Credit Arrangements

12 Months Ended

Dec. 31, 2024

Credit Arrangements

Note 7 – Credit Arrangements

At December 31, 2024 and 2023, the Company had the following line of credit available:

Instrument

Issue Date

Maturity Date

Revolving Credit Limit

December 31, 2023

Borrowings

Repayments

December 31, 2024

Line of Credit:

UG - CMA

10/21/2021

10/3/2025

25,000,000

19,000,000

UTG had a variable rate revolving line of credit that expired on November 20, 2024. As collateral, UTG had pledged 100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company ("UG"). The Company had not utilized the line of credit in several years. Management determined the line was no longer needed at this time.

During October of 2024, 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 $21,371,910. During the fourth quarter of 2023, the Company borrowed $19 million and planned to utilize the funds for investing activities. The variable interest rate on the borrowed funds was 5.47%. During the first quarter of 2024, the Company repaid the entire outstanding principal balance.