Concentrations of Credit Risk

3 Months Ended

Mar. 31, 2025

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 March 31, 2025 and 2024, 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 21% and 20% of total life insurance in force at March 31, 2025 and December 31, 2024, respectively. Insurance ceded represented 57% and 31% of premium income for the three months ended March 31, 2025 and 2024, respectively. The Company would be liable for the reinsured risks ceded to other companies to the extent that such reinsuring companies are unable to meet their obligations.

The Company owns a variety of investments associated with the oil and gas industry. These investments represent approximately 33% and 34% of the Company’s total invested assets as of March 31, 2025 and December 31, 2024, respectively. The following table provides an allocation of the oil and gas investments by type.

March 31, 2025	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,076,290	$	1,076,290
Equity securities, at fair value		125,910,473		0		125,910,473
Equity securities, at cost		4,654,714		0		4,654,714
Investment real estate		5,352,448		0		5,352,448
Notes receivable		1,875,000		0		1,875,000
Total	$	137,792,635	$	1,076,290	$	138,868,925

December 31, 2024	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,068,400	$	1,068,400
Equity securities, at fair value		124,155,007		0		124,155,007
Equity securities, at cost		4,863,572		0		4,863,572
Investment real estate		5,677,061		0		5,677,061
Notes receivable		1,875,000		0		1,875,000
Total	$	136,570,640	$	1,068,400	$	137,639,040

At March 31, 2025 and December 31, 2024, the Company owned 4 equity securities that represented approximately 82% and 81%, 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.