assets | 53,343,010 | 63,210,652 | |||
| 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 | 15,273,260 | 17,211,175 | |||
| 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 | 38,069,750 | 45,999,477 | |||
| 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 | 86,400,852 | 91,101,884 | |||
| Equity securities | 5,435,800 | 6,651,800 | |||
| Total financial assets | 91,836,652 | 97,753,684 | |||
| 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 | 7,043,065 | 7,199,100 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Corporate Securities [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities available for sale | 79,357,787 | 83,902,784 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Common Stock [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities | 5,435,800 | 6,651,800 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Preferred Stock [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities | 0 | 0 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities available for sale | 0 | 0 | |||
| Equity securities | 8,087,062 | 7,967,643 | |||
| Total financial assets | 8,087,062 | 7,967,643 | |||
| 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 | 6,840,062 | 6,720,643 | |||
| 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 | |||
| |||||
Fair Value Measurements, Reconciliation for Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) |
9 Months Ended |
|---|---|
|
Sep. 30, 2023
USD ($)
| |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Beginning Balance | $ 97,402,409 |
| Purchases | 5,527,556 |
| Sales | (769,053) |
| Ending Balance | 100,702,208 |
| Other Realized Investment Gains, Net [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Realized and unrealized gains (losses) | $ 95,606 |
| Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other realized investment gains, net |
| Change in Fair Value of Equity Securities [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Realized and unrealized gains (losses) | $ (1,554,310) |
| Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Equity Securities, FV-NI, Realized Gain (Loss) |
| Fair Value [Member] | Equity Securities [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Beginning Balance | $ 7,967,643 |
| Purchases | 354,375 |
| Sales | (166,250) |
| Ending Balance | 8,087,062 |
| Fair Value [Member] | Equity Securities [Member] | Other Realized Investment Gains, Net [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Realized and unrealized gains (losses) | 0 |
| Fair Value [Member] | Equity Securities [Member] | Change in Fair Value of Equity Securities [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Realized and unrealized gains (losses) | (68,706) |
| Net Asset Value [Member] | Equity Securities [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Beginning Balance | 89,434,766 |
| Purchases | 5,173,181 |
| Sales | (602,803) |
| Ending Balance | 92,615,146 |
| Net Asset Value [Member] | Equity Securities [Member] | Other Realized Investment Gains, Net [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Realized and unrealized gains (losses) | 95,606 |
| Net Asset Value [Member] | Equity Securities [Member] | Change in Fair Value of Equity Securities [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Realized and unrealized gains (losses) | $ (1,485,604) |
Fair Value Measurements, Quantitative Information About Level 3 and Investments in Certain Entities Carried at Fair Value (Details) - USD ($) |
9 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
||||
| Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract] | |||||
| Financial assets, fair value | $ 100,702,208 | $ 97,402,409 | |||
| Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract] | |||||
| Equity securities | 144,207,758 | 150,053,686 | [1] | ||
| Unfunded commitments | 6,298,697 | 7,779,867 | |||
| 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 | $ 6,298,697 | $ 7,779,867 | |||
| Net Asset Value [Member] | |||||
| Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract] | |||||
| Equity securities | 92,615,146 | 89,434,766 | |||
| 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 | 38,234,062 | 43,724,562 | |||
| 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 | 54,381,084 | 45,710,204 | |||
| 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 | 92,615,146 | 89,434,766 | |||
| 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 | $ 8,087,062 | $ 7,967,643 | |||
| |||||
Fair Value Measurements, Carrying Values and Estimated Fair Values of Financial Instruments not Recorded at Fair Value (Details) - USD ($) |
Sep. 30, 2023 |
Dec. 31, 2022 |
|||
|---|---|---|---|---|---|
| Carrying Amount [Member] | |||||
| Assets [Abstract] | |||||
| Preferred stock, at cost | $ 15,683,343 | $ 15,683,343 | |||
| Mortgage loans on real estate | 14,785,687 | 30,698,694 | |||
| Investment real estate | 31,609,218 | 34,934,352 | |||
| Notes receivable | 13,182,860 | 14,424,127 | |||
| Policy loans | 6,160,290 | 6,567,434 | |||
| Liabilities [Abstract] | |||||
| Notes payable | 19,000,000 | ||||
| Estimated Fair Value [Member] | |||||
| Assets [Abstract] | |||||
| Preferred stock, at cost | 15,683,343 | 15,683,343 | |||
| Mortgage loans on real estate | 14,007,952 | 29,735,873 | |||
| Investment real estate | 78,305,554 | 92,425,241 | |||
| Notes receivable | 13,320,399 | 14,812,523 | |||
| Policy loans | 6,160,290 | 6,567,434 | |||
| Liabilities [Abstract] | |||||
| Notes payable | 19,000,000 | ||||
| Preferred stock, at cost | $ 15,683,343 | 15,683,343 | [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] | |||||
| Preferred stock, at cost | $ 0 | 0 | |||
| 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 | ||||
| Level 2 [Member] | |||||
| Assets [Abstract] | |||||
| Preferred stock, at cost | 0 | 0 | |||
| Mortgage loans on real estate | 0 | 0 | |||
| Investment real estate | 0 | 0 | |||
| Notes receivable | 0 | 0 | |||
| Policy loans | 0 | 0 | |||
| Liabilities [Abstract] | |||||
| Notes payable | 19,000,000 | ||||
| Level 3 [Member] | |||||
| Assets [Abstract] | |||||
| Preferred stock, at cost | 15,683,343 | 15,683,343 | |||
| Mortgage loans on real estate | 14,007,952 | 46,906,538 | |||
| Investment real estate | 78,305,554 | 92,425,241 | |||
| Notes receivable | 13,320,399 | 14,812,523 | |||
| Policy loans | $ 6,160,290 | 6,567,434 | |||
| Liabilities [Abstract] | |||||
| Notes payable | $ 0 | ||||
| |||||
Credit Arrangements (Details) - USD ($) |
9 Months Ended | |
|---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
| Line of Credit Facility [Abstract] | ||
| Pledged bonds | $ 13,352,860 | $ 14,424,127 |
| Asset Pledged as Collateral [Member] | ||
| Line of Credit Facility [Abstract] | ||
| Pledged bonds | $ 18,946,634 | |
| UTG 2013-11-20 [Member] | ||
| Line of Credit Facility [Abstract] | ||
| Issue Date | Nov. 20, 2013 | |
| Maturity Date | Nov. 20, 2023 | |
| Revolving Credit Limit | $ 8,000,000 | |
| Outstanding Balance | 0 | 0 |
| Borrowings | 0 | |
| Repayments | $ 0 | |
| Interest Rate | 6.50% | |
| 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] | Variable Rate [Member] | Maximum [Member] | ||
| Line of Credit Facility [Abstract] | ||
| Period of interest under CMA | 90 days | |
| 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. 06, 2023 | |
| Revolving Credit Limit | $ 25,000,000 | |
| Outstanding Balance | 0 | $ 19,000,000 |
| Borrowings | 2,500,000 | |
| Repayments | $ 21,500,000 |
Shareholders' Equity (Details) - USD ($) |
1 Months Ended | 9 Months Ended | |
|---|---|---|---|
Mar. 31, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| 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) | 26,863 | ||
| Amount paid to repurchase shares during the year | $ 765,048 | $ 605,230 | |
| Amount of common stock repurchased | $ 20,074,486 | ||
| Number of common stock acquired (in shares) | 1,353,076 | ||
| Number of shares issued (in shares) | 26,911 | ||
| Cost of shares issued | $ 674,390 | ||
| Earnings Per Share Calculations [Abstract] | |||
| Dilutive instruments outstanding (in shares) | 0 | 0 | |
Commitments and Contingencies (Details) |
Sep. 30, 2023
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 | 76,732 |
| Sovereign's Capital, LP Fund III [Member] | |
| Total Funding Commitments and Unfunded Commitment [Abstract] | |
| Total Funding Commitment | 3,000,000 |
| Unfunded Commitment | 505,453 |
| Garden City Companies, LLC [Member] | |
| Total Funding Commitments and Unfunded Commitment [Abstract] | |
| Total Funding Commitment | 2,000,000 |
| Unfunded Commitment | 510,546 |
| 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 | 1,350,000 |
| QCC Investment Co., LLC [Member] | |
| Total Funding Commitments and Unfunded Commitment [Abstract] | |
| Total Funding Commitment | 1,500,000 |
| Unfunded Commitment | 150,000 |
| Sovereign's Capital Evergreen Fund I, LLC [Member] | |
| Total Funding Commitments and Unfunded Commitment [Abstract] | |
| Total Funding Commitment | 3,000,000 |
| Unfunded Commitment | 4,062 |
| 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 | 1,768,904 |
| 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 | 5,633,332 |
| Legacy Venture XI, LLC [Member] | |
| Total Funding Commitments and Unfunded Commitment [Abstract] | |
| Total Funding Commitment | 2,000,000 |
| Unfunded Commitment | 1,920,000 |
| Great American Media Group, LLC [Member] | |
| Total Funding Commitments and Unfunded Commitment [Abstract] | |
| Total Funding Commitment | 4,000,000 |
| Unfunded Commitment | $ 4,000,000 |
Other Cash Flow Disclosures (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
| Other Cash Flow Disclosures [Abstract] | ||||
| Interest | $ 0 | $ 31,244 | $ 44,814 | $ 61,440 |
| Federal income tax | $ 740,000 | $ 0 | $ 5,800,000 | $ 1,000,000 |
Concentrations of Credit Risk (Details) |
9 Months Ended | 12 Months Ended | ||||
|---|---|---|---|---|---|---|
|
Sep. 30, 2023
USD ($)
State
Security
|
Sep. 30, 2022 |
Dec. 31, 2022
USD ($)
Security
|
||||
| Concentrations [Abstract] | ||||||
| Number of states by which entity primarily serves | State | 3 | |||||
| Maximum retention limits per life | $ 125,000 | |||||
| Allocation of Oil and Gas Investments [Abstract] | ||||||
| Fixed maturities available for sale | 101,674,112 | $ 108,313,059 | [1] | |||
| Equity securities, at fair value | 144,207,758 | 150,053,686 | [1] | |||
| Investment real estate | 31,609,218 | 34,934,352 | [1] | |||
| Notes receivable | 13,182,860 | 14,424,127 | [1] | |||
| Total investments | $ 350,696,383 | $ 364,271,636 | [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 | $ 1,034,870 | $ 1,060,710 | ||||
| Equity securities, at fair value | 81,985,219 | 93,811,806 | ||||
| Investment real estate | 13,550,754 | 14,772,536 | ||||
| Notes receivable | 2,000,000 | 1,950,657 | ||||
| Total investments | 98,570,843 | 111,595,709 | ||||
| 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 | 81,985,219 | 93,811,806 | ||||
| Investment real estate | 13,550,754 | 14,772,536 | ||||
| Notes receivable | 2,000,000 | 1,950,657 | ||||
| Total investments | 97,535,973 | 110,534,999 | ||||
| Oil and Gas Industry [Member] | Exploration [Member] | ||||||
| Allocation of Oil and Gas Investments [Abstract] | ||||||
| Fixed maturities available for sale | 1,034,870 | 1,060,710 | ||||
| Equity securities, at fair value | 0 | 0 | ||||
| Investment real estate | 0 | 0 | ||||
| Notes receivable | 0 | 0 | ||||
| Total investments | $ 1,034,870 | $ 1,060,710 | ||||
| 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% | 39.00% | ||||
| Direct Premium Collected [Member] | Geographic Concentration Risk [Member] | Illinois, Ohio, Texas and West Virginia [Member] | ||||||
| Concentrations [Abstract] | ||||||
| Concentration risk, percentage | 51.00% | 49.00% | ||||
| Invested Assets [Member] | Customer Concentration Risk [Member] | Oil and Gas Industry [Member] | ||||||
| Concentrations [Abstract] | ||||||
| Concentration risk, percentage | 28.00% | 31.00% | ||||
| Invested Assets [Member] | Customer Concentration Risk [Member] | Oil and Gas Industry [Member] | Equity Securities [Member] | ||||||
| Concentrations [Abstract] | ||||||
| Concentration risk, percentage | 48.00% | 50.00% | ||||
| ||||||