10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 FORM 10-K

(Mark One)

☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the fiscal year ended December 31, 2023
	or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from _____________ to ______________

Commission File Number 000-16867

	UTG, INC.
	(Exact name of registrant as specified in its charter)
Delaware		20-2907892
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

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

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

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

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

Title of class

Common Stock, stated value $.001 per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.   Yes ☐    No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.   Yes ☐    No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulations S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

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

Large accelerated filer ☐Accelerated filer ☐

Non-accelerated filer ☐  Smaller reporting company ☒

Emerging growth company ☐

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

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.  ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.   ☐   

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to 240.10D-1(b). ☐    

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

As of June 30, 2023, shares of the Registrant’s common stock held by non-affiliates (based upon the price of the last sale of $38.63 per share), had an aggregate market value of approximately $35,889,858.

At January 31, 2024 the Registrant had 3,164,779 outstanding shares of common stock, stated value $.001 per share.

Documents incorporated by reference: None

UTG, Inc.

Form 10-K

Year Ended December 31, 2023

TABLE OF CONTENTS

PART I	4
Item 1.   Business	4
Item 1A. Risk Factors	8
Item 1B. Unresolved Staff Comment	8
Item 1C. Cybersecurity	9
Item 2.   Properties	10
Item 3.   Legal Proceedings	10
Item 4.   Mine Safety Disclosures	10
PART II	10
Item 5.  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	10
Item 6.   Reserved	11
Item 7.   Management’s Discussion and Analysis of Financial Condition and Results of Operations	11
Item 7A. Quantitative and Qualitative Disclosures About Market Risk	21
Item 8.   Financial Statements and Supplementary Data	21
Item 9.   Changes in and Disagreements with Accountants on Accounting and Financial Disclosures	56
Item 9A. Controls and Procedures	57
Item 9B. Other Information	57
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	57
PART III	58
Item 10.  Directors, Executive Officers and Corporate Governance	58
Item 11.  Executive Compensation	62
Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	63
Item 13.  Certain Relationships and Related Transactions, and Director Independence	65
Item 14.  Principal Accountant Fees and Services	66
PART IV	67
Item 15.  Exhibit and Financial Statement Schedules	67
Item 16.  Form 10-K Summary	69

Forward-Looking Statements

This report on Form 10-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. We have based our forward-looking statements on our current expectations and projections about future events. Our forward-looking statements include information about possible or assumed future results of operations. All statements, other than statements of historical facts, included or incorporated by reference in this report that address activities, events or developments that we expect or anticipate may occur in the future, including such things as the growth of our business and operations, our business strategy, competitive strengths, goals, plans, future capital expenditures and references to future successes may be considered forward-looking statements. Also, when we use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “probably,” or similar expressions, we are making forward-looking statements.

Numerous risks and uncertainties may impact the matters addressed by our forward-looking statements, any of which could negatively and materially affect our future financial results and performance.

Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and, therefore, the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements that are included in this report, our inclusion of this information is not a representation by us or any other person that our objectives and plans will be achieved. In light of these risks, uncertainties and assumptions, any forward-looking event discussed in this report may not occur.  Our forward-looking statements speak only as of the date made, and we undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments, unless the securities laws require us to do so.

PART I

Item 1. Business

General

The Holding Company - UTG, Inc. (the “Registrant”, “Company” or “UTG”) is an insurance holding company incorporated in the state of Delaware in 2005 and headquartered in Stanford, KY. The Company’s principal subsidiary is Universal Guaranty Life Insurance Company (“UG”). The Registrant and its primary subsidiary have only one significant segment, insurance.

The holding company has no significant business operations of its own and relies on fees, dividends and other distributions from its operating subsidiary as the principal source of cash flows to meet its obligations.  The Company may explore supplemental sources of income in the future. The cash outlays of the Company mainly consist of operational costs and the costs of repurchasing Company common stock.

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

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, a Kentucky corporation, (“FSF”) and First Southern Bancorp, Inc. (“FSBI”), a financial services holding company.  FSBI operates through its 100% owned subsidiary bank, First Southern National Bank (“FSNB”).  Banking activities are conducted through multiple locations within south-central and western Kentucky.  Mr. Correll is Chief Executive Officer and Chairman of the Board of Directors of UTG and is currently UTG’s largest shareholder through his ownership control of FSF, FSBI and affiliates.  At December 31, 2023, Mr. Correll owns or controls directly and indirectly approximately 66% of UTG’s outstanding stock.

At December 31, 2023, the Company had consolidated assets of $442 million, consolidated liabilities of $280 million and total shareholders’ equity of $163 million. The Company’s consolidated liabilities include policyholder liabilities and accruals of $243 million.

The Company’s principal executive office is located at 205 North Depot Street, Stanford, Kentucky 40484. The Company’s telephone number is 217-241-6300.

The Insurance Company - Universal Guaranty Life Insurance Company is an Ohio domiciled life insurance company and is licensed in 37 states.  The Company’s dominant business is individual life insurance, which includes the servicing of existing insurance business in-force, the acquisition of other companies in the insurance business, and the administration processing of life insurance business for other entities. The Insurance Company’s operations are conducted through its administrative office located in Stanford, Kentucky.

UG has several wholly-owned and majority-owned subsidiaries.  The subsidiaries were formed to hold certain real estate and other investments.  The investments were placed into the limited liability companies and partnerships to provide additional protection to the policyholders and to UG.

Reinsurance - As is customary in the insurance industry, the insurance subsidiary cedes insurance to, and assumes insurance from, other insurance companies under reinsurance agreements.  Reinsurance agreements are intended to limit a life insurer’s maximum loss on a large or unusually hazardous risk or to obtain a greater diversification of risk.  The ceding insurance company remains primarily liable with respect to ceded insurance should any reinsurer be unable to meet the obligations assumed by it.  However, it is the practice of insurers to reduce their exposure to loss to the extent that they have been reinsured with other insurance companies.  The Company sets a limit on the amount of insurance retained on the life of any one person.  The Company will not retain more than $125,000, including accidental death benefits, on any one life.

The Company’s reinsured business is ceded to numerous reinsurers.  The Company monitors the solvency of its reinsurers in seeking to minimize the risk of loss in the event of a failure by one of the parties.  The Company is primarily liable to the insureds even if the reinsurers are unable to meet their obligations.  The primary reinsurers of the Company are large, well-capitalized entities.  See Note 4 - Reinsurance in the Notes to the Consolidated Financial Statements for additional information regarding the Company’s reinsurance activities.

Reserves - The applicable insurance laws under which the insurance subsidiary operates require that the insurance company report policy reserves as liabilities to meet future obligations on the policies in-force.  These reserves are the amounts which, with the additional premiums to be received and interest thereon compounded annually at certain assumed rates, are calculated in accordance with applicable laws to be sufficient to meet the various policy and contract obligations as they mature.  These laws specify that the reserves shall not be less than reserves calculated using certain mortality tables and interest rates.

The liabilities for traditional life insurance and accident and health insurance policy benefits are computed using a net level method.  These liabilities include assumptions as to investment yields, mortality, withdrawals, and other assumptions based on the life insurance subsidiary’s experience adjusted to reflect anticipated trends and to include provisions for possible unfavorable deviations.  The Company makes these assumptions at the time the contract is issued or, in the case of contracts acquired by purchase, at the purchase date.  Future policy benefits for individual life insurance and annuity policies are computed using interest rates ranging from 2% to 6% for life insurance and 2.5% to 7.5% for annuities.  Benefit reserves for traditional life insurance policies include certain deferred profits on limited-payment policies that are being recognized in income over the policy term.  Policy benefit claims are charged to expense in the period that the claims are incurred.  The mortality rate assumptions for policies currently issued by the Company are based on 2017 CSO Ultimate tables.  Withdrawal rate assumptions are based upon Linton B or Linton C, which are industry standard actuarial tables for forecasting assumed policy lapse rates.

Benefit reserves for universal life insurance and interest sensitive life insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges.  Policy benefits and claims that are charged to expense include benefit claims in excess of related policy account balances.

Business Strategy

UG’s product portfolio consists of a limited number of life insurance product offerings. All of the products are individual life insurance products, with design variations from each other to provide choices to the customer. These variations generally center around the length of the premium paying period, length of the coverage period and whether the product accumulates cash value or not.

While the Company does not actively sell any new policies today, it has the following products available for issue:

Tradition – The Tradition policy is a fixed premium whole life insurance policy. Premiums are level and payable for life.  Issue ages are 0-75. The minimum face amount is the greater of $10,000 or the amount of coverage provided by a $100 annual premium.

Annuity - The annuity product is a 5-year, single premium product. The product offers a guaranteed minimum rate of 1% and the rate can be adjusted at any time. The maximum surrender charge is 5% and subject to waiver for certain qualifying events. The annuity product offers a 10% free withdrawal each year beginning in year 2.

Business Concentrations

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 T. 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 UG serves primarily individuals located in three states, the ability of our customers to pay their insurance premiums is impacted by the economic conditions in these areas.  As of December 31, 2023 and 2022, respectively, approximately 51% and 50% 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 majority of the investments included in the Consolidated Balance Sheets are owned by UTG’s subsidiary, UG. As an insurance company, UG is subject to applicable state insurance laws and regulations, which limit the concentration of investments in any one category or class and further limit the investment in any one issuer.  Generally, these limitations are imposed as a percentage of statutory assets or percentage of statutory capital and surplus of each company.

The Company owns a variety of investments associated with the oil and gas industry.  These investments represented approximately 28% and 31% of the Company’s total invested assets at December 31, 2023 and 2022, respectively.

The Company’s investment real estate portfolio includes ownership in oil and gas royalties. As of December 31, 2023 and 2022, investments in oil and gas royalties represented 34% and 30%, respectively, of the total investment real estate portfolio.

See Note 13 - Concentrations of the Consolidated Financial Statements for additional disclosures regarding concentrations that have been identified by the Company.

Competition

The insurance business is a highly competitive industry and there are a number of other companies, both stock and mutual, doing business in areas where the Company operates.  Many of these competing insurers are larger, have more diversified and established lines of insurance coverage, have substantially greater financial resources and brand recognition, as well as a greater number of agents.  Other significant competitive factors in the insurance industry include policyholder benefits, service to policyholders, and premium rates.

In recent years, the Company has not placed an emphasis on new business production. Costs associated with supporting new business can be significant. Current sales primarily represent sales to existing customers through additional insurance needs or conservation efforts. The Company currently encourages policy retention as opposed to new sales in an attempt to maintain or improve current persistency levels.

The Company performs administrative work as a third-party administrator (“TPA”) for unaffiliated life insurance companies.  The Company provides TPA services to insurance companies seeking business process outsourcing solutions. Revenue generated from TPA services is considered insignificant to the overall financial statements.

Human Capital

As of December 31, 2023, UTG and its subsidiaries had 40 full-time employees located in Kentucky and Illinois.  These individuals are further supported by certain employees of First Southern National Bank (an affiliated entity) through a shared services arrangement.  Under this arrangement, the two entities utilize the services of the other’s staff in certain instances for the betterment of both entities.  Personnel within departments such as accounting, human resources and information technology are shared between the entities.  UTG’s operations are headquartered in Stanford, Kentucky. The Company respects, values and invites diversity in our team members, customers, suppliers, and community.  We seek to recognize the unique contribution each individual brings to our Company, and we are fully committed to supporting a rich culture of diversity as a cornerstone to our success.  The Company strives to attract, develop, and retain talented individuals.  To attract such individuals, we provide professional and personal development opportunities to team members. In addition, we seek to improve retention, development, and job satisfaction of team members from diverse groups by providing career skills training, peer mentoring and opportunities to interact with senior leaders.  We encourage our team members to take initiative, accept challenges and achieve goals, all of which enables our team to work efficiently while providing excellent customer service which supports the Company’s strong performance.

UTG offers competitive compensation and benefits.  Our pay for performance compensation philosophy is designed to reward employees for achievement and to align employee interests with the Company’s long-term growth.  The Company’s benefits program includes health care, wellness initiatives, retirement offerings and paid time off.

Workplace health and safety is a vital aspect of running our business.  We believe that safety must always be an integral part of any function or service performed, and the protection of our employees and visitors is our utmost priority.  We have a business continuity plan in place that allows us to respond to threats to our health and safety, while ensuring that we can continue to provide quality service to our clients and shareholders at all times.

Code of Ethics

The Board of Directors has adopted a code of ethics for directors, officers, and financial personnel.

Regulation

Holding Company - States have enacted legislation requiring registration and periodic reporting by insurance companies domiciled within their respective jurisdictions that control or are controlled by other corporations so as to constitute a holding company system. Insurance holding company system statutes and regulations impose various limitations on investments in subsidiaries and may require prior regulatory approval for material transactions between insurers and affiliates and for the payment of certain dividends and other distributions.

Insurance - Insurance companies are subject to regulation and supervision in the states in which they do business.  Generally the state supervisory agencies have broad administrative powers relating to granting and revoking licenses to transact business, licensing agents, approving policy forms, regulating trade practices, approving certain premium rates, setting minimum reserve and loss ratio requirements, determining the form and content of required financial statements, and prescribing the type and amount of investments permitted.  Insurance companies are also required to file detailed annual reports with supervisory agencies, and records of their business are subject to examination at any time.  Under the rules of the National Association of Insurance Commissioners (“NAIC”), insurance companies are examined periodically by one or more of the supervisory agencies.

Statutory Restrictions – Restrictions exist on the flow of funds to UTG from its insurance subsidiary.  Statutory regulations require life insurance subsidiaries to maintain certain minimum amounts of capital and surplus. UG is required to maintain minimum statutory surplus of $2,500,000. At December 31, 2023, substantially all of the consolidated shareholders’ equity represents net assets of UTG’s subsidiaries.

Risk-Based Capital - The NAIC requires a risk-based capital formula be applied to all life and health insurers. The risk-based capital formula is a threshold formula rather than a target capital formula. It is designed only to identify companies that require regulatory attention and is not to be used to rate or rank companies that are adequately capitalized. UTG’s insurance subsidiary, UG, is more than adequately capitalized under the risk-based capital formula.

Guaranty Assessments – State guaranty laws provide for assessments from insurance companies to be placed into a fund which is used, in the event of failure or insolvency of an insurance company, to fulfill the obligations of that company to its policyholders.  The amount which a company is assessed is determined according to the extent of these unsatisfied obligations in each state.  Assessments are recoverable to a great extent as offsets against state premium taxes.

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 $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 2023, the Company repurchased 30,646 shares through the stock repurchase program for $881,966. Through December 31, 2023, UTG has spent $20,191,403 in the acquisition of 1,356,859 shares under this program.

Transactions with Affiliates

The articles of incorporation of UG contain the following language under item 12 relative to related party transactions:

A director shall not be disqualified from-dealing with or contracting with the corporation as vendor, purchaser; employee, agent or otherwise; nor, in the absence of fraud, shall any transaction or contract or act of this corporation be void or in any way affected or invalidated by the fact that any director or any firm of which any director is a member or any corporation of which any director is a shareholder, director or officer is in any way interested in such transaction or contract or act, provided the fact that such director or such firm or such corporation so interested shall be disclosed or shall be known to the Board of Directors or such members thereof as shall be present at any meeting of the Board of Directors at which action upon any such contract or transaction or act shall be taken: nor shall any such director be accountable or responsible to the company for or in respect to such transaction or contract or act of. this corporation or for any gains or profits realized by him by reason of the fact that he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer is interested in such action or contract; and any such director may be counted in determining the existence of a quorum of any meeting of the Board of Directors of the company which shall authorize or take action in respect to any such contract or transaction or act and may vote thereat to authorize, ratify, or approve any such contract or transaction or act, with like force and effect as if he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer were not interested in such transaction or contract or act.

Note 11 – Related Party Transactions of the Consolidated Financial Statements provides disclosures regarding transactions with related parties.

Anti-Money Laundering Laws

A series of laws and regulations beginning with the Bank Secrecy Act of 1970 require financial institutions to prevent, detect, and report illicit or illegal financial activities to the federal government to prevent money laundering, international drug trafficking, and terrorism. Under the US PATRIOT Act of 2001, financial institutions are subject to prohibitions against specified financial transactions and account relationships, requirements regarding the Customer Identification Program, as well as enhanced due diligence and “know your customer” standards in their dealings with high-risk customers, foreign financial institutions, and foreign individuals and entities. These rules also mandate a variety of record keeping, reporting and employee training requirements.

Data Security

Increased global IT security threats and more sophisticated and targeted computer crime pose a risk to the security of systems and networks and the confidentiality, availability and integrity of data.  Although the Company makes efforts to maintain the security and integrity of the networks and systems, there can be no assurance that the security efforts will be effective or that attempted security breaches or disruptions would not be successful or damaging.  In the event a security breach or failure results in the disclosure of sensitive third-party data or the transmission of harmful/malicious code to third parties, the Company could be subject to liability claims.  Depending on their nature and scope, such threats also could potentially lead to improper use of our systems and networks, manipulation and destruction of data, loss of trade secrets, system downtimes and operational disruptions, which in turn, could adversely affect our reputation, competitiveness and results of operations.

Available Information

The Company files annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports with the Securities and Exchange Commission (“SEC”) pursuant to section 13(a) or 15(d) of the Securities and Exchange Act of 1934.

The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC on its website at www.sec.gov. The Company’s website is www.utgins.com.

Item 1A. Risk Factors

As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and Item 10(f)(1) of Regulation S-K, the Company has elected to comply with certain scaled disclosure reporting obligations, and therefore does not have to provide the information required by this item.

Item 1B. Unresolved Staff Comments

Not applicable.

Item 1C. Cybersecurity

Overall Process

Cybersecurity risk management is an important and continuously evolving focus for the Company. The Company monitors its information systems to proactively assess, identify, and manage risks from vulnerabilities and assess cybersecurity threats. The Company’s process for identifying and assessing material risks from cybersecurity threats operates alongside the Company’s broader overall risk assessment process. The policies and procedures are managed by internal and external resources and are believed to be reasonably designed to prevent, detect, and respond to cybersecurity risks and incidents.

The Company’s processes and procedures include regular network, endpoint, and cloud monitoring, vulnerability assessments, and penetration testing. Periodically, the Company engages external partners to conduct periodic audits of our systems, test our systems infrastructure, and suggest improvements. Through these channels and others, we work to proactively identify potential vulnerabilities in our information security system. The assessments, external penetration testing and internal vulnerability analysis follow the standards of the National Institute of Standards and Technology (“NIST”) – Guidelines on Network Security Testing.

The Company provides mandatory initial and annual training thereafter for personnel regarding security awareness as a means to equip the Company’s personnel with the understanding of how to properly use and protect the computing resources entrusted to them, and to communicate the Company’s information security policies, standards, processes and practices. Training is supplemented by various testing initiatives, including social engineering testing.

Third-Party Access

The Company continues to make investments and partner with qualified third parties to enhance its cyber defense capabilities to monitor the evolving spectrum of cybersecurity risks in the operating environment, enhance defenses and improve resiliency against cybersecurity threats. The Company recognizes that we are exposed to cybersecurity threats associated with our use of third-party service providers. To minimize the risk and vulnerabilities to our own systems stemming from such use, we contract with a third-party consulting firm to assist us in identifying known cybersecurity threats and incidents of third-party service providers on a regular basis. In addition, we strive to minimize cybersecurity risks when we first select or renew a vendor by including cybersecurity risk as part of our overall vendor evaluation and due diligence process. A vendor management policy is in place. The vendor management policy calls for the evaluation of risk for each vendor based upon an assessment of the degree to which their relationship could expose the Company to risk in relation to the Company’s reliance on the vendor’s promise to perform and to protect customer privacy and based on the vendor’s fiscal strength.

Third parties that have access to our systems or customer data must have appropriate technical and organizational security measures and security control principles based on commercially acceptable security standards, and we require third parties in this class to agree by contract to manage their cybersecurity risks.

Enterprise Risk Management Process Integration

The Company leverages the expertise of independent consultants and audit firms to evaluate the effectiveness of our risk management systems and address potential cybersecurity incidents efficiently.

The Company utilizes a combination of third-party information security assessments, key technologies, and ongoing internal and external evaluations to provide a level of protection of non-public personal information, to continually monitor and attempt to safeguard information on its operating systems, in cloud-based solutions, and those of third-party service providers, and to prevent, quickly detect and respond to attacks. The Company also utilizes firewall technology, multi-factor authentication, complex password construction, and a combination of software and third-party monitoring to detect and prevent intrusion, and cybersecurity threats, guard against unauthorized access, and continuously identify and prevent computer viruses on the Company’s information solutions.

Material Incidents

We are not aware of any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations or financial condition. Although we have a robust cybersecurity program that is designed to assess, identify, and manage material risks from cybersecurity threats, we cannot provide absolute surety that we have properly identified or mitigated all vulnerabilities or risks of incidents. We, and the third parties that we engage, are subject to constant and evolving threats of attack and cybersecurity incidents may be more difficult to detect for periods of time. A cybersecurity incident could harm our business strategy, results of operations, financial condition, reputation, and/or subject us to regulatory actions or litigation which may result in fines, judgments or indictments.

Cybersecurity Governance

Cybersecurity risk management processes are an integral part of the Company’s enterprise risk management. The Company’s management team, with assistance from a third-party advisor, is responsible for the day-to-day management of cybersecurity risks faced by the Company. The Board of Directors oversees the risk management policies of the Company and is responsible for the periodic review and approval of the risk management policies.

As part of its oversight of cybersecurity and informational security risk, the Board of Directors periodically receives updates on the results of third-party testing of the systems, processes, and procedures. The Board of Directors also receives periodic updates on cybersecurity and information security risks, industry trends, and best practices. The Company has established written policies and procedures to ensure that significant cybersecurity incidents are immediately investigated, addressed through the coordination of various internal departments, and publicly reported (to the extent required by applicable rules and regulations).

Item 2. Properties

The Company rents a portion of the first floor and second floor of an 8,000 square foot, two-story office building, located in Stanford, KY. The first floor of the building is occupied by UTG and FSNB employees that are included in the shared services agreement between the two entities. The second floor is occupied by the customer service call centers for both UTG and FSNB employees. The building is owned by FSNB and UTG pays $2,000 per month in rent to FSNB for the portion of the building occupied by UTG employees. The Company paid rent of $24,000 to FSNB in 2023 and 2022.

Item 3. Legal Proceedings

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 these matters will not have a material adverse effect on the Company’s results of operations or financial position.

Item 4. Mine Safety Disclosures

Not applicable.

PART II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

The Registrant is a public company whose common stock is traded in the over-the-counter market.  Over-the-counter quotations can be obtained using the UTGN stock symbol.

The following table shows the high and low closing prices for each quarterly period during the past two years, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.  The quotations below were acquired from the Yahoo Finance web site, which also provides quotes for over-the-counter traded securities such as UTG.

	2023		2022
Period	High	Low	High	Low
First quarter	26.75	24.18	30.00	27.10
Second quarter	38.63	26.00	29.00	23.00
Third quarter	38.63	29.60	33.28	23.60
Fourth quarter	34.00	30.01	33.28	25.06

UTG has not declared or paid any dividends on its common stock in the past two fiscal years, and has no current plans to pay dividends on its common stock as it intends to retain all earnings for investment in and growth of the Company’s business.  See Note 9 – Shareholders’ Equity in the Notes to the Consolidated Financial Statements for information regarding dividend restrictions, including applicable restrictions on the ability of the Company’s life insurance subsidiary to pay dividends.

As of January 31, 2024 there were 4,139 record holders of UTG common stock.

Purchases of Equity Securities

The following table provides information with respect to purchases we made of our common stock during the three months ended December 31, 2023 and total repurchases:

	Total Number of Shares Purchased		Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Program		Maximum Number of Shares That May Yet Be Purchased Under the Program		Approximate Dollar Value That May Yet Be Purchased Under the Program
Oct. 1 through Oct. 31, 2023		1,411	$	32.41		1,411		N/A	$	1,879,781
Nov. 1 through Nov. 30, 2023		1,311	$	30.01		1,311		N/A	$	1,840,438
Dec. 1 through Dec. 31, 2023		1,061	$	30.01		1,061		N/A	$	1,808,597
Total		3,783				3,783

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 $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 2023, the Company repurchased 30,646 shares through the stock repurchase program for $881,966. Through December 31, 2023, UTG has spent $20,191,403 in the acquisition of 1,356,859 shares under this program.

Stock Performance Graph

As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and Item 10(f)(1) of Regulation S-K, the Company has elected to comply with certain scaled disclosure reporting obligations, and therefore does not have to provide the information required by this item.

Item 6. Reserved

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following is Management’s discussion and analysis of the financial condition and results of operations of UTG, Inc. and its subsidiaries (collectively with the Parent, the “Company”) for the years ended December 31, 2023 and 2022. This discussion should be read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this report.

Cautionary Statement Regarding Forward-Looking Statements

This report on Form 10-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. We have based our forward-looking statements on our current expectations and projections about future events. Our forward-looking statements include information about possible or assumed future results of operations. All statements, other than statements of historical facts, included or incorporated by reference in this report that address activities, events or developments that we expect or anticipate may occur in the future, including such things as the growth of our business and operations, our business strategy, competitive strengths, goals, plans, future capital expenditures and references to future successes may be considered forward-looking statements. Also, when we use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,” “probably,” or similar expressions, we are making forward-looking statements.

Numerous risks and uncertainties may impact the matters addressed by our forward-looking statements, any of which could negatively and materially affect our future financial results and performance.

Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and, therefore, the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements that are included in this report, our inclusion of this information is not a representation by us or any other person that our objectives and plans will be achieved. In light of these risks, uncertainties and assumptions, any forward-looking event discussed in this report may not occur.  Our forward-looking statements speak only as of the date made, and we undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments, unless the securities laws require us to do so.

Overview

UTG, Inc., a Delaware corporation, is a life insurance holding company.  The Company’s dominant business is individual life insurance, which includes the servicing of existing insurance policies in-force, the acquisition of other companies in the life insurance business, the acquisition of blocks of business and the administration and processing of life insurance business for other entities.

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

On February 21, 2023, Mr. James Rousey submitted a letter of resignation stating his desire to retire. In this regard, he retired as President of UTG, Inc. and its subsidiary, Universal Guaranty Life Insurance Company as well as his position as a Director of both entities. This was effective as of the date of the letter. The Board of Directors of UTG, Inc. and Universal Guaranty Life Insurance Company formally accepted the resignation letter on February 22, 2023. Mr. Jesse Correll, CEO and Chairman of the Board of the companies, assumed the title of President initially.  At the September 2023 Board of Directors meeting, the Board appointed Mr. Daniel Roberts as President of Universal Guaranty Life Insurance Company.  Mr. Correll continues to hold the President title for UTG, Inc.  Mr. Roberts was previously a Vice President with both companies.

Critical Accounting Policies

We have identified the accounting policies below as critical to the understanding of our results of operations and our financial condition.  The application of these critical accounting policies in preparing our consolidated financial statements requires Management to use significant judgments and estimates concerning future results or other developments including the likelihood, timing or amount of one or more future transactions or amounts.  Actual results may differ from these estimates under different assumptions or conditions.  On an on-going basis, we evaluate our estimates, assumptions and judgments based upon historical experience and various other information that we believe to be reasonable under the circumstances.  For a detailed discussion of other significant accounting policies, see Note 1 – Summary of Significant Accounting Policies in the Notes to the Consolidated Financial Statements.

Future Policy Benefits – Because of the long-term nature of insurance contracts, the insurance company is liable for policy benefit payments that will be made in the future.  The liability for future policy benefits is determined by standard actuarial procedures common to the life insurance industry.  The accounting policies for determining this liability are disclosed in Note 1 – Summary of Significant Accounting Policies in the Notes to the Consolidated Financial Statements.

Cost of Insurance Acquired – The costs of acquiring blocks of insurance from other companies or through the acquisition of other companies are deferred and recorded as deferred acquisition costs. The deferred amounts are recorded as an asset and amortized to expense in a systematic manner as indicated in Note 1 – Summary of Significant Accounting Policies in the Notes to the Consolidated Financial Statements.

Valuation of Securities – The Company’s investment portfolio consists of fixed maturities, equity securities, trading securities, mortgage loans, notes receivable and real estate to provide funding of future policy contractual obligations.

Fixed Maturity Investments – The Company classifies its fixed maturity investments, which include bonds, as available for sale. Investments classified as available for sale are carried at fair value with unrealized gains and losses, net of deferred taxes, reflected directly in accumulated other comprehensive income.  Premiums and discounts on debt securities purchased at other than par value are amortized and accreted, respectively, to interest income in the Consolidated Statements of Operations, using the constant yield method over the period to maturity. While the available-for-sale fixed maturity securities are generally expected to be held to maturity, they are classified as available-for-sale and are sold periodically to manage risk. Although all of the fixed maturity securities are classified as available-for-sale, the Company has the ability and intent to hold the securities until maturity.  The Company has an evaluation process in place to monitor fixed maturity securities available for sale for credit loss. See Note 2 - Investments for further disclosure of the allowance for credit loss (“ACL”).

Equity Securities at Fair Value – Investments in equity securities, which include common and preferred stocks, are reported at fair value with unrealized gains and losses reported as a component of net income (loss).

Equity Securities at Cost – These investments are reported at their cost basis, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

Mortgage Loans on Real Estate – Mortgage loans on real estate are reported at their unpaid principal balances, adjusted for amortization of premium or discount and valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. The Company recognizes an ACL in earnings at time of purchase or origination based on expected lifetime credit loss on mortgage loans carried at amortized cost, in an amount that represents the portion of the amortized cost basis of such financing receivables, that the Company does not expect to collect, resulting in mortgage loans being presented at the net amount expected to be collected. See Note 2 - Investments for further discussion of the ACL.

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. Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition, for a reasonable price, in comparison to its estimated fair value, is classified as held-for-sale. Real estate held-for-sale is stated at lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated.

Notes Receivable – Notes receivable are reported at their unpaid principal balances, adjusted for valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. 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. The Company recognizes an ACL in earnings at time of purchase or origination based on expected lifetime credit loss on notes receivable carried at amortized cost, in an amount that represents the portion of the amortized cost basis of such financing receivables, that the Company does not expect to collect, resulting in notes receivable being presented at the net amount expected to be collected. See Note 2 - Investments for further discussion of the ACL.

Deferred Income Taxes – The provision for deferred income taxes is based on the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recognized by applying enacted statutory tax rates to temporary differences between amounts reported in the Consolidated Financial Statements and the tax basis of existing assets and liabilities. A valuation allowance is recognized for the portion of deferred tax assets that, in Management’s judgment, is not likely to be realized.

Results of Operations

On a consolidated basis, the Company had net income attributable to common shareholders of approximately $2.0 million and $34.3 million in 2023 and 2022, respectively.  In 2023, income before income taxes was approximately $2.0 million compared to $44.0 million in 2022.  Total revenues were approximately $25.4 million in 2023 and $70.0 million in 2022.

One-time events, primarily reflected in realized gains, comprise a substantial portion of the net income and revenue reported by the Company during 2023 and 2022.  The magnitude of realized investment gains and losses in a given year is a function of the timing of trades of investments relative to the markets themselves as well as the recognition of any impairments on investments.  Future earnings will be significantly negatively impacted should earnings from these one-time items not be realizable in a future period.  While Management believes there remain additional investments with such one-time earnings, when or if realized remains uncertain.

The Company reported a change in fair value of equity securities of approximately $(3.8) million and $33.7 million for the years ended December 31, 2023 and 2022, respectively.  This line item is material to the results reported in the Consolidated Statements of Operations.  This line item can also be extremely volatile, reflecting changes in the stock market.  These results can be material and volatile, most of the equity holdings of the Company were acquired with a long-term view, thus making these intermediate changes in value of less concern to Management.  Management monitors its equity holdings looking more at the specific entity and market it is in relative to performance and less to changes due to general market swings that occur over the holding period of the investment.

Total benefits and other expenses paid in 2023 were approximately $23.5 million compared to $25.8 million in 2022.

In summary, the Company’s basis for future revenue is expected to come from the following primary sources: Conservation of business currently in-force, the maximization of investment earnings and the acquisition of other companies or policy blocks in the life insurance business. Management has placed a significant emphasis on the development of these revenue sources to enhance these opportunities.

Revenues

Premiums and policy fee revenues, net of reinsurance premiums and policy fees, declined approximately 6% when comparing 2023 to 2022.  The Company writes very little new business. Unless the Company acquires a new company or a block of in-force business, Management expects premium revenue to continue to decline on the existing block of business at a rate consistent with prior experience. The Company’s average persistency rate for all policies in-force for 2023 and 2022 was approximately 96.7% and 96.8%, respectively.  Persistency is a measure of insurance in-force retained in relation to the previous year. A positive impact on premium income is the consistency of the lapse percentage. Persistency of the business has been consistent over the last several years. The lapse percentages were 3.3% and 3.2% for 2023 and 2022, respectively.

The following table summarizes the Company’s investment performance for the years ended December 31:

	2023			2022
Net investment income	$	14,141,809		$	20,811,471
Net realized investment gains		9,463,843			14,168,911
Change in fair value of equity securities		(3,830,793	)		33,690,712

The following table reflects net investment income of the Company for the years ended December 31:

	2023			2022
Fixed maturities	$	4,184,070		$	4,318,591
Equity securities		2,710,201			6,157,942
Trading securities		0			(13,283	)
Mortgage loans		1,115,145			1,580,647
Real estate		8,318,201			11,640,759
Notes receivable		1,371,973			933,886
Policy loans		433,556			489,823
Cash and cash equivalents		1,007,840			203,250
Short-term investments		529,125			5,056
Total consolidated investment income		19,670,111			25,316,671
Investment expenses		(5,528,302	)		(4,505,200	)
Consolidated net investment income	$	14,141,809		$	20,811,471

Net investment income represented 71% and 78% of the Company’s revenue before net investment gains (losses) as of December 31, 2023 and 2022, respectively. Income from the fixed maturities, equity securities, and real estate portfolios represented 77% and 87%, respectively, of the gross investment income reported by the Company for 2023 and 2022.

Since the start of 2022, we have seen more volatility in the U.S. markets in general and have seen an increase in bonds yields. This is due to the Federal Open Market Committee (“FOMC”) aggressively raising interest rates to fight the inflation that is currently being experienced. As of December 31, 2023, the interest rate environment experienced eleven rate increases totaling 5.25% over the past two years. While these actions had a negative impact on some of our investments that we currently own, this will also allow for better yields on future investments acquired as current investments mature.

Earnings from the fixed maturities investment portfolio represented 30% and 21% of the total consolidated net investment income for the years ended December 31, 2023 and 2022, respectively. When comparing earnings from the fixed maturities portfolio for the years ended December 31, 2023 and 2022 income was down approximately 3%. The decrease is due to the maturity of certain fixed maturity investments during 2023. The Company’s investment in fixed maturities continues to decline as we have, for the most part, chosen not to reinvest in fixed maturities. As of December 31, 2023 and 2022, fixed maturities represented 29% and 30%, respectively, of the total investments owned by the Company.

Earnings from the equity securities portfolio represented 19% and 30% of the total consolidated net investment income for the years ended December 31, 2023 and 2022, respectively. Earnings were down approximately $3.4 million when comparing current year and prior year results. The 2022 investment income from equity securities was exceptionally high, and the result of dividends from oil and gas equity securities. While the oil and gas equity securities continued to pay dividends in 2023, they were down substantially from the prior year.

Earnings from the real estate portfolio represented 59% and 56% of the total consolidated net investment income for the years ended December 31, 2023 and 2022, respectively. Earnings were down about $3.3 million when comparing current year and prior year results.

During 2023, the Company received $550,000 of income from timber sales as compared to $2.3 million in the prior year. Included in the 2023 and 2022 real estate income is approximately $4.2 million and $10.4 million of income from oil and gas royalty distributions, respectively. Income from oil and gas royalties represented approximately 50% and 55% of the real estate income for 2023 and 2022, respectively.

Earnings from the equity securities and real estate investment portfolios are primarily related to the oil and gas and timber industries. In 2022, we experienced the reopening of the world economies post-COVID, and the demand for oil and gas and other commodities substantially increased, which resulted in increases in prices in the marketplace. Add to this the Russian invasion of Ukraine, and more upward pricing pressure was felt. In 2022, oil averaged $95 per barrel compared to an average price of $78 in 2023. Earnings from the real estate investment portfolio are expected to vary depending on the real estate activities and the potential distributions that may occur.

The following table reflects net realized investment gains (losses) for the years ended December 31:

	2023			2022
Fixed maturities available for sale	$	58,333		$	(528	)
Equity securities		812,035			8,877,148
Real estate		8,577,155			5,292,291
Short term investments		16,320			0
Equity securities - OTTI		0			(5,000,000	)
Consolidated net realized investment gains		9,463,843			9,168,911
Change in fair value of equity securities - held		(5,875,079	)		19,212,045
Change in fair value of equity securities - sold		2,044,286			14,478,667
Total change in fair value of equity securities		(3,830,793	)		33,690,712
Net investment gains	$	5,633,050		$	42,859,623

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

Realized gains and losses from equity securities represent the difference between the fair value at the beginning of the reporting period and the fair value at the time of sale. The total gains from equity securities sold in 2023 were approximately $2.9 million, of which $812,035 is being reported as gains from equity securities and $2.0 million is reported as a component of the change in the fair value of equity securities. The gains were the result of selling several small equity securities holdings.

The total gains from equity securities sold in 2022 were approximately $23.4 million, of which $8.9 million is being reported as gains from equity securities and $14.5 million is reported as a component of the change in the fair value of equity securities. The disposal of two equity securities represented 89% of the total gains from the equity securities portfolio. The Company fully disposed of one equity security that produced a realized gain of $6.6 million in 2022. The Company disposed of 7,500 shares of an equity security, associated with the oil and gas industry, producing a realized gain of $14.3 million. The Company still owns 5,000 shares of this equity security as of December 31, 2022. This disposal will impact future dividend earnings of the Company as it represented a significant portion of the 2022 investment income from equity securities.

The Company reported a change in fair value of equity securities of approximately $(3.8) million and $33.7 million for the years ended December 31, 2023 and 2022, respectively.  This line item is material to the results reported in the Consolidated Statements of Operations, and this line item can also be extremely volatile. While these results can be material and volatile, most of the equity holdings of the Company were acquired with a long-term view, thus making these intermediate changes in value less of a concern to Management. Management monitors its equity holdings looking more at the specific entity and market it is in relative to performance and less to changes due to general market swings that occur over the holding period of the investment.

Year to date, the Company has seen negative results in its equity investments. However, most all the negative results occurred in the first quarter of 2023.  Since that time, we reported a slight rebound, and it appears to be the result of market stabilization.  Equity investments primarily in the oil and gas area represent almost all of the unrealized losses reported in 2023.  The Company experienced significant unrealized gains on these same investments in 2022.  Oil prices declined in early 2023 as concerns of recession intensified leading to a reduction in world demand for oil temporarily causing the price to decline.  Periodic pull backs and downward market adjustments are expected by management.  Management believes its current equity investments continue to be solid investments for the Company and have further growth potential; however, changes in market conditions could cause volatility in market prices.

In 2022, the Company recognized an other-than-temporary impairments of $5 million on an equity security. The other-than-temporary impairment recognized during 2023 was taken as a result of Management’s assessment and determination of value of the investment. The investment was written down to better reflect its current expected value.

During 2023, the Company sold several pieces of real estate located in Kentucky producing realized gains of approximately $940,000. Additionally, during third quarter 2023, the Company sold a large land parcel in West Virginia realizing a gain of approximately $7.6 million.  During 2022, the Company sold a real estate parcel in Kentucky that produced a gain of $3.0 million and a parcel in Georgia that produced a gain of $812,000.

In summary, the Company’s basis for future revenue is expected to come from the following primary sources: Conservation of business currently in-force, the maximization of investment earnings and the acquisition of other companies or policy blocks in the life insurance business. Management has placed a significant emphasis on the development of these revenue sources to enhance these opportunities.

Expenses

The Company reported total benefits and other expenses of approximately $23.5 million and $25.8 million for the years ended December 31, 2023 and 2022, respectively. Benefits, claims and settlement expenses represented approximately 62% and 57% of the Company’s total expenses for 2023 and 2022, respectively.  The other major expense category of the Company is operating expenses, which represented 36% and 41% of the Company’s total expenses for 2023 and 2022, respectively.

Life benefits, claims and settlement expenses, net of reinsurance benefits, were comparable for 2022 and 2023.  Policy claims vary from year to year and therefore, fluctuations in mortality are to be expected and are not considered unusual by Management.

Early in the COVID-19 pandemic, the Company implemented a process to monitor death claims resulting from COVID-19. Prior to the pandemic, death benefits were $12.6 million, $12.8 million and $12.4 million in 2017, 2018 and 2019, respectively. During the three plus years of the pandemic, total death benefits were $14.3 million, $16.0 million, and $13.3 million in 2020, 2021, and 2022, respectively. Death benefits of the Company have been higher than recent past experience, even when adjusting for the identified COVID-19 claims. This anomaly showed throughout the entire U.S. insurance industry. Industry experts believe this increase in death benefits, while not always directly related to COVID-19, were caused indirectly by the pandemic due to delays in medical care as a result of the lockdown in 2020 and then later, people’s fears of seeking out treatment and trouble making up appointments. This is further compounded by depression from isolation. In the latter half of 2022, claims appeared to be moving back to pre-pandemic levels.  This has continued throughout 2023.  While we believe our mortality experience has returned to pre-pandemic norms, we cannot be absolutely certain at this time.  During 2023, the Company paid approximately $75,000 of claims associated with COVID.

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

The short-term impact of policy surrenders is negligible since a reserve for future policy benefits payable is held which is, at a minimum, equal to and generally greater than the cash surrender value of a policy.  The benefit of fewer policy surrenders is primarily received over a longer time period through the retention of the Company’s asset base.

Overall, the Company’s persistency for business in-force remained relatively steady at 96.7% in 2023 compared to 96.8% in 2022. The Company’s actual experience for earned interest, persistency, and mortality varies from the assumptions applied to pricing and for determining premiums. Accordingly, differences between the Company’s actual experience and those assumptions applied may affect the profitability of the Company. Interest crediting rates on adjustable rate policies have been reduced to their guaranteed minimum rates, and as such, cannot be lowered any further.

Operating expenses decreased approximately 20% or $2.1 million in 2023 as compared to that of the same period in 2022. When comparing 2023 and 2022 expenses, two expense categories make up the majority of the decline - charitable contributions and aircraft maintenance.

Charitable expenses fluctuate based on reported taxable income of the Company. Repairs and maintenance expenses related to an aircraft partially owned by the Company were down approximately 73% when comparing 2023 and 2022 activity. In 2022, there were significant maintenance needs that were addressed. Expenses in the remaining categories were comparable between years.

As mentioned above in the Overview section of the Management Discussion and Analysis, UTG has a strong philanthropic program.  The Company generally allocates a portion of its earnings to be used for its philanthropic efforts primarily targeted to Christ-centered organizations or organizations that help the weak or poor.  Charitable contributions made by the Company are expected to vary from year to year depending on the earnings of the Company. In 2023, the Company paid approximately $582,000 in charitable donations as compared to $2.1 million in 2022.

Net amortization of cost of insurance acquired decreased approximately 4% when comparing current and prior year activity.  Cost of insurance acquired is established when an insurance company is acquired or when the Company acquires a block of in-force business.  The Company assigns a portion of its cost to the right to receive future profits from insurance contracts existing at the date of the acquisition.  Cost of insurance acquired is amortized with interest in relation to expected future profits, including direct charge-offs for any excess of the unamortized asset over the projected future profits. The interest rates may vary due to risk analysis performed at the time of acquisition on the business acquired. The Company utilizes a 12% discount rate on the remaining unamortized business.  The amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised.  Amortization of cost of insurance acquired is particularly sensitive to changes in interest rate spreads and persistency of certain blocks of insurance in-force.  This expense is expected to decrease, unless the Company acquires a new block of business.

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

Financial Condition

Investment Information

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

The following table reflects, by investment category, the investments held by the Company as of December 31:

	2023		As a % of Total Investments			As a % of Total Assets
Fixed maturities	$	105,909,836		29	%		24	%
Equity securities, at fair value		156,550,812		43	%		35	%
Equity securities, at cost		15,977,368		4	%		4	%
Mortgage loans		15,318,176		4	%		3	%
Real estate		21,975,120		6	%		5	%
Notes receivable		14,009,225		4	%		3	%
Policy loans		6,018,248		2	%		1	%
Short-term investments		29,132,236		8	%		7	%
Total investments	$	364,891,021		100	%		82	%

	2022		As a % of Total Investments			As a % of Total Assets
Fixed maturities	$	110,813,059		31	%		25	%
Equity securities, at fair value		150,053,686		41	%		34	%
Equity securities, at cost		21,891,896		6	%		5	%
Mortgage loans		30,698,694		8	%		7	%
Real estate		26,225,799		7	%		6	%
Notes receivable		14,424,127		4	%		3	%
Policy loans		6,567,434		2	%		1	%
Short-term investments		3,596,941		1	%		1	%
Total investments	$	364,271,636		100	%		82	%

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

The Company’s total investments represented 83% and 81% of the Company’s total assets as of December 31, 2023 and 2022, respectively. Fixed maturities and equity securities, at fair value, consistently represent the majority, of the Company’s total investments – 72% in 2023 and 2022. The overall investment mix, as a percentage of total investments, remained fairly consistent when comparing the respective investments held as of December 31, 2023 and 2022.

As of December 31, 2023, the carrying value of fixed maturity securities in default as to principal or interest was immaterial in the context of consolidated assets, shareholders’ equity or results from operations.  To provide additional flexibility and liquidity, the Company has identified all fixed maturity securities as “investments available-for-sale”.  Investments available-for-sale are carried at market value, with changes in market value charged directly to the other comprehensive income component of shareholders’ equity.  Changes in the market value of available for sale securities resulted in net unrealized gains (losses) of approximately $2.2 million and $(17.4) million as of December 31, 2023 and 2022, respectively. The variance in the net unrealized gains and losses is the result of normal market fluctuations mainly related to changes in interest rates in the marketplace.

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 (ASCD 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 $524,000, which is presented as a reduction to net loans outstanding, and an increase in the allowance for credit losses on unfunded commitments of $51,000, 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. See Note 1 – Recently Issued Accounting Standards – of the Consolidated Financial Statements for further information on this topic.

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

Liquidity

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

Parent Company Liquidity

UTG is a holding company that has no day-to-day operations of its own.  Cash flows from UTG’s insurance subsidiary, UG, are used to pay costs associated with maintaining the Company in good standing with states in which it does business and purchasing outstanding shares of UTG stock.  UTG’s cash flow is dependent on management fees received from its insurance subsidiary, stockholder dividends from its subsidiary and earnings received on cash balances.  As of December 31, 2023 and 2022, substantially all of the consolidated shareholders’ equity represents net assets of its subsidiaries.  In 2023, the Parent company received $2 million in dividends from its insurance subsidiary and $3 million in 2022. Certain restrictions exist on the payment of dividends from the insurance subsidiary to the Parent company.  For further information regarding the restrictions on the payment of dividends by the insurance subsidiary, see Note 9 – Shareholders’ Equity in the Notes to the Consolidated Financial Statements.  Although these restrictions exist, dividend availability from the insurance subsidiary has historically been sufficient to meet the cash flow needs of the Parent company.

Insurance Subsidiary Liquidity

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

Short-Term Borrowings

During October of 2023, the Federal Home Loan Bank approved UG’s Cash Management Advance Application (“CMA”). The CMA is a source of overnight liquidity utilized to address the day-to-day cash needs of a Company. The CMA gives the Company the option of selecting a variable rate of interest for up to 90 days or a fixed rate for a maximum of 30 days. The variable rate CMA is prepayable at any time without a fee, while the fixed CMA is not prepayable prior to maturity. The Company has pledged bonds with a collateral lendable value of $20.3 million. During the fourth quarter of 2023, the Company borrowed $19 million and planned to utilize the funds for investing activities. The interest rate on the borrowed funds is variable and currently is 5.47%. During the first quarter of 2024, the Company repaid the entire outstanding principal balance.

Consolidated Liquidity

Cash used in operating activities was approximately $9.8 million and $5.3 million in 2023 and 2022, respectively.  Sources of operating cash flows of the Company, as with most insurance entities, is comprised primarily of premiums received on life insurance products and income earned on investments.  Uses of operating cash flows consist primarily of payments of benefits to policyholders and beneficiaries and operating expenses.  The Company has not marketed any significant new products for several years.  As such, premium revenues continue to decline.  Management anticipates future cash flows from operations to remain similar to historic trends.

During 2023 and 2022, the Company’s investing activities provided net cash of approximately $6.9 million and $26.2 million, respectively. The Company recognized proceeds of approximately $79.6 million and $79.7 million from investments sold and matured in 2023 and 2022, respectively.  The Company used approximately $(72.7) million and $(53.5) million to acquire investments during 2023 and 2022, respectively.  The net cash provided by investing activities is expected to vary from year to year depending on market conditions and management’s ability to find and negotiate favorable investment contracts.

Net cash used in financing activities was approximately $1.2 million and $6.4 million during 2023 and 2022, respectively. As of December 31, 2023 and 2022, the Company had $19 million in debt outstanding with third parties.

The Company had cash and cash equivalents of approximately $41.2 million and $45.3 million as of December 31, 2023 and 2022, respectively.  The Company has a portfolio of marketable fixed maturity securities that could be sold, if an unexpected event were to occur.  These securities had a fair value of approximately $103.4 million and $108.3 million at December 31, 2023 and 2022, respectively. However, the strong cash flows from investing activities, investment maturities and the availability of the line of credit facilities make it unlikely that the Company would need to sell securities for liquidity purposes.  See Note 2 – Investments in the Notes to the Consolidated Financial Statements for detailed disclosures regarding the Company’s investment portfolio.

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

Capital Resources

The Company’s capital structure consists of available short-term debt, long-term debt and shareholders’ equity. A complete analysis and description of the short-term and long-term debt issues available as of December 31, 2023 and 2022 are presented in Note 7 – Credit Arrangements in the Notes to the Consolidated Financial Statements.

The Company had $19 million of debt outstanding as of December 31, 2023 and 2022.

The NAIC’s risk-based capital requirements require insurance companies to calculate and report information under a risk-based capital formula.  The risk-based capital (RBC) formula measures the adequacy of statutory capital and surplus in relation to investment and insurance risks such as asset quality, mortality and morbidity, asset and liability matching and other business factors.  The RBC formula is used by state insurance regulators as an early warning tool to identify, for the purpose of initiating regulatory action, insurance companies that potentially are inadequately capitalized.

At December 31, 2023, UG has a ratio of approximately 6.19, which is 619% of the authorized control level.  Accordingly, the Company meets the RBC requirements.

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 $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 2023, the Company repurchased 30,646 shares through the stock repurchase program for $881,966. Through December 31, 2023, UTG has spent $20,191,403 in the acquisition of 1,356,859 shares under this program.

Total shareholders’ equity was approximately $161.7 million and $158.0 million as of December 31, 2023 and 2022, respectively. Total shareholders’ equity increased approximately 2% in 2023 as compared to 2022.  The increase is primarily attributable to net income from operations. As of December 31, 2023 and 2022, the Company reported accumulated other comprehensive loss of approximately $(4.9) million and $(7.1) million, respectively.

For the period ended December 31, 2023, the Company recognized an increase in accumulated other comprehensive income of approximately $2.2 million and a decrease in accumulated other comprehensive income of approximately $(17.4) million for the same period in the prior year. The fluctuations in accumulated other comprehensive income (loss) are the result of unrealized gains (losses) on fixed maturity securities. The variance in the net unrealized gains and losses is the result of normal market fluctuations mainly related to changes in interest rates in the marketplace.

The Company’s investments provide sufficient return to cover future obligations. The Company carries all of its fixed maturity holdings as available for sale, which are reported in the Consolidated Financial Statements at their fair value.

New Accounting Pronouncements

See Note 1 – Summary of Significant Account Policies in the Notes to the Consolidated Financial Statements for information regarding new accounting pronouncements.

Off-Balance Sheet Arrangements

The Company does not have any off-balance sheet arrangements, financing activities or other relationships with unconsolidated entities or other persons.

Contractual Obligations

As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and Item 10(f)(1) of Regulation S-K, the Company has elected to comply with certain scaled disclosure reporting obligations, and therefore does not have to provide the information required by this item.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and Item 10(f)(1) of Regulation S-K, the Company has elected to comply with certain scaled disclosure reporting obligations, and therefore does not have to provide the information required by this item.

Item 8. Financial Statements and Supplementary Data

Index to Financial Statements

	Page No.
UTG, Inc. and Consolidated Subsidiaries
Report of Independent Registered Public Accounting Firm (PCAOB ID #718)	23
Report of Independent Registered Public Accounting Firm (PCAOB ID #32)	26
Consolidated Balance Sheets	27
Consolidated Statements of Operations	28
Consolidated Statements of Comprehensive Income	29
Consolidated Statements of Shareholders’ Equity	30
Consolidated Statements of Cash Flows	31
Notes to Consolidated Financial Statements	34

Report of Independent Registered Public Accounting Firm

To the Board of Directors and

Shareholders of UTG, Inc. and Subsidiaries

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheet of UTG, Inc. and Subsidiaries (the Company) as of December 31, 2023, and the related consolidated statements of operations, comprehensive income (loss), shareholders’ equity, and cash flows for the year then ended, and the related notes (collectively referred to as the financial statements).  In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on the Company’s financial statements based on our audit.  We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB.  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.  As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.  Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Classification, Valuation and Disclosure of Investments in Equity Securities – Refer to Notes 1 and 3

Critical Audit Matter Description

The Company invests in numerous equity securities including common stocks, limited partnerships and limited liability companies that are not publicly traded and may not have readily determinable fair values.  These investments require a detailed analysis of the type of investment on an investment by investment basis to determine the appropriate classification of the investment as to whether the investment should be reported using the cost basis, the equity method or whether the investment should be reported at fair value based on the accounting literature.  Since these investments are not publicly traded, the Company employs various methods in determining the appropriate valuation of the investments reported at fair value.  These methods at times includes utilizing industry specialists in assisting them in determining the fair value method and at other times, management is able to utilize the practical expedient of net asset value when the investment is in an investment company.  These methods at times depend on key inputs and assumptions crucial to determining fair value that may not be observable requires managerial judgment and estimation.  Last, the disclosure of this information in the Company’s financial statements can be challenging to management due to the volume of data and information needed to appropriately provide the necessary and generally accepted information so that a reader to understand the classification and valuation decisions made by management.

The audit of these equity investments requires a substantial amount of time and effort in order to obtain the necessary audit evidence and opine on management’s classification, valuation and disclosure of the investments.

How the Critical Audit Matter was Addressed in the Audit

Our audit procedures related to the equity investments that are not publicly traded included the following procedures, among others:

• We gained an understanding of the processes and procedures utilized by management to classify these investments and determine their values

• We obtained documentation supporting the investments including purchase agreements, partnership agreements and limited liability company operating agreements as appropriate for each investment

• We discussed and documented management’s determination of the classification of each investment as to cost method, equity method or fair value, including whether management asserted significant influence over operations of the investment

• We obtained confirmation of the investment from investment entity personnel, and if appropriate, audited financial statements of the investment entity

• We obtained and discussed valuation information from industry specialists when appropriate  and when utilized by management in determining the fair value of an equity investment and considered and evaluated the valuation information provided by the specialist in concluding on the fair value estimated by management for financial reporting

• For a selection of equity investments, we recalculated the Company’s valuation based on information obtained via confirmation, agreements and/or valuation specialists

• We obtained and accumulated detailed information on the investments provided by management for disclosure of these investments in the financial statements and agreed this information to the documents obtained as a part of our audit procedures for purposes of classification and valuation

Future Policy Benefits – Refer to Note 1

Critical Audit Matter Description

Liabilities for amounts payable under the Company’s life insurance products are recorded as future policy benefits liabilities.  Such liabilities are established based on actuarial assumptions at the time policies are issued, or in the case of contracts acquired by purchase, at the purchase date. The liabilities for traditional life insurance and accident and health insurance policy benefits are computed using a net level method. These liabilities include assumptions as to investment yields, mortality, withdrawals, and other assumptions based on the life insurance subsidiary’s experience adjusted to reflect anticipated trends and to include provisions for possible unfavorable deviations.   The Company’s future policy benefits liability was $ 223.8 million as of December 31, 2023.

The audit of future policy benefits requires the utilization of an actuarial specialist when considering the complex methods, assumptions and models management utilizes in determining the value of these liabilities.

How the Critical Audit Matter was Addressed in the Audit

Our audit procedures related to the liability for future policy benefits included the following procedures, among others:

• We gained an understanding of the processes utilized and controls implemented in determining the valuation of future policy benefits

• We tested the underlying data used by management in developing the valuation and the completeness and accuracy of the data

• We performed various analytical procedures

• We obtained an opinion from management’s actuarial specialist confirming that the actuarial assumptions and methodologies used were reasonable and in accordance with presently accepted actuarial standards

• We confirmed the independence of management’s consulting actuarial specialist and reviewed her qualifications as appointed consulting actuary

We have served as the Company’s auditor since 2023.

/s/ Kerber, Eck & Braeckel LLP

Springfield, Illinois

March 29, 2024

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and

Shareholders of UTG, Inc. and Subsidiaries:

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheet of UTG, Inc. and Subsidiaries (collectively the "Company" or “UTG”) as of December 31, 2022, the related consolidated statements of operations, comprehensive income (loss), shareholders' equity, and cash flows, for the year ended December 31, 2022, and the related notes (collectively referred to as the "consolidated financial statements").

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022, and the results of their operations and their cash flows for the year ended December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.

Our audit of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

/s/ Armanino LLP

St. Louis, Missouri

We began serving as the Company’s auditors in 2005. In 2023, we became the predecessor auditor.

March 24, 2023, except for the effects of the tables reflecting the impact of the revisions as of and for the year ended December 31, 2022, discussed in Note 15 (not presented herein) to the consolidated financial statements appearing under Item 8 of the Company’s annual report (Form 10-K) as to which the date is March 29, 2024.

UTG, Inc.

Consolidated Balance Sheets

As of December 31, 2023 and 2022

ASSETS
	2023			2022
Investments:
Investments available for sale:
Fixed maturities, at fair value (amortized cost $109,554,738 and $117,279,820)	$	103,409,836		$	108,313,059
Held to maturity redeemable preferred stock, at amortized cost		2,500,000			2,500,000
Equity securities, at fair value (cost $89,387,893 and $77,015,688)		156,550,812			150,053,686
Equity securities, at cost		15,977,368			21,891,896
Mortgage loans on real estate at amortized cost   (net of credit loss reserve of $274,000 and $0)		15,318,176			30,698,694
Investment real estate, net		21,975,120			26,225,799
Notes receivable (net of credit loss reserve of $250,000 and $0)		14,009,225			14,424,127
Policy loans		6,018,248			6,567,434
Short-term investments		29,132,236			3,596,941
Total investments		364,891,021			364,271,636
Cash and cash equivalents		41,185,196			45,290,385
Accrued investment income		2,001,064			1,371,677
Reinsurance receivables:
Future policy benefits		23,847,623			24,318,030
Policy claims and other benefits		4,734,575			4,638,857
Cost of insurance acquired		2,036,896			2,698,153
Income taxes receivable		2,128,027			0
Other assets		884,531			4,945,627
Total assets	$	441,708,933		$	447,534,365
LIABILITIES AND SHAREHOLDERS' EQUITY
Policy liabilities and accruals:
Future policy benefits	$	223,757,860		$	229,582,664
Policy claims and benefits payable		4,188,917			4,072,879
Other policyholder funds		260,892			318,096
Dividend and endowment accumulations		14,749,258			14,802,746
Income taxes payable		0			4,189,081
Deferred income taxes		12,426,840			11,582,138
Notes payable		19,000,000			19,000,000
Other liabilities		5,635,373			5,958,385
Total liabilities		280,019,140			289,505,989
Shareholders' equity:
Common stock - no par value, stated value $0.001 per share. Authorized 7,000,000 shares - 3,165,320 and 3,164,809 shares issued and outstanding
		3,167			3,166
Additional paid-in capital		32,613,817			32,693,972
Retained earnings		133,491,797			131,989,352
Accumulated other comprehensive loss		(4,882,317	)		(7,111,586	)
Total UTG shareholders' equity		161,226,464			157,574,904
Noncontrolling interest		463,329			453,472
Total shareholders' equity		161,689,793			158,028,376
Total liabilities and shareholders' equity	$	441,708,933		$	447,534,365

See accompanying notes.

UTG, Inc.

Consolidated Statements of Operations

For the Years Ended December 31, 2023 and 2022

	2023			2022
Revenue:
Premiums and policy fees	$	7,918,235		$	8,384,604
Ceded reinsurance premiums and policy fees		(2,553,010	)		(2,697,382	)
Net investment income		14,141,809			20,811,471
Other income		280,303			350,519
Revenues before net investment gains (losses)		19,787,337			26,849,212
Net investment gains (losses):
Other-than-temporary impairments		0			(5,000,000	)
Other realized investment gains, net		9,463,843			14,168,911
Change in fair value of equity securities		(3,830,793	)		33,690,712
Total net investment gains		5,633,050			42,859,623
Total revenues		25,420,387			69,708,835
Benefits and other expenses:
Benefits, claims and settlement expenses:
Life		16,089,474			15,703,526
Ceded reinsurance benefits and claims		(2,882,312	)		(2,449,533	)
Annuity		1,029,885			1,029,156
Dividends to policyholders		302,685			311,400
Commissions		(102,971	)		(116,571	)
Amortization of cost of insurance acquired		661,257			688,348
Operating expenses		8,368,135			10,497,302
Interest expense		28,389			108,722
Total benefits and other expenses		23,494,542			25,772,350
Income before income taxes		1,925,845			43,936,485
Income tax expense (benefit)		(144,247	)		9,572,139
Net income		2,070,092			34,364,346
Net income attributable to noncontrolling interest		(113,397	)		(106,341	)
Net income attributable to common shareholders	$	1,956,695		$	34,258,005
Amounts attributable to common shareholders:
Basic income per share	$	0.62		$	10.81
Diluted income per share	$	0.62		$	10.81
Basic weighted average shares outstanding		3,176,757			3,167,719
Diluted weighted average shares outstanding		3,176,757			3,167,719

See accompanying notes.

UTG, Inc.

Consolidated Statements of Comprehensive Income (Loss)

For the Years Ended December 31, 2023 and 2022

	2023			2022
Net income	$	2,070,092		$	34,364,346
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during period, pre-tax		2,867,943			(21,981,097	)
Tax (expense) benefit on unrealized holding gains (losses) arising during the period		(592,591	)		4,615,943
Unrealized holding gains (losses) arising during period, net of tax		2,275,352			(17,365,154	)
Less reclassification adjustment for (gains) losses included in net income		(58,333	)		528
Tax expense (benefit) for (gains) losses included in net income		12,250			(111	)
Reclassification adjustment for (gains) losses included in net income, net of tax		(46,083	)		417
Subtotal: Other comprehensive income (loss), net of tax		2,229,269			(17,364,737	)
Comprehensive income		4,299,361			16,999,609
Less comprehensive income attributable to noncontrolling interests		(113,397	)		(106,341	)
Comprehensive income attributable to UTG, Inc.	$	4,185,964		$	16,893,268

See accompanying notes.

UTG, Inc.

Consolidated Statements of Shareholders’ Equity

Year ended December 31, 2023	Common Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interest			Total Shareholders' Equity
Balance at January 1, 2023	$	3,166			32,693,972			131,989,352			(7,111,586	)		453,472			158,028,376
Adoption of new accounting standard		0			0			(454,250	)		0			0			(454,250	)
		3,166			32,693,972			131,535,102			(7,111,586	)		453,472			157,574,126
Common stock issued during year		31			801,781			0			0			0			801,812
Treasury shares acquired and retired		(30	)		(881,936	)		0			0			0			(881,966	)
Net income attributable to common shareholders		0			0			1,956,695			0			0			1,956,695
Unrealized holding gain on securities net of noncontrolling interest and reclassification adjustment and taxes		0			0			0			2,229,269			0			2,229,269
Distributions		0			0			0			0			(103,540	)		(103,540	)
Gain attributable to noncontrolling interest		0			0			0			0			113,397			113,397
Balance at December 31, 2023	$	3,167			32,613,817			133,491,797			(4,882,317	)		463,329			161,689,793

Year ended December 31, 2022	Common Stock			Additional Paid-In Capital			Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Noncontrolling Interest			Total Shareholders' Equity
Balance at January 1, 2022	$	3,167			32,780,587			97,731,347		10,253,151			476,555			141,244,807
Common stock issued during year		23			599,169			0		0			0			599,192
Treasury shares acquired and retired		(24	)		(685,784	)		0		0			0			(685,808	)
Net income attributable to common shareholders		0			0			34,258,005		0			0			34,258,005
Unrealized holding loss on securities net of noncontrolling interest and reclassification adjustment and taxes		0			0			0		(17,364,737	)		0			(17,364,737	)
Distributions		0			0			0		0			(128,824	)		(128,824	)
Gain attributable to noncontrolling interest		0			0			0		0			105,741			105,741
Balance at December 31, 2022	$	3,166			32,693,972			131,989,352		(7,111,586	)		453,472			158,028,376

See accompanying notes.

UTG, Inc.

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2023 and 2022

	2023			2022
Cash flows from operating activities:
Net income	$	2,070,092		$	34,364,346
Adjustments to reconcile net income to net cash used in operating activities:
Amortization (accretion) of investments		(314,042	)		138,587
Other-than-temporary impairments		0			5,000,000
Realized investment gains, net		(9,463,843	)		(14,168,911	)
Change in fair value of equity securities		3,830,793			(33,690,712	)
Unrealized trading losses included in income		0			1,086
Realized trading losses included in income		0			12,197
Amortization of cost of insurance acquired		661,257			688,348
Provision for deferred income tax expense		372,861			2,517,685
Depreciation and depletion		728,887			2,032,627
Stock-based compensation		801,812			599,192
Charges for mortality and administration of universal life and annuity products		(5,692,118	)		(5,943,417	)
Interest credited to account balances		3,646,515			3,767,177
Change in accrued investment income		(629,387	)		(107,518	)
Change in reinsurance receivables		374,689			210,672
Change in policy liabilities and accruals		(3,535,674	)		(2,836,498	)
Change in income taxes receivable (payable)		(6,317,108	)		5,164,454
Change in other assets and liabilities, net		3,679,893			(3,083,634	)
Net cash used in operating activities		(9,785,373	)		(5,334,319	)
Cash flows from investing activities:
Proceeds from investments sold and matured:
Fixed maturities available for sale		7,558,333			13,128,136
Equity securities		7,838,385			36,126,454
Trading securities		0			17,983
Mortgage loans		17,770,810			3,655,779
Real estate		16,531,219			12,659,854
Notes receivable		4,944,143			12,329,505
Policy loans		1,453,634			1,752,613
Short-term investments		23,490,815			0
Total proceeds from investments sold and matured		79,587,339			79,670,324
Cost of investments acquired:
Fixed maturities available for sale		0			(2,614,165	)
Equity securities		(12,454,268	)		(27,523,161	)
Trading securities		0			(32,382	)
Mortgage loans		(2,654,293	)		(5,158,911	)
Real estate		(3,417,744	)		(4,586,280	)
Notes receivable		(4,779,241	)		(9,030,657	)
Policy loans		(904,446	)		(929,549	)
Short-term investments		(48,473,476	)		(3,591,885	)
Total cost of investments acquired		(72,683,468	)		(53,466,990	)
Net cash provided by investing activities		6,903,871			26,203,334
Cash flows from financing activities:
Policyholder contract deposits		4,056,116			4,555,115
Policyholder contract withdrawals		(4,294,297	)		(5,106,391	)
Proceeds from notes payable/line of credit		21,500,000			58,500,000
Payments of principal on notes payable/line of credit		(21,500,000	)		(63,500,000	)
Purchase of treasury stock		(881,966	)		(685,808	)
Noncontrolling contributions/(distributions) of consolidated subsidiary		(103,540	)		(128,824	)
Net cash used in financing activities		(1,223,687	)		(6,365,908	)
Net increase (decrease) in cash and cash equivalents		(4,105,189	)		14,503,107
Cash and cash equivalents at beginning of year		45,290,385			30,787,278
Cash and cash equivalents at end of year	$	41,185,196		$	45,290,385

See accompanying notes.

UTG, Inc.

Notes to Consolidated Financial Statements

Note 1 – Summary of Significant Accounting Policies

Business – UTG, Inc. is an insurance holding company. The Company’s dominant business is individual life insurance, which includes the servicing of existing insurance in-force and the acquisition of other companies in the life insurance business. UTG and its subsidiaries are collectively referred to as the “Company”.

This document at times will refer to the Registrant’s largest shareholder, Mr. Jesse T. Correll and certain companies controlled by Mr. Correll.  Mr. Correll holds a majority ownership of First Southern Funding, LLC (“FSF”), a Kentucky corporation, and First Southern Bancorp, Inc. (“FSBI”), a financial services holding company.  FSBI operates through its 100% owned subsidiary bank, First Southern National Bank (“FSNB”).  Banking activities are conducted through multiple locations within south-central and western Kentucky.  Mr. Correll is Chief Executive Officer, President, and Chairman of the Board of Directors of UTG and is currently UTG’s largest shareholder through his ownership control of FSF, FSBI and affiliates.  At December 31, 2023, Mr. Correll owns or controls directly and indirectly approximately 66% of UTG’s outstanding stock.

UTG’s life insurance subsidiary has several wholly-owned and majority-owned subsidiaries. The subsidiaries were formed to hold certain real estate and other investments. The investments were placed into the limited liability companies and partnerships to provide additional protection to the policyholders and to UG.

Basis of Presentation – The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), under guidance issued by the Financial Accounting Standards Board (“FASB”).  The preparation of financial statements in accordance with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Principles of Consolidation – The accompanying consolidated financial statements include the accounts of the Registrant and its wholly and majority-owned subsidiaries.  All significant intercompany accounts and transactions have been eliminated during consolidation.

Business Segments – The Company has only one business segment – life insurance.

Investments – The Company reports its investments as follows:

Investments in Fixed Maturity Securities – The Company classifies its investments in fixed maturity securities on the acquisition date and at each balance sheet date. Securities classified as held-to-maturity consist of redeemable preferred stock, and are carried at amortized cost, reflecting the ability and intent to hold the securities to maturity. Securities classified as available-for-sale consist of bonds and are carried at fair value with unrealized gains and losses, net of deferred taxes, reflected directly in accumulated other comprehensive income.  Premiums and discounts on debt securities purchased at other than par value are amortized and accreted, respectively, to interest income in the Consolidated Statements of Operations, using the constant yield method over the period to maturity. The Company has an evaluation process in place to monitor fixed maturity securities available for sale for credit loss. See Note 2 - Investments for further disclosure of the allowance for credit loss (“ACL”).

Equity Securities at Fair Value – Investments in equity securities, which include common and perpetual preferred stocks, are reported at fair value with unrealized gains and losses reported as a component of net income (loss).

Equity Securities at Cost – These investments are reported at their cost basis, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

Mortgage Loans on Real Estate – Mortgage loans on real estate are reported at their unpaid principal balances, adjusted for amortization of premium or discount and valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. The Company recognizes an ACL in earnings at time of purchase or origination based on expected lifetime credit loss on mortgage loans carried at amortized cost, in an amount that represents the portion of the amortized cost basis of such financing receivables, that the Company does not expect to collect, resulting in mortgage loans being presented at the net amount expected to be collected. See Note 2 - Investments for further discussion of the ACL.

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. Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition, for a reasonable price, in comparison to its estimated fair value, is classified as held-for-sale. Real estate held-for-sale is stated at lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated.

Notes Receivable – Notes receivable are reported at their unpaid principal balances, adjusted for valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. 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. The Company recognizes an ACL in earnings at time of purchase or origination based on expected lifetime credit loss on notes receivable carried at amortized cost, in an amount that represents the portion of the amortized cost basis of such financing receivables, that the Company does not expect to collect, resulting in notes receivable being presented at the net amount expected to be collected. See Note 2 - Investments for further discussion of the ACL.

Policy Loans – Policy loans are reported at their unpaid balances, including accumulated interest, but not in excess of the cash surrender value of the related policy.

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.

Gains and Losses – Realized gains and losses include sales of investments and investment impairments.  If any, other-than-temporary impairments in fair value are recognized in net income on the specific identification basis.

Fair Value – Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such unadjusted quoted prices are not available, estimated fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring significant management judgment are used to determine the estimated fair value of assets and liabilities. These unobservable inputs can be based on Management’s judgment, assumptions or estimation and may not be observable in market activity. Unobservable inputs are based on Management’s assumptions about the inputs market participants would use in pricing the assets. For more specific information regarding the Company’s measurements and procedures in valuing financial instruments, see Note 3 – Fair Value Measurements.

Cash Equivalents – Cash equivalents consist of money market accounts and investments with maturities of three months or less when purchased.

Cash – Cash consists of balances on hand and on deposit in banks and financial institutions.

Reinsurance - In the normal course of business, the Company seeks to limit its exposure to loss on any single insured and to recover a portion of benefits paid by ceding reinsurance to other insurance enterprises or reinsurers under excess coverage and coinsurance contracts.  The Company retains a maximum of $125,000 of coverage per individual life.

Reinsurance receivables are recognized in a manner consistent with the liabilities relating to the underlying reinsurance contracts. The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, or when events or changes in circumstances indicate that its carrying amount may not be recoverable, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, consistent with the credit loss guidance which requires recording an allowance for credit loss (“ACL”). See Note 4 - Reinsurance for additional information.

Cost of Insurance Acquired - When an insurance company is acquired, the Company assigns a portion of its cost to the right to receive future cash flows from insurance contracts existing at the date of the acquisition.  The cost of policies purchased represents the actuarially determined present value of the projected future profits from the acquired policies.  Cost of insurance acquired is amortized with interest in relation to expected future profits, including direct charge-offs for any excess of the unamortized asset over the projected future profits.  The amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised.

Future Policy Benefits and Expenses - The liabilities for traditional life insurance and accident and health insurance policy benefits are computed using a net level method. These liabilities include assumptions as to investment yields, mortality, withdrawals, and other assumptions based on the life insurance subsidiary’s experience adjusted to reflect anticipated trends and to include provisions for possible unfavorable deviations. The Company makes these assumptions at the time the contract is issued or, in the case of contracts acquired by purchase, at the purchase date.  Future policy benefits for individual life insurance and annuity policies are computed using interest rates ranging from 2.0% to 6.0% for life insurance and 2.5% to 7.5% for annuities. Benefit reserves for traditional life insurance policies include certain deferred profits on limited-payment policies that are being recognized in income over the policy term. Policy benefit claims are charged to expense in the period that the claims are incurred. The mortality rate assumptions for policies currently issued by the Company are based on 2017 CSO Ultimate tables.  Withdrawal rate assumptions are based upon Linton B or C, which are industry standard actuarial tables for forecasting assumed policy lapse rates.

Benefit reserves for universal life insurance and interest sensitive life insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges.  Policy benefits and claims that are charged to expense include benefit claims in excess of related policy account balances.  Interest crediting rates for universal life and interest sensitive products range from 3.0% to 6.0% as of December 31, 2023 and 2022.

Policy Claims and Benefits Payable - Policy and contract claims include provisions for reported claims in process of settlement, valued in accordance with the terms of the policies and contracts, as well as provisions for claims incurred and unreported. The estimate of incurred and unreported claims is based on prior experience. The Company makes an estimate after careful evaluation of all information available to the Company.  There is no certainty the stated liability for policy claims and benefits payable, including the estimate for incurred but unreported claims, will be the Company’s ultimate obligation.

Income Taxes – Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax impact attributable to differences between the financial statement book values and tax bases of assets and liabilities.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. More information concerning income taxes is provided in Note 6 – Income Taxes.

Earnings Per Share – The objective of both basic earnings per share (“EPS”) and diluted EPS is to measure the performance of an entity over the reporting period.  The Company presents basic and diluted EPS on the face of the Consolidated Statements of Operations. Basic EPS is computed by dividing income available to common shareholders by the weighted average common shares outstanding for the period.  Diluted EPS is calculated by adding to shares outstanding the additional net effect of potentially dilutive securities or contracts, such as stock options, which could be exercised or converted into common shares.

Recognition of Revenues and Related Expenses - Premiums for traditional life insurance products, which include those products with fixed and guaranteed premiums and benefits, consist principally of whole life insurance policies, and certain annuities with life contingencies are recognized as revenues when due. Limited payment life insurance policies defer gross premiums received in excess of net premiums, which is then recognized in income in a constant relationship with insurance in-force. Accident and health insurance premiums are recognized as revenue pro rata over the terms of the policies. Benefits and related expenses associated with the premiums earned are charged to expense proportionately over the lives of the policies through a provision for future policy benefit liabilities and through deferral and amortization of deferred policy acquisition costs. For universal life and investment products, generally there is no requirement for payment of premium other than to maintain account values at a level sufficient to pay mortality and expense charges. Consequently, premiums for universal life policies and investment products are not reported as revenue, but as deposits. Policy fee revenue for universal life policies and investment products consists of charges for the cost of insurance and policy administration fees assessed during the period. Expenses include interest credited to policy account balances and benefit claims incurred in excess of policy account balances.

Recently Issued Accounting Standards

The following Accounting Standard Update (“ASU)”) was adopted in 2023:

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 $524,000, which is presented as a reduction to net loans outstanding, and an increase in the allowance for credit losses on unfunded commitments of $51,000, 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”).

ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company’s consolidated financial statements or disclosures. ASUs issued but not yet adopted as of December 31, 2023 that are currently being assessed and may or may not have a material impact on the Company’s consolidated financial statements or disclosures are disclosed below:

The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Amendments in this update require that public business entities, on an annual basis: (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. In addition, the amendments in this updated require that all entities disclose on an annual basis the following information about income taxes: (1) the amounts of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and (2) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received). ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024. The Company is evaluating the impact of the guidance on its consolidated financial statements.

The FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. ASU 2023-07 is intended to improve disclosures about a public entity’s reportable segments and addresses requests from investors and other allocators of capital for additional, more detailed information about a reportable segment’s expenses. This ASU applies to all public entities that are required to report segment information in accordance with Topic 280. All public entities will be required to report segment information in accordance with the new guidance starting in annual periods beginning after December 15, 2023. The Company does not expect ASU 2023-07 to have a material impact on its consolidated financial statements.

The FASB issued Accounting Standards Update No. 2022-05, Financial Services-Insurance (Topic 944): Transition for Sold Contracts. ASU 2022-05 amends transition guidance in ASU No. 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI), for contracts that have been derecognized because of a sale or disposal of individual or a group of contracts or legal entities before the LDTI effective date. This ASU amends the LDTI transition guidance to allow an insurance entity to make an accounting policy election to exclude certain contracts or legal entities from applying the LDTI guidance when, as of the LDTI effective date, (a) the insurance contracts have been derecognized because of a sale or disposal and (b) the insurance entity has no significant continuing involvement with the derecognized contracts. See below for further analysis regarding ASU No. 2018-12.

The FASB issued Accounting Standards Update No. 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts or ASU 2018-12.  ASU 2018-12 significantly changes how insurers account for long-duration insurance contracts. The new guidance will require insurers to review and update, if necessary, the assumptions used to measure insurance liabilities periodically, rather than retain assumptions used at contract inception. The updated guidance also changes the recognition and measurement of deferred acquisition costs (DAC) and created a new category of benefit features called market risk benefits (MRB) that will be measured at fair value. The guidance also significantly expands the disclosure requirements for long-duration contracts.  The ASU was originally effective for fiscal years, and interim periods within those years, for years beginning after December 15, 2020 and early adoption is permitted.  The guidance on measuring the liabilities for future policy benefits and DAC will be adopted on a modified retrospective basis as of the earliest period presented in the year of adoption. The guidance on MRB will be adopted on a retrospective basis as of the earliest period presented in the year of adoption. In November of 2019, the FASB issued ASU 2019-09, which delayed the effective date of ASU 2018-12 to fiscal years beginning after December 15, 2024 for smaller reporting companies.  The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements.

Reclassifications - Certain reclassifications have been made to the 2022 Consolidated Financial Statements to make them comparable to the current year Consolidated Financial Statements. The Company has elected to reclassify certain investments on the Consolidated Balance Sheets and related footnotes for prior periods to conform with the presentation in the fiscal year ended December 31, 2023. The Company has elected to reclassify $8.7 million out of investment in real estate, net, into equity securities, at cost and to reclassify $2.5 million out of equity securities, at cost, to a new item titled held to maturity, redeemable preferred stock, at amortized cost. There were no revisions to the Consolidated Statements of Operations or the Consolidated Statements of Shareholders’ Equity. There were no changes to net income attributable to common shareholders or total shareholders’ equity.

Revision of previously issued financial statements – The Company identified an error in its previously issued Consolidated Financial Statements related to the presentation of the Consolidated Statements of Comprehensive Income (Loss). The impact of the error to the prior period’s Consolidated Financial Statements was not considered to be material. In order to improve the consistency and comparability of the Consolidated Financial Statements, Management revised the Consolidated Financial Statements to include the revision discussed herein. See Note 15 - Revision of Previously Issued Consolidated Financial Statements for details of the revision.

Note 2 – Investments

Investment Risks and Uncertainties

Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of ACL and impairments, and the recognition of income on certain investments. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the Consolidated Financial Statements.

The determination of ACL and impairments is highly subjective and is based upon quarterly evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available.

 Investment in 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 fixed maturity securities are summarized by type as follows for the years ended December 31:

2023	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Government and govt. agencies and authorities	$	14,316,976	$	0	$	(729,197	)	$	13,587,779
U.S. special revenue and assessments		7,528,985		0		(220,527	)		7,308,458
All other corporate bonds		87,708,777		89,004		(5,284,182	)		82,513,599
Redeemable preferred stock		2,500,000		0		0			2,500,000
Total	$	112,054,738	$	89,004	$	(6,233,906	)	$	105,909,836

2022 (1)	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Government and govt. agencies and authorities	$	18,315,321	$	0	$	(1,104,146	)	$	17,211,175
U.S. special revenue and assessments		7,535,018		0		(335,918	)		7,199,100
All other corporate bonds		91,429,481		65,529		(7,592,226	)		83,902,784
Redeemable preferred stock		2,500,000		0		0			2,500,000
Total	$	119,779,820	$	65,529	$	(9,032,290	)	$	110,813,059

(1)          The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

The amortized cost and estimated fair value of fixed maturity securities at December 31, 2023, by contractual maturity date, is shown below.

Fixed Maturity Securities December 31, 2023	Amortized Cost		Estimated Fair Value
Due in one year or less	$	10,990,370	$	10,832,220
Due after one year through five years		45,486,425		44,009,137
Due after five years through ten years		6,664,901		6,664,497
Due after ten years		21,851,378		20,078,690
Fixed maturities with no single maturity date		27,061,664		24,325,292
Total	$	112,054,738	$	105,909,836

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options.

By insurance statute, the majority of the Company’s investment portfolio is invested in investment grade securities to provide ample protection for policyholders.

Below investment grade debt securities generally provide higher yields and involve greater risks than investment grade debt securities because their issuers typically are more highly leveraged and more vulnerable to adverse economic conditions than investment grade issuers.  In addition, the trading market for these securities is usually more limited than for investment grade debt securities.  Debt securities classified as below-investment grade are those that receive a Standard & Poor’s rating of BB+ or below.

The Company held below investment grade investments with an estimated market value of $0 as of December 31, 2023 and 2022.

The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position as of December 31:

2023	Less than 12 months					12 months or longer					Total
	Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses
U.S. Government and govt. agencies and authorities	$	1,497,390		(3,696	)	$	12,090,389		(725,501	)	$	13,587,779		(729,197	)
U.S. special revenue and assessments		0		0			7,308,458		(220,527	)		7,308,458		(220,527	)
All other corporate bonds		544,610		(2,319	)		73,678,567		(5,281,863	)		74,223,177		(5,284,182	)
Total fixed maturities	$	2,042,000		(6,015	)	$	93,077,414		(6,227,891	)	$	95,119,414		(6,233,906	)

2022(1)	Less than 12 months					12 months or longer				Total
	Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses		Estimated fair value		Unrealized losses
U.S. Government and govt. agencies and authorities	$	17,211,175		(1,104,146	)	$	0		0	$	17,211,175		(1,104,146	)
U.S. special revenue and assessments		7,199,100		(335,918	)		0		0		7,199,100		(335,918	)
All other corporate bonds		80,144,564		(7,592,226	)		0		0		80,144,564		(7,592,226	)
Total fixed maturities	$	104,554,839		(9,032,290	)	$	0		0	$	104,554,839		(9,032,290	)

(1)          The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

The following table provides additional information regarding the number of securities that were in an unrealized loss position for greater than or less than twelve months:

	Less than 12 months	12 months or longer	Total
As of December 31, 2023
Fixed maturities	2	45	47
As of December 31, 2022
Fixed maturities	57	0	57

Allowance for Credit Loss - Available for Sale Securities

Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the credit loss evaluation process include, but are not limited to: (1) the extent to which the estimated fair value has been below amortized cost, (2) adverse conditions specifically related to a security, an industry sector, adverse change in the financial condition of the issuer of the security, (3) payment structure of the security and likelihood of the issuer being able to make payments, (4) failure of the issuer to make scheduled interest and principal payments, (5) whether the issuer, or series of issuers or an industry has suffered a catastrophic loss or has exhausted natural resources, (6) whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers,  (7) changes in the rating of the security by a rating agency, and (8) other subjective factors.

Substantially all of the unrealized losses on fixed maturity securities at December 31, 2023 and 2022 are attributable to changes in market interest rates and general disruptions in the credit market subsequent to purchase. At December 31, 2023, the Company did not intend to sell its securities in an unrealized loss position, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost. Therefore, the Company concluded that these securities had not incurred a credit loss and should not have an allowance for credit loss at December 31, 2023.

Future provisions for credit loss will depend primarily on economic fundamentals, issuer performance, and changes in credit ratings.

Net unrealized losses included in other comprehensive income (loss) for investments classified as available-for-sale, net of the effect of deferred income taxes, assuming that the depreciation had been realized as of December 31, 2023 and December 31, 2022:

	December 31, 2023			December 31, 2022
Unrealized appreciation (depreciation) on available-for-sale securities	$	(6,144,902	)	$	(8,966,761	)
Deferred income taxes		1,290,429			1,883,020
Net unrealized appreciation (depreciation) on available-for-sale securities	$	(4,854,473	)	$	(7,083,741	)

Cost Method Investments

The Company held equity investments with an aggregate cost of $15,977,368 and $21,891,896 at December 31, 2023 and 2022, respectively.  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 reviews and considers 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 equity securities reported at cost, the Company reported an other-than-temporary impairment of $5 million on one security during the fourth quarter of 2022. The other-than-temporary impairment was taken as a result of Management’s assessment and determination of value of the investment.

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 2023 and 2022, the Company acquired $2,654,293 and $5,158,911 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 mortgage loans were:

	2023		2022
	Maximum rate	Minimum rate	Maximum rate	Minimum rate
Farm loans	5.00 %	5.00 %	5.00 %	4.50 %
Commercial loans	8.75 %	4.00 %	7.00 %	4.00 %
Residential loans	5.00 %	4.15 %	5.00 %	4.15 %

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

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

Changes in the current economy could have a negative impact on the loans, including the financial stability of the borrowers, the borrowers’ ability to pay or to refinance, the value of the property held as collateral and the ability to find purchasers at favorable prices.  Interest accruals are analyzed based on the likelihood of repayment.  In no event will interest continue to accrue when accrued interest along with the outstanding principal exceeds the net realizable value of the property.  The Company does not utilize a specified number of days delinquent to cause an automatic non-accrual status.

The following table summarizes the mortgage loan holdings of the Company for the periods ended December 31:

	2023		2022
In good standing	$	15,318,176	$	30,698,694
Total mortgage loans	$	15,318,176	$	30,698,694
Total foreclosed loans during the year	$	0	$	0

The following is a summary of the mortgage loans outstanding and the related allowance for credit losses:

	December 31, 2023			December 31, 2022
Farm	$	332,417		$	383,278
Commercial		13,764,209			28,767,888
Residential		1,495,550			1,547,528
Total mortgage loans		15,592,176			30,698,694
Less allowance for credit losses		(274,000	)		0
Total mortgage loans, net	$	15,318,176		$	30,698,694

There were no past due loans as of December 31, 2023 and December 31, 2022.

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 2023 and 2022, no impairments were recognized on the investment real estate.

Note 3 - Fair Value Measurements of the 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 3 - Fair Value Measurements disclosure.

The following table provides an allocation of the Company’s investment real estate by type for the periods ended December 31:

	2023		2022
Raw land	$	6,971,930	$	11,634,472
Commercial		4,106,938		4,169,847
Residential		3,512,408		2,489,858
Land, minerals and royalty interests		7,383,844		7,931,622
Total investment real estate	$	21,975,120	$	26,225,799

(1) The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

The Company’s investment real estate portfolio includes ownership in oil and gas royalties. As of December 31, 2023 and 2022, investments in oil and gas royalties represented 34% and 30%, respectively, of the total investment real estate portfolio. See Note 13 - Concentrations of the 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 Consolidated Statements of Operations. During 2023 and 2022, the Company acquired $3,417,744 and $4,586,280 of investment real estate, respectively.

Notes Receivable

Notes receivable represent collateral loans and promissory notes issued by the Company and are reported at their unpaid principal balances, adjusted for valuation allowances. 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 2023 and 2022, the Company acquired $4,779,241 and $9,030,657 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 several of the notes receivable. The Company, and the participants in the notes, share in the risk of loss associated with the terms of the note with the borrower, based upon their ownership percentage in the note.  The Company has in place a monitoring system to provide Management with information regarding potential troubled loans. 

The following is a summary of the notes receivable outstanding and the related allowance for credit losses:

	December 31, 2023			December 31, 2022
Notes receivable	$	14,259,225		$	14,424,127
Less allowance for credit losses		(250,000	)		0
Total notes receivable, net	$	14,009,225		$	14,424,127

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 $48,473,476 and $3,591,885, respectively, in short-term investments.

Allowance for Credit Loss - Loans

The allowance for credit loss (“ACL”) 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 basis. 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 Loss - 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 as of December 31, 2023 and 2022 is $51,000 and $0, respectively, and is included in other liabilities on the Company’s Consolidated Balance Sheets.

Allowance for Credit Loss - Accrued Interest

Accrued interest is not included in the ACL and if deemed uncollectible, it is charged against interest income when determined to be uncollectible.

Analysis of Investment Operations

The following table reflects the Company’s net investment income for the periods ended December 31:

	2023			2022
Fixed maturities	$	4,184,070		$	4,318,591
Equity securities		2,710,201			6,157,942
Trading securities		0			(13,283	)
Mortgage loans		1,115,145			1,580,647
Real estate		8,318,201			11,640,759
Notes receivable		1,371,973			933,886
Policy loans		433,556			489,823
Cash and cash equivalents		1,007,840			203,250
Short-term investments		529,125			5,056
Total consolidated investment income		19,670,111			25,316,671
Investment expenses		(5,528,302	)		(4,505,200	)
Consolidated net investment income	$	14,141,809		$	20,811,471

(1) The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

The following table presents net investment gains (losses) and the change in net unrealized gains on investments for the periods ended December 31:

	2023			2022
Realized gains:
Sales of fixed maturities	$	58,333		$	4,683
Sales of equity securities		820,001			8,986,784
Sales of real estate		8,577,155			5,326,838
Sales of short-term investments		23,509			0
Total realized gains		9,478,998			14,318,305
Realized losses:
Sales of fixed maturities		0			(5,211	)
Sales of equity securities		(7,966	)		(109,636	)
Sales of real estate		0			(34,547	)
Sales of short-term investments		(7,189	)		0
Other-than-temporary impairments		0			(5,000,000	)
Total realized losses		(15,155	)		(5,149,394	)
Net realized investment gains		9,463,843			9,168,911
Change in fair value of equity securities:
Change in fair value of equity securities held at the end of the period		(3,830,793	)		33,690,712
Change in fair value of equity securities		(3,830,793	)		33,690,712
Net investment gains	$	5,633,050		$	42,859,623
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income:
Fixed maturities	$	2,867,943		$	(21,981,097	)
Net increase (decrease)	$	2,867,943		$	(21,981,097	)

Investments on Deposit

The Company had investments with a fair value of $7,959,076 and $7,771,724 on deposit with various state insurance departments as of December 31, 2023 and 2022, respectively.

Note 3 – Fair Value Measurements

Assets and liabilities recorded at fair value in the 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 as of December 31:

2023	Level 1		Level 2		Level 3		Total
Fixed maturity securities:
U.S. Government and government agencies and authorities	$	13,587,779	$	0	$	0	$	13,587,779
U.S. special revenue and assessments		0		7,308,458		0		7,308,458
Corporate securities		0		82,513,599		0		82,513,599
Total fixed maturities		13,587,779		89,822,057		0		103,409,836
Equity securities:
Common stocks		35,819,973		5,329,080		2,807,634		43,956,687
Limited liability companies		0		0		57,604,806		57,604,806
Total equity securities		35,819,973		5,329,080		60,412,440		101,561,493
Short-term investments		29,132,236		0		0		29,132,236
Total financial assets	$	78,539,988	$	95,151,137	$	60,412,440	$	234,103,565

2022	Level 1		Level 2		Level 3		Total
Fixed maturity securities:
U.S. Government and government agencies and authorities	$	17,211,175	$	0	$	0	$	17,211,175
U.S. special revenue and assessments		0		7,199,100		0		7,199,100
Corporate securities		0		83,902,784		0		83,902,784
Total fixed maturities		17,211,175		91,101,884		0		108,313,059
Equity securities:
Common stocks		45,999,477		6,651,800		0		52,651,277
Limited liability companies		0		0		7,967,643		7,967,643
Total equity securities		45,999,477		6,651,800		7,967,643		60,618,920
Short-term investments		3,596,941		0		0		3,596,941
Total financial assets	$	66,807,593	$	97,753,684	$	7,967,643	$	172,528,920

Total assets included in the fair value hierarchy exclude certain equity securities that were measured at estimated fair value using the net asset value (“NAV”) per share practical expedient. At December 31, 2023 and 2022, the estimated fair value of such investments was $54,989,319 and $89,434,766, respectively. These investments are generally not readily redeemable by the investee.

The following is a description of the valuation techniques used by the Company to measure assets reported at fair value on a recurring basis.

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 standards generally accepted in the United States.

Equity Securities at Fair Value

Equity securities consist of common and preferred stocks and limited liability companies 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.

Change in Level 3 Recurring Fair Value Measurements

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

			Investments in
	Investments in Common Stocks		Limited Liability Companies			Total
Balance at December 31, 2022	$	0	$	7,967,643		$	7,967,643
Realized gains (losses)		0		0			0
Unrealized gains (losses)		211,449		15,211,945			15,423,394
Purchases		0		5,683,029			5,683,029
Sales		0		(166,250	)		(166,250	)
Transfers in to Level 3		2,596,185		28,908,439			31,504,624
Transfers out of Level 3		0		0			0
Balance at December 31, 2023	$	2,807,634	$	57,604,806		$	60,412,440

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 December 31, 2023 and 2022 may include changes in fair value that were attributable to both observable and unobservable inputs.

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

In 2023, transfers in to Level 3 included limited liability companies classified as equity securities for which valuation techniques changed due to the availability of data.

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 includes only those instruments for which information about the inputs is reasonably available to the Company, such as data from independent third-party valuation service providers and from internal valuation models.

Financial Assets	Fair Value at December 31, 2023		Fair Value at December 31, 2022		Valuation Technique
Limited liability companies	$	57,604,806	$	7,967,643	Pricing Model
Common stocks		2,807,634		0	Pricing Model
Total	$	60,412,440	$	7,967,643

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

The Company holds certain equity securities that are measured at estimated fair value using the NAV per share practical expedient. These investments are generally not readily redeemable by the investee. The following tables provide additional information regarding the assets carried at NAV.

Investment Category		Fair Value at December 31, 2023		Unfunded Commitments	Redemption Frequency	Redemption Notice Period
Equity securities
Growth equity
Redeemable
Limited partnership	$	34,081,797	$	0	Quarterly	45
Non-redeemable
Limited liability companies		11,960,929		9,464,608	n/a	n/a
Limited partnerships		8,946,593		2,410,599	n/a	n/a
Total	$	54,989,319	$	11,875,207

Investment Category	Fair Value at December 31, 2022		Unfunded Commitments		Redemption Frequency		Redemption Notice Period
Equity securities
Growth equity
Redeemable
Limited partnership	$	43,724,562	$	49,343	Quarterly			45
Non-redeemable
Common stock		12,074,829		0		n/a		n/a
Limited liability companies		25,243,953		4,931,498		n/a		n/a
Limited partnerships		8,391,422		2,799,026		n/a		n/a
Total	$	89,434,766	$	7,779,867

The following are descriptions of the Company’s assets held at NAV.

The Company invested in a limited partnership that was formed under the laws of the State of Delaware on October 5, 1999, as a Delaware limited partnership (“LP”). The Limited Partnership Agreement provides for the Fund to continue until dissolved. There are significant restrictions to the dissolution process, which are outlined in the LP Agreement. The Fund invests in listed equity and fixed income securities as well as non-listed securities, including direct-owned minerals and other royalties. In 2013, UG entered into an irrevocable subscription agreement to invest in the LP.

The Company invested in a Limited Liability Company (“LLC”) that was formed under the laws of the state of Delaware in 2020. The LLC agreement provides for the Company to continue until dissolved. There are significant restrictions to the dissolution process, which are outlined in the LLC Agreement. The LLC Company was formed for the purpose of acquiring, making investments in, and owning, holding, and growing operating businesses through the United States. In 2020, UG entered into a LLC Agreement to invest in this LLC.

The Company invested in a Limited Liability Company (“LLC”) that was formed under the laws of the state of Delaware. The LLC was formed on October 15, 2020 to provide long-term investment returns. The Company will continue to operate until December 31, 2032, or until each of the investment funds in which the LLC invests terminates, unless terminated earlier or extended in accordance with the Operating Agreement. In 2020, UG completed the Subscription Agreement to become an investor in this LLC.

The Company invested in a Limited Liability Company (“LLC”) that was formed under the laws of the state of Delaware. The LLC was formed on July 1, 2022 to amplify philanthropy by primarily investing in venture capital investment funds and in direct venture capital investments of operating companies. The Company will continue to operate until December 31, 2034, or until each of the investment funds in which the LLC invests terminates, unless terminated earlier or extended in accordance with the Operating Agreement. In 2022, the Company completed the Subscription Agreement to become an investor in this LLC.

The Company invested in a Limited Liability Company (“LLC”) that was formed under the laws of the state of Delaware. The LLC was organized solely for the purpose owning, managing, supervising and disposing of the investment. The Partnership will continue in existence for the investment period (subject to extension), unless sooner terminated by operation of law or pursuant to any provision of the Limited Partnership Agreement. In 2022, the Company entered into a Limited Partnership Agreement to invest in this LP.

The Company invested in a closed-end LP fund that was formed pursuant to the laws of the State of Delaware under a limited partners agreement (the “Agreement”) on April 6, 2015 and is scheduled to terminate on the tenth anniversary of the final closing date, unless terminated sooner or extended in accordance with the Agreement. The purpose of the LP is to make investments in and pursue targets that educate, train, and inspire men and women in the United States and around the world to value free enterprise, business, and economics to improve the quality of their lives and the lives and the lives of those in their communities. In 2015, the Company entered into a Limited Partnership Agreement to invest in this LP.

The Company invested in a closed-end LP fund that was formed pursuant to the laws of the State of Delaware under a limited partners agreement (the “Agreement”) on September 5, 2018 (the “Agreement”), and is scheduled to terminate on the twelfth anniversary of the Final Closing Date, unless terminated sooner or extended in accordance with the Agreement. The purpose of the Partnership is to make investments in and pursue targets that educate, train, and inspire men and women in the United States and around the world to value free enterprise, business, and economics to improve the quality of their lives and the lives and the lives of those in their communities. In 2018, the Company entered into a Limited Partnership Agreement to invest in this LP.

The Company invested in a Limited Liability Company (“LLC”) that was formed under the laws of the state of Delaware. The LLC was formed September 29, 2021 for the purpose of investing in companies located in emerging markets.  The Limited Liability Company Agreement provides for LLC to continue until dissolved, unless terminated earlier through terms specified in the Operating Agreement. In 2021, the Company entered into a Limited Liability Company Agreement to invest in the LLC.

The Company invested in a LP that was formed pursuant to the laws of the state of Delaware under a limited partnership agreement on October 27, 2021 (the “Agreement”) and is scheduled to terminate on the tenth anniversary of the Final Closing Date, unless terminated sooner or extended in accordance with the Agreement. The Partnership is organized for the principal purposes of acquiring, holding, supervising, managing and disposing of investment in recapitalization, management buyouts, and corporate divestitures of Portfolio Companies operating in various segments of the U.S. lower middle markets. In 2022, the Company entered into a Limited Partnership Agreement to invest in this LP.

The Company invested in a LLC that was formed as an Alabama Limited Liability Company on April 6, 2022. The Limited Liability Company Agreement provides for the LLC to continue until dissolved, unless terminated earlier through terms specified in the Operating Agreement. The purpose of Trivela is to (1) acquire, own and operate football (soccer) clubs (each a “Target Company”) (2) establish investment vehicles for the acquisition of Target Companies (3) sponsor private placements of securities on behalf of each investment vehicle (4) manage the operations of each investment vehicle & Target Company on a fee for services basis (5) engage in any lawful act or activity incidental to the Business as reasonably determined by the managers. The Company entered into a Limited Liability Company Agreement to invest in Trivela Group, LLC.

The Company invested in a LLC that was formed as an Alabama Limited Liability Company on April 15, 2022. The Limited Liability Company Agreement provides for the LLC to continue until dissolved, unless terminated earlier through terms specified in the Operating Agreement. The LLC invests in sports clubs and real estate. In 2022, The Company entered into a Limited Liability Company Agreement to invest in this LLC.

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 Consolidated Financial Statements. The Company did not recognize any re-measurements or impairments of financial instruments during the years ended December 31, 2023 and 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 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 as of December 31:

2023	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Held to maturity redeemable preferred stock	$	2,500,000	$	2,500,000	$	0	$	0	$	2,500,000
Equity securities, at cost		15,977,368		15,977,368		0		0		15,977,368
Mortgage loans on real estate		15,318,176		14,447,026		0		0		14,447,026
Investment real estate		21,975,120		62,899,838		0		0		62,899,838
Notes receivable		14,009,225		14,189,147		0		0		14,189,147
Policy loans		6,018,248		6,018,248		0		0		6,018,248
Accrued investment income		2,001,064		2,001,064		0		0		2,001,064
Liabilities
Policy claims and benefits payable		4,188,917		4,188,917		0		0		4,188,917
Dividend and endowment accumulations		14,749,258		14,749,258		0		0		14,749,258
Notes payable		19,000,000		19,000,000		0		19,000,000		0

2022	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Held to maturity redeemable preferred stock	$	2,500,000	$	2,500,000	$	0	$	0	$	2,500,000
Equity securities, at cost		21,891,896		21,891,896		0		0		21,891,896
Mortgage loans on real estate		30,698,694		29,735,873		0		0		29,735,873
Investment real estate		26,225,799		74,026,290		0		0		74,026,290
Notes receivable		14,424,127		14,812,523		0		0		14,812,523
Policy loans		6,567,434		6,567,434		0		0		6,567,434
Accrued investment income		1,371,677		1,371,677		0		0		1,371,677
Liabilities
Policy claims and benefits payable		4,072,879		4,072,879		0		0		4,072,879
Dividend and endowment accumulations		14,802,746		14,802,746		0		0		14,802,746
Notes payable		19,000,000		19,000,000		0		19,000,000		0

(1) The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

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 Consolidated Balance Sheets which approximate fair value, and earn interest at rates ranging from 4% to 8%. Individual policy liabilities in all cases equal or exceed outstanding policy loan balances.  The inputs used to measure the fair value of our policy loans are classified as Level 3 within the fair value hierarchy.

The carrying value for notes payable is a reasonable estimate of fair value subject to floating rates of interest.  The fair value of notes payable with fixed rate borrowings is determined based on the borrowing rates currently available to the Company for loans with similar terms and average maturities.  The inputs used to measure the fair value of our notes payable are classified as Level 2 within the fair value hierarchy. 

Note 4 - Reinsurance

As is customary in the insurance industry, the insurance subsidiary cedes insurance to, and assumes insurance from, other insurance companies under reinsurance agreements.  Reinsurance agreements are intended to limit a life insurer’s maximum loss on a large or unusually hazardous risk or to obtain a greater diversification of risk.  The ceding insurance company remains primarily liable with respect to ceded insurance should any reinsurer be unable to meet the obligations assumed by it.  However, it is the practice of insurers to reduce their exposure to loss to the extent that they have been reinsured with other insurance companies.  The Company sets a limit on the amount of insurance retained on the life of any one person.  The Company will not retain more than $125,000, including accidental death benefits, on any one life. As of December 31, 2023, the Company had gross insurance in-force of approximately $847 million of which approximately $172 million was ceded to reinsurers.  As December 31, 2022, the Company had gross insurance in-force of approximately $897 million of which approximately $184 million was ceded to reinsurers.

The Company’s reinsured business is ceded to numerous reinsurers. The Company monitors the solvency of its reinsurers in seeking to minimize the risk of loss in the event of a failure by one of the parties. The Company is primarily liable to the insureds even if the reinsurers are unable to meet their obligations. The primary reinsurers of the Company are large, well-capitalized entities.

Most recently, UG utilized reinsurance agreements with Optimum Re Insurance Company (“Optimum”), and Swiss Re Life and Health America Incorporated (“SWISS RE”).  Optimum and SWISS RE currently hold an “A” (Excellent) and “A+” (Superior) rating, respectively, from A.M. Best, an industry rating company.  The reinsurance agreements were effective December 1, 1993 and covered most new business of UG.  Under the terms of the agreements, UG cedes risk amounts above its retention limit of $100,000 with a minimum cession of $25,000. Ceded amounts are shared equally between the two reinsurers on a yearly renewable term (“YRT”) basis, a common industry method.  The treaty is self-administered; meaning the Company records the reinsurance results and reports them to the reinsurers.

Also, Optimum is the reinsurer of 100% of the accidental death benefits (“ADB”) in force of UG.  This coverage is renewable annually at the Company’s option.  Optimum specializes in reinsurance agreements with small to mid-size carriers such as UG.

UG entered into a coinsurance agreement with Park Avenue Life Insurance Company (“PALIC”) effective September 30, 1996.  Under the terms of the agreement, UG ceded to PALIC substantially all of its then in-force paid-up life insurance policies.  Paid-up life insurance generally refers to non-premium paying life insurance policies.  Under the terms of the agreement, UG sold 100% of the future results of this block of business to PALIC through a coinsurance agreement.  UG continues to administer the business for PALIC and receives a servicing fee through a commission allowance based on the remaining in-force policies each month.  PALIC has the right to assumption reinsure the business, at its option, and transfer the administration.  The Company is not aware of any such plans.  PALIC’s ultimate parent, The Guardian Life Insurance Company of America (“Guardian”), currently holds an “A++” (Superior) rating from A.M. Best.  The PALIC agreement accounts for approximately 64% of UG’s reinsurance reserve credit, as of December 31, 2023 and 2022.

The Company does not have any short-duration reinsurance contracts.  The effect of the Company’s long-duration reinsurance contracts on premiums earned in 2023 and 2022 were as follows:

	2023			2022
	Premiums Earned			Premiums Earned
Direct	$	7,918,235		$	8,384,604
Assumed		0			0
Ceded		(2,553,010	)		(2,697,382	)
Net Premiums	$	5,365,225		$	5,687,222

Note 5 – Cost of Insurance Acquired

When an insurance company is acquired, the Company assigns a portion of its cost to the right to receive future cash flows from insurance contracts existing at the date of the acquisition.  The cost of policies purchased represents the actuarially determined present value of the projected future profits from the acquired policies.  Cost of insurance acquired is amortized with interest in relation to expected future profits, including direct charge-offs for any excess of the unamortized asset over the projected future profits.  The interest rates utilized may vary due to differences in the blocks of business.  The interest rate utilized in the amortization calculation of the remaining cost of insurance acquired is 12%. The amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised.

	2023			2022
Cost of insurance acquired, beginning of year	$	2,698,153		$	3,386,501
Interest accretion		418,722			501,324
Amortization		(1,079,979	)		(1,189,672	)
Net amortization		(661,257	)		(688,348	)
Cost of insurance acquired, end of year	$	2,036,896		$	2,698,153

Estimated net amortization expense of cost of insurance acquired for the next four years is as follows:

	Interest Accretion	Amortization	Net Amortization
2024	339,372	975,187	635,815
2025	263,074	877,240	614,166
2026	189,374	799,520	610,146
2027	116,157	292,926	176,769

Note 6 – Income Taxes

UTG and UG file separate federal income tax returns.

Income tax expense (benefit) consists of the following components:

	2023			2022
Current tax expense (benefit)	$	(517,108	)	$	7,054,454
Deferred tax		372,861			2,517,685
Income tax expense (benefit)	$	(144,247	)	$	9,572,139

The expense for income taxes differed from the amounts computed by applying the applicable United States statutory rate of 21% as of December 31, 2023 and 2022, before income taxes as a result of the following differences:

	2023			2022
Tax computed at statutory rate	$	404,427		$	9,226,662
Changes in taxes due to:
Non-controlling interest		(23,813	)		(22,332	)
Dividend received deduction		(109,642	)		(142,790	)
Oil and gas royalty's depletion		(106,797	)		(170,123	)
Other, including prior year true up		(308,422	)		680,722
Income tax expense (benefit)	$	(144,247	)	$	9,572,139

The following table summarizes the major components that comprise the net deferred tax liability as reflected in the balance sheets:

	2023			2022
Investments	$	11,862,470		$	10,794,061
Cost of insurance acquired		427,748			566,612
Management/consulting fees		(7,899	)		(8,206	)
Future policy benefits		(697,024	)		(718,338	)
Deferred gain on sale of subsidiary		1,387,490			1,387,490
Other liabilities		(284,350	)		(330,488	)
Reserves adjustment		96,105			144,158
Federal tax DAC		(236,950	)		(253,151	)
Loan loss reserve		(120,750	)		0
Deferred tax liability	$	12,426,840		$	11,582,138

At December 31, 2023 and 2022, the Company had gross deferred tax assets of $1,939,816 and $1,808,474, respectively, and gross deferred tax liabilities of $14,366,656 and $13,390,612, respectively, resulting from temporary differences primarily related to the life insurance subsidiary.  A valuation allowance is to be provided when it is more likely than not that deferred tax assets will not be realized by the Company. No valuation allowance has been recorded relating to the Company’s deferred tax assets since, in Management’s judgment, the Company will more likely than not have sufficient taxable income in future periods to fully realize its existing deferred tax assets.

The Company’s Federal income tax returns are periodically audited by the Internal Revenue Service (“IRS”). There are currently no examinations in process, nor is Management aware of any pending examination by the IRS.  The Company follows the accounting guidance for uncertainty in income taxes using the provisions of Financial Accounting Standards Board (“FASB”) ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. Such tax positions initially and subsequently need to be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company has evaluated its tax positions, expiring statutes of limitations, changes in tax law and new authoritative rulings and believes that no disclosure relative to a provision of income taxes is necessary, at this time, to cover any uncertain tax positions. Tax years that remain subject to examination are the years ended December 31, 2020, 2021, 2022 and 2023.

The Company classifies interest and penalties on underpayment of income taxes as income tax expense.  No interest or penalties were included in the reported income taxes for the years presented.  The Company is not aware of any potential or proposed changes to any of its tax filings.

Note 7 – Credit Arrangements

At December 31, 2023 and 2022, the Company had the following lines of credit available:

Instrument	Issue Date	Maturity Date	Revolving Credit Limit		December 31, 2022		Borrowings		Repayments		December 31, 2023
Lines of Credit:
UTG	11/20/2013	11/20/2024	$	8,000,000		0		0		0	$	0
UG - CMA	10/21/2021	10/4/2024		25,000,000		19,000,000		21,500,000		21,500,000		19,000,000

UTG has a variable rate revolving line of credit. As collateral, UTG has pledged 100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company ("UG").

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 $20,258,602. During the fourth quarter of 2023, the Company borrowed $19 million and planned to utilize the funds for investing activities. The interest rate on the borrowed funds is variable and currently is 5.47%. During the first quarter of 2024, the Company repaid the entire outstanding principal balance.

Note 8 – 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 consolidated financial statements, though the Company has no control over such assessments.

Mortgage Loan Commitments - The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $878,132 and $0 at December 31, 2023 and 2022, respectively.

Notes Receivable Commitments - The Company commits to lend funds under notes receivable funding commitments. The amounts of these notes receivable commitments were $2,800,000 and $4,109,343 at December 31, 2023 and 2022, respectively.

Commitments to Fund Limited Liability Company and Limited Partnership Investments - The Company commits to fund investments in limited liability companies and limited partnership. The amounts of the unfunded commitments were $16,153,903 and $14,443,510 at December 31, 2023 and 2022, respectively.

Note 9 – 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 $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 2023, the Company repurchased 30,646 shares through the stock repurchase program for $881,966. Through December 31, 2023, UTG has spent $20,191,403 in the acquisition of 1,356,859 shares under this program.

Director Compensation - Effective January 1, 2018, a compensation arrangement was approved whereby each outside Director annually received $5,000 as a retainer and $2,500 per meeting attended. The compensation is be paid in the form of UTG, Inc. common stock.  The value is determined annually on the close of business December 20th or the next business day should December 20^th be a weekend or holiday, based on the activity of the year just ending.  Reasonable travel expenses are reimbursed in cash as incurred.  UTG’s Director Compensation policy provides that Directors who are employees of UTG or its affiliates do not receive any compensation for their services as Directors except for reimbursement for reasonable travel expenses for attending each meeting.

In December of 2023, the Company issued 4,246 shares of its common stock as compensation to the Directors. The shares were valued at $30.01 per share, the market value at the date of issue. During 2023, the Company recorded $127,422 in operating expense related to the stock issuance.  In December of 2022, the Company issued 4,485 shares of its common stock as compensation to the Directors. The shares were valued at $25.06 per share, the market value at the date of issue. During 2022, the Company recorded $112,394 in operating expense related to the stock issuance.

Other Compensation - During 2023, the Company issued 26,911 shares of stock to management and employees as compensation at a cost of $674,390.  During 2022, The Company issued 17,963 shares of stock to management and employees as compensation at a cost of $486,798.  These awards are determined at the discretion of the Board of Directors.

Earnings Per Share - The following is a reconciliation of basic and diluted weighted average shares outstanding used in the computation of basic and diluted earnings per share:

	2023		2022
Basic weighted average shares outstanding		3,176,757		3,167,719
Weighted average dilutive options outstanding		0		0
Diluted weighted average shares outstanding		3,176,757		3,167,719

The computation of diluted earnings per share is the same as basic earnings per share for the years ending December 31, 2023 and 2022, as there were no outstanding securities, options or other offers that give the right to receive or acquire common shares of UTG.

Statutory Restrictions - Restrictions exist on the flow of funds to UTG from its insurance subsidiary.  Statutory regulations require life insurance subsidiaries to maintain certain minimum amounts of capital and surplus. UG is required to maintain minimum statutory surplus of $2,500,000. At December 31, 2023, substantially all of the consolidated shareholders’ equity represents net assets of UTG’s subsidiaries.

UG is domiciled in the state of Ohio. Ohio requires notification within 5 business days to the insurance commissioner following the declaration of any ordinary dividend and at least ten calendar days prior to payment of such dividend.  Ordinary dividends are defined as the greater of: a) prior year statutory net income or b) 10% of statutory capital and surplus.  Extraordinary dividends (amounts in excess of ordinary dividend limitations) require prior approval of the insurance commissioner and are not restricted to a specific calculation.  UG paid ordinary dividends of $2 million and $3 million to UTG in 2023 and 2022, respectively. No extraordinary dividends were paid during the two year period. UTG used the dividends received during 2023 and 2022 to purchase outstanding shares of UTG stock and for general operations of the Company.

Note 10 - Statutory Accounting

The insurance subsidiary prepares its statutory-based financial statements in accordance with accounting practices prescribed or permitted by the Ohio Department of Insurance.  These principles differ significantly from accounting principles generally accepted in the United States of America.  “Prescribed” statutory accounting practices include state laws, regulations, and general administrative rules, as well as a variety of publications of the National Association of Insurance Commissioners (NAIC).  “Permitted” statutory accounting practices encompass all accounting practices that are not prescribed; such practices may differ from state to state, from company to company within a state, and may change in the future.

The following table reflects UG’s statutory basis net income and capital and surplus (shareholders’ equity) as of December 31:

	2023		2022
Net income	$	8,320,315	$	18,782,335
Capital and surplus		91,828,094		93,269,301

Note 11 – Related Party Transactions

The articles of incorporation of UG contain the following language under item 12 relative to related party transactions:

A director shall not be disqualified from-dealing with or contracting with the corporation as vendor, purchaser; employee, agent or otherwise; nor, in the absence of fraud, shall any transaction or contract or act of this corporation be void or in any way affected or invalidated by the fact that any director or any firm of which any director is a member or any corporation of which any director is a shareholder, director or officer is in any way interested in such transaction or contract or act, provided the fact that such director or such firm or such corporation so interested shall be disclosed or shall be known to the Board of Directors or such members thereof as shall be present at any meeting of the Board of Directors at which action upon any such contract or transaction or act shall be taken: nor shall any such director be accountable or responsible to the company for or in respect to such transaction or contract or act of. this corporation or for any gains or profits realized by him by reason of the fact that he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer is interested in such action or contract; and any such director may be counted in determining the existence of a quorum of any meeting of the Board of Directors of the company which shall authorize or take action in respect to any such contract or transaction or act and may vote thereat to authorize, ratify, or approve any such contract or transaction or act, with like force and effect as if he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer were not interested in such transaction or contract or act.

On February 20, 2003, UG purchased $4 million of a trust preferred security offering issued by First Southern Bancorp, Inc. (“FSBI”).  The security has a mandatory redemption after 30 years with a call provision after 5 years.  The security pays a quarterly dividend at a fixed rate of 6.515%. The Company received dividends of $165,137 during 2023 and 2022.

On March 30, 2009, UG purchased $1 million of FSBI common stock.  The sale and transfer of this security is restricted by the provisions of a stock restriction and buy-sell agreement.

UTG has a 30.10% ownership interest in an aircraft that is jointly owned with First Southern National Bank and Bandyco, LLC. Bandyco, LLC is affiliated with the Estate of Ward F. Correll. Mr. Correll is the father of Jesse Correll and a former director of the Company. The aircraft is used for business related travel by various officers and employees of the Company. For years 2023 and 2022, UTG paid $307,442 and $553,533 for costs associated with the aircraft, respectively.

Effective January 1, 2007, UTG entered into administrative services and cost sharing agreements with its subsidiary. Under this arrangement, the subsidiary pays its proportionate share of expenses, based on an allocation formula. During 2023 and 2022, UG paid $7,910,324 and $7,862,902, respectively, in expenses. The Ohio Department of Insurance has approved the cost sharing agreement and it is Management’s opinion that where applicable, costs have been allocated fairly and such allocations are based upon accounting principles generally accepted in the United States of America.

The Company from time to time acquires mortgage loans through participation agreements with FSNB.  FSNB services the Company’s mortgage loans including those covered by the participation agreements.  The Company pays 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.  The Company paid $18,694 and $24,146 in servicing fees and $18,630 and $0 in origination fees to FSNB during 2023 and 2022, respectively.

Effective January 1, 2017, UTG entered into a shared services contract with FSNB. Pursuant to the terms of the agreement, UTG and FSNB will utilize the services of the other’s staff in certain instances for the betterment of both entities. Personnel within departments, such as accounting, human resources, and information technology, are shared between the entities. Costs of these resources are then reimbursed between the companies.  The shared services arrangement provides benefits to both parties such as access to a greater pool of knowledgeable staff, efficiencies from elimination of redundancies and more streamlined operations.

The Company reimbursed expenses incurred by employees of FSNB relating to salaries, travel and other costs incurred on behalf of or relating to the Company and received reimbursements from FSNB. The Company paid $1,337,096 and $895,317 in 2023 and 2022, respectively to FSNB in net reimbursement of such costs.

Effective July 1, 2018, the Company assumed the employees of several smaller entities owned or associated with UTG. The purpose of this was to support the continued efforts to further streamline operations amongst associated entities. The salaries, benefits, and payroll related processing fees are 100% reimbursed by the associated entities on a monthly basis. During 2023 and 2022, the Company received reimbursements of $1,438,450 and $1,134,315, respectively. These costs are eliminated for consolidation of these entities, where applicable.

The Company rents a portion of the first floor and second floor of an 8,000 square foot, two-story office building, located in Stanford, KY. The first floor of the building is occupied by UTG and FSNB employees that are included in the shared services agreement between the two entities. The second floor is occupied by the customer service call centers for both UTG and FSNB employees. The building is owned by FSNB and UTG pays $2,000 per month in rent to FSNB for the portion of the building occupied by UTG employees. The Company paid rent of $24,000 to FSNB in 2023 and 2022.

As previously disclosed in the Notes Receivable section of Note 2 - Investments, several of the Company’s notes have participation agreements in place with third parties.  Certain participation agreements are with FSF, a related party.  The participation agreements are sold without recourse and assigned to the participant based on their pro-rata share of the principal, interest and collateral as specified in the participation agreements. The undivided participations in the notes receivable range from 20% - 50%.  The total amount of loans participated to FSF was $60,031 and $79,674 as of December 31, 2023 and 2022, respectively.

During 2022, FSF sold all of its membership interest in three limited liability companies (“LLC”) to a wholly-owned subsidiary of UTG at a price of $1 per entity. The three LLCs are listed on the Company’s organization chart as wholly-owned subsidiaries of Stanford Wilderness Road, LLC.

During the 4th quarter of 2023, UTG entered into a loan participation agreement with FSNB to fund a commercial mortgage loan issued to a company that is owned/managed by a member of UTG’s Board of Directors. UG has a 9% interest in the participated loan and has agreed to fund up to $1,482,300. As of December 31, 2023, $604,169 had been drawn on the loan.

Note 12 – Other Cash Flow Disclosures

On a cash basis, the Company paid the following expenses for the periods ended December 31:

	2023		2022
Interest	$	44,814	$	83,995
Federal income tax		5,800,000		1,890,000

Note 13 - Concentrations

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 T. 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 our customers to pay their insurance premiums is impacted by the economic conditions in these areas.  As of December 31, 2023 and 2022, approximately 51% and 50%, 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 20% of total life insurance in-force at December 31, 2023 and 2022.  Insurance ceded represented 40% of premium income for 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 represented approximately 28% and 31% of the Company’s total invested assets at December 31, 2023 and 2022, respectively. The following table provides an allocation of the oil and gas investments by type as of December 31:

2023	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,075,240	$	1,075,240
Equity securities, at fair value		84,066,203		0		84,066,203
Equity securities, at cost		5,826,381		0		5,826,381
Investment real estate		7,383,851		0		7,383,851
Notes receivable		2,000,000		0		2,000,000
Total	$	99,276,435	$	1,075,240	$	100,351,675

2022	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,060,710	$	1,060,710
Equity securities, at fair value		86,811,806		0		86,811,806
Equity securities, at cost		13,840,908		0		13,840,908
Investment real estate		7,931,628		0		7,931,628
Notes receivable		1,950,657		0		1,950,657
Total	$	110,534,999	$	1,060,710	$	111,595,709

(1) The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

As of December 31, 2023 and 2022, the Company owned four equity securities that represented approximately 73% and three securities that represented approximately 58%, 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.

Note 14 – Selected Quarterly Financial Data

As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and Item 10(f)(1) of Regulation S-K, the Company has elected to comply with certain scaled disclosure reporting obligations, and therefore does not have to provide the information required by this item.

Note 15 – Revision of Previously Issued Consolidated Financial Statements

The Company identified an error in its previously issued December 31, 2022 Consolidated Financial Statements related to the presentation of the Consolidated Statements of Comprehensive Income (Loss). Management evaluated this error in accordance with SEC Staff Accounting Bulletin Number 99, Materiality, which is since codified in ASC 250 – Accounting Changes and Error Corrections, and concluded it was not material to any previously reported financial statements.  However, in order to improve the consistency and comparability of the consolidated financial statements, Management will revise the consolidated financial statements and related disclosures to correct the error in future filings. There were no revisions to the Consolidated Balance Sheet, Statements of Operations, Statements of Shareholders’ Equity or the Consolidated Statements of Cash Flows. There were no changes to net income attributable to common shareholders or total shareholders’ equity.

	December 31, 2022
Consolidated Statements of Comprehensive Income (Loss)	As Previously Reported			Adjustments			As Revised
Unrealized holding gains (losses) arising during period, pre-tax	$	(27,824,173	)	$	5,843,076		$	(21,981,097	)
Tax expense (benefit) on unrealized holding gains (losses) arising during the period		5,843,076			(1,227,133	)		4,615,943
Unrealized holding gains (losses) arising during period, net of tax		(21,981,097	)		4,615,943			(17,365,154	)
Subtotal: Other comprehensive income (loss), net of tax		(21,980,680	)		4,615,943			(17,364,737	)
Comprehensive income		12,383,666			4,615,943			16,999,609
Comprehensive income attributable to UTG, Inc.	$	12,277,325		$	4,615,943		$	16,893,268

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Armanino LLP, the Company’s external audit firm, notified the Company that they would be resigning as the Company’s independent registered public accounting firm for the upcoming year end 2023.  The decision to discontinue the engagement related to a change in direction at the audit firm.

During the Company’s year ended December 31, 2022 and December 31, 2021, and the subsequent interim period through September 19, 2023, during which Armanino served as the Company’s independent registered public accounting firm, there were no: (1) disagreements (as defined in Item 304(a)(1)(iv) of Regulation S-K and the related instructions) with Armanino on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements if not resolved to their satisfaction would have caused them to make a reference in connection with their opinion to the subject matter of the disagreement, or (2) reportable events (as described in Item 304(a)(1)(v) of Regulations S-K).

The Company provided Armanino with a copy of the disclosures included in the Form 8-K filed on September 20, 2023. Armanino furnished the Company with a letter addressed to the Commission stating whether it agrees with the statements made by the Company in response to Item 304(a) of Regulation S-K. 

On September 19, 2023, the Company’s audit committee approved the appointment of Kerber, Eck & Braeckel LLP as the Company’s independent registered public accounting firm.

During the year ended December 31, 2022 and December 31, 2021 and the subsequent interim period through September 19, 2023, neither management, the Company nor anyone on its behalf, consulted Kerber, Eck & Braeckel LLP regarding either (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the financial statements of the Company and no written report or oral advice was provided to the Company by Kerber, Eck & Braeckel LLP or (ii) any matter that was either the subject of a disagreement (as defined in Item 304(a)(1)(iv) or Regulation S-K and the related instructions) or a reportable event (as described in Item 304(a)(1)(v) of Regulation S-K).

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) that are designed to ensure that the information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.  Our disclosure controls and procedures are also designed to ensure that information required to be disclosed in our Exchange Act reports is accumulated and communicated to Management, including our Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosures.  In designing and evaluating the disclosure controls and procedures, Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and Management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Our Management, with the participation of our Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of the Company’s disclosure controls and procedures as of December 31, 2023 and, based on this evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective at a reasonable assurance level.

Management’s Report on Internal Controls Over Financial Reporting

Our Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The Company’s internal control over financial reporting is designed to provide reasonable assurance regarding the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

The Company’s Management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2023. In making the assessment, Management used the criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control-Integrated Framework (2013).  Based on Management’s assessment, Management concluded that, as of December 31, 2023, the Company’s internal control over financial reporting was effective.

This annual report does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s independent registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only Management’s report in this Annual Report.

Changes in Internal Controls

There have been no changes in the Company’s internal control over financial reporting since December 31, 2023, in connection with the evaluation required by paragraph (d) of Exchange Act Rule 13a-15(e) and 15d-15(e), that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting. The Company’s process for evaluating controls and procedures is continuous and encompasses constant improvement of the design and effectiveness of established controls and procedures and the remediation of any deficiencies, which may be identified during this process.

Item 9B. Other Information

None

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not Applicable

PART III

Item 10. Directors, Executive Officers and Corporate Governance

The Board of Directors

In accordance with the laws of Delaware and the Certificate of Incorporation and Bylaws of UTG, as amended, UTG is managed by its executive officers under the direction of the Board of Directors.  The Board elects executive officers, evaluates their performance, works with management in establishing business objectives and considers other fundamental corporate matters, such as the issuance of stock or other securities, the purchase or sale of a business and other significant corporate business transactions.  In the fiscal year ended December 31, 2023, the Board met five times.  During 2023, all Directors attended at least 75% of all meetings of the Board and meetings of committees of the Board, except for April R. Chapman, who attended 60% of all meetings. Our Board of Directors does not have a policy requiring directors to attend annual meetings of shareholders.  All Board members attended our 2023 annual shareholders’ meeting, except for April R. Chapman and Peter L. Ochs.

The Board of Directors has an Audit Committee consisting of Messrs. Molnar, Harmon, and Cortines. Our Board has determined that each of the members of the Audit Committee meets the criteria for independence under the NASDAQ listing standards.  The Audit Committee performs such duties as outlined in the Company’s Audit Committee Charter.  The Audit Committee reviews and acts or reports to the Board with respect to various auditing and accounting matters, the scope of the audit procedures and the results thereof, internal accounting and control systems of UTG, the nature of services performed for UTG and the fees to be paid to the independent auditors, the performance of UTG’s independent and internal auditors and the accounting practices of UTG.  The Audit Committee also recommends to the full Board of Directors the auditors to be appointed by the Board. The Audit Committee met four times in 2023.

The Board has reviewed the qualifications of each member of the audit committee and determined one member of the committee, Gabriel Molnar, meets the definition of an “audit committee financial expert” as defined in Item 407 of Regulation S-K.

The Board of Directors has a Compensation Committee consisting of Messrs. Darden, Dayton, and Ochs.  Our Board has determined that each of the members of the Compensation Committee meets the criteria for independence under the NASDAQ listing standards.  The Compensation Committee performs such duties as outlined in the Company’s Compensation Committee Charter.  The Compensation Committee reviews and acts or reports to the Board with respect to various compensation matters relative to the Company’s executive officers.  The Compensation Committee has the authority to delegate appropriate matters to subcommittees as the Committee may determine in its discretion. The Compensation Committee met one time in 2023.

On February 21, 2023, Mr. James Rousey submitted a letter of resignation stating his desire to retire. In this regard, he retired as President of UTG, Inc. and its subsidiary, Universal Guaranty Life Insurance Company as well as his position as a Director of both entities. This was effective as of the date of the letter. The Board of Directors of UTG, Inc. and Universal Guaranty Life Insurance Company formally accepted the resignation letter on February 22, 2023. Mr. Jesse Correll, CEO and Chairman of the Board of the companies, assumed the title of President initially. This information was filed on Form 8-K with the SEC on February 24, 2023.  At this same meeting, Daniel T. Roberts was appointed Vice President of UTG and UG.  Later in the year at the September Board of Directors meeting, Daniel T. Roberts was named President of Universal Guaranty Life Insurance Company.

Under UTG’s By-Laws, the Board of Directors should be comprised of at least six and no more than eleven Directors.  At December 31, 2023, the Board consisted of nine Directors.  Shareholders elect Directors to serve for a period of one year at UTG’s annual shareholders’ meeting.

The Board of Directors does not have a formal nominating committee, or a committee that performs similar functions, and does not have a nominating committee charter.  The Board has concluded that the nominating process should not be limited to certain members so that a comprehensive selection of candidates can be considered.  Therefore, the nomination process is conducted by the full Board of Directors.  The Board of Directors has not adopted a formal policy with regard to the consideration of Director candidates recommended by shareholders.  Candidates for nomination have been recommended by an executive officer or director and considered by the Board of Directors.  Generally, candidates have been persons who have been known to one or more of our Board members.  The Board of Directors will, however, consider nominees recommended by shareholders.  Shareholders wishing to recommend candidates for Board membership must submit the recommendations in writing to the Secretary of the Company at least 90 days prior to a date corresponding to the previous year’s Annual Meeting, with the submitting shareholder’s name and address and pertinent information about the proposed nominee similar to that set forth for directors named herein.  The Board does not evaluate potential nominees for director differently based on whether they are recommended by a shareholder.

The Board of Directors has not adopted specific minimum qualifications that it believes must be met by a person it recommends for nomination as a director.  Proposed nominees will be considered in light of their potential contributions to the Board, their backgrounds, their independence and such other factors as the Board considers appropriate.  We do not have a specific policy relating to the consideration of diversity in identifying director candidates.  However, the Board of Directors does consider the diversity of our Board when identifying director candidates.  The amount of consideration given to diversity varies with the Boards’ determination of whether we would benefit from expanding the Board’s diversity in a particular area.  We believe this policy has been effective in identifying candidates with the diverse business experience necessary to lead our Company.

Our directors have demonstrated significant achievement and generally have significant management experience in one or more fields of business, professional, governmental, community or academic endeavors.  Our directors have sound judgement as a result of their management or policy making experience and demonstrate an ability to function effectively in an oversight role.  Given the tenure of most of the directors on our Board, they have a general appreciation regarding major issues facing the Company.  These experiences make each of our directors well qualified to be a member of the Company’s Board of Directors.

The Board of Directors has provided a process for shareholders to send communications directly to the Board.  These communications can be sent to Jesse Correll, Chairman of the Board, CEO, and President of UTG, at the corporate headquarters at 205 North Depot Street, Stanford, Kentucky 40484.

Our Board of Directors is led by Jesse Correll, our Chairman of the Board, CEO, and President.  The decision as to who should serve as Chairman of the Board, and who should serve as Chief Executive Officer, and whether those offices should be combined or separate, is properly the responsibility of our Board of Directors.  The Board of Directors believes that the most effective leadership structure for us at this time is for Mr. Correll to serve as both Chairman of the Board and Chief Executive Officer.  Our Board does not have a lead independent director and does not believe that designating a lead independent director would be necessary or helpful at this time.

Our Board of Directors oversees our risk management in cooperation with management.  The Board and management regularly assess and communicate regarding risks confronting the Company, including transaction specific risks, macroeconomic trends, industry developments, and risk factors unique to our business.  The members of the Audit Committee also discuss various financial reporting and accounting risk factors with our independent audit firm.

Section 16(a) Beneficial Ownership Reporting Compliance

Directors and officers of UTG file periodic reports regarding ownership of Company securities with the Securities and Exchange Commission pursuant to Section 16(a) of the Securities Exchange Act of 1934 as amended, and the rules promulgated there under.  UTG is not aware of any individuals who filed late with the Securities and Exchange Commission during 2023.  SEC filings may be viewed from the Company’s Web site www.utgins.com.

Audit Committee Report to Shareholders

In connection with the December 31, 2023 financial statements, the audit committee: (1) reviewed and discussed the audited financial statements with Management; (2) discussed with the independent auditors the matters required by Statement on Auditing Standards No. 61, Communications with Audit Committees, as amended, (AICPA, Professional Standards, Vol. 1 AU section 380), as adopted by the Public Company Accounting Oversight Board in Rule 3200T; and (3) received the written disclosures and the letter from its independent auditors required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent registered public accounting firm’s communications with the audit committee concerning independence, and has discussed with the independent auditors their independence.  Based upon these reviews and discussions, the audit committee recommended to the Board of Directors that the audited financial statements be included in the Annual Report on Form 10-K filed with the SEC for the last fiscal year.

Members of the Company’s Audit Committee:

Gabriel J. Molnar	Committee Chairman
Thomas E. Harmon
John M. Cortines

The following information with respect to business experience of the Board of Directors has been furnished by the respective Directors or obtained from the records of UTG.

Name, Age	Position with the Company, Business Experience and Other Directorships
April R. Chapman, 58	Mrs. Chapman is the CEO of Generous Giving, an organization focused on inspiring generosity that shapes our culture and impacts the world for extraordinary good. Previously, April worked in the tech industry for 20 years including a tenure at Microsoft. April left Microsoft to start a consulting firm to advise non-profits on Internet strategy. April serves on several non-profit boards including Praxis, Impact Foundation and National Christian Foundation Northwest. She was also previously the Co-Chair of the World Vision Innovation Fund. April holds an Oxford Diploma in Strategy & Innovation and a BS in Computer Science from UC, Irvine.
Jesse T. Correll, 67	Chairman of UTG and Universal Guaranty Life Insurance Company since 2000; Director of UTG since 1999; Chairman of First Southern Bancorp, Inc. since 1988; CEO of First Southern Bancorp, Inc. from 1988-2015; Manager and President of First Southern Funding, LLC since 1992; President, Director of The River Foundation since 1990; Board member of Crown Financial Ministries from 2004 to 2009; Friends of the Good Samaritans since 2005; Generous Giving from 2006 to 2009; the National Christian Foundation since 2006; Centre Board of Trustees from 2015 to 2022; and Cumberland Lake Shell, Inc. since 2017.
Preston H. Correll, 43	Founder of Marksbury Farm Market based in Bryantsville, Kentucky. He also owns and operates St. Asaph Farm in Stanford, Kentucky and focuses on sustainable farming and raising natural meat.  He spent a year and a half in India working with the Good Samaritans ministry and now serves on the board of the Friends of the Good Samaritans. Director of UTG, Inc. since December 2018.
John M. Cortines, 35	Mr. Cortines serves as the Director of Generosity at the Maclellan Foundation. He is the co-author of two books on money, faith, and generosity.  Prior to entering the nonprofit sector, he worked in the oil and gas industry as an engineer for Chevron Corporation.  Mr. Cortines is a graduate of Harvard Business School (MBA), King Abdullah University of Science and Technology (MS), and Texas A&M University (BS).  Director of UTG, Inc. since December 2018.
Thomas F Darden, II, 69	Mr. Darden is the Founder and Chief Executive Officer of Cherokee, an investment company that invests in both private equity and venture capital. Beginning in 1984, Mr. Darden served for 16 years as the Chairman of Cherokee Sanford Group, a brick manufacturing and soil remediation company.  From 1981 to 1983, he was a consultant with Bain & Company in Boston. From 1977 to 1978, he worked as an environmental planner for the Korea Institute of Science and Technology in Seoul, where he was a Henry Luce Foundation Scholar. Mr. Darden is on the Boards of Shaw University, the Institute for The Environment at the University of North Carolina and the Board of Governors of the Research Triangle Institute.  Mr. Darden earned a Masters in Regional Planning from the University of North Carolina, a Juris Doctor from Yale Law School and a Bachelor of Arts from the University of North Carolina, where he was a Morehead Scholar.
Howard L. Dayton, Jr., 80	In 1985, Mr. Dayton founded Crown Ministries in Longwood, Florida.  Crown Ministries merged with Christian Financial Concepts in September 2000 to form Crown Financial Ministries, the world’s largest financial ministry.  He served as Chief Executive Officer from 1985 to 2007 and in 2009 founded Compass - Finances God’s Way.  Mr. Dayton is a graduate of Cornell University.  He developed The Caboose, a successful railroad-themed restaurant in Orlando, FL in 1969. In 1972 he began his commercial real estate development career, specializing in office development in the Central Florida area.  He has authored five popular small group studies, produced several video series, and was the host for the nationally syndicated radio programs MoneyWise and HeyHoward.  Asbury University named their business school the Howard Dayton School of Business.  Mr. Dayton became a Director of UTG, Inc. in December 2005.
Thomas E. Harmon, 69	Director of UTG and Universal Guaranty Life Insurance Company since March 2016.  Mr. Harmon is the owner and President of Harmon Foods, Inc., a chain of retail supermarkets, for the past 40 years.  Mr. Harmon has been active in many charitable organizations over the years, most recently serving as a Board Member with Amigos En Cristo Ministries, an organization serving one of the most disadvantaged parts of the world – Juarez, Mexico.
Gabriel J. Molnar, 37	Mr. Molnar is the Chief Financial Officer at Capstone Realty Inc., a commercial real estate development company in Louisville, Kentucky.  Mr. Molnar is a licensed CPA and real estate broker in Kentucky. Prior to Capstone, Mr. Molnar worked as a Financial Analyst with Procter & Gamble and as a public company auditor and healthcare consultant with PricewaterhouseCoopers.  Mr. Molnar received a MBA from the Owen Graduate School of Management at Vanderbilt University and is also a graduate of Asbury University in Wilmore, Kentucky.
Peter L. Ochs, 72	Mr. Ochs is founder of Capital III, a private equity investment firm located in Wichita, Kansas.  Capital III provides impact investment capital and management with investments in manufacturing, real estate, energy, and education with a geographical focus on the US and Latin America.   Prior to founding Capital III, Mr. Ochs spent 8 years in the commercial banking industry.  Mr. Ochs graduated from the University of Kansas with a degree in business and finance.  He currently serves on the boards of UTG, Inc., the American Independence Funds, and Trinity Academy.

Executive Officers of UTG

More detailed information on the following executive officers of UTG appears under “Directors”:

Jesse T. Correll Chairman of the Board, Chief Executive Officer, and President

Other executive officers of UTG are set forth below:

Name, Age	Position with UTG and Business Experience
Theodore C. Miller, 61	Senior Vice President and Chief Financial Officer of UTG, Inc. and Universal Guaranty Life Insurance Company since 1997; Senior Vice President and Chief Financial Officer of subsidiary companies since 1997; and Chief Financial Officer of First Southern Bancorp, Inc. and First Southern National Bank since 2016.
Daniel T. Roberts, 41	Vice President of UTG, Inc and Universal Guaranty Life Insurance Company since February 2023. President of Universal Guaranty Life Insurance Company as of September 2023; Vice President of First Southern Bancorp, Inc. and First Southern National Bank since 2023 and served in various capacities since 2016.
Douglas P. Ditto, 68	Vice President of UTG, Inc. and Universal Guaranty Life Insurance Company since June 2009; Chief Investment Officer from 2009 to 2012; Assistant Vice President from June 2003 to June 2009; Executive Vice President of First Southern Bancorp, Inc. since March 1985.

Code of Ethics

The Company has adopted a Code of Ethics and Business Conduct for our Directors, officers (including our Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer or Controller, and persons performing similar function) and employees.  The Code of Business Conduct and Ethics is available to our shareholders by requesting a free copy of the Code of Business Conduct and Ethics by writing to us at UTG, Inc., 205 North Depot Street, Stanford, Kentucky 40484.

Item 11. Executive Compensation

Executive Compensation Table

The following table sets forth certain information regarding compensation paid to or earned by UTG’s Chief Executive Officer, and each of UTG’s two most highly compensated executive officers whose salary plus bonus exceeded $100,000 during UTG’s last fiscal year:

Name and Principal position	Year	Salary		Bonus		Stock Awards (1)		All Other Compensation (2)		Total
Jesse T. Correll Chief Executive Officer	2023	$	217,500	$	6	$	289,994	$	13,050	$	520,550
2022			217,500		2		199,998		11,681		429,181
Douglas P. Ditto Vice President	2023		187,500		99,991		150,009		11,250		448,750
2022			187,500		15		174,985		9,984		372,484
Theodore C. Miller Chief Financial Officer	2023		117,292		49,880		50,120		7,038		224,330
2022			112,500		57,900		27,100		5,969		203,469
Casey Willis (3) Vice President	2023		200,000		274,800		50,120		12,000		536,920
2022			200,000		167,480		32,520		10,625		410,625

(1)	Stock awards in the form of an annual bonus of 21,958 and 16,037 shares were issued in 2023 and 2022, respectively.
(2)	All Other Compensation consists of matching contributions to an Employee Savings Trust 401(k) Plan
(3)	Casey Willis is not deemed to be an executive officer.

Outstanding Equity Awards at Fiscal Year End

As of December 31, 2023, there were no unexercised options, stock that has not vested or equity incentive plan awards outstanding for any of the above named executive officers.

Compensation of Directors

Effective January 1, 2018, a new compensation arrangement was approved whereby each outside Director annually receives $5,000 as a retainer and $2,500 per meeting attended.  The compensation, however, is paid in UTG Common Stock.  The value is determined annually on the close of business December 20th or the next business day should December 20^th be a weekend or holiday, based on the activity of the year just ending.  Reasonable travel expenses are reimbursed in cash as incurred.  UTG’s Director Compensation policy provides that Directors who are employees of UTG or its affiliates do not receive any compensation for their services as Directors except for reimbursement for reasonable travel expenses for attending each meeting.  The following table reflects compensation paid to all Directors who served in 2023.

Name	Fees Earned or Paid in Cash		Stock Awards (1)		All Other Compensation (2)		Total
Jesse T. Correll, Chief Executive Officer	$	0	$	0	$	0	$	0
April R. Chapman, Director		0		12,484		0		12,484
Preston H. Correll, Director		0		17,496		3,500		20,996
John M. Cortines, Director		0		17,496		0		17,496
Thomas F. Darden, II, Director		0		14,975		0		14,975
Howard L. Dayton, Director		0		17,496		0		17,496
Thomas E. Harmon, Director		0		17,496		0		17,496
Gabriel J. Molnar, Director		0		17,496		3,500		20,996
Peter L. Ochs, Director		0		12,484		0		12,484

(1) Market value of stock on earned date was $30.01 per share.

(2) Other Compensation represents payment for consulting services performed relative to management enrichment.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Principal Holders of Securities

The following tabulation sets forth the name and address of the entity known to be the beneficial owners of more than 5% of UTG’s Common Stock and shows:  (i) the total number of shares of Common Stock beneficially owned by such person as of February 1, 2024 and the nature of such ownership; and (ii) the percent of the issued and outstanding shares of Common Stock so owned as of the same date.

Title		Amount	Percent
of	Name and Address	and Nature of	Of
Class	of Beneficial Owner (2)	Beneficial Ownership	Class (1)

Common	Jesse T. Correll	146,505	3)(5	4.6%
Stock, no	First Southern Bancorp, Inc.	1,406,785	3)(4)(5	44.4%
par value	First Southern Funding, LLC	400,000	3)(4)(5	12.6%
	First Southern Holdings, LLC	1,201,876	3)(4)(5	38.0%
	WCorrell, Limited Partnership	72,750	3)(5	2.3%
	Cumberland Lake Shell, Inc.	128,750	(5)	4.1%

(1) The percentage of shares owned is based on 3,164,779 shares of Common Stock outstanding as of February 1, 2024.

(2) The address for each of Jesse Correll, First Southern Bancorp, Inc. (“FSBI”), First Southern Funding, LLC (“FSF”), First Southern Holdings, LLC (“FSH”), and WCorrell, Limited Partnership (“WCorrell LP”), is 205 North Depot Street, Stanford, Kentucky 40484. The address for Cumberland Lake Shell, Inc. (“CLS”) is P.O. Box 430, 150 Railroad Drive, Somerset, Kentucky 42502.

(3) The share ownership of Jesse Correll listed includes 73,755 shares of Common Stock owned by him individually. The share ownership of Mr. Correll also includes 72,750 shares of Common Stock held by WCorrell, Limited Partnership, a limited partnership in which Jesse Correll serves as managing general partner and as such, has sole voting and dispositive power over the shares held by the entity. In addition, by virtue of his ownership of voting securities of FSF and FSBI, and in turn, their ownership of 100% of the outstanding membership interests of FSH (the holder of 1,201,876 shares of Common Stock), Mr. Correll may be deemed to beneficially own the total number of shares of Common Stock owned by FSH, and may be deemed to share with FSH the right to vote and to dispose of such shares. Mr. Correll owns approximately 74% of the outstanding membership interests of FSF. Additionally, Mr. Correll owns directly approximately 44%, companies he controls own approximately 16%, and he has the power to vote but does not own an additional 2% of the outstanding voting stock of FSBI. FSBI and FSF in turn own 99% and 1%, respectively, of the outstanding membership interests of FSH.

(4) The share ownership of FSBI consists of 204,909 shares of Common Stock held by FSBI directly and 1,201,876 shares of Common Stock held by FSH of which FSBI is a 99% member and FSF is a 1% member. As a result, FSBI may be deemed to share the voting and dispositive power over the shares held by FSH.

(5) According to the Schedule 13D, as amended, filed August 27, 2020, Jesse Correll, FSBI, FSF and FSH, have agreed in principle to act together for the purpose of acquiring or holding equity securities of UTG. In addition, because of their relationship with these Reporting Persons, Cumberland Lake Shell, Inc. and WCorrell Limited Partnership may also be deemed to be members of this group. Therefore, each may be deemed to have acquired beneficial ownership of the equity securities of UTG beneficially owned by each of the Reporting Persons.

Security Ownership of Management of UTG

The following tabulation shows with respect to each of the Directors of UTG, UTG’s Chief Executive Officer and each of UTG’s two most highly compensated executive officers whose salary plus bonus exceeded $100,000 for fiscal 2023, and with respect to all executive officers and Directors of UTG as a group:  (i) the total number of shares of Common Stock beneficially owned by such person as of February 1, 2024 and the nature of such ownership; and (ii) the percent of the issued and outstanding shares of stock so owned as of the same date.

Title of	Name and Address of	Amount and Nature of	Percent of
Class	Beneficial Owner	Beneficial Ownership	Class (1)

UTG’s	April R. Chapman	Redmond, WA	1,545		*
Common	Jesse T. Correll	Stanford, KY	2,082,040	(2)	65.8%
Stock, no	Preston H. Correll	Stanford, KY	2,859	(3)	*
Par value	John M. Cortines	Georgetown, TN	3,910	(4)	*
	Thomas F. Darden, II	Raleigh, NC	63,391		2.0%
	Howard L. Dayton, Jr.	Sanford, FL	11,174	(5)	*
	Douglas P. Ditto	Danville, KY	50,394	(6)	1.5%
	Thomas E. Harmon	Springfield, IL	4,020		*
	Theodore C. Miller	Stanford, KY	15,292		*
	Gabriel J. Molnar	Louisville, KY	3,444		*
	Peter L. Ochs	Valley Center, KS	7,911	(7)	*
	Daniel Roberts	Stanford, KY	1,856	(8)	*
	All Directors and executive officers as a group (twelve in number)		2,247,836		71.0%

* Less than 1

(1) The percentage of outstanding shares for UTG is based on 3,164,779 shares of Common Stock outstanding as of February 1, 2024.

(2) The share ownership of Jesse Correll listed includes 73,755 shares of Common Stock owned by him individually. The share ownership of Mr. Correll also includes 72,750 shares of Common Stock held by WCorrell, Limited Partnership, a limited partnership in which Jesse Correll serves as managing general partner and as such, has sole voting and dispositive power over the shares held by the entity. In addition, by virtue of his ownership of voting securities of FSF and FSBI, and in turn, their ownership of 100% of the outstanding membership interests of FSH (the holder of 1,201,876 shares of Common Stock), Mr. Correll may be deemed to beneficially own the total number of shares of Common Stock owned by FSH, and may be deemed to share with FSH the right to vote and to dispose of such shares. Mr. Correll owns approximately 74% of the outstanding membership interests of FSF. Additionally, Mr. Correll owns directly approximately 44%, companies he controls own approximately 16%, and he has the power to vote but does not own an additional 2% of the outstanding voting stock of FSBI. FSBI and FSF in turn own 99% and 1%, respectively, of the outstanding membership interests of FSH.

(3) Includes 3 shares held in street name.

(4) Includes 848 shares held in spouse’s IRA and 1,881 shares held in street name.

(5) Includes 473 shares held in street name.

(6) Includes 1,600 shares held in a retirement account, 800 shares in street name, and 2,000 shares held by two of his children, and 1,000 held by a third child.

(7) Includes 2,000 shares held in a trust for benefit of named individual.

(8) Includes 460 shares held in a retirement account.

Except as indicated above, the foregoing persons hold sole voting and investment power.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The Board of Directors determined that eight of the nine current Directors are “independent” as defined by Rule 5605 of the NASDAQ listing standards.  The independent Directors are April R. Chapman, Preston H. Correll, John M. Cortines, Thomas F. Darden, Howard L. Dayton, Jr., Thomas E. Harmon, Gabriel J. Molnar, and Peter L. Ochs.

The articles of incorporation of UG contain the following language under item 12 relative to related party transactions:

A director shall not be disqualified from-dealing with or contracting with the corporation as vendor, purchaser; employee, agent or otherwise; nor, in the absence of fraud, shall any transaction or contract or act of this corporation be void or in any way affected or invalidated by the fact that any director or any firm of which any director is a member or any corporation of which any director is a shareholder, director or officer is in any way interested in such transaction or contract or act, provided the fact that such director or such firm or such corporation so interested shall be disclosed or shall be known to the Board of Directors or such members thereof as shall be present at any meeting of the Board of Directors at which action upon any such contract or transaction or act shall be taken: nor shall any such director be accountable or responsible to the company for or in respect to such transaction or contract or act of this corporation or for any gains or profits realized by him by reason of the fact that he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer is interested in such action or contract; and any such director may be counted in determining the existence of a quorum of any meeting of the Board of Directors of the company which shall authorize or take action in respect to any such contract or transaction or act and may vote thereat to authorize, ratify, or approve any such contract or transaction or act, with like force and effect as if he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer were not interested in such transaction or contract or act.

On February 20, 2003, UG purchased $4 million of a trust preferred security offering issued by First Southern Bancorp, Inc. (“FSBI”).  The security has a mandatory redemption after 30 years with a call provision after 5 years.  The security pays a quarterly dividend at a fixed rate of 6.515%. The Company received dividends of $165,137 during 2023 and 2022. On March 30, 2009, UG purchased $1 million of FSBI common stock.  The sale and transfer of this security is restricted by the provisions of a stock restriction and buy-sell agreement.

UTG has a 30.10% ownership interest in an aircraft that is jointly owned with First Southern National Bank and Bandyco, LLC. Bandyco, LLC is affiliated with the Estate of Ward F. Correll. Mr. Correll is the father of Jesse Correll and a former director of the Company. The aircraft is used for business related travel by various officers and employees of the Company. For years 2023 and 2022, UTG paid $307,442 and $553,533 for costs associated with the aircraft, respectively.

Effective January 1, 2007, UTG entered into administrative services and cost sharing agreements with its subsidiary. Under this arrangement, the subsidiary pays its proportionate share of expenses, based on an allocation formula. During 2023 and 2022, UG paid $7,910,324 and $7,862,902, respectively, in expenses. The Ohio Department of Insurance has approved the cost sharing agreement and it is Management’s opinion that where applicable, costs have been allocated fairly and such allocations are based upon accounting principles generally accepted in the United States of America.

The Company from time to time acquires mortgage loans through participation agreements with FSNB.  FSNB services the Company’s mortgage loans including those covered by the participation agreements.  The Company pays 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.  The Company paid $18,694 and $24,146 in servicing fees and $18,630 and $0 in origination fees to FSNB during 2023 and 2022, respectively.

Effective January 1, 2017, UTG entered into a shared services contract with FSNB. Pursuant to the terms of the agreement, UTG and FSNB will utilize the services of the other’s staff in certain instances for the betterment of both entities. Personnel within departments, such as accounting, human resources, and information technology, are shared between the entities. Costs of these resources are then reimbursed between the companies.  The shared services arrangement provides benefits to both parties such as access to a greater pool of knowledgeable staff, efficiencies from elimination of redundancies and more streamlined operations.

The Company reimbursed expenses incurred by employees of FSNB relating to salaries, travel and other costs incurred on behalf of or relating to the Company and received reimbursements from FSNB. The Company paid $1,337,096 and $895,317 in 2023 and 2022, respectively to FSNB in net reimbursement of such costs.

Effective July 1, 2018, the Company assumed the employees of several smaller entities associated with UTG. The purpose of this was to support the continued efforts to further streamline operations amongst associated entities. The salaries, benefits, and payroll related processing fees are 100% reimbursed by the associated entities on a monthly basis. During 2023 and 2022, the Company received reimbursements of $1,438,450 and $1,134,315, respectively. These costs are eliminated for consolidation of these entities, where applicable.

The Company rents a portion of the first floor and second floor of an 8,000 square foot, two-story office building, located in Stanford, KY. The first floor of the building is occupied by UTG and FSNB employees that are included in the shared services agreement between the two entities. The second floor is occupied by the customer service call centers for both UTG and FSNB employees. The building is owned by FSNB and UTG pays $2,000 per month in rent to FSNB for the portion of the building occupied by UTG employees. The Company paid rent of $24,000 to FSNB in 2023 and 2022.

As previously disclosed in the Notes Receivable section of Note 2 - Investments, several of the Company’s notes have participation agreements in place with third parties.  Certain participation agreements are with FSF, a related party.  The participation agreements are sold without recourse and assigned to the participant based on their pro-rata share of the principal, interest and collateral as specified in the participation agreements. The undivided participations in the notes receivable range from 20% - 50%.  The total amount of loans participated to FSF was $60,031 and $79,674 as of December 31, 2023 and 2022, respectively.

During 2022, FSF sold all of its membership interest in limited liability companies (“LLC”) to a wholly-owned subsidiary of UTG at a price of $1 per entity. The three LLCs are listed on the Company’s organization chart as wholly-owned subsidiaries of Stanford Wilderness Road, LLC.

During the 4th quarter of 2023, UTG entered into a loan participation agreement with FSNB to fund a commercial mortgage loan issued to a company that is owned/managed by a member of UTG’s Board of Directors. UG has a 9% interest in the participated loan and has agreed to fund up to $1,482,300. As of December 31, 2023, $604,169 had been drawn on the loan.

Item 14. Principal Accountant Fees and Services

The Audit Committee is required to be directly responsible for the appointment, compensation and retention of the Company’s independent registered public accounting firm.  The Audit Committee appointed Kerber, Eck & Braeckel LLP (“KEB”) as the Company’s independent registered public accounting firm for the fiscal year ended December 31, 2023 and appointed Armanino LLP as the Company’s independent registered public accounting firm for the fiscal year ended December 31, 2022.

In 2023, Armanino LLP, the Company’s external audit firm, notified the Company that they would be resigning as the Company’s independent registered public accounting firm for the upcoming year end 2023.  The decision to discontinue the engagement related to a change in direction at the audit firm.

On September 19, 2023, the Company’s audit committee approved the appointment of Kerber, Eck & Braeckel LLP as the Company’s independent registered public accounting firm. This change in audit firms was originally reported on Form 8-K filed with the SEC on September 20, 2023.

Amounts paid to, or billed by, the Company’s principal accountant, during the two most recent fiscal years by category were as follows:

Audit Fees - Audit fees paid for these audit services in the fiscal years ended December 31, 2023 and 2022 totaled $130,000 and $120,000 respectively. Fees billed for the quarterly reviews of the Company’s financial statements totaled $37,500 and $34,500 for the years 2023 and 2022, respectively.

Audit Related Fees - No audit related fees were incurred by the Company from KEB or Armanino for the years ended December 31, 2023 and 2022.

Tax Fees – For the years ended December 31, 2023 and 2022, the Company paid $22,709 and $16,500, respectively, to Armanino relating to certain tax advice and electronic filing of certain federal and state income tax returns of the Company.

All Other Fees – During 2023 the Company paid Armanino $20,475 for the audit of the Company’s employee benefit plan. During 2022, the Company paid no other fees to Armanino.

PART IV

Item 15. Exhibit and Financial Statement Schedules

(a) The following documents are filed as a part of the report:

(1)	Financial Statements:
	Included in Part II, Item 8 of this Report.
(2)	Financial Statement Schedules
	The financial statement schedules have been omitted as they are deemed inapplicable or not required by Regulation S-X.

(a)(3) & (b) Exhibits The following are exhibits to this report, and if incorporated by reference, we have indicated the document previously filed with the SEC in which the exhibit was included:

Exhibit Number	Description
3.1	Certificate of Incorporation of the Registrant and all amendments thereto [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 3.1].
3.2	By-Laws for the Registrant and all amendments thereto [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 3.2].
4.1	UTG’s Agreement pursuant to Item 601(b) (4) (iii) (A) of Regulation S-K with respect to long-term debt instruments [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 4.1].
10.1	Amendment to Reinsurance Agreement between Universal Guaranty Life Insurance Company and Optimum Re Insurance Company originally with Business Men’s Assurance Company of America. [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2015 originally filed as Exhibit 10.2].
10.2	Reinsurance Agreement between Universal Guaranty Life Insurance Company and Swiss RE originally with Life Reassurance Corporation of America. [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2015 originally filed as Exhibit 10.3].
10.3	Assumption Reinsurance Agreement between Universal Guaranty Life Insurance Company and Park Avenue Life Insurance Company formerly known as First International Life Insurance Company. [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2015 originally filed as Exhibit 10.4].
10.5	Commercial pledge agreement dated November 20, 2012, between UTG, Inc. and Illinois National Bank. [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2012 originally filed as Exhibit 10.20].
10.6	Administrative Services and Cost Sharing Agreement dated as of January 1, 2007 between UTG, Inc. and Universal Guaranty Life Insurance Company [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 10.11].
10.7	Agreement regarding Mortgage Loans by and between First Southern National Bank and Universal Guaranty Life Insurance Company [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 10.12].
10.8	Universal Guaranty Participation Agreement-Purchased Loan [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 10.13].
10.9	Universal Guaranty Participation Agreement-Originated Loan [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 10.14].
10.10	Management Data, Inc. Software License Agreement [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2014 originally filed as Exhibit 10.16].
10.12	Aircraft Joint Ownership Agreement by and among Bandyco, LLC, First Southern National Bank and UTG, Inc. dated August 11, 2014 [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2014 originally filed as Exhibit 10.18].
*10.13	Promissory Note dated November 20, 2023, between UTG, Inc. and Illinois National Bank.
10.14	Shared Services Agreement between UTG, Inc. and FSNB effective January 1, 2017. [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2018 originally filed as Exhibit 10.14].
*10.15	Amendments to the Shared Services Agreement between UTG, Inc. and FSNB. Amendment #6 to the Shared Services Agreement effective March 1, 2023. [Prior amendments incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2018 originally filed as Exhibits 10.15, 10.16 and 10.17].
14.1	Code of Ethics and Business Conduct [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2022 originally filed as Exhibit 14.1].
14.2	Code of Ethical Conduct for Senior Financial Officers [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2022 originally filed as Exhibit 14.2].
*21.1	List of Subsidiaries of the Registrant.
*23	Armanino Consent – “UTG-Consent of Registered Public Accounting Firm”
*31.1	Certificate of Jesse T. Correll, Chairman of the Board Chief Executive Officer, and President  of UTG, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
*31.2	Certificate 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, Chairman of the Board, Chief Executive Officer, and President 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.
99.1	Audit Committee Charter. [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2022 originally filed as Exhibit 99.1].
99.2	Whistleblower Policy [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2022 originally filed as Exhibit 99.2].
99.3	Compensation Committee Charter.  [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2022 originally filed as Exhibit 99.3].
99.4	Investment Committee Charter. [Incorporated by reference to the Registrant’s form 10-K, for the year ended December 31, 2022 originally filed as Exhibit 99.4].
*101.INS	Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document).
*101.SCH	Inline XBRL Taxonomy Extension Schema Document.
*101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document.
*101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document.
*101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

* Filed herewith

Item 16. Form 10-K Summary

None

SIGNATURES

Pursuant to the requirements of Section 13 or 15(D) of the Securities Exchange Act of 1934, UTG, Inc. has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

		UTG, Inc.
By:		/s/ Jesse T. Correll
		Jesse T. Correll
	Chairman of the Board, Chief Executive Officer, President and Director
		(Principal Executive Officer)

Date: March 29, 2024

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:  /s/	By: /s/
April R. Chapman Director	Howard L. Dayton Director
By:   /s/ Jesse T. Correll	By:  /s/   Thomas E. Harmon
Jesse T. Correll Chairman of the Board, Chief Executive Officer, President and Director (Principal Executive Officer)	Thomas E. Harmon Director
By:  /s/  Preston H. Correll	By:  /s/  Gabriel J. Molnar
Preston H. Correll Director	Gabriel J. Molnar Director
By:  /s/  John M. Cortines	By:  /s/
John M. Cortines Director	Peter L. Ochs Director
By:  /s/ Thomas F. Darden II	By:  /s/  Theodore C. Miller
Thomas F. Darden II Director	Theodore C. Miller Chief Financial Officer and Senior Vice President (Principal Financial and Accounting Officer)

EX-10.19

Exhibit 10.13

PROMISSORY NOTE

Principal $8,000,000.00	Loan Date 11-20-2023	Maturity 11-20-2024	Loan No. 72957158-40000	Call / Coll C / 3	Account 72957158	Initials   TWG
	References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item. Any item above containing "***" has been omitted due to text length limitations.

Borrower:	UTG, INC.		Lender:	INB NATIONAL ASSOCIATION
	C/O TED MILLER / 111 WEST MAIN STREET			MAIN BRANCH
	STANFORD, KY 40484			322 E. CAPITOL
				SPRINGFIELD, IL 62701
Principal Amount:  $8,000,000.00		Interest Rate:  7.750%		Date of Note:  November 20, 2023

         Principal Amount: $8,000,000.00              Interest Rate: 6.500%Date of Note: November 20, 2022

PROMISE TO PAY. UTG, INC. ( "Borrower" ) promises to pay to INB, National Association ( "Lender"), or order, in lawful money of the UnitedStates of America, the principal amount of Eight Million & 00/100 Dollars ( $8,000,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated from the date of each advance until repayment of each advance.

PAYMENT. Borrower will pay this loan in one payment of all outstanding principal plus all accrued unpaid interest on November 20, 2024. In addition. Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning December 20,2023, with all subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; then to any unpaid collection costs; and then to any late charges. Borrower will pay Lender at Lender 's address shown above or at such other place as Lender may designate in writing.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time based on changes in an independent index which is the Prime Rate of interest listed in the Money Rates Table of the Wall Street Journal (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans. Lender will tell Borrower the current Index rate upon Borrower’s request. The interest rate change will not occur more often than each month. Borrower understands that Lender may make loans based on other rates as well. The Index currently is 8.500% per annum. Interest on the unpaid principal balance of this Note will be calculated as described in the "INTEREST CALCULATION METHOD" paragraph using a rate of 0.750 percentage points under the Index (the "Margin"), adjusted if necessary for any minimum and maximum rate limitations described below, resulting in an initial rate of 7.750%. If Lender determines, in its sole discretion, that the Index has become unavailable or unreliable, either temporarily, indefinitely, or permanently, during the term of this Note, Lender may amend this Note by designating a substantially similar substitute index. Lender may also amend and adjust the Margin to accompany the substitute index. The change to the Margin may be a positive or negative value, or zero. In making these amendments, Lender may take into consideration any then-prevailing market convention for selecting a substitute index and margin for the specific Index that is unavailable or unreliable. Such an amendment to the terms of this Note will become effective and bind Borrower 10 business days after Lender gives written notice to Borrower without any action or consent of the Borrower. NOTICE: Under no circumstances will the interest rate on this Note be less than 6.000% per annum or more than the maximum rate allowed by applicable law.

INTEREST CALCULATION METHOD. Interest on this Note is computed on a 365/365 simple interest basis; that is, by applying the ratio of the interest rate over the number of days in a year

(366 during leap years ), multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. All interest payable under this Note is computed using this method.

PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, earlypayments will reduce the principal balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations, or as full satisfaction of a disputed amount must be mailed or delivered to: INB, National Association, 322 E. CapitolSpringfield, IL 62701.

LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled payment or $25.00, whichever is greater.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by adding an additional 9.000 percentage point margin ("Default Rate Margin"). The Default Rate Margin shall also apply to each succeeding interest rate change that would have applied had there been no default. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law.

DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Note:

Payment Default. Borrower fails to make any payment when due under this Note.

Other Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower.

Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower’s ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents.

False Statements. Any warranty, representation or statement made or furnished to Lender by borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.

Insolvency. The dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self -help, repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's accounts, including deposit accounts, with Lender. However, this Event of Default shall Initial

not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note.

Change In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower.

Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired.

Insecurity. Lender in good faith believes itself insecure.

Cure Provisions. If any default, other than a default in payment, is curable and if Borrower has not been given a notice of a breach of the same provision of this Note within the preceding twelve (12) months, it may be cured if Borrower, after Lender sends written notice to Borrower demanding cure of such default: (1) cures the default within ten (10) days; or (2) if the cure requires more than ten (10) days, immediately initiates steps which Lender deems in Lender's sole discretion to be sufficient to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance as soon as reasonably practical.

LENDER 'S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount.

ATTORNEYS ' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit, including attorneys' fees, expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other.

GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Illinois without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Illinois.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of SANGAMON County, State of Illinois.

CONFESSION OF JUDGMENT. Borrower hereby irrevocably authorizes and empowers any attorney-at-law to appear in any court of record and to confess judgment against Borrower for the unpaid amount of this Note as evidenced by an affidavit signed by an officer of Lender setting forth the amount then due, attorneys' fees plus costs of suit, and to release all errors, and waive all rights of appeal. If a copy of this Note, verified by an affidavit, shall have been filed in the proceeding, it will not be necessary to file the original as a warrant of attorney. Borrower waives the right to any stay of execution and the benefit of all

exemption laws now or hereafter in effect. No single exercise of the foregoing warrant and power to confess judgment will be deemed to exhaust the power, whether or not any such exercise shall be held by any court to be invalid, voidable, or void; but the power will continue undiminished and may be exercised from time to time as Lender may elect until all amounts owing on this Note have been paid in full. Borrower hereby waives and releases any and all claims or causes of action which Borrower might have against any attorney acting under the terms of authority which Borrower has granted herein arising out of or connected with the confession of judgment hereunder.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the indebtedness against any and all such accounts, and, at Lender’s option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph.

COLLATERAL. Borrower acknowledges this Note is secured by a Commercial Pledge Agreement dated November 20, 2013.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under this Note, as well as directions for payment from Borrower's accounts, may be requested orally or in writing by Borrower or by an authorized person. Lender may, but need not, require that all oral requests be confirmed in writing. Borrower agrees to be liable for all sums either: (A ) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note or by Lender's internal records, including daily computer print -outs.

SECURITY INTEREST IN DEPOSIT ACCOUNTS. Borrower grants to Lender a contractual security interest in, and hereby assigns, conveys, delivers, pledges, and transfers to Lender all Borrower's right, title and interest in and to, Borrower's deposit accounts with Lender (whether checking, savings, or some other account), including without limitation all deposit accounts held jointly with someone else and all deposit accounts Borrower may open in the future, excluding however all IRA and Keogh accounts, and all trust accounts for which the grant of a security interest would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on this Note against any and all such deposit accounts.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower 's loan and the check or preauthorized charge with which Borrower pays is later dishonored. If your payment is returned unpaid, you authorize INB, National Association to make a one-time electronic fund transfer from your account to collect a fee of $25.00.

LOAN AGREEMENT. This Note is issued in connection with a Business Loan Agreement dated November 20, 2023 between Borrower and Lender and the terms and conditions of said Business Loan Agreement are expressly incorporated herein and made a part of this Note byreference.

UNCONDITIONAL CANCELABLE COMMITMENT. The line of credit feature provided for in this Note and the Related Documents, including the Business Loan Agreement (Asset Based), may be unconditionally cancelable, without cause, at any time by the Lender, to the extent permitted by applicable law.

PRIOR NOTE. This Promissory Note is a renewal of, extension of, refinancing of, modification of and substitution for Promissory Note dated November 20, 2022 in the original principal amount of $8,000,000.00, which was a renewal of, extension of, refinancing of, modification of and substitution for Promissory Note dated November 20, 2012 in the original principal amount of $8,000,000.00, as amended from time to time

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns.

GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint and several.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE. BORROWER:

BORROWER: UTG, INC.
By:	/s/ Theodore C. Miller	By:	/s/ Julie Abel
	THEODORE C. MILLER, CFO/Secretary of UTG, INC.		JULIE ABEL Vice President/Treasurer of UTG, INC.

EX-21.1

Exhibit 21.1

LIST OF SUBSIDIARIES
Subsidiary Name	State of Incorporation
BCG Land, LLC		Kentucky
Bella Terra, LLC		Alabama
Bluebird, Ltd Co		Kentucky
Bluegrass Land & Minerals, LLC		Kentucky
Cerulean at the Bluebird, LLC		Kentucky
Collier Beach, LLC		South Carolina
Consolidated Timberland, LLC		Georgia
Cumberland Woodlands, LLC		Kentucky
Esther's Wellhouse, LLC		Kentucky
Imperial Plan, Inc.		Texas
Mama Devechio's Pizzeria, LLC		Kentucky
Midland Superblock Partners, LLC		Texas
Red River Gorge Properties, LLC		Kentucky
Stanford Wilderness Road, LLC		Kentucky
The Inn at Wilderness Road, LLC		Kentucky
UG-Cam, LLC		Kentucky
Universal Guaranty Life Insurance Company		Ohio

EX-23

Exhibit 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the use of our report dated March 24, 2023, except for the effects of the tables reflecting the impact of the revisions as of and for the year ended December 31, 2022, discussed in Note 15 (not presented herein) to the consolidated financial statements appearing under Item 8 of the Company's 2023 Annual Report on Form 10-K, as to which the date is March 29, 2024, relating to the consolidated financial statements of UTG, Inc. and Subsidiaries for the year ended December 31, 2023.

/s/ Armanino ^LLP

Armanino ^LLP

St. Louis, Missouri

March 29, 2024

EX-31.1

Exhibit 31.1

	CERTIFICATIONS
	I, Jesse T. Correll, Chairman of the Board, Chief Executive Officer, President and Director of UTG, Inc., certify that:
	1.	I have reviewed this annual report on Form 10-K of the registrant, UTG, Inc.;
	2.	Based on my knowledge, this annual 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 changes 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:   March 29, 2024				By	/s/ Jesse T. Correll
					Chairman of the Board, Chief Executive Officer, President and Director
					(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS
I, Theodore C. Miller, Chief Financial Officer and Senior Vice President of UTG, Inc., certify that:
1.	I have reviewed this annual report on Form 10-K of the registrant, UTG, Inc.;
2.	Based on my knowledge, this annual 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 changes 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:   March 29, 2024	By	/s/ Theodore C. Miller
		Chief Financial Officer and Senior Vice President
		(Principal Financial and Accounting Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Annual Report on Form 10-K of UTG, Inc. (the "Company") for the period ended December 31, 2023, as filed with the Securities and Exchange Commission on the date hereof (the "Report") I, Jesse T. Correll, Chairman of the Board, Chief Executive Officer, President and Director of the Company, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

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

Date:	March 29, 2024	By:	/s/ Jesse T. Correll
			Jesse T. Correll
			Chairman of the Board, Chief Executive Officer,
			President and Director (Principal Executive Officer)

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Annual Report on Form 10-K of UTG, Inc. (the "Company") for the period ended December 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the "Report") I, Theodore C. Miller, Chief Financial Officer and Senior Vice President of the Company, certify pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

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

Date:	March 29, 2024	By:	/s/ Theodore C. Miller
			Theodore C. Miller
			Chief Financial Officer and Senior Vice President
			(Principal Financial and Accounting Officer)

EX-10.15

Amendment #6

Dated and Effective: March 1, 2023

To the

SHARED SERVICES AGREEMENT

By and between

FIRST SOUTHERN NATIONAL BANK

And

UTG, INC.

Dated

 January 1, 2017

      Purpose: To amend and replace Item 1-Services of above said agreement in its entirety.

1. Services. During the term of this Agreement, the parties hereby agree to share personnel and the employee costs of certain groups of employees of both entities.  The initial Shared Services of the two entities shall be as follows:

	FSNB percentage	UTG percentage
Accounting	50%	50%
CLG	*	*
Human Resources	85%	15%
People & Culture	75%	25%
Information Technology	50%	50%
Investments	50%	50%
Leadership	*	*
Marketing	75%	25%
Real Estate	50%	50%
Grounds	50%	50%

*See attached allocations per Exhibit A.

The Shared Services of each entity shall include the base pay, bonuses paid, payroll related taxes and costs of employee benefits provided for each individual covered.

Allocated costs shall first be reduced for reimbursements, if any, received from other entities or third parties.

Additional employees or groups of employees may be added as shared services upon mutual agreement of both parties and attached hereto as an addendum to this Agreement.

Corporate performance-based bonuses or awards are specifically excluded from this formula and sharing arrangement.  Such bonuses or awards shall be borne entirely by the individual entity and determined exclusively by the management of each entity.  Individuals covered under this agreement may receive such corporate performance-based bonuses from either or both entities.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their officers thereunto duly authorized as of the date first above written.

UTG, INC.FIRST SOUTHERN NATIONAL BANK

By: _/s/Theodore C. Miller______________By: _/s/ Tommy Roberts________________

       Theodore C. Miller       Tommy Roberts

        Sr. Vice President       CEO

Attest:Attest:

__/s/Bradley J. Betack______________/s/Bradley J. Betack__________________

Bradley J. BetackBradley J. Betack

SecretarySecretary

Shared Services Agreement FSNB/UTGExhibit A

CLG

Name	FSNB %	UTG %
Joe Hafley	80%	20%
Shay Pendygraft	20%	80%
Leah Baker	20%	80%
Mike Taylor	80%	20%

Leadership

Name	FSNB %	UTG %
Jess Correll	25%	75%
Doug Ditto	25%	75%
Cynthia Woodcock	25%	75%
Daniel Roberts	50%	50%
Candice Brown	50%	50%
Suzanne Short	50%	50%
Sara Downey	50%	50%
Carrie Davis	50%	50%
Christopher Davis	75%	25%
Max Appel	85%	15%
Brad Betack	50%	50%
Julie Cox	50%	50%
Denise Henderson	25%	75%

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Jan. 31, 2024	Jun. 30, 2023
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2023
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Document Transition Report	false
Entity File Number	000-16867
Entity Registrant Name	UTG, INC.
Entity Central Index Key	0000832480
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-2907892
Entity Address, Address Line One	205 North Depot Street
Entity Address, City or Town	Stanford
Entity Address, State or Province	KY
Entity Address, Postal Zip Code	40484
City Area Code	217
Local Phone Number	241-6300
Title of 12(g) Security	Common Stock, stated value $.001 per share
No Trading Symbol Flag	true
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	false
Document Financial Statement Error Correction [Flag]	false
Entity Shell Company	false
Entity Public Float				$ 35,889,858
Entity Common Stock, Shares Outstanding			3,164,779
Auditor Firm ID	718	32
Auditor Name	Kerber, Eck & Braeckel LLP	Armanino LLP
Auditor Location	Springfield, Illinois	St. Louis, Missouri

XML

Consolidated Balance Sheets - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Investments available for sale:
Fixed maturities, at fair value (amortized cost $109,554,738 and $117,279,820)	$ 103,409,836	$ 108,313,059
Held to maturity redeemable preferred stock, at amortized cost	2,500,000	2,500,000
Equity securities, at fair value (cost $89,387,893 and $77,015,688)	156,550,812	150,053,686
Equity securities, at cost	15,977,368	21,891,896
Mortgage loans on real estate at amortized cost (net of credit loss reserve of $274,000 and $0)	15,318,176	30,698,694
Investment real estate, net	21,975,120	26,225,799	[1]
Notes receivable (net of credit loss reserve of $250,000 and $0)	14,009,225	14,424,127
Policy loans	6,018,248	6,567,434
Short-term investments	29,132,236	3,596,941
Total investments	364,891,021	364,271,636
Cash and cash equivalents	41,185,196	45,290,385
Accrued investment income	2,001,064	1,371,677
Reinsurance receivables:
Future policy benefits	23,847,623	24,318,030
Policy claims and other benefits	4,734,575	4,638,857
Cost of insurance acquired	2,036,896	2,698,153
Income taxes receivable	2,128,027	0
Other assets	884,531	4,945,627
Total assets	441,708,933	447,534,365
Policy liabilities and accruals:
Future policy benefits	223,757,860	229,582,664
Policy claims and benefits payable	4,188,917	4,072,879
Other policyholder funds	260,892	318,096
Dividend and endowment accumulations	14,749,258	14,802,746
Income taxes payable	0	4,189,081
Deferred income taxes	12,426,840	11,582,138
Notes payable	19,000,000	19,000,000
Other liabilities	5,635,373	5,958,385
Total liabilities	280,019,140	289,505,989
Shareholders' equity:
Common stock - no par value, stated value $0.001 per share. Authorized 7,000,000 shares - 3,165,320 and 3,164,809 shares issued and outstanding	3,167	3,166
Additional paid-in capital	32,613,817	32,693,972
Retained earnings	133,491,797	131,989,352
Accumulated other comprehensive loss	(4,882,317)	(7,111,586)
Total UTG shareholders' equity	161,226,464	157,574,904
Noncontrolling interest	463,329	453,472
Total shareholders' equity	161,689,793	158,028,376
Total liabilities and shareholders' equity	$ 441,708,933	$ 447,534,365

[1] The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

XML

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Investments, available for sale:
Fixed maturities, amortized cost	$ 109,554,738	$ 117,279,820
Equity securities, cost	89,387,893	77,015,688
Mortgage loans on real estate, credit loss reserve	274,000	0
Notes receivable, credit loss reserve	$ 250,000	$ 0
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, issued (in shares)	3,165,320	3,164,809
Common stock, outstanding (in shares)	3,165,320	3,164,809

XML

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Revenue:
Premiums and policy fees	$ 7,918,235	$ 8,384,604
Ceded reinsurance premiums and policy fees	(2,553,010)	(2,697,382)
Net investment income	14,141,809	20,811,471	[1]
Other income	280,303	350,519
Revenues before net investment gains (losses)	19,787,337	26,849,212
Net investment gains (losses):
Other-than-temporary impairments	0	(5,000,000)
Other realized investment gains, net	9,463,843	14,168,911
Change in fair value of equity securities	(3,830,793)	33,690,712
Total net investment gains	5,633,050	42,859,623
Total revenues	25,420,387	69,708,835
Benefits, claims and settlement expenses:
Life	16,089,474	15,703,526
Ceded reinsurance benefits and claims	(2,882,312)	(2,449,533)
Annuity	1,029,885	1,029,156
Dividends to policyholders	302,685	311,400
Commissions	(102,971)	(116,571)
Amortization of cost of insurance acquired	661,257	688,348
Operating expenses	8,368,135	10,497,302
Interest expense	28,389	108,722
Total benefits and other expenses	23,494,542	25,772,350
Income before income taxes	1,925,845	43,936,485
Income tax expense (benefit)	(144,247)	9,572,139
Net income	2,070,092	34,364,346
Net income attributable to noncontrolling interest	(113,397)	(106,341)
Net income attributable to common shareholders	$ 1,956,695	$ 34,258,005
Amounts attributable to common shareholders:
Basic income per share (in dollars per share)	$ 0.62	$ 10.81
Diluted income per share (in dollars per share)	$ 0.62	$ 10.81
Basic weighted average shares outstanding (in shares)	3,176,757	3,167,719
Diluted weighted average shares outstanding (in shares)	3,176,757	3,167,719

[1] The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

XML

Consolidated Statements of Comprehensive Income (Loss) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Net income	$ 2,070,092	$ 34,364,346
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during period, pre-tax	2,867,943	(21,981,097)
Tax (expense) benefit on unrealized holding gains (losses) arising during the period	(592,591)	4,615,943
Unrealized holding gains (losses) arising during period, net of tax	2,275,352	(17,365,154)
Less reclassification adjustment for (gains) losses included in net income	(58,333)	528
Tax expense (benefit) for (gains) losses included in net income	12,250	(111)
Reclassification adjustment for (gains) losses included in net income, net of tax	(46,083)	417
Subtotal: Other comprehensive income (loss), net of tax	2,229,269	(17,364,737)
Comprehensive income	4,299,361	16,999,609
Less comprehensive income attributable to noncontrolling interests	(113,397)	(106,341)
Comprehensive income attributable to UTG, Inc.	$ 4,185,964	$ 16,893,268

XML

Consolidated Statements of Shareholders' Equity - 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	23	599,169	0	0	0	599,192
Treasury shares acquired and retired	(24)	(685,784)	0	0	0	(685,808)
Net income attributable to common shareholders	0	0	34,258,005	0	0	34,258,005
Unrealized holding gain (loss) on securities net of noncontrolling interest and reclassification adjustment and taxes	0	0	0	(17,364,737)	0	(17,364,737)
Distributions	0	0	0	0	(128,824)	(128,824)
Gain attributable to noncontrolling interest	0	0	0	0	105,741	105,741
Balance at Dec. 31, 2022	3,166	32,693,972	131,989,352	(7,111,586)	453,472	158,028,376							$ 3,166	$ 32,693,972	$ 131,535,102	$ (7,111,586)	$ 453,472	$ 157,574,126
Balance (ASU 2016-13 [Member]) at Dec. 31, 2022							$ 0	$ 0	$ (454,250)	$ 0	$ 0	$ (454,250)
Common stock issued during year	31	801,781	0	0	0	801,812
Treasury shares acquired and retired	(30)	(881,936)	0	0	0	(881,966)
Net income attributable to common shareholders	0	0	1,956,695	0	0	1,956,695
Unrealized holding gain (loss) on securities net of noncontrolling interest and reclassification adjustment and taxes	0	0	0	2,229,269	0	2,229,269
Distributions	0	0	0	0	(103,540)	(103,540)
Gain attributable to noncontrolling interest	0	0	0	0	113,397	113,397
Balance at Dec. 31, 2023	$ 3,167	$ 32,613,817	$ 133,491,797	$ (4,882,317)	$ 463,329	$ 161,689,793

XML

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash flows from operating activities:
Net income	$ 2,070,092	$ 34,364,346
Adjustments to reconcile net income to net cash used in operating activities:
Amortization (accretion) of investments	(314,042)	138,587
Other-than-temporary impairments	(0)	5,000,000
Realized investment gains, net	(9,463,843)	(14,168,911)
Change in fair value of equity securities	3,830,793	(33,690,712)
Unrealized trading losses included in income	0	1,086
Realized trading losses included in income	0	12,197
Amortization of cost of insurance acquired	661,257	688,348
Provision for deferred income tax expense	372,861	2,517,685
Depreciation and depletion	728,887	2,032,627
Stock-based compensation	801,812	599,192
Charges for mortality and administration of universal life and annuity products	(5,692,118)	(5,943,417)
Interest credited to account balances	3,646,515	3,767,177
Change in accrued investment income	(629,387)	(107,518)
Change in reinsurance receivables	374,689	210,672
Change in policy liabilities and accruals	(3,535,674)	(2,836,498)
Change in income taxes receivable (payable)	(6,317,108)	5,164,454
Change in other assets and liabilities, net	3,679,893	(3,083,634)
Net cash used in operating activities	(9,785,373)	(5,334,319)
Proceeds from investments sold and matured:
Fixed maturities available for sale	7,558,333	13,128,136
Equity securities	7,838,385	36,126,454
Trading securities	0	17,983
Mortgage loans	17,770,810	3,655,779
Real estate	16,531,219	12,659,854
Notes receivable	4,944,143	12,329,505
Policy loans	1,453,634	1,752,613
Short-term investments	23,490,815	0
Total proceeds from investments sold and matured	79,587,339	79,670,324
Cost of investments acquired:
Fixed maturities available for sale	0	(2,614,165)
Equity securities	(12,454,268)	(27,523,161)
Trading securities	0	(32,382)
Mortgage loans	(2,654,293)	(5,158,911)
Real estate	(3,417,744)	(4,586,280)	[1]
Notes receivable	(4,779,241)	(9,030,657)
Policy loans	(904,446)	(929,549)
Short-term investments	(48,473,476)	(3,591,885)
Total cost of investments acquired	(72,683,468)	(53,466,990)
Net cash provided by investing activities	6,903,871	26,203,334
Cash flows from financing activities:
Policyholder contract deposits	4,056,116	4,555,115
Policyholder contract withdrawals	(4,294,297)	(5,106,391)
Proceeds from notes payable/line of credit	21,500,000	58,500,000
Payments of principal on notes payable/line of credit	(21,500,000)	(63,500,000)
Purchase of treasury stock	(881,966)	(685,808)
Noncontrolling contributions/(distributions) of consolidated subsidiary	(103,540)	(128,824)
Net cash used in financing activities	(1,223,687)	(6,365,908)
Net increase (decrease) in cash and cash equivalents	(4,105,189)	14,503,107
Cash and cash equivalents at beginning of year	45,290,385	30,787,278
Cash and cash equivalents at end of year	$ 41,185,196	$ 45,290,385

[1] The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

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Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 1 – Summary of Significant Accounting Policies

Business – UTG, Inc. is an insurance holding company. The Company’s dominant business is individual life insurance, which includes the servicing of existing insurance in-force and the acquisition of other companies in the life insurance business. UTG and its subsidiaries are collectively referred to as the “Company”.

This document at times will refer to the Registrant’s largest shareholder, Mr. Jesse T. Correll and certain companies controlled by Mr. Correll.  Mr. Correll holds a majority ownership of First Southern Funding, LLC (“FSF”), a Kentucky corporation, and First Southern Bancorp, Inc. (“FSBI”), a financial services holding company.  FSBI operates through its 100% owned subsidiary bank, First Southern National Bank (“FSNB”).  Banking activities are conducted through multiple locations within south-central and western Kentucky.  Mr. Correll is Chief Executive Officer, President, and Chairman of the Board of Directors of UTG and is currently UTG’s largest shareholder through his ownership control of FSF, FSBI and affiliates.  At December 31, 2023, Mr. Correll owns or controls directly and indirectly approximately 66% of UTG’s outstanding stock.

UTG’s life insurance subsidiary has several wholly-owned and majority-owned subsidiaries. The subsidiaries were formed to hold certain real estate and other investments. The investments were placed into the limited liability companies and partnerships to provide additional protection to the policyholders and to UG.

Basis of Presentation – The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), under guidance issued by the Financial Accounting Standards Board (“FASB”).  The preparation of financial statements in accordance with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Principles of Consolidation – The accompanying consolidated financial statements include the accounts of the Registrant and its wholly and majority-owned subsidiaries.  All significant intercompany accounts and transactions have been eliminated during consolidation.

Business Segments – The Company has only one business segment – life insurance.

Investments – The Company reports its investments as follows:

Investments in Fixed Maturity Securities – The Company classifies its investments in fixed maturity securities on the acquisition date and at each balance sheet date. Securities classified as held-to-maturity consist of redeemable preferred stock, and are carried at amortized cost, reflecting the ability and intent to hold the securities to maturity. Securities classified as available-for-sale consist of bonds and are carried at fair value with unrealized gains and losses, net of deferred taxes, reflected directly in accumulated other comprehensive income.  Premiums and discounts on debt securities purchased at other than par value are amortized and accreted, respectively, to interest income in the Consolidated Statements of Operations, using the constant yield method over the period to maturity. The Company has an evaluation process in place to monitor fixed maturity securities available for sale for credit loss. See Note 2 - Investments for further disclosure of the allowance for credit loss (“ACL”).

Equity Securities at Fair Value – Investments in equity securities, which include common and perpetual preferred stocks, are reported at fair value with unrealized gains and losses reported as a component of net income (loss).

Equity Securities at Cost – These investments are reported at their cost basis, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

Mortgage Loans on Real Estate – Mortgage loans on real estate are reported at their unpaid principal balances, adjusted for amortization of premium or discount and valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. The Company recognizes an ACL in earnings at time of purchase or origination based on expected lifetime credit loss on mortgage loans carried at amortized cost, in an amount that represents the portion of the amortized cost basis of such financing receivables, that the Company does not expect to collect, resulting in mortgage loans being presented at the net amount expected to be collected. See Note 2 - Investments for further discussion of the ACL.

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. Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition, for a reasonable price, in comparison to its estimated fair value, is classified as held-for-sale. Real estate held-for-sale is stated at lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated.

Notes Receivable – Notes receivable are reported at their unpaid principal balances, adjusted for valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. 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. The Company recognizes an ACL in earnings at time of purchase or origination based on expected lifetime credit loss on notes receivable carried at amortized cost, in an amount that represents the portion of the amortized cost basis of such financing receivables, that the Company does not expect to collect, resulting in notes receivable being presented at the net amount expected to be collected. See Note 2 - Investments for further discussion of the ACL.

Policy Loans – Policy loans are reported at their unpaid balances, including accumulated interest, but not in excess of the cash surrender value of the related policy.

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.

Gains and Losses – Realized gains and losses include sales of investments and investment impairments.  If any, other-than-temporary impairments in fair value are recognized in net income on the specific identification basis.

Fair Value – Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such unadjusted quoted prices are not available, estimated fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring significant management judgment are used to determine the estimated fair value of assets and liabilities. These unobservable inputs can be based on Management’s judgment, assumptions or estimation and may not be observable in market activity. Unobservable inputs are based on Management’s assumptions about the inputs market participants would use in pricing the assets. For more specific information regarding the Company’s measurements and procedures in valuing financial instruments, see Note 3 – Fair Value Measurements.

Cash Equivalents – Cash equivalents consist of money market accounts and investments with maturities of three months or less when purchased.

Cash – Cash consists of balances on hand and on deposit in banks and financial institutions.

Reinsurance - In the normal course of business, the Company seeks to limit its exposure to loss on any single insured and to recover a portion of benefits paid by ceding reinsurance to other insurance enterprises or reinsurers under excess coverage and coinsurance contracts.  The Company retains a maximum of $125,000 of coverage per individual life.

Reinsurance receivables are recognized in a manner consistent with the liabilities relating to the underlying reinsurance contracts. The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, or when events or changes in circumstances indicate that its carrying amount may not be recoverable, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, consistent with the credit loss guidance which requires recording an allowance for credit loss (“ACL”). See Note 4 - Reinsurance for additional information.

Cost of Insurance Acquired - When an insurance company is acquired, the Company assigns a portion of its cost to the right to receive future cash flows from insurance contracts existing at the date of the acquisition.  The cost of policies purchased represents the actuarially determined present value of the projected future profits from the acquired policies.  Cost of insurance acquired is amortized with interest in relation to expected future profits, including direct charge-offs for any excess of the unamortized asset over the projected future profits.  The amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised.

Future Policy Benefits and Expenses - The liabilities for traditional life insurance and accident and health insurance policy benefits are computed using a net level method. These liabilities include assumptions as to investment yields, mortality, withdrawals, and other assumptions based on the life insurance subsidiary’s experience adjusted to reflect anticipated trends and to include provisions for possible unfavorable deviations. The Company makes these assumptions at the time the contract is issued or, in the case of contracts acquired by purchase, at the purchase date.  Future policy benefits for individual life insurance and annuity policies are computed using interest rates ranging from 2.0% to 6.0% for life insurance and 2.5% to 7.5% for annuities. Benefit reserves for traditional life insurance policies include certain deferred profits on limited-payment policies that are being recognized in income over the policy term. Policy benefit claims are charged to expense in the period that the claims are incurred. The mortality rate assumptions for policies currently issued by the Company are based on 2017 CSO Ultimate tables.  Withdrawal rate assumptions are based upon Linton B or C, which are industry standard actuarial tables for forecasting assumed policy lapse rates.

Benefit reserves for universal life insurance and interest sensitive life insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges.  Policy benefits and claims that are charged to expense include benefit claims in excess of related policy account balances.  Interest crediting rates for universal life and interest sensitive products range from 3.0% to 6.0% as of December 31, 2023 and 2022.

Policy Claims and Benefits Payable - Policy and contract claims include provisions for reported claims in process of settlement, valued in accordance with the terms of the policies and contracts, as well as provisions for claims incurred and unreported. The estimate of incurred and unreported claims is based on prior experience. The Company makes an estimate after careful evaluation of all information available to the Company.  There is no certainty the stated liability for policy claims and benefits payable, including the estimate for incurred but unreported claims, will be the Company’s ultimate obligation.

Income Taxes – Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax impact attributable to differences between the financial statement book values and tax bases of assets and liabilities.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. More information concerning income taxes is provided in Note 6 – Income Taxes.

Earnings Per Share – The objective of both basic earnings per share (“EPS”) and diluted EPS is to measure the performance of an entity over the reporting period.  The Company presents basic and diluted EPS on the face of the Consolidated Statements of Operations. Basic EPS is computed by dividing income available to common shareholders by the weighted average common shares outstanding for the period.  Diluted EPS is calculated by adding to shares outstanding the additional net effect of potentially dilutive securities or contracts, such as stock options, which could be exercised or converted into common shares.

Recognition of Revenues and Related Expenses - Premiums for traditional life insurance products, which include those products with fixed and guaranteed premiums and benefits, consist principally of whole life insurance policies, and certain annuities with life contingencies are recognized as revenues when due. Limited payment life insurance policies defer gross premiums received in excess of net premiums, which is then recognized in income in a constant relationship with insurance in-force. Accident and health insurance premiums are recognized as revenue pro rata over the terms of the policies. Benefits and related expenses associated with the premiums earned are charged to expense proportionately over the lives of the policies through a provision for future policy benefit liabilities and through deferral and amortization of deferred policy acquisition costs. For universal life and investment products, generally there is no requirement for payment of premium other than to maintain account values at a level sufficient to pay mortality and expense charges. Consequently, premiums for universal life policies and investment products are not reported as revenue, but as deposits. Policy fee revenue for universal life policies and investment products consists of charges for the cost of insurance and policy administration fees assessed during the period. Expenses include interest credited to policy account balances and benefit claims incurred in excess of policy account balances.

Recently Issued Accounting Standards

The following Accounting Standard Update (“ASU)”) was adopted in 2023:

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 $524,000, which is presented as a reduction to net loans outstanding, and an increase in the allowance for credit losses on unfunded commitments of $51,000, 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”).

ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company’s consolidated financial statements or disclosures. ASUs issued but not yet adopted as of December 31, 2023 that are currently being assessed and may or may not have a material impact on the Company’s consolidated financial statements or disclosures are disclosed below:

The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Amendments in this update require that public business entities, on an annual basis: (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. In addition, the amendments in this updated require that all entities disclose on an annual basis the following information about income taxes: (1) the amounts of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and (2) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received). ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024. The Company is evaluating the impact of the guidance on its consolidated financial statements.

The FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. ASU 2023-07 is intended to improve disclosures about a public entity’s reportable segments and addresses requests from investors and other allocators of capital for additional, more detailed information about a reportable segment’s expenses. This ASU applies to all public entities that are required to report segment information in accordance with Topic 280. All public entities will be required to report segment information in accordance with the new guidance starting in annual periods beginning after December 15, 2023. The Company does not expect ASU 2023-07 to have a material impact on its consolidated financial statements.

The FASB issued Accounting Standards Update No. 2022-05, Financial Services-Insurance (Topic 944): Transition for Sold Contracts. ASU 2022-05 amends transition guidance in ASU No. 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI), for contracts that have been derecognized because of a sale or disposal of individual or a group of contracts or legal entities before the LDTI effective date. This ASU amends the LDTI transition guidance to allow an insurance entity to make an accounting policy election to exclude certain contracts or legal entities from applying the LDTI guidance when, as of the LDTI effective date, (a) the insurance contracts have been derecognized because of a sale or disposal and (b) the insurance entity has no significant continuing involvement with the derecognized contracts. See below for further analysis regarding ASU No. 2018-12.

The FASB issued Accounting Standards Update No. 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts or ASU 2018-12.  ASU 2018-12 significantly changes how insurers account for long-duration insurance contracts. The new guidance will require insurers to review and update, if necessary, the assumptions used to measure insurance liabilities periodically, rather than retain assumptions used at contract inception. The updated guidance also changes the recognition and measurement of deferred acquisition costs (DAC) and created a new category of benefit features called market risk benefits (MRB) that will be measured at fair value. The guidance also significantly expands the disclosure requirements for long-duration contracts.  The ASU was originally effective for fiscal years, and interim periods within those years, for years beginning after December 15, 2020 and early adoption is permitted.  The guidance on measuring the liabilities for future policy benefits and DAC will be adopted on a modified retrospective basis as of the earliest period presented in the year of adoption. The guidance on MRB will be adopted on a retrospective basis as of the earliest period presented in the year of adoption. In November of 2019, the FASB issued ASU 2019-09, which delayed the effective date of ASU 2018-12 to fiscal years beginning after December 15, 2024 for smaller reporting companies.  The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements.

Reclassifications - Certain reclassifications have been made to the 2022 Consolidated Financial Statements to make them comparable to the current year Consolidated Financial Statements. The Company has elected to reclassify certain investments on the Consolidated Balance Sheets and related footnotes for prior periods to conform with the presentation in the fiscal year ended December 31, 2023. The Company has elected to reclassify $8.7 million out of investment in real estate, net, into equity securities, at cost and to reclassify $2.5 million out of equity securities, at cost, to a new item titled held to maturity, redeemable preferred stock, at amortized cost. There were no revisions to the Consolidated Statements of Operations or the Consolidated Statements of Shareholders’ Equity. There were no changes to net income attributable to common shareholders or total shareholders’ equity.

Revision of previously issued financial statements – The Company identified an error in its previously issued Consolidated Financial Statements related to the presentation of the Consolidated Statements of Comprehensive Income (Loss). The impact of the error to the prior period’s Consolidated Financial Statements was not considered to be material. In order to improve the consistency and comparability of the Consolidated Financial Statements, Management revised the Consolidated Financial Statements to include the revision discussed herein. See Note 15 - Revision of Previously Issued Consolidated Financial Statements for details of the revision.

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Investments

12 Months Ended

Dec. 31, 2023

Investments [Abstract]

Investments

Note 2 – Investments

Investment Risks and Uncertainties

Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of ACL and impairments, and the recognition of income on certain investments. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the Consolidated Financial Statements.

The determination of ACL and impairments is highly subjective and is based upon quarterly evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available.

 Investment in 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 fixed maturity securities are summarized by type as follows for the years ended December 31:

2023	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Government and govt. agencies and authorities	$	14,316,976	$	0	$	(729,197	)	$	13,587,779
U.S. special revenue and assessments		7,528,985		0		(220,527	)		7,308,458
All other corporate bonds		87,708,777		89,004		(5,284,182	)		82,513,599
Redeemable preferred stock		2,500,000		0		0			2,500,000
Total	$	112,054,738	$	89,004	$	(6,233,906	)	$	105,909,836

2022 (1)	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Government and govt. agencies and authorities	$	18,315,321	$	0	$	(1,104,146	)	$	17,211,175
U.S. special revenue and assessments		7,535,018		0		(335,918	)		7,199,100
All other corporate bonds		91,429,481		65,529		(7,592,226	)		83,902,784
Redeemable preferred stock		2,500,000		0		0			2,500,000
Total	$	119,779,820	$	65,529	$	(9,032,290	)	$	110,813,059

(1)          The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

The amortized cost and estimated fair value of fixed maturity securities at December 31, 2023, by contractual maturity date, is shown below.

Fixed Maturity Securities December 31, 2023	Amortized Cost		Estimated Fair Value
Due in one year or less	$	10,990,370	$	10,832,220
Due after one year through five years		45,486,425		44,009,137
Due after five years through ten years		6,664,901		6,664,497
Due after ten years		21,851,378		20,078,690
Fixed maturities with no single maturity date		27,061,664		24,325,292
Total	$	112,054,738	$	105,909,836

Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options.

By insurance statute, the majority of the Company’s investment portfolio is invested in investment grade securities to provide ample protection for policyholders.

Below investment grade debt securities generally provide higher yields and involve greater risks than investment grade debt securities because their issuers typically are more highly leveraged and more vulnerable to adverse economic conditions than investment grade issuers.  In addition, the trading market for these securities is usually more limited than for investment grade debt securities.  Debt securities classified as below-investment grade are those that receive a Standard & Poor’s rating of BB+ or below.

The Company held below investment grade investments with an estimated market value of $0 as of December 31, 2023 and 2022.

The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position as of December 31:

2023	Less than 12 months					12 months or longer					Total
	Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses
U.S. Government and govt. agencies and authorities	$	1,497,390		(3,696	)	$	12,090,389		(725,501	)	$	13,587,779		(729,197	)
U.S. special revenue and assessments		0		0			7,308,458		(220,527	)		7,308,458		(220,527	)
All other corporate bonds		544,610		(2,319	)		73,678,567		(5,281,863	)		74,223,177		(5,284,182	)
Total fixed maturities	$	2,042,000		(6,015	)	$	93,077,414		(6,227,891	)	$	95,119,414		(6,233,906	)

2022(1)	Less than 12 months					12 months or longer				Total
	Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses		Estimated fair value		Unrealized losses
U.S. Government and govt. agencies and authorities	$	17,211,175		(1,104,146	)	$	0		0	$	17,211,175		(1,104,146	)
U.S. special revenue and assessments		7,199,100		(335,918	)		0		0		7,199,100		(335,918	)
All other corporate bonds		80,144,564		(7,592,226	)		0		0		80,144,564		(7,592,226	)
Total fixed maturities	$	104,554,839		(9,032,290	)	$	0		0	$	104,554,839		(9,032,290	)

(1)          The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

The following table provides additional information regarding the number of securities that were in an unrealized loss position for greater than or less than twelve months:

	Less than 12 months	12 months or longer	Total
As of December 31, 2023
Fixed maturities	2	45	47
As of December 31, 2022
Fixed maturities	57	0	57

Allowance for Credit Loss - Available for Sale Securities

Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the credit loss evaluation process include, but are not limited to: (1) the extent to which the estimated fair value has been below amortized cost, (2) adverse conditions specifically related to a security, an industry sector, adverse change in the financial condition of the issuer of the security, (3) payment structure of the security and likelihood of the issuer being able to make payments, (4) failure of the issuer to make scheduled interest and principal payments, (5) whether the issuer, or series of issuers or an industry has suffered a catastrophic loss or has exhausted natural resources, (6) whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers,  (7) changes in the rating of the security by a rating agency, and (8) other subjective factors.

Substantially all of the unrealized losses on fixed maturity securities at December 31, 2023 and 2022 are attributable to changes in market interest rates and general disruptions in the credit market subsequent to purchase. At December 31, 2023, the Company did not intend to sell its securities in an unrealized loss position, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost. Therefore, the Company concluded that these securities had not incurred a credit loss and should not have an allowance for credit loss at December 31, 2023.

Future provisions for credit loss will depend primarily on economic fundamentals, issuer performance, and changes in credit ratings.

Net unrealized losses included in other comprehensive income (loss) for investments classified as available-for-sale, net of the effect of deferred income taxes, assuming that the depreciation had been realized as of December 31, 2023 and December 31, 2022:

	December 31, 2023			December 31, 2022
Unrealized appreciation (depreciation) on available-for-sale securities	$	(6,144,902	)	$	(8,966,761	)
Deferred income taxes		1,290,429			1,883,020
Net unrealized appreciation (depreciation) on available-for-sale securities	$	(4,854,473	)	$	(7,083,741	)

Cost Method Investments

The Company held equity investments with an aggregate cost of $15,977,368 and $21,891,896 at December 31, 2023 and 2022, respectively.  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 reviews and considers 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 equity securities reported at cost, the Company reported an other-than-temporary impairment of $5 million on one security during the fourth quarter of 2022. The other-than-temporary impairment was taken as a result of Management’s assessment and determination of value of the investment.

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 2023 and 2022, the Company acquired $2,654,293 and $5,158,911 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 mortgage loans were:

	2023		2022
	Maximum rate	Minimum rate	Maximum rate	Minimum rate
Farm loans	5.00 %	5.00 %	5.00 %	4.50 %
Commercial loans	8.75 %	4.00 %	7.00 %	4.00 %
Residential loans	5.00 %	4.15 %	5.00 %	4.15 %

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

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

Changes in the current economy could have a negative impact on the loans, including the financial stability of the borrowers, the borrowers’ ability to pay or to refinance, the value of the property held as collateral and the ability to find purchasers at favorable prices.  Interest accruals are analyzed based on the likelihood of repayment.  In no event will interest continue to accrue when accrued interest along with the outstanding principal exceeds the net realizable value of the property.  The Company does not utilize a specified number of days delinquent to cause an automatic non-accrual status.

The following table summarizes the mortgage loan holdings of the Company for the periods ended December 31:

	2023		2022
In good standing	$	15,318,176	$	30,698,694
Total mortgage loans	$	15,318,176	$	30,698,694
Total foreclosed loans during the year	$	0	$	0

The following is a summary of the mortgage loans outstanding and the related allowance for credit losses:

	December 31, 2023			December 31, 2022
Farm	$	332,417		$	383,278
Commercial		13,764,209			28,767,888
Residential		1,495,550			1,547,528
Total mortgage loans		15,592,176			30,698,694
Less allowance for credit losses		(274,000	)		0
Total mortgage loans, net	$	15,318,176		$	30,698,694

There were no past due loans as of December 31, 2023 and December 31, 2022.

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 2023 and 2022, no impairments were recognized on the investment real estate.

Note 3 - Fair Value Measurements of the 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 3 - Fair Value Measurements disclosure.

The following table provides an allocation of the Company’s investment real estate by type for the periods ended December 31:

	2023		2022
Raw land	$	6,971,930	$	11,634,472
Commercial		4,106,938		4,169,847
Residential		3,512,408		2,489,858
Land, minerals and royalty interests		7,383,844		7,931,622
Total investment real estate	$	21,975,120	$	26,225,799

(1) The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

The Company’s investment real estate portfolio includes ownership in oil and gas royalties. As of December 31, 2023 and 2022, investments in oil and gas royalties represented 34% and 30%, respectively, of the total investment real estate portfolio. See Note 13 - Concentrations of the 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 Consolidated Statements of Operations. During 2023 and 2022, the Company acquired $3,417,744 and $4,586,280 of investment real estate, respectively.

Notes Receivable

Notes receivable represent collateral loans and promissory notes issued by the Company and are reported at their unpaid principal balances, adjusted for valuation allowances. 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 2023 and 2022, the Company acquired $4,779,241 and $9,030,657 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 several of the notes receivable. The Company, and the participants in the notes, share in the risk of loss associated with the terms of the note with the borrower, based upon their ownership percentage in the note.  The Company has in place a monitoring system to provide Management with information regarding potential troubled loans. 

The following is a summary of the notes receivable outstanding and the related allowance for credit losses:

	December 31, 2023			December 31, 2022
Notes receivable	$	14,259,225		$	14,424,127
Less allowance for credit losses		(250,000	)		0
Total notes receivable, net	$	14,009,225		$	14,424,127

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 $48,473,476 and $3,591,885, respectively, in short-term investments.

Allowance for Credit Loss - Loans

The allowance for credit loss (“ACL”) 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 basis. 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 Loss - 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 as of December 31, 2023 and 2022 is $51,000 and $0, respectively, and is included in other liabilities on the Company’s Consolidated Balance Sheets.

Allowance for Credit Loss - Accrued Interest

Accrued interest is not included in the ACL and if deemed uncollectible, it is charged against interest income when determined to be uncollectible.

Analysis of Investment Operations

The following table reflects the Company’s net investment income for the periods ended December 31:

	2023			2022
Fixed maturities	$	4,184,070		$	4,318,591
Equity securities		2,710,201			6,157,942
Trading securities		0			(13,283	)
Mortgage loans		1,115,145			1,580,647
Real estate		8,318,201			11,640,759
Notes receivable		1,371,973			933,886
Policy loans		433,556			489,823
Cash and cash equivalents		1,007,840			203,250
Short-term investments		529,125			5,056
Total consolidated investment income		19,670,111			25,316,671
Investment expenses		(5,528,302	)		(4,505,200	)
Consolidated net investment income	$	14,141,809		$	20,811,471

(1) The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

The following table presents net investment gains (losses) and the change in net unrealized gains on investments for the periods ended December 31:

	2023			2022
Realized gains:
Sales of fixed maturities	$	58,333		$	4,683
Sales of equity securities		820,001			8,986,784
Sales of real estate		8,577,155			5,326,838
Sales of short-term investments		23,509			0
Total realized gains		9,478,998			14,318,305
Realized losses:
Sales of fixed maturities		0			(5,211	)
Sales of equity securities		(7,966	)		(109,636	)
Sales of real estate		0			(34,547	)
Sales of short-term investments		(7,189	)		0
Other-than-temporary impairments		0			(5,000,000	)
Total realized losses		(15,155	)		(5,149,394	)
Net realized investment gains		9,463,843			9,168,911
Change in fair value of equity securities:
Change in fair value of equity securities held at the end of the period		(3,830,793	)		33,690,712
Change in fair value of equity securities		(3,830,793	)		33,690,712
Net investment gains	$	5,633,050		$	42,859,623
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income:
Fixed maturities	$	2,867,943		$	(21,981,097	)
Net increase (decrease)	$	2,867,943		$	(21,981,097	)

Investments on Deposit

The Company had investments with a fair value of $7,959,076 and $7,771,724 on deposit with various state insurance departments as of December 31, 2023 and 2022, respectively.

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Fair Value Measurements

12 Months Ended

Dec. 31, 2023

Fair Value Measurements [Abstract]

Fair Value Measurements

Note 3 – Fair Value Measurements

Assets and liabilities recorded at fair value in the 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 as of December 31:

2023	Level 1		Level 2		Level 3		Total
Fixed maturity securities:
U.S. Government and government agencies and authorities	$	13,587,779	$	0	$	0	$	13,587,779
U.S. special revenue and assessments		0		7,308,458		0		7,308,458
Corporate securities		0		82,513,599		0		82,513,599
Total fixed maturities		13,587,779		89,822,057		0		103,409,836
Equity securities:
Common stocks		35,819,973		5,329,080		2,807,634		43,956,687
Limited liability companies		0		0		57,604,806		57,604,806
Total equity securities		35,819,973		5,329,080		60,412,440		101,561,493
Short-term investments		29,132,236		0		0		29,132,236
Total financial assets	$	78,539,988	$	95,151,137	$	60,412,440	$	234,103,565

2022	Level 1		Level 2		Level 3		Total
Fixed maturity securities:
U.S. Government and government agencies and authorities	$	17,211,175	$	0	$	0	$	17,211,175
U.S. special revenue and assessments		0		7,199,100		0		7,199,100
Corporate securities		0		83,902,784		0		83,902,784
Total fixed maturities		17,211,175		91,101,884		0		108,313,059
Equity securities:
Common stocks		45,999,477		6,651,800		0		52,651,277
Limited liability companies		0		0		7,967,643		7,967,643
Total equity securities		45,999,477		6,651,800		7,967,643		60,618,920
Short-term investments		3,596,941		0		0		3,596,941
Total financial assets	$	66,807,593	$	97,753,684	$	7,967,643	$	172,528,920

Total assets included in the fair value hierarchy exclude certain equity securities that were measured at estimated fair value using the net asset value (“NAV”) per share practical expedient. At December 31, 2023 and 2022, the estimated fair value of such investments was $54,989,319 and $89,434,766, respectively. These investments are generally not readily redeemable by the investee.

The following is a description of the valuation techniques used by the Company to measure assets reported at fair value on a recurring basis.

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 standards generally accepted in the United States.

Equity Securities at Fair Value

Equity securities consist of common and preferred stocks and limited liability companies 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.

Change in Level 3 Recurring Fair Value Measurements

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

			Investments in
	Investments in Common Stocks		Limited Liability Companies			Total
Balance at December 31, 2022	$	0	$	7,967,643		$	7,967,643
Realized gains (losses)		0		0			0
Unrealized gains (losses)		211,449		15,211,945			15,423,394
Purchases		0		5,683,029			5,683,029
Sales		0		(166,250	)		(166,250	)
Transfers in to Level 3		2,596,185		28,908,439			31,504,624
Transfers out of Level 3		0		0			0
Balance at December 31, 2023	$	2,807,634	$	57,604,806		$	60,412,440

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 December 31, 2023 and 2022 may include changes in fair value that were attributable to both observable and unobservable inputs.

Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.

In 2023, transfers in to Level 3 included limited liability companies classified as equity securities for which valuation techniques changed due to the availability of data.

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 includes only those instruments for which information about the inputs is reasonably available to the Company, such as data from independent third-party valuation service providers and from internal valuation models.

Financial Assets	Fair Value at December 31, 2023		Fair Value at December 31, 2022		Valuation Technique
Limited liability companies	$	57,604,806	$	7,967,643	Pricing Model
Common stocks		2,807,634		0	Pricing Model
Total	$	60,412,440	$	7,967,643

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

The Company holds certain equity securities that are measured at estimated fair value using the NAV per share practical expedient. These investments are generally not readily redeemable by the investee. The following tables provide additional information regarding the assets carried at NAV.

Investment Category		Fair Value at December 31, 2023		Unfunded Commitments	Redemption Frequency	Redemption Notice Period
Equity securities
Growth equity
Redeemable
Limited partnership	$	34,081,797	$	0	Quarterly	45
Non-redeemable
Limited liability companies		11,960,929		9,464,608	n/a	n/a
Limited partnerships		8,946,593		2,410,599	n/a	n/a
Total	$	54,989,319	$	11,875,207

Investment Category	Fair Value at December 31, 2022		Unfunded Commitments		Redemption Frequency		Redemption Notice Period
Equity securities
Growth equity
Redeemable
Limited partnership	$	43,724,562	$	49,343	Quarterly			45
Non-redeemable
Common stock		12,074,829		0		n/a		n/a
Limited liability companies		25,243,953		4,931,498		n/a		n/a
Limited partnerships		8,391,422		2,799,026		n/a		n/a
Total	$	89,434,766	$	7,779,867

The following are descriptions of the Company’s assets held at NAV.

The Company invested in a limited partnership that was formed under the laws of the State of Delaware on October 5, 1999, as a Delaware limited partnership (“LP”). The Limited Partnership Agreement provides for the Fund to continue until dissolved. There are significant restrictions to the dissolution process, which are outlined in the LP Agreement. The Fund invests in listed equity and fixed income securities as well as non-listed securities, including direct-owned minerals and other royalties. In 2013, UG entered into an irrevocable subscription agreement to invest in the LP.

The Company invested in a Limited Liability Company (“LLC”) that was formed under the laws of the state of Delaware in 2020. The LLC agreement provides for the Company to continue until dissolved. There are significant restrictions to the dissolution process, which are outlined in the LLC Agreement. The LLC Company was formed for the purpose of acquiring, making investments in, and owning, holding, and growing operating businesses through the United States. In 2020, UG entered into a LLC Agreement to invest in this LLC.

The Company invested in a Limited Liability Company (“LLC”) that was formed under the laws of the state of Delaware. The LLC was formed on October 15, 2020 to provide long-term investment returns. The Company will continue to operate until December 31, 2032, or until each of the investment funds in which the LLC invests terminates, unless terminated earlier or extended in accordance with the Operating Agreement. In 2020, UG completed the Subscription Agreement to become an investor in this LLC.

The Company invested in a Limited Liability Company (“LLC”) that was formed under the laws of the state of Delaware. The LLC was formed on July 1, 2022 to amplify philanthropy by primarily investing in venture capital investment funds and in direct venture capital investments of operating companies. The Company will continue to operate until December 31, 2034, or until each of the investment funds in which the LLC invests terminates, unless terminated earlier or extended in accordance with the Operating Agreement. In 2022, the Company completed the Subscription Agreement to become an investor in this LLC.

The Company invested in a Limited Liability Company (“LLC”) that was formed under the laws of the state of Delaware. The LLC was organized solely for the purpose owning, managing, supervising and disposing of the investment. The Partnership will continue in existence for the investment period (subject to extension), unless sooner terminated by operation of law or pursuant to any provision of the Limited Partnership Agreement. In 2022, the Company entered into a Limited Partnership Agreement to invest in this LP.

The Company invested in a closed-end LP fund that was formed pursuant to the laws of the State of Delaware under a limited partners agreement (the “Agreement”) on April 6, 2015 and is scheduled to terminate on the tenth anniversary of the final closing date, unless terminated sooner or extended in accordance with the Agreement. The purpose of the LP is to make investments in and pursue targets that educate, train, and inspire men and women in the United States and around the world to value free enterprise, business, and economics to improve the quality of their lives and the lives and the lives of those in their communities. In 2015, the Company entered into a Limited Partnership Agreement to invest in this LP.

The Company invested in a closed-end LP fund that was formed pursuant to the laws of the State of Delaware under a limited partners agreement (the “Agreement”) on September 5, 2018 (the “Agreement”), and is scheduled to terminate on the twelfth anniversary of the Final Closing Date, unless terminated sooner or extended in accordance with the Agreement. The purpose of the Partnership is to make investments in and pursue targets that educate, train, and inspire men and women in the United States and around the world to value free enterprise, business, and economics to improve the quality of their lives and the lives and the lives of those in their communities. In 2018, the Company entered into a Limited Partnership Agreement to invest in this LP.

The Company invested in a Limited Liability Company (“LLC”) that was formed under the laws of the state of Delaware. The LLC was formed September 29, 2021 for the purpose of investing in companies located in emerging markets.  The Limited Liability Company Agreement provides for LLC to continue until dissolved, unless terminated earlier through terms specified in the Operating Agreement. In 2021, the Company entered into a Limited Liability Company Agreement to invest in the LLC.

The Company invested in a LP that was formed pursuant to the laws of the state of Delaware under a limited partnership agreement on October 27, 2021 (the “Agreement”) and is scheduled to terminate on the tenth anniversary of the Final Closing Date, unless terminated sooner or extended in accordance with the Agreement. The Partnership is organized for the principal purposes of acquiring, holding, supervising, managing and disposing of investment in recapitalization, management buyouts, and corporate divestitures of Portfolio Companies operating in various segments of the U.S. lower middle markets. In 2022, the Company entered into a Limited Partnership Agreement to invest in this LP.

The Company invested in a LLC that was formed as an Alabama Limited Liability Company on April 6, 2022. The Limited Liability Company Agreement provides for the LLC to continue until dissolved, unless terminated earlier through terms specified in the Operating Agreement. The purpose of Trivela is to (1) acquire, own and operate football (soccer) clubs (each a “Target Company”) (2) establish investment vehicles for the acquisition of Target Companies (3) sponsor private placements of securities on behalf of each investment vehicle (4) manage the operations of each investment vehicle & Target Company on a fee for services basis (5) engage in any lawful act or activity incidental to the Business as reasonably determined by the managers. The Company entered into a Limited Liability Company Agreement to invest in Trivela Group, LLC.

The Company invested in a LLC that was formed as an Alabama Limited Liability Company on April 15, 2022. The Limited Liability Company Agreement provides for the LLC to continue until dissolved, unless terminated earlier through terms specified in the Operating Agreement. The LLC invests in sports clubs and real estate. In 2022, The Company entered into a Limited Liability Company Agreement to invest in this LLC.

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 Consolidated Financial Statements. The Company did not recognize any re-measurements or impairments of financial instruments during the years ended December 31, 2023 and 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 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 as of December 31:

2023	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Held to maturity redeemable preferred stock	$	2,500,000	$	2,500,000	$	0	$	0	$	2,500,000
Equity securities, at cost		15,977,368		15,977,368		0		0		15,977,368
Mortgage loans on real estate		15,318,176		14,447,026		0		0		14,447,026
Investment real estate		21,975,120		62,899,838		0		0		62,899,838
Notes receivable		14,009,225		14,189,147		0		0		14,189,147
Policy loans		6,018,248		6,018,248		0		0		6,018,248
Accrued investment income		2,001,064		2,001,064		0		0		2,001,064
Liabilities
Policy claims and benefits payable		4,188,917		4,188,917		0		0		4,188,917
Dividend and endowment accumulations		14,749,258		14,749,258		0		0		14,749,258
Notes payable		19,000,000		19,000,000		0		19,000,000		0

2022	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Held to maturity redeemable preferred stock	$	2,500,000	$	2,500,000	$	0	$	0	$	2,500,000
Equity securities, at cost		21,891,896		21,891,896		0		0		21,891,896
Mortgage loans on real estate		30,698,694		29,735,873		0		0		29,735,873
Investment real estate		26,225,799		74,026,290		0		0		74,026,290
Notes receivable		14,424,127		14,812,523		0		0		14,812,523
Policy loans		6,567,434		6,567,434		0		0		6,567,434
Accrued investment income		1,371,677		1,371,677		0		0		1,371,677
Liabilities
Policy claims and benefits payable		4,072,879		4,072,879		0		0		4,072,879
Dividend and endowment accumulations		14,802,746		14,802,746		0		0		14,802,746
Notes payable		19,000,000		19,000,000		0		19,000,000		0

(1) The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

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 Consolidated Balance Sheets which approximate fair value, and earn interest at rates ranging from 4% to 8%. Individual policy liabilities in all cases equal or exceed outstanding policy loan balances.  The inputs used to measure the fair value of our policy loans are classified as Level 3 within the fair value hierarchy.

The carrying value for notes payable is a reasonable estimate of fair value subject to floating rates of interest.  The fair value of notes payable with fixed rate borrowings is determined based on the borrowing rates currently available to the Company for loans with similar terms and average maturities.  The inputs used to measure the fair value of our notes payable are classified as Level 2 within the fair value hierarchy. 

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Reinsurance

12 Months Ended

Dec. 31, 2023

Reinsurance [Abstract]

Reinsurance

Note 4 - Reinsurance

As is customary in the insurance industry, the insurance subsidiary cedes insurance to, and assumes insurance from, other insurance companies under reinsurance agreements.  Reinsurance agreements are intended to limit a life insurer’s maximum loss on a large or unusually hazardous risk or to obtain a greater diversification of risk.  The ceding insurance company remains primarily liable with respect to ceded insurance should any reinsurer be unable to meet the obligations assumed by it.  However, it is the practice of insurers to reduce their exposure to loss to the extent that they have been reinsured with other insurance companies.  The Company sets a limit on the amount of insurance retained on the life of any one person.  The Company will not retain more than $125,000, including accidental death benefits, on any one life. As of December 31, 2023, the Company had gross insurance in-force of approximately $847 million of which approximately $172 million was ceded to reinsurers.  As December 31, 2022, the Company had gross insurance in-force of approximately $897 million of which approximately $184 million was ceded to reinsurers.

The Company’s reinsured business is ceded to numerous reinsurers. The Company monitors the solvency of its reinsurers in seeking to minimize the risk of loss in the event of a failure by one of the parties. The Company is primarily liable to the insureds even if the reinsurers are unable to meet their obligations. The primary reinsurers of the Company are large, well-capitalized entities.

Most recently, UG utilized reinsurance agreements with Optimum Re Insurance Company (“Optimum”), and Swiss Re Life and Health America Incorporated (“SWISS RE”).  Optimum and SWISS RE currently hold an “A” (Excellent) and “A+” (Superior) rating, respectively, from A.M. Best, an industry rating company.  The reinsurance agreements were effective December 1, 1993 and covered most new business of UG.  Under the terms of the agreements, UG cedes risk amounts above its retention limit of $100,000 with a minimum cession of $25,000. Ceded amounts are shared equally between the two reinsurers on a yearly renewable term (“YRT”) basis, a common industry method.  The treaty is self-administered; meaning the Company records the reinsurance results and reports them to the reinsurers.

Also, Optimum is the reinsurer of 100% of the accidental death benefits (“ADB”) in force of UG.  This coverage is renewable annually at the Company’s option.  Optimum specializes in reinsurance agreements with small to mid-size carriers such as UG.

UG entered into a coinsurance agreement with Park Avenue Life Insurance Company (“PALIC”) effective September 30, 1996.  Under the terms of the agreement, UG ceded to PALIC substantially all of its then in-force paid-up life insurance policies.  Paid-up life insurance generally refers to non-premium paying life insurance policies.  Under the terms of the agreement, UG sold 100% of the future results of this block of business to PALIC through a coinsurance agreement.  UG continues to administer the business for PALIC and receives a servicing fee through a commission allowance based on the remaining in-force policies each month.  PALIC has the right to assumption reinsure the business, at its option, and transfer the administration.  The Company is not aware of any such plans.  PALIC’s ultimate parent, The Guardian Life Insurance Company of America (“Guardian”), currently holds an “A++” (Superior) rating from A.M. Best.  The PALIC agreement accounts for approximately 64% of UG’s reinsurance reserve credit, as of December 31, 2023 and 2022.

The Company does not have any short-duration reinsurance contracts.  The effect of the Company’s long-duration reinsurance contracts on premiums earned in 2023 and 2022 were as follows:

	2023			2022
	Premiums Earned			Premiums Earned
Direct	$	7,918,235		$	8,384,604
Assumed		0			0
Ceded		(2,553,010	)		(2,697,382	)
Net Premiums	$	5,365,225		$	5,687,222

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Cost of Insurance Acquired

12 Months Ended

Dec. 31, 2023

Cost of Insurance Acquired [Abstract]

Cost of Insurance Acquired

Note 5 – Cost of Insurance Acquired

When an insurance company is acquired, the Company assigns a portion of its cost to the right to receive future cash flows from insurance contracts existing at the date of the acquisition.  The cost of policies purchased represents the actuarially determined present value of the projected future profits from the acquired policies.  Cost of insurance acquired is amortized with interest in relation to expected future profits, including direct charge-offs for any excess of the unamortized asset over the projected future profits.  The interest rates utilized may vary due to differences in the blocks of business.  The interest rate utilized in the amortization calculation of the remaining cost of insurance acquired is 12%. The amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised.

	2023			2022
Cost of insurance acquired, beginning of year	$	2,698,153		$	3,386,501
Interest accretion		418,722			501,324
Amortization		(1,079,979	)		(1,189,672	)
Net amortization		(661,257	)		(688,348	)
Cost of insurance acquired, end of year	$	2,036,896		$	2,698,153

Estimated net amortization expense of cost of insurance acquired for the next four years is as follows:

	Interest Accretion	Amortization	Net Amortization
2024	339,372	975,187	635,815
2025	263,074	877,240	614,166
2026	189,374	799,520	610,146
2027	116,157	292,926	176,769

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Income Taxes

12 Months Ended

Dec. 31, 2023

Income Taxes [Abstract]

Income Taxes

Note 6 – Income Taxes

UTG and UG file separate federal income tax returns.

Income tax expense (benefit) consists of the following components:

	2023			2022
Current tax expense (benefit)	$	(517,108	)	$	7,054,454
Deferred tax		372,861			2,517,685
Income tax expense (benefit)	$	(144,247	)	$	9,572,139

The expense for income taxes differed from the amounts computed by applying the applicable United States statutory rate of 21% as of December 31, 2023 and 2022, before income taxes as a result of the following differences:

	2023			2022
Tax computed at statutory rate	$	404,427		$	9,226,662
Changes in taxes due to:
Non-controlling interest		(23,813	)		(22,332	)
Dividend received deduction		(109,642	)		(142,790	)
Oil and gas royalty's depletion		(106,797	)		(170,123	)
Other, including prior year true up		(308,422	)		680,722
Income tax expense (benefit)	$	(144,247	)	$	9,572,139

The following table summarizes the major components that comprise the net deferred tax liability as reflected in the balance sheets:

	2023			2022
Investments	$	11,862,470		$	10,794,061
Cost of insurance acquired		427,748			566,612
Management/consulting fees		(7,899	)		(8,206	)
Future policy benefits		(697,024	)		(718,338	)
Deferred gain on sale of subsidiary		1,387,490			1,387,490
Other liabilities		(284,350	)		(330,488	)
Reserves adjustment		96,105			144,158
Federal tax DAC		(236,950	)		(253,151	)
Loan loss reserve		(120,750	)		0
Deferred tax liability	$	12,426,840		$	11,582,138

At December 31, 2023 and 2022, the Company had gross deferred tax assets of $1,939,816 and $1,808,474, respectively, and gross deferred tax liabilities of $14,366,656 and $13,390,612, respectively, resulting from temporary differences primarily related to the life insurance subsidiary.  A valuation allowance is to be provided when it is more likely than not that deferred tax assets will not be realized by the Company. No valuation allowance has been recorded relating to the Company’s deferred tax assets since, in Management’s judgment, the Company will more likely than not have sufficient taxable income in future periods to fully realize its existing deferred tax assets.

The Company’s Federal income tax returns are periodically audited by the Internal Revenue Service (“IRS”). There are currently no examinations in process, nor is Management aware of any pending examination by the IRS.  The Company follows the accounting guidance for uncertainty in income taxes using the provisions of Financial Accounting Standards Board (“FASB”) ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. Such tax positions initially and subsequently need to be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company has evaluated its tax positions, expiring statutes of limitations, changes in tax law and new authoritative rulings and believes that no disclosure relative to a provision of income taxes is necessary, at this time, to cover any uncertain tax positions. Tax years that remain subject to examination are the years ended December 31, 2020, 2021, 2022 and 2023.

The Company classifies interest and penalties on underpayment of income taxes as income tax expense.  No interest or penalties were included in the reported income taxes for the years presented.  The Company is not aware of any potential or proposed changes to any of its tax filings.

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Credit Arrangements

12 Months Ended

Dec. 31, 2023

Credit Arrangements [Abstract]

Credit Arrangements

Note 7 – Credit Arrangements

At December 31, 2023 and 2022, the Company had the following lines of credit available:

Instrument	Issue Date	Maturity Date	Revolving Credit Limit		December 31, 2022		Borrowings		Repayments		December 31, 2023
Lines of Credit:
UTG	11/20/2013	11/20/2024	$	8,000,000		0		0		0	$	0
UG - CMA	10/21/2021	10/4/2024		25,000,000		19,000,000		21,500,000		21,500,000		19,000,000

UTG has a variable rate revolving line of credit. As collateral, UTG has pledged 100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company ("UG").

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 $20,258,602. During the fourth quarter of 2023, the Company borrowed $19 million and planned to utilize the funds for investing activities. The interest rate on the borrowed funds is variable and currently is 5.47%. During the first quarter of 2024, the Company repaid the entire outstanding principal balance.

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies [Abstract]

Commitments and Contingencies

Note 8 – 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 consolidated financial statements, though the Company has no control over such assessments.

Mortgage Loan Commitments - The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $878,132 and $0 at December 31, 2023 and 2022, respectively.

Notes Receivable Commitments - The Company commits to lend funds under notes receivable funding commitments. The amounts of these notes receivable commitments were $2,800,000 and $4,109,343 at December 31, 2023 and 2022, respectively.

Commitments to Fund Limited Liability Company and Limited Partnership Investments - The Company commits to fund investments in limited liability companies and limited partnership. The amounts of the unfunded commitments were $16,153,903 and $14,443,510 at December 31, 2023 and 2022, respectively.

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Shareholders' Equity

12 Months Ended

Dec. 31, 2023

Shareholders' Equity [Abstract]

Shareholders' Equity

Note 9 – 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 $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 2023, the Company repurchased 30,646 shares through the stock repurchase program for $881,966. Through December 31, 2023, UTG has spent $20,191,403 in the acquisition of 1,356,859 shares under this program.

Director Compensation - Effective January 1, 2018, a compensation arrangement was approved whereby each outside Director annually received $5,000 as a retainer and $2,500 per meeting attended. The compensation is be paid in the form of UTG, Inc. common stock.  The value is determined annually on the close of business December 20th or the next business day should December 20^th be a weekend or holiday, based on the activity of the year just ending.  Reasonable travel expenses are reimbursed in cash as incurred.  UTG’s Director Compensation policy provides that Directors who are employees of UTG or its affiliates do not receive any compensation for their services as Directors except for reimbursement for reasonable travel expenses for attending each meeting.

In December of 2023, the Company issued 4,246 shares of its common stock as compensation to the Directors. The shares were valued at $30.01 per share, the market value at the date of issue. During 2023, the Company recorded $127,422 in operating expense related to the stock issuance.  In December of 2022, the Company issued 4,485 shares of its common stock as compensation to the Directors. The shares were valued at $25.06 per share, the market value at the date of issue. During 2022, the Company recorded $112,394 in operating expense related to the stock issuance.

Other Compensation - During 2023, the Company issued 26,911 shares of stock to management and employees as compensation at a cost of $674,390.  During 2022, The Company issued 17,963 shares of stock to management and employees as compensation at a cost of $486,798.  These awards are determined at the discretion of the Board of Directors.

Earnings Per Share - The following is a reconciliation of basic and diluted weighted average shares outstanding used in the computation of basic and diluted earnings per share:

	2023		2022
Basic weighted average shares outstanding		3,176,757		3,167,719
Weighted average dilutive options outstanding		0		0
Diluted weighted average shares outstanding		3,176,757		3,167,719

The computation of diluted earnings per share is the same as basic earnings per share for the years ending December 31, 2023 and 2022, as there were no outstanding securities, options or other offers that give the right to receive or acquire common shares of UTG.

Statutory Restrictions - Restrictions exist on the flow of funds to UTG from its insurance subsidiary.  Statutory regulations require life insurance subsidiaries to maintain certain minimum amounts of capital and surplus. UG is required to maintain minimum statutory surplus of $2,500,000. At December 31, 2023, substantially all of the consolidated shareholders’ equity represents net assets of UTG’s subsidiaries.

UG is domiciled in the state of Ohio. Ohio requires notification within 5 business days to the insurance commissioner following the declaration of any ordinary dividend and at least ten calendar days prior to payment of such dividend.  Ordinary dividends are defined as the greater of: a) prior year statutory net income or b) 10% of statutory capital and surplus.  Extraordinary dividends (amounts in excess of ordinary dividend limitations) require prior approval of the insurance commissioner and are not restricted to a specific calculation.  UG paid ordinary dividends of $2 million and $3 million to UTG in 2023 and 2022, respectively. No extraordinary dividends were paid during the two year period. UTG used the dividends received during 2023 and 2022 to purchase outstanding shares of UTG stock and for general operations of the Company.

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Statutory Accounting

12 Months Ended

Dec. 31, 2023

Statutory Accounting [Abstract]

Statutory Accounting

Note 10 - Statutory Accounting

The insurance subsidiary prepares its statutory-based financial statements in accordance with accounting practices prescribed or permitted by the Ohio Department of Insurance.  These principles differ significantly from accounting principles generally accepted in the United States of America.  “Prescribed” statutory accounting practices include state laws, regulations, and general administrative rules, as well as a variety of publications of the National Association of Insurance Commissioners (NAIC).  “Permitted” statutory accounting practices encompass all accounting practices that are not prescribed; such practices may differ from state to state, from company to company within a state, and may change in the future.

The following table reflects UG’s statutory basis net income and capital and surplus (shareholders’ equity) as of December 31:

	2023		2022
Net income	$	8,320,315	$	18,782,335
Capital and surplus		91,828,094		93,269,301

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Related Party Transactions

12 Months Ended

Dec. 31, 2023

Related Party Transactions [Abstract]

Related Party Transactions

Note 11 – Related Party Transactions

The articles of incorporation of UG contain the following language under item 12 relative to related party transactions:

A director shall not be disqualified from-dealing with or contracting with the corporation as vendor, purchaser; employee, agent or otherwise; nor, in the absence of fraud, shall any transaction or contract or act of this corporation be void or in any way affected or invalidated by the fact that any director or any firm of which any director is a member or any corporation of which any director is a shareholder, director or officer is in any way interested in such transaction or contract or act, provided the fact that such director or such firm or such corporation so interested shall be disclosed or shall be known to the Board of Directors or such members thereof as shall be present at any meeting of the Board of Directors at which action upon any such contract or transaction or act shall be taken: nor shall any such director be accountable or responsible to the company for or in respect to such transaction or contract or act of. this corporation or for any gains or profits realized by him by reason of the fact that he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer is interested in such action or contract; and any such director may be counted in determining the existence of a quorum of any meeting of the Board of Directors of the company which shall authorize or take action in respect to any such contract or transaction or act and may vote thereat to authorize, ratify, or approve any such contract or transaction or act, with like force and effect as if he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer were not interested in such transaction or contract or act.

On February 20, 2003, UG purchased $4 million of a trust preferred security offering issued by First Southern Bancorp, Inc. (“FSBI”).  The security has a mandatory redemption after 30 years with a call provision after 5 years.  The security pays a quarterly dividend at a fixed rate of 6.515%. The Company received dividends of $165,137 during 2023 and 2022.

On March 30, 2009, UG purchased $1 million of FSBI common stock.  The sale and transfer of this security is restricted by the provisions of a stock restriction and buy-sell agreement.

UTG has a 30.10% ownership interest in an aircraft that is jointly owned with First Southern National Bank and Bandyco, LLC. Bandyco, LLC is affiliated with the Estate of Ward F. Correll. Mr. Correll is the father of Jesse Correll and a former director of the Company. The aircraft is used for business related travel by various officers and employees of the Company. For years 2023 and 2022, UTG paid $307,442 and $553,533 for costs associated with the aircraft, respectively.

Effective January 1, 2007, UTG entered into administrative services and cost sharing agreements with its subsidiary. Under this arrangement, the subsidiary pays its proportionate share of expenses, based on an allocation formula. During 2023 and 2022, UG paid $7,910,324 and $7,862,902, respectively, in expenses. The Ohio Department of Insurance has approved the cost sharing agreement and it is Management’s opinion that where applicable, costs have been allocated fairly and such allocations are based upon accounting principles generally accepted in the United States of America.

The Company from time to time acquires mortgage loans through participation agreements with FSNB.  FSNB services the Company’s mortgage loans including those covered by the participation agreements.  The Company pays 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.  The Company paid $18,694 and $24,146 in servicing fees and $18,630 and $0 in origination fees to FSNB during 2023 and 2022, respectively.

Effective January 1, 2017, UTG entered into a shared services contract with FSNB. Pursuant to the terms of the agreement, UTG and FSNB will utilize the services of the other’s staff in certain instances for the betterment of both entities. Personnel within departments, such as accounting, human resources, and information technology, are shared between the entities. Costs of these resources are then reimbursed between the companies.  The shared services arrangement provides benefits to both parties such as access to a greater pool of knowledgeable staff, efficiencies from elimination of redundancies and more streamlined operations.

The Company reimbursed expenses incurred by employees of FSNB relating to salaries, travel and other costs incurred on behalf of or relating to the Company and received reimbursements from FSNB. The Company paid $1,337,096 and $895,317 in 2023 and 2022, respectively to FSNB in net reimbursement of such costs.

Effective July 1, 2018, the Company assumed the employees of several smaller entities owned or associated with UTG. The purpose of this was to support the continued efforts to further streamline operations amongst associated entities. The salaries, benefits, and payroll related processing fees are 100% reimbursed by the associated entities on a monthly basis. During 2023 and 2022, the Company received reimbursements of $1,438,450 and $1,134,315, respectively. These costs are eliminated for consolidation of these entities, where applicable.

The Company rents a portion of the first floor and second floor of an 8,000 square foot, two-story office building, located in Stanford, KY. The first floor of the building is occupied by UTG and FSNB employees that are included in the shared services agreement between the two entities. The second floor is occupied by the customer service call centers for both UTG and FSNB employees. The building is owned by FSNB and UTG pays $2,000 per month in rent to FSNB for the portion of the building occupied by UTG employees. The Company paid rent of $24,000 to FSNB in 2023 and 2022.

As previously disclosed in the Notes Receivable section of Note 2 - Investments, several of the Company’s notes have participation agreements in place with third parties.  Certain participation agreements are with FSF, a related party.  The participation agreements are sold without recourse and assigned to the participant based on their pro-rata share of the principal, interest and collateral as specified in the participation agreements. The undivided participations in the notes receivable range from 20% - 50%.  The total amount of loans participated to FSF was $60,031 and $79,674 as of December 31, 2023 and 2022, respectively.

During 2022, FSF sold all of its membership interest in three limited liability companies (“LLC”) to a wholly-owned subsidiary of UTG at a price of $1 per entity. The three LLCs are listed on the Company’s organization chart as wholly-owned subsidiaries of Stanford Wilderness Road, LLC.

During the 4th quarter of 2023, UTG entered into a loan participation agreement with FSNB to fund a commercial mortgage loan issued to a company that is owned/managed by a member of UTG’s Board of Directors. UG has a 9% interest in the participated loan and has agreed to fund up to $1,482,300. As of December 31, 2023, $604,169 had been drawn on the loan.

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Other Cash Flow Disclosures

12 Months Ended

Dec. 31, 2023

Other Cash Flow Disclosures [Abstract]

Other Cash Flow Disclosures

Note 12 – Other Cash Flow Disclosures

On a cash basis, the Company paid the following expenses for the periods ended December 31:

	2023		2022
Interest	$	44,814	$	83,995
Federal income tax		5,800,000		1,890,000

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Concentrations

12 Months Ended

Dec. 31, 2023

Concentrations [Abstract]

Concentrations

Note 13 - Concentrations

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 T. 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 our customers to pay their insurance premiums is impacted by the economic conditions in these areas.  As of December 31, 2023 and 2022, approximately 51% and 50%, 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 20% of total life insurance in-force at December 31, 2023 and 2022.  Insurance ceded represented 40% of premium income for 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 represented approximately 28% and 31% of the Company’s total invested assets at December 31, 2023 and 2022, respectively. The following table provides an allocation of the oil and gas investments by type as of December 31:

2023	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,075,240	$	1,075,240
Equity securities, at fair value		84,066,203		0		84,066,203
Equity securities, at cost		5,826,381		0		5,826,381
Investment real estate		7,383,851		0		7,383,851
Notes receivable		2,000,000		0		2,000,000
Total	$	99,276,435	$	1,075,240	$	100,351,675

2022	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,060,710	$	1,060,710
Equity securities, at fair value		86,811,806		0		86,811,806
Equity securities, at cost		13,840,908		0		13,840,908
Investment real estate		7,931,628		0		7,931,628
Notes receivable		1,950,657		0		1,950,657
Total	$	110,534,999	$	1,060,710	$	111,595,709

(1) The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

As of December 31, 2023 and 2022, the Company owned four equity securities that represented approximately 73% and three securities that represented approximately 58%, 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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Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2023

Selected Quarterly Financial Data [Abstract]

Selected Quarterly Financial Data

Note 14 – Selected Quarterly Financial Data

As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and Item 10(f)(1) of Regulation S-K, the Company has elected to comply with certain scaled disclosure reporting obligations, and therefore does not have to provide the information required by this item.

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Revision of Previously Issued Consolidated Financial Statements

12 Months Ended

Dec. 31, 2023

Revision of Previously Issued Consolidated Financial Statements [Abstract]

Revision of Previously Issued Consolidated Financial Statements

Note 15 – Revision of Previously Issued Consolidated Financial Statements

The Company identified an error in its previously issued December 31, 2022 Consolidated Financial Statements related to the presentation of the Consolidated Statements of Comprehensive Income (Loss). Management evaluated this error in accordance with SEC Staff Accounting Bulletin Number 99, Materiality, which is since codified in ASC 250 – Accounting Changes and Error Corrections, and concluded it was not material to any previously reported financial statements.  However, in order to improve the consistency and comparability of the consolidated financial statements, Management will revise the consolidated financial statements and related disclosures to correct the error in future filings. There were no revisions to the Consolidated Balance Sheet, Statements of Operations, Statements of Shareholders’ Equity or the Consolidated Statements of Cash Flows. There were no changes to net income attributable to common shareholders or total shareholders’ equity.

	December 31, 2022
Consolidated Statements of Comprehensive Income (Loss)	As Previously Reported			Adjustments			As Revised
Unrealized holding gains (losses) arising during period, pre-tax	$	(27,824,173	)	$	5,843,076		$	(21,981,097	)
Tax expense (benefit) on unrealized holding gains (losses) arising during the period		5,843,076			(1,227,133	)		4,615,943
Unrealized holding gains (losses) arising during period, net of tax		(21,981,097	)		4,615,943			(17,365,154	)
Subtotal: Other comprehensive income (loss), net of tax		(21,980,680	)		4,615,943			(17,364,737	)
Comprehensive income		12,383,666			4,615,943			16,999,609
Comprehensive income attributable to UTG, Inc.	$	12,277,325		$	4,615,943		$	16,893,268

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Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2023
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation – The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), under guidance issued by the Financial Accounting Standards Board (“FASB”).  The preparation of financial statements in accordance with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Principles of Consolidation

Principles of Consolidation – The accompanying consolidated financial statements include the accounts of the Registrant and its wholly and majority-owned subsidiaries.  All significant intercompany accounts and transactions have been eliminated during consolidation.

Business Segments

Business Segments – The Company has only one business segment – life insurance.

Investments

Investments – The Company reports its investments as follows:

Investments in Fixed Maturity Securities – The Company classifies its investments in fixed maturity securities on the acquisition date and at each balance sheet date. Securities classified as held-to-maturity consist of redeemable preferred stock, and are carried at amortized cost, reflecting the ability and intent to hold the securities to maturity. Securities classified as available-for-sale consist of bonds and are carried at fair value with unrealized gains and losses, net of deferred taxes, reflected directly in accumulated other comprehensive income.  Premiums and discounts on debt securities purchased at other than par value are amortized and accreted, respectively, to interest income in the Consolidated Statements of Operations, using the constant yield method over the period to maturity. The Company has an evaluation process in place to monitor fixed maturity securities available for sale for credit loss. See Note 2 - Investments for further disclosure of the allowance for credit loss (“ACL”).

Equity Securities at Fair Value – Investments in equity securities, which include common and perpetual preferred stocks, are reported at fair value with unrealized gains and losses reported as a component of net income (loss).

Equity Securities at Cost – These investments are reported at their cost basis, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

Mortgage Loans on Real Estate – Mortgage loans on real estate are reported at their unpaid principal balances, adjusted for amortization of premium or discount and valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. The Company recognizes an ACL in earnings at time of purchase or origination based on expected lifetime credit loss on mortgage loans carried at amortized cost, in an amount that represents the portion of the amortized cost basis of such financing receivables, that the Company does not expect to collect, resulting in mortgage loans being presented at the net amount expected to be collected. See Note 2 - Investments for further discussion of the ACL.

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. Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition, for a reasonable price, in comparison to its estimated fair value, is classified as held-for-sale. Real estate held-for-sale is stated at lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated.

Notes Receivable – Notes receivable are reported at their unpaid principal balances, adjusted for valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. 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. The Company recognizes an ACL in earnings at time of purchase or origination based on expected lifetime credit loss on notes receivable carried at amortized cost, in an amount that represents the portion of the amortized cost basis of such financing receivables, that the Company does not expect to collect, resulting in notes receivable being presented at the net amount expected to be collected. See Note 2 - Investments for further discussion of the ACL.

Policy Loans – Policy loans are reported at their unpaid balances, including accumulated interest, but not in excess of the cash surrender value of the related policy.

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.

Gains and Losses – Realized gains and losses include sales of investments and investment impairments.  If any, other-than-temporary impairments in fair value are recognized in net income on the specific identification basis.

Fair Value

Fair Value – Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such unadjusted quoted prices are not available, estimated fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring significant management judgment are used to determine the estimated fair value of assets and liabilities. These unobservable inputs can be based on Management’s judgment, assumptions or estimation and may not be observable in market activity. Unobservable inputs are based on Management’s assumptions about the inputs market participants would use in pricing the assets. For more specific information regarding the Company’s measurements and procedures in valuing financial instruments, see Note 3 – Fair Value Measurements.

Cash Equivalents and Cash

Cash Equivalents – Cash equivalents consist of money market accounts and investments with maturities of three months or less when purchased.

Cash – Cash consists of balances on hand and on deposit in banks and financial institutions.

Reinsurance

Reinsurance - In the normal course of business, the Company seeks to limit its exposure to loss on any single insured and to recover a portion of benefits paid by ceding reinsurance to other insurance enterprises or reinsurers under excess coverage and coinsurance contracts.  The Company retains a maximum of $125,000 of coverage per individual life.

Reinsurance receivables are recognized in a manner consistent with the liabilities relating to the underlying reinsurance contracts. The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, or when events or changes in circumstances indicate that its carrying amount may not be recoverable, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, consistent with the credit loss guidance which requires recording an allowance for credit loss (“ACL”). See Note 4 - Reinsurance for additional information.

Cost of Insurance Acquired

Cost of Insurance Acquired - When an insurance company is acquired, the Company assigns a portion of its cost to the right to receive future cash flows from insurance contracts existing at the date of the acquisition.  The cost of policies purchased represents the actuarially determined present value of the projected future profits from the acquired policies.  Cost of insurance acquired is amortized with interest in relation to expected future profits, including direct charge-offs for any excess of the unamortized asset over the projected future profits.  The amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised.

Future Policy Benefits and Expenses

Future Policy Benefits and Expenses - The liabilities for traditional life insurance and accident and health insurance policy benefits are computed using a net level method. These liabilities include assumptions as to investment yields, mortality, withdrawals, and other assumptions based on the life insurance subsidiary’s experience adjusted to reflect anticipated trends and to include provisions for possible unfavorable deviations. The Company makes these assumptions at the time the contract is issued or, in the case of contracts acquired by purchase, at the purchase date.  Future policy benefits for individual life insurance and annuity policies are computed using interest rates ranging from 2.0% to 6.0% for life insurance and 2.5% to 7.5% for annuities. Benefit reserves for traditional life insurance policies include certain deferred profits on limited-payment policies that are being recognized in income over the policy term. Policy benefit claims are charged to expense in the period that the claims are incurred. The mortality rate assumptions for policies currently issued by the Company are based on 2017 CSO Ultimate tables.  Withdrawal rate assumptions are based upon Linton B or C, which are industry standard actuarial tables for forecasting assumed policy lapse rates.

Benefit reserves for universal life insurance and interest sensitive life insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges.  Policy benefits and claims that are charged to expense include benefit claims in excess of related policy account balances.  Interest crediting rates for universal life and interest sensitive products range from 3.0% to 6.0% as of December 31, 2023 and 2022.

Policy Claims and Benefits Payable

Policy Claims and Benefits Payable - Policy and contract claims include provisions for reported claims in process of settlement, valued in accordance with the terms of the policies and contracts, as well as provisions for claims incurred and unreported. The estimate of incurred and unreported claims is based on prior experience. The Company makes an estimate after careful evaluation of all information available to the Company.  There is no certainty the stated liability for policy claims and benefits payable, including the estimate for incurred but unreported claims, will be the Company’s ultimate obligation.

Income Taxes

Income Taxes – Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax impact attributable to differences between the financial statement book values and tax bases of assets and liabilities.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. More information concerning income taxes is provided in Note 6 – Income Taxes.

Earnings Per Share

Earnings Per Share – The objective of both basic earnings per share (“EPS”) and diluted EPS is to measure the performance of an entity over the reporting period.  The Company presents basic and diluted EPS on the face of the Consolidated Statements of Operations. Basic EPS is computed by dividing income available to common shareholders by the weighted average common shares outstanding for the period.  Diluted EPS is calculated by adding to shares outstanding the additional net effect of potentially dilutive securities or contracts, such as stock options, which could be exercised or converted into common shares.

Recognition of Revenues and Related Expenses

Recognition of Revenues and Related Expenses - Premiums for traditional life insurance products, which include those products with fixed and guaranteed premiums and benefits, consist principally of whole life insurance policies, and certain annuities with life contingencies are recognized as revenues when due. Limited payment life insurance policies defer gross premiums received in excess of net premiums, which is then recognized in income in a constant relationship with insurance in-force. Accident and health insurance premiums are recognized as revenue pro rata over the terms of the policies. Benefits and related expenses associated with the premiums earned are charged to expense proportionately over the lives of the policies through a provision for future policy benefit liabilities and through deferral and amortization of deferred policy acquisition costs. For universal life and investment products, generally there is no requirement for payment of premium other than to maintain account values at a level sufficient to pay mortality and expense charges. Consequently, premiums for universal life policies and investment products are not reported as revenue, but as deposits. Policy fee revenue for universal life policies and investment products consists of charges for the cost of insurance and policy administration fees assessed during the period. Expenses include interest credited to policy account balances and benefit claims incurred in excess of policy account balances.

Recently Issued Accounting Standards

Recently Issued Accounting Standards

The following Accounting Standard Update (“ASU)”) was adopted in 2023:

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 $524,000, which is presented as a reduction to net loans outstanding, and an increase in the allowance for credit losses on unfunded commitments of $51,000, 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”).

ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company’s consolidated financial statements or disclosures. ASUs issued but not yet adopted as of December 31, 2023 that are currently being assessed and may or may not have a material impact on the Company’s consolidated financial statements or disclosures are disclosed below:

The Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Amendments in this update require that public business entities, on an annual basis: (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. In addition, the amendments in this updated require that all entities disclose on an annual basis the following information about income taxes: (1) the amounts of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and (2) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received). ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024. The Company is evaluating the impact of the guidance on its consolidated financial statements.

The FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. ASU 2023-07 is intended to improve disclosures about a public entity’s reportable segments and addresses requests from investors and other allocators of capital for additional, more detailed information about a reportable segment’s expenses. This ASU applies to all public entities that are required to report segment information in accordance with Topic 280. All public entities will be required to report segment information in accordance with the new guidance starting in annual periods beginning after December 15, 2023. The Company does not expect ASU 2023-07 to have a material impact on its consolidated financial statements.

The FASB issued Accounting Standards Update No. 2022-05, Financial Services-Insurance (Topic 944): Transition for Sold Contracts. ASU 2022-05 amends transition guidance in ASU No. 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI), for contracts that have been derecognized because of a sale or disposal of individual or a group of contracts or legal entities before the LDTI effective date. This ASU amends the LDTI transition guidance to allow an insurance entity to make an accounting policy election to exclude certain contracts or legal entities from applying the LDTI guidance when, as of the LDTI effective date, (a) the insurance contracts have been derecognized because of a sale or disposal and (b) the insurance entity has no significant continuing involvement with the derecognized contracts. See below for further analysis regarding ASU No. 2018-12.

The FASB issued Accounting Standards Update No. 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts or ASU 2018-12.  ASU 2018-12 significantly changes how insurers account for long-duration insurance contracts. The new guidance will require insurers to review and update, if necessary, the assumptions used to measure insurance liabilities periodically, rather than retain assumptions used at contract inception. The updated guidance also changes the recognition and measurement of deferred acquisition costs (DAC) and created a new category of benefit features called market risk benefits (MRB) that will be measured at fair value. The guidance also significantly expands the disclosure requirements for long-duration contracts.  The ASU was originally effective for fiscal years, and interim periods within those years, for years beginning after December 15, 2020 and early adoption is permitted.  The guidance on measuring the liabilities for future policy benefits and DAC will be adopted on a modified retrospective basis as of the earliest period presented in the year of adoption. The guidance on MRB will be adopted on a retrospective basis as of the earliest period presented in the year of adoption. In November of 2019, the FASB issued ASU 2019-09, which delayed the effective date of ASU 2018-12 to fiscal years beginning after December 15, 2024 for smaller reporting companies.  The Company is currently evaluating the impact that the adoption of this guidance will have on its consolidated financial statements.

Reclassifications

Reclassifications - Certain reclassifications have been made to the 2022 Consolidated Financial Statements to make them comparable to the current year Consolidated Financial Statements. The Company has elected to reclassify certain investments on the Consolidated Balance Sheets and related footnotes for prior periods to conform with the presentation in the fiscal year ended December 31, 2023. The Company has elected to reclassify $8.7 million out of investment in real estate, net, into equity securities, at cost and to reclassify $2.5 million out of equity securities, at cost, to a new item titled held to maturity, redeemable preferred stock, at amortized cost. There were no revisions to the Consolidated Statements of Operations or the Consolidated Statements of Shareholders’ Equity. There were no changes to net income attributable to common shareholders or total shareholders’ equity.

Revision of Previously Issued Financial Statements

Revision of previously issued financial statements – The Company identified an error in its previously issued Consolidated Financial Statements related to the presentation of the Consolidated Statements of Comprehensive Income (Loss). The impact of the error to the prior period’s Consolidated Financial Statements was not considered to be material. In order to improve the consistency and comparability of the Consolidated Financial Statements, Management revised the Consolidated Financial Statements to include the revision discussed herein. See Note 15 - Revision of Previously Issued Consolidated Financial Statements for details of the revision.

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Investments (Tables)

12 Months Ended

Dec. 31, 2023

Investments [Abstract]

Investments in Fixed Maturity Securities

Investments in fixed maturity securities are summarized by type as follows for the years ended December 31:

2023	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Government and govt. agencies and authorities	$	14,316,976	$	0	$	(729,197	)	$	13,587,779
U.S. special revenue and assessments		7,528,985		0		(220,527	)		7,308,458
All other corporate bonds		87,708,777		89,004		(5,284,182	)		82,513,599
Redeemable preferred stock		2,500,000		0		0			2,500,000
Total	$	112,054,738	$	89,004	$	(6,233,906	)	$	105,909,836

2022 (1)	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
U.S. Government and govt. agencies and authorities	$	18,315,321	$	0	$	(1,104,146	)	$	17,211,175
U.S. special revenue and assessments		7,535,018		0		(335,918	)		7,199,100
All other corporate bonds		91,429,481		65,529		(7,592,226	)		83,902,784
Redeemable preferred stock		2,500,000		0		0			2,500,000
Total	$	119,779,820	$	65,529	$	(9,032,290	)	$	110,813,059

(1)          The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

Fixed Maturity Securities by Contractual Maturity

The amortized cost and estimated fair value of fixed maturity securities at December 31, 2023, by contractual maturity date, is shown below.

Fixed Maturity Securities December 31, 2023	Amortized Cost		Estimated Fair Value
Due in one year or less	$	10,990,370	$	10,832,220
Due after one year through five years		45,486,425		44,009,137
Due after five years through ten years		6,664,901		6,664,497
Due after ten years		21,851,378		20,078,690
Fixed maturities with no single maturity date		27,061,664		24,325,292
Total	$	112,054,738	$	105,909,836

Estimated Fair Value and Gross Unrealized Losses of Fixed Maturity Securities in Unrealized Loss Position

The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position as of December 31:

2023	Less than 12 months					12 months or longer					Total
	Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses
U.S. Government and govt. agencies and authorities	$	1,497,390		(3,696	)	$	12,090,389		(725,501	)	$	13,587,779		(729,197	)
U.S. special revenue and assessments		0		0			7,308,458		(220,527	)		7,308,458		(220,527	)
All other corporate bonds		544,610		(2,319	)		73,678,567		(5,281,863	)		74,223,177		(5,284,182	)
Total fixed maturities	$	2,042,000		(6,015	)	$	93,077,414		(6,227,891	)	$	95,119,414		(6,233,906	)

2022(1)	Less than 12 months					12 months or longer				Total
	Estimated fair value		Unrealized losses			Estimated fair value		Unrealized losses		Estimated fair value		Unrealized losses
U.S. Government and govt. agencies and authorities	$	17,211,175		(1,104,146	)	$	0		0	$	17,211,175		(1,104,146	)
U.S. special revenue and assessments		7,199,100		(335,918	)		0		0		7,199,100		(335,918	)
All other corporate bonds		80,144,564		(7,592,226	)		0		0		80,144,564		(7,592,226	)
Total fixed maturities	$	104,554,839		(9,032,290	)	$	0		0	$	104,554,839		(9,032,290	)

(1)          The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

Securities in Continuous Unrealized Loss Position

The following table provides additional information regarding the number of securities that were in an unrealized loss position for greater than or less than twelve months:

	Less than 12 months	12 months or longer	Total
As of December 31, 2023
Fixed maturities	2	45	47
As of December 31, 2022
Fixed maturities	57	0	57

Net Unrealized Losses Included in Other Comprehensive Income (Loss)

Net unrealized losses included in other comprehensive income (loss) for investments classified as available-for-sale, net of the effect of deferred income taxes, assuming that the depreciation had been realized as of December 31, 2023 and December 31, 2022:

	December 31, 2023			December 31, 2022
Unrealized appreciation (depreciation) on available-for-sale securities	$	(6,144,902	)	$	(8,966,761	)
Deferred income taxes		1,290,429			1,883,020
Net unrealized appreciation (depreciation) on available-for-sale securities	$	(4,854,473	)	$	(7,083,741	)

Maximum and Minimum Lending Rates for Mortgage Loan

During 2023 and 2022, the maximum and minimum lending rates for mortgage loans were:

	2023		2022
	Maximum rate	Minimum rate	Maximum rate	Minimum rate
Farm loans	5.00 %	5.00 %	5.00 %	4.50 %
Commercial loans	8.75 %	4.00 %	7.00 %	4.00 %
Residential loans	5.00 %	4.15 %	5.00 %	4.15 %

Summary of Mortgage Loans Holdings

The following table summarizes the mortgage loan holdings of the Company for the periods ended December 31:

	2023		2022
In good standing	$	15,318,176	$	30,698,694
Total mortgage loans	$	15,318,176	$	30,698,694
Total foreclosed loans during the year	$	0	$	0

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:

	December 31, 2023			December 31, 2022
Farm	$	332,417		$	383,278
Commercial		13,764,209			28,767,888
Residential		1,495,550			1,547,528
Total mortgage loans		15,592,176			30,698,694
Less allowance for credit losses		(274,000	)		0
Total mortgage loans, net	$	15,318,176		$	30,698,694

Investment Real Estate by Type

The following table provides an allocation of the Company’s investment real estate by type for the periods ended December 31:

	2023		2022
Raw land	$	6,971,930	$	11,634,472
Commercial		4,106,938		4,169,847
Residential		3,512,408		2,489,858
Land, minerals and royalty interests		7,383,844		7,931,622
Total investment real estate	$	21,975,120	$	26,225,799

(1) The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

Notes Receivables

The following is a summary of the notes receivable outstanding and the related allowance for credit losses:

	December 31, 2023			December 31, 2022
Notes receivable	$	14,259,225		$	14,424,127
Less allowance for credit losses		(250,000	)		0
Total notes receivable, net	$	14,009,225		$	14,424,127

Schedule of Net Investment Income

The following table reflects the Company’s net investment income for the periods ended December 31:

	2023			2022
Fixed maturities	$	4,184,070		$	4,318,591
Equity securities		2,710,201			6,157,942
Trading securities		0			(13,283	)
Mortgage loans		1,115,145			1,580,647
Real estate		8,318,201			11,640,759
Notes receivable		1,371,973			933,886
Policy loans		433,556			489,823
Cash and cash equivalents		1,007,840			203,250
Short-term investments		529,125			5,056
Total consolidated investment income		19,670,111			25,316,671
Investment expenses		(5,528,302	)		(4,505,200	)
Consolidated net investment income	$	14,141,809		$	20,811,471

(1) The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

Net Realized Investment Gains and Losses

The following table presents net investment gains (losses) and the change in net unrealized gains on investments for the periods ended December 31:

	2023			2022
Realized gains:
Sales of fixed maturities	$	58,333		$	4,683
Sales of equity securities		820,001			8,986,784
Sales of real estate		8,577,155			5,326,838
Sales of short-term investments		23,509			0
Total realized gains		9,478,998			14,318,305
Realized losses:
Sales of fixed maturities		0			(5,211	)
Sales of equity securities		(7,966	)		(109,636	)
Sales of real estate		0			(34,547	)
Sales of short-term investments		(7,189	)		0
Other-than-temporary impairments		0			(5,000,000	)
Total realized losses		(15,155	)		(5,149,394	)
Net realized investment gains		9,463,843			9,168,911
Change in fair value of equity securities:
Change in fair value of equity securities held at the end of the period		(3,830,793	)		33,690,712
Change in fair value of equity securities		(3,830,793	)		33,690,712
Net investment gains	$	5,633,050		$	42,859,623
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income:
Fixed maturities	$	2,867,943		$	(21,981,097	)
Net increase (decrease)	$	2,867,943		$	(21,981,097	)

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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 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 as of December 31:

2023	Level 1		Level 2		Level 3		Total
Fixed maturity securities:
U.S. Government and government agencies and authorities	$	13,587,779	$	0	$	0	$	13,587,779
U.S. special revenue and assessments		0		7,308,458		0		7,308,458
Corporate securities		0		82,513,599		0		82,513,599
Total fixed maturities		13,587,779		89,822,057		0		103,409,836
Equity securities:
Common stocks		35,819,973		5,329,080		2,807,634		43,956,687
Limited liability companies		0		0		57,604,806		57,604,806
Total equity securities		35,819,973		5,329,080		60,412,440		101,561,493
Short-term investments		29,132,236		0		0		29,132,236
Total financial assets	$	78,539,988	$	95,151,137	$	60,412,440	$	234,103,565

2022	Level 1		Level 2		Level 3		Total
Fixed maturity securities:
U.S. Government and government agencies and authorities	$	17,211,175	$	0	$	0	$	17,211,175
U.S. special revenue and assessments		0		7,199,100		0		7,199,100
Corporate securities		0		83,902,784		0		83,902,784
Total fixed maturities		17,211,175		91,101,884		0		108,313,059
Equity securities:
Common stocks		45,999,477		6,651,800		0		52,651,277
Limited liability companies		0		0		7,967,643		7,967,643
Total equity securities		45,999,477		6,651,800		7,967,643		60,618,920
Short-term investments		3,596,941		0		0		3,596,941
Total financial assets	$	66,807,593	$	97,753,684	$	7,967,643	$	172,528,920

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

Change in Level 3 Recurring Fair Value Measurements

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

			Investments in
	Investments in Common Stocks		Limited Liability Companies			Total
Balance at December 31, 2022	$	0	$	7,967,643		$	7,967,643
Realized gains (losses)		0		0			0
Unrealized gains (losses)		211,449		15,211,945			15,423,394
Purchases		0		5,683,029			5,683,029
Sales		0		(166,250	)		(166,250	)
Transfers in to Level 3		2,596,185		28,908,439			31,504,624
Transfers out of Level 3		0		0			0
Balance at December 31, 2023	$	2,807,634	$	57,604,806		$	60,412,440

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 includes only those instruments for which information about the inputs is reasonably available to the Company, such as data from independent third-party valuation service providers and from internal valuation models.

Financial Assets	Fair Value at December 31, 2023		Fair Value at December 31, 2022		Valuation Technique
Limited liability companies	$	57,604,806	$	7,967,643	Pricing Model
Common stocks		2,807,634		0	Pricing Model
Total	$	60,412,440	$	7,967,643

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

The Company holds certain equity securities that are measured at estimated fair value using the NAV per share practical expedient. These investments are generally not readily redeemable by the investee. The following tables provide additional information regarding the assets carried at NAV.

Investment Category		Fair Value at December 31, 2023		Unfunded Commitments	Redemption Frequency	Redemption Notice Period
Equity securities
Growth equity
Redeemable
Limited partnership	$	34,081,797	$	0	Quarterly	45
Non-redeemable
Limited liability companies		11,960,929		9,464,608	n/a	n/a
Limited partnerships		8,946,593		2,410,599	n/a	n/a
Total	$	54,989,319	$	11,875,207

Investment Category	Fair Value at December 31, 2022		Unfunded Commitments		Redemption Frequency		Redemption Notice Period
Equity securities
Growth equity
Redeemable
Limited partnership	$	43,724,562	$	49,343	Quarterly			45
Non-redeemable
Common stock		12,074,829		0		n/a		n/a
Limited liability companies		25,243,953		4,931,498		n/a		n/a
Limited partnerships		8,391,422		2,799,026		n/a		n/a
Total	$	89,434,766	$	7,779,867

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 as of December 31:

2023	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Held to maturity redeemable preferred stock	$	2,500,000	$	2,500,000	$	0	$	0	$	2,500,000
Equity securities, at cost		15,977,368		15,977,368		0		0		15,977,368
Mortgage loans on real estate		15,318,176		14,447,026		0		0		14,447,026
Investment real estate		21,975,120		62,899,838		0		0		62,899,838
Notes receivable		14,009,225		14,189,147		0		0		14,189,147
Policy loans		6,018,248		6,018,248		0		0		6,018,248
Accrued investment income		2,001,064		2,001,064		0		0		2,001,064
Liabilities
Policy claims and benefits payable		4,188,917		4,188,917		0		0		4,188,917
Dividend and endowment accumulations		14,749,258		14,749,258		0		0		14,749,258
Notes payable		19,000,000		19,000,000		0		19,000,000		0

2022	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Held to maturity redeemable preferred stock	$	2,500,000	$	2,500,000	$	0	$	0	$	2,500,000
Equity securities, at cost		21,891,896		21,891,896		0		0		21,891,896
Mortgage loans on real estate		30,698,694		29,735,873		0		0		29,735,873
Investment real estate		26,225,799		74,026,290		0		0		74,026,290
Notes receivable		14,424,127		14,812,523		0		0		14,812,523
Policy loans		6,567,434		6,567,434		0		0		6,567,434
Accrued investment income		1,371,677		1,371,677		0		0		1,371,677
Liabilities
Policy claims and benefits payable		4,072,879		4,072,879		0		0		4,072,879
Dividend and endowment accumulations		14,802,746		14,802,746		0		0		14,802,746
Notes payable		19,000,000		19,000,000		0		19,000,000		0

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Reinsurance (Tables)

12 Months Ended

Dec. 31, 2023

Reinsurance [Abstract]

Effect of long duration reinsurance contracts on premiums earned

The Company does not have any short-duration reinsurance contracts.  The effect of the Company’s long-duration reinsurance contracts on premiums earned in 2023 and 2022 were as follows:

	2023			2022
	Premiums Earned			Premiums Earned
Direct	$	7,918,235		$	8,384,604
Assumed		0			0
Ceded		(2,553,010	)		(2,697,382	)
Net Premiums	$	5,365,225		$	5,687,222

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Cost of Insurance Acquired (Tables)

12 Months Ended

Dec. 31, 2023

Cost of Insurance Acquired [Abstract]

Cost of Insurance Acquired

When an insurance company is acquired, the Company assigns a portion of its cost to the right to receive future cash flows from insurance contracts existing at the date of the acquisition.  The cost of policies purchased represents the actuarially determined present value of the projected future profits from the acquired policies.  Cost of insurance acquired is amortized with interest in relation to expected future profits, including direct charge-offs for any excess of the unamortized asset over the projected future profits.  The interest rates utilized may vary due to differences in the blocks of business.  The interest rate utilized in the amortization calculation of the remaining cost of insurance acquired is 12%. The amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised.

	2023			2022
Cost of insurance acquired, beginning of year	$	2,698,153		$	3,386,501
Interest accretion		418,722			501,324
Amortization		(1,079,979	)		(1,189,672	)
Net amortization		(661,257	)		(688,348	)
Cost of insurance acquired, end of year	$	2,036,896		$	2,698,153

Estimated Net Amortization Expense of Cost of Insurance Acquired for Next Five Years

Estimated net amortization expense of cost of insurance acquired for the next four years is as follows:

	Interest Accretion	Amortization	Net Amortization
2024	339,372	975,187	635,815
2025	263,074	877,240	614,166
2026	189,374	799,520	610,146
2027	116,157	292,926	176,769

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Taxes [Abstract]

Income tax expense (benefits)

Income tax expense (benefit) consists of the following components:

	2023			2022
Current tax expense (benefit)	$	(517,108	)	$	7,054,454
Deferred tax		372,861			2,517,685
Income tax expense (benefit)	$	(144,247	)	$	9,572,139

Income tax expense (benefit) reconciliation

The expense for income taxes differed from the amounts computed by applying the applicable United States statutory rate of 21% as of December 31, 2023 and 2022, before income taxes as a result of the following differences:

	2023			2022
Tax computed at statutory rate	$	404,427		$	9,226,662
Changes in taxes due to:
Non-controlling interest		(23,813	)		(22,332	)
Dividend received deduction		(109,642	)		(142,790	)
Oil and gas royalty's depletion		(106,797	)		(170,123	)
Other, including prior year true up		(308,422	)		680,722
Income tax expense (benefit)	$	(144,247	)	$	9,572,139

Major components that comprise the deferred tax liability

The following table summarizes the major components that comprise the net deferred tax liability as reflected in the balance sheets:

	2023			2022
Investments	$	11,862,470		$	10,794,061
Cost of insurance acquired		427,748			566,612
Management/consulting fees		(7,899	)		(8,206	)
Future policy benefits		(697,024	)		(718,338	)
Deferred gain on sale of subsidiary		1,387,490			1,387,490
Other liabilities		(284,350	)		(330,488	)
Reserves adjustment		96,105			144,158
Federal tax DAC		(236,950	)		(253,151	)
Loan loss reserve		(120,750	)		0
Deferred tax liability	$	12,426,840		$	11,582,138

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Credit Arrangements (Tables)

12 Months Ended

Dec. 31, 2023

Credit Arrangements [Abstract]

Credit Arrangements

At December 31, 2023 and 2022, the Company had the following lines of credit available:

Instrument	Issue Date	Maturity Date	Revolving Credit Limit		December 31, 2022		Borrowings		Repayments		December 31, 2023
Lines of Credit:
UTG	11/20/2013	11/20/2024	$	8,000,000		0		0		0	$	0
UG - CMA	10/21/2021	10/4/2024		25,000,000		19,000,000		21,500,000		21,500,000		19,000,000

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Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2023

Shareholders' Equity [Abstract]

Reconciliation of the numerators and denominators of the basic and diluted EPS

The following is a reconciliation of basic and diluted weighted average shares outstanding used in the computation of basic and diluted earnings per share:

	2023		2022
Basic weighted average shares outstanding		3,176,757		3,167,719
Weighted average dilutive options outstanding		0		0
Diluted weighted average shares outstanding		3,176,757		3,167,719

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Statutory Accounting (Tables)

12 Months Ended

Dec. 31, 2023

Statutory Accounting [Abstract]

Statutory Basis Net Income and Capital Surplus

The following table reflects UG’s statutory basis net income and capital and surplus (shareholders’ equity) as of December 31:

	2023		2022
Net income	$	8,320,315	$	18,782,335
Capital and surplus		91,828,094		93,269,301

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Other Cash Flow Disclosures (Tables)

12 Months Ended

Dec. 31, 2023

Other Cash Flow Disclosures [Abstract]

Expenses Paid on a Cash Basis

On a cash basis, the Company paid the following expenses for the periods ended December 31:

	2023		2022
Interest	$	44,814	$	83,995
Federal income tax		5,800,000		1,890,000

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Concentrations (Tables)

12 Months Ended

Dec. 31, 2023

Concentrations [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 represented approximately 28% and 31% of the Company’s total invested assets at December 31, 2023 and 2022, respectively. The following table provides an allocation of the oil and gas investments by type as of December 31:

2023	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,075,240	$	1,075,240
Equity securities, at fair value		84,066,203		0		84,066,203
Equity securities, at cost		5,826,381		0		5,826,381
Investment real estate		7,383,851		0		7,383,851
Notes receivable		2,000,000		0		2,000,000
Total	$	99,276,435	$	1,075,240	$	100,351,675

2022	Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,060,710	$	1,060,710
Equity securities, at fair value		86,811,806		0		86,811,806
Equity securities, at cost		13,840,908		0		13,840,908
Investment real estate		7,931,628		0		7,931,628
Notes receivable		1,950,657		0		1,950,657
Total	$	110,534,999	$	1,060,710	$	111,595,709

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Revision of Previously Issued Consolidated Financial Statements (Tables)

12 Months Ended

Dec. 31, 2023

Revision of Previously Issued Consolidated Financial Statements [Abstract]

Revisions of Previously Issued Consolidated Financial Statements

The Company identified an error in its previously issued December 31, 2022 Consolidated Financial Statements related to the presentation of the Consolidated Statements of Comprehensive Income (Loss). Management evaluated this error in accordance with SEC Staff Accounting Bulletin Number 99, Materiality, which is since codified in ASC 250 – Accounting Changes and Error Corrections, and concluded it was not material to any previously reported financial statements.  However, in order to improve the consistency and comparability of the consolidated financial statements, Management will revise the consolidated financial statements and related disclosures to correct the error in future filings. There were no revisions to the Consolidated Balance Sheet, Statements of Operations, Statements of Shareholders’ Equity or the Consolidated Statements of Cash Flows. There were no changes to net income attributable to common shareholders or total shareholders’ equity.

	December 31, 2022
Consolidated Statements of Comprehensive Income (Loss)	As Previously Reported			Adjustments			As Revised
Unrealized holding gains (losses) arising during period, pre-tax	$	(27,824,173	)	$	5,843,076		$	(21,981,097	)
Tax expense (benefit) on unrealized holding gains (losses) arising during the period		5,843,076			(1,227,133	)		4,615,943
Unrealized holding gains (losses) arising during period, net of tax		(21,981,097	)		4,615,943			(17,365,154	)
Subtotal: Other comprehensive income (loss), net of tax		(21,980,680	)		4,615,943			(17,364,737	)
Comprehensive income		12,383,666			4,615,943			16,999,609
Comprehensive income attributable to UTG, Inc.	$	12,277,325		$	4,615,943		$	16,893,268

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Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) Segment	Dec. 31, 2022 USD ($)
Business Segments [Abstract]
Number of business segments | Segment	1
Reinsurance [Abstract]
Maximum retention limits per life	$ 125,000
Recently Issued Accounting Standards [Abstract]
Allowance for credit loss	250,000	$ 0
Retained earnings	(133,491,797)	(131,989,352)
Reclassifications [Abstract]
Investment real estate, net	21,975,120	26,225,799	[1]
Equity securities, at cost	15,977,368	21,891,896
Held to maturity, redeemable preferred stock, at amortized cost	2,500,000	2,500,000
Unfunded Loan Commitments [Member]
Recently Issued Accounting Standards [Abstract]
Allowance for credit loss	$ (51,000)	(0)
Adjustments [Member] | Real Estate Investment [Member]
Reclassifications [Abstract]
Investment real estate, net		(8,700,000)
Equity securities, at cost		8,700,000
Adjustments [Member] | Redeemable Preferred Stock [Member]
Reclassifications [Abstract]
Equity securities, at cost		(2,500,000)
Held to maturity, redeemable preferred stock, at amortized cost		2,500,000
Chief Executive Officer and Chairman of the Board [Member]
Ownership Interest [Abstract]
Ownership interest percentage	66.00%
ASU 2016-13 [Member]
Recently Issued Accounting Standards [Abstract]
Allowance for credit loss		524,000
ASU 2016-13 [Member] | Unfunded Loan Commitments [Member]
Recently Issued Accounting Standards [Abstract]
Allowance for credit loss		$ 51,000
Minimum [Member]
Investment Real Estate [Abstract]
Estimated useful life	3 years
Maximum [Member]
Investment Real Estate [Abstract]
Estimated useful life	30 years
Life Insurance [Member] | Minimum [Member]
Future Policy Benefits and Expenses [Abstract]
Liability for future policy benefits, interest rate	2.00%
Life Insurance [Member] | Maximum [Member]
Future Policy Benefits and Expenses [Abstract]
Liability for future policy benefits, interest rate	6.00%
Annuities [Member] | Minimum [Member]
Future Policy Benefits and Expenses [Abstract]
Liability for future policy benefits, interest rate	2.50%
Annuities [Member] | Maximum [Member]
Future Policy Benefits and Expenses [Abstract]
Liability for future policy benefits, interest rate	7.50%
Universal Life [Member] | Minimum [Member]
Future Policy Benefits and Expenses [Abstract]
Interest crediting rates	3.00%	3.00%
Universal Life [Member] | Maximum [Member]
Future Policy Benefits and Expenses [Abstract]
Interest crediting rates	6.00%	6.00%
Interest Sensitive Life [Member] | Minimum [Member]
Future Policy Benefits and Expenses [Abstract]
Interest crediting rates	3.00%	3.00%
Interest Sensitive Life [Member] | Maximum [Member]
Future Policy Benefits and Expenses [Abstract]
Interest crediting rates	6.00%	6.00%
FSBI [Member] | FSNB [Member]
Ownership Interest [Abstract]
Ownership in subsidiary bank	100.00%
Cumulative Effect, Period of Adoption, Adjustment [Member] | ASU 2016-13 [Member]
Recently Issued Accounting Standards [Abstract]
Retained earnings		$ (454,250)

[1] The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

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Investments, Investment in Fixed Maturity Securities (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	[1]
Fixed Maturity Securities [Abstract]
Original or amortized cost	$ 112,054,738	$ 119,779,820
Gross unrealized gains	89,004	65,529
Gross unrealized losses	(6,233,906)	(9,032,290)
Estimated fair value	105,909,836	110,813,059
U.S. Government and Govt. Agencies and Authorities [Member]
Fixed Maturity Securities [Abstract]
Original or amortized cost	14,316,976	18,315,321
Gross unrealized gains	0	0
Gross unrealized losses	(729,197)	(1,104,146)
Estimated fair value	13,587,779	17,211,175
U.S. Special Revenue and Assessments [Member]
Fixed Maturity Securities [Abstract]
Original or amortized cost	7,528,985	7,535,018
Gross unrealized gains	0	0
Gross unrealized losses	(220,527)	(335,918)
Estimated fair value	7,308,458	7,199,100
All Other Corporate Bonds [Member]
Fixed Maturity Securities [Abstract]
Original or amortized cost	87,708,777	91,429,481
Gross unrealized gains	89,004	65,529
Gross unrealized losses	(5,284,182)	(7,592,226)
Estimated fair value	82,513,599	83,902,784
Redeemable Preferred Stock [Member]
Fixed Maturity Securities [Abstract]
Original or amortized cost	2,500,000	2,500,000
Gross unrealized gains	0	0
Gross unrealized losses	0	0
Estimated fair value	$ 2,500,000	$ 2,500,000

[1] The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

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Investments, Fixed Maturity Securities by Contractual Maturity (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Amortized cost [Abstract]
Due in one year or less	$ 10,990,370
Due after one year through five years	45,486,425
Due after five years through ten years	6,664,901
Due after ten years	21,851,378
Fixed maturities with no single maturity date	27,061,664
Original or amortized cost	112,054,738
Estimated fair value [Abstract]
Due in one year or less	10,832,220
Due after one year through five years	44,009,137
Due after five years through ten years	6,664,497
Due after ten years	20,078,690
Fixed maturities with no single maturity date	24,325,292
Fair value	105,909,836
Amortized cost of investment in fixed maturities rated below investment grade	$ 0	$ 0

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Investments, Fixed Maturity Securities in Unrealized Loss Position (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	[1]
Fixed Maturity Securities, Estimated Fair Value [Abstract]
Less than 12 months	$ 2,042,000	$ 104,554,839
12 months or longer, fair value	93,077,414	0
Total	95,119,414	104,554,839
Fixed Maturity Securities, Unrealized Losses [Abstract]
Less than 12 months	(6,015)	(9,032,290)
12 months or longer	(6,227,891)	0
Total	(6,233,906)	(9,032,290)
U.S. Government and Govt. Agencies and Authorities [Member]
Fixed Maturity Securities, Estimated Fair Value [Abstract]
Less than 12 months	1,497,390	17,211,175
12 months or longer, fair value	12,090,389	0
Total	13,587,779	17,211,175
Fixed Maturity Securities, Unrealized Losses [Abstract]
Less than 12 months	(3,696)	(1,104,146)
12 months or longer	(725,501)	0
Total	(729,197)	(1,104,146)
U.S. Special Revenue and Assessment [Member]
Fixed Maturity Securities, Estimated Fair Value [Abstract]
Less than 12 months	0	7,199,100
12 months or longer, fair value	7,308,458	0
Total	7,308,458	7,199,100
Fixed Maturity Securities, Unrealized Losses [Abstract]
Less than 12 months	0	(335,918)
12 months or longer	(220,527)	0
Total	(220,527)	(335,918)
All Other Corporate Bonds [Member]
Fixed Maturity Securities, Estimated Fair Value [Abstract]
Less than 12 months	544,610	80,144,564
12 months or longer, fair value	73,678,567	0
Total	74,223,177	80,144,564
Fixed Maturity Securities, Unrealized Losses [Abstract]
Less than 12 months	(2,319)	(7,592,226)
12 months or longer	(5,281,863)	0
Total	$ (5,284,182)	$ (7,592,226)

[1] The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

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Investments, Number of Securities in Unrealized Loss Position (Details) - Security	Dec. 31, 2023	Dec. 31, 2022
Fixed Maturities, Number of Securities in Unrealized Loss Position [Abstract]
Less than 12 months	2	57
12 months or longer	45	0
Total	47	57

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Investments, Net Unrealized Losses Included in Other Comprehensive Income (Loss) (Details) - USD ($)	Dec. 31, 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	$ (6,144,902)	$ (8,966,761)
Deferred income taxes	1,290,429	1,883,020
Net unrealized appreciation (depreciation) on available-for-sale securities	$ (4,854,473)	$ (7,083,741)

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Investments, Cost Method Investments (Details)	3 Months Ended	12 Months Ended
	Dec. 31, 2022 USD ($) Security	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Cost Method Investments [Abstract]
Equity securities, at cost	$ 21,891,896	$ 15,977,368	$ 21,891,896
Other-than-temporary impairments	$ 5,000,000	$ (0)	$ 5,000,000
Number of securities | Security	1

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Investments, Mortgage Loans, Investment Real Estate, Notes Receivables, and Short-Term Investments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Mortgage Loans [Abstract]
Mortgage loans acquired, including discounted mortgage loans	$ 2,654,293	$ 5,158,911
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 and Outstanding [Abstract]
Mortgage loans, gross	15,592,176	30,698,694
Less allowance for credit losses	(274,000)	0
Total mortgage loans, net	15,318,176	30,698,694
Total foreclosed loans during the year	0	0
Investment Real Estate [Abstract]
Impairment on investment real estate	0	0
Total investment real estate	$ 21,975,120	$ 26,225,799	[1]
Oil & Gas Royalties - as a % of total Inv RE	34.00%	30.00%	[1]
Investment real estate acquired	$ 3,417,744	$ 4,586,280	[1]
Notes receivable [Abstract]
Notes Receivable acquired	4,779,241	9,030,657
Notes receivable	14,259,225	14,424,127
Less allowance for credit losses	(250,000)	0
Total notes receivable, net	14,009,225	14,424,127
Short-Term Investments [Abstract]
Short-term investments acquired	48,473,476	3,591,885
Unfunded Loan Commitments [Member]
Notes receivable [Abstract]
Less allowance for credit losses	$ 51,000	0
Minimum [Member]
Mortgage Loans [Abstract]
Loan delinquent period after which letters are sent to mortgagee	30 days
Loan delinquent period after which monthly listing of loans are provided to management	60 days
Loan delinquent period after which loans are placed on non-performing status and classified as delinquent loans	90 days
Investment Real Estate [Abstract]
Estimated useful life	3 years
Maximum [Member]
Investment Real Estate [Abstract]
Estimated useful life	30 years
Raw Land [Member]
Investment Real Estate [Abstract]
Total investment real estate	$ 6,971,930	11,634,472	[1]
Commercial [Member]
Investment Real Estate [Abstract]
Total investment real estate	4,106,938	4,169,847	[1]
Residential [Member]
Investment Real Estate [Abstract]
Total investment real estate	3,512,408	2,489,858	[1]
Land, Minerals and Royalty Interests [Member]
Investment Real Estate [Abstract]
Total investment real estate	7,383,844	7,931,622	[1]
In Good Standing [Member]
Mortgage loan holdings and Outstanding [Abstract]
Total mortgage loans, net	15,318,176	30,698,694
Farm Loans [Member]
Mortgage loan holdings and Outstanding [Abstract]
Mortgage loans, gross	$ 332,417	$ 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 and Outstanding [Abstract]
Mortgage loans, gross	$ 13,764,209	$ 28,767,888
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 and Outstanding [Abstract]
Mortgage loans, gross	$ 1,495,550	$ 1,547,528
Residential Loans [Member] | Minimum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	4.15%	4.15%
Residential Loans [Member] | Maximum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	5.00%	5.00%

[1] The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

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Investments, Net Investment Income (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	[1]
Net Investment Income [Abstract]
Total consolidated investment income	$ 19,670,111	$ 25,316,671
Investment expenses	(5,528,302)	(4,505,200)
Consolidated net investment income	14,141,809	20,811,471
Fixed Maturities [Member]
Net Investment Income [Abstract]
Total consolidated investment income	4,184,070	4,318,591
Equity Securities [Member]
Net Investment Income [Abstract]
Total consolidated investment income	2,710,201	6,157,942
Trading Securities [Member]
Net Investment Income [Abstract]
Total consolidated investment income	0	(13,283)
Mortgage Loans [Member]
Net Investment Income [Abstract]
Total consolidated investment income	1,115,145	1,580,647
Real Estate [Member]
Net Investment Income [Abstract]
Total consolidated investment income	8,318,201	11,640,759
Notes Receivable [Member]
Net Investment Income [Abstract]
Total consolidated investment income	1,371,973	933,886
Policy Loans [Member]
Net Investment Income [Abstract]
Total consolidated investment income	433,556	489,823
Cash and Cash Equivalents [Member]
Net Investment Income [Abstract]
Total consolidated investment income	1,007,840	203,250
Short-term Investments [Member]
Net Investment Income [Abstract]
Total consolidated investment income	$ 529,125	$ 5,056

[1] The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

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Investments, Net Realized Investment Gains and Losses (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Realized gains on available-for-sale investments [Abstract]
Total realized gains		$ 9,478,998	$ 14,318,305
Realized losses on available-for-sale investments [Abstract]
Other-than-temporary impairments	$ (5,000,000)	0	(5,000,000)
Total realized losses		(15,155)	(5,149,394)
Net realized investment gains		9,463,843	9,168,911
Change in fair value of equity securities [Abstract]
Change in fair value of equity securities held at the end of the period		(3,830,793)	33,690,712
Change in fair value of equity securities		(3,830,793)	33,690,712
Total net investment gains		5,633,050	42,859,623
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		2,867,943	(21,981,097)
Fixed Maturities [Member]
Realized gains on available-for-sale investments [Abstract]
Total realized gains		58,333	4,683
Realized losses on available-for-sale investments [Abstract]
Total realized losses		0	(5,211)
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		2,867,943	(21,981,097)
Equity Securities [Member]
Realized gains on available-for-sale investments [Abstract]
Total realized gains		820,001	8,986,784
Realized losses on available-for-sale investments [Abstract]
Total realized losses		(7,966)	(109,636)
Real Estate [Member]
Realized gains on available-for-sale investments [Abstract]
Total realized gains		8,577,155	5,326,838
Realized losses on available-for-sale investments [Abstract]
Total realized losses		0	(34,547)
Short-term Investments [Member]
Realized gains on available-for-sale investments [Abstract]
Total realized gains		23,509	0
Realized losses on available-for-sale investments [Abstract]
Total realized losses		$ (7,189)	$ 0

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Investments, Investment on Deposits (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Investments [Abstract]
Fair value of investments on deposit with state insurance departments	$ 7,959,076	$ 7,771,724

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Fair Value Measurements, Financial Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Assets [Abstract]
Fixed maturities, at fair value	$ 103,409,836	$ 108,313,059
Equity securities, at fair value	156,550,812	150,053,686
Measured on a Recurring Basis [Member]
Assets [Abstract]
Fixed maturities, at fair value	103,409,836	108,313,059
Equity securities, at fair value	101,561,493	60,618,920
Short-term investments	29,132,236	3,596,941
Total financial assets	234,103,565	172,528,920
Measured on a Recurring Basis [Member] | U.S. Government and Government Agencies and Authorities [Member]
Assets [Abstract]
Fixed maturities, at fair value	13,587,779	17,211,175
Measured on a Recurring Basis [Member] | U.S. Special Revenue and Assessments [Member]
Assets [Abstract]
Fixed maturities, at fair value	7,308,458	7,199,100
Measured on a Recurring Basis [Member] | Corporate Securities [Member]
Assets [Abstract]
Fixed maturities, at fair value	82,513,599	83,902,784
Measured on a Recurring Basis [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities, at fair value	43,956,687	52,651,277
Measured on a Recurring Basis [Member] | Limited Liability Companies [Member]
Assets [Abstract]
Equity securities, at fair value	57,604,806	7,967,643
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member]
Assets [Abstract]
Fixed maturities, at fair value	13,587,779	17,211,175
Equity securities, at fair value	35,819,973	45,999,477
Short-term investments	29,132,236	3,596,941
Total financial assets	78,539,988	66,807,593
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, at fair value	13,587,779	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, at fair value	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Corporate Securities [Member]
Assets [Abstract]
Fixed maturities, at fair value	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities, at fair value	35,819,973	45,999,477
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Limited Liability Companies [Member]
Assets [Abstract]
Equity securities, at fair value	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member]
Assets [Abstract]
Fixed maturities, at fair value	89,822,057	91,101,884
Equity securities, at fair value	5,329,080	6,651,800
Short-term investments	0	0
Total financial assets	95,151,137	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, at fair value	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, at fair value	7,308,458	7,199,100
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Corporate Securities [Member]
Assets [Abstract]
Fixed maturities, at fair value	82,513,599	83,902,784
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities, at fair value	5,329,080	6,651,800
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Limited Liability Companies [Member]
Assets [Abstract]
Equity securities, at fair value	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member]
Assets [Abstract]
Fixed maturities, at fair value	0	0
Equity securities, at fair value	60,412,440	7,967,643
Short-term investments	0	0
Total financial assets	60,412,440	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, at fair value	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, at fair value	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Corporate Securities [Member]
Assets [Abstract]
Fixed maturities, at fair value	0	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities, at fair value	2,807,634	0
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Limited Liability Companies [Member]
Assets [Abstract]
Equity securities, at fair value	$ 57,604,806	$ 7,967,643

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Fair Value Measurements, Reconciliation for Level 3 Assets Measured at Fair Value on a Recurring Basis (Details)	12 Months Ended
	Dec. 31, 2023 USD ($)
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 7,967,643
Purchases	5,683,029
Sales	(166,250)
Transfers in to Level 3	31,504,624
Transfers out of Level 3	0
Ending Balance	60,412,440
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, 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)	$ 15,423,394
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Change in fair value of equity securities
Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 7,967,643
Ending Balance	60,412,440
Equity Securities [Member] | Common Stock [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	0
Ending Balance	2,807,634
Equity Securities [Member] | Limited Liability Companies [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	7,967,643
Purchases	5,683,029
Sales	(166,250)
Transfers in to Level 3	28,908,439
Transfers out of Level 3	0
Ending Balance	57,604,806
Equity Securities [Member] | Other Realized Investment Gains, Net [Member] | Common Stock [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Realized and unrealized gains (losses)	0
Equity Securities [Member] | Other Realized Investment Gains, Net [Member] | Limited Liability Companies [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Realized and unrealized gains (losses)	0
Equity Securities [Member] | Change in Fair Value of Equity Securities [Member] | Common Stock [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Realized and unrealized gains (losses)	211,449
Purchases	0
Sales	0
Transfers in to Level 3	2,596,185
Transfers out of Level 3	0
Equity Securities [Member] | Change in Fair Value of Equity Securities [Member] | Limited Liability Companies [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Realized and unrealized gains (losses)	$ 15,211,945

XML

Fair Value Measurements, Quantitative Information About Level 3 (Details) - USD ($)	Dec. 31, 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	$ 60,412,440	$ 7,967,643
Equity Securities [Member]
Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract]
Financial assets, fair value	60,412,440	7,967,643
Equity Securities [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	2,807,634	0
Equity Securities [Member] | Limited Liability Companies [Member]
Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract]
Financial assets, fair value	57,604,806	7,967,643
Pricing Model [Member] | Equity Securities [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	57,604,806	7,967,643
Pricing Model [Member] | Equity Securities [Member] | Limited Liability Companies [Member]
Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract]
Financial assets, fair value	$ 2,807,634	$ 0

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Fair Value Measurements, Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share (Details) - Net Asset Value [Member] - Equity Securities [Member] - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Growth Equity [Member]
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract]
Fair value	$ 54,989,319	$ 89,434,766
Unfunded commitments	11,875,207	7,779,867
Growth Equity Redeemable [Member]
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract]
Fair value	34,081,797	43,724,562
Unfunded commitments	$ 0	$ 49,343
Redemption frequency	Quarterly	Quarterly
Redemption notice period	45 days	45 days
Growth Equity Non-Redeemable [Member] | Common Stock [Member]
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract]
Fair value		$ 12,074,829
Unfunded commitments		0
Growth Equity Non-Redeemable [Member] | Limited Liability Companies [Member]
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract]
Fair value	$ 11,960,929	25,243,953
Unfunded commitments	9,464,608	4,931,498
Growth Equity Non-Redeemable [Member] | Limited Partnerships [Member]
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract]
Fair value	8,946,593	8,391,422
Unfunded commitments	$ 2,410,599	$ 2,799,026

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Fair Value Measurements, Carrying Values and Estimated Fair Values of Financial Instruments not Recorded at Fair Value (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Assets [Abstract]
Equity securities, at cost	$ 15,977,368	$ 21,891,896
Minimum [Member]
Liabilities [Abstract]
Policy loan interest rate	4.00%
Maximum [Member]
Liabilities [Abstract]
Policy loan interest rate	8.00%
Level 1 [Member]
Assets [Abstract]
Mortgage loans on real estate	$ 0	0
Investment real estate	0	0
Notes receivable	0	0
Policy loans	0	0
Accrued investment income	0	0
Liabilities [Abstract]
Policy claims and benefits payable	0	0
Dividend and endowment accumulations	0	0
Notes payable	0	0
Level 1 [Member] | Preferred Stock [Member]
Assets [Abstract]
Held to maturity redeemable preferred stock	0	0
Level 1 [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities, at cost	0	0
Level 2 [Member]
Assets [Abstract]
Mortgage loans on real estate	0	0
Investment real estate	0	0
Notes receivable	0	0
Policy loans	0	0
Accrued investment income	0	0
Liabilities [Abstract]
Policy claims and benefits payable	0	0
Dividend and endowment accumulations	0	0
Notes payable	19,000,000	19,000,000
Level 2 [Member] | Preferred Stock [Member]
Assets [Abstract]
Held to maturity redeemable preferred stock	0	0
Level 2 [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities, at cost	0	0
Level 3 [Member]
Assets [Abstract]
Mortgage loans on real estate	14,447,026	29,735,873
Investment real estate	62,899,838	74,026,290
Notes receivable	14,189,147	14,812,523
Policy loans	6,018,248	6,567,434
Accrued investment income	2,001,064	1,371,677
Liabilities [Abstract]
Policy claims and benefits payable	4,188,917	4,072,879
Dividend and endowment accumulations	14,749,258	14,802,746
Notes payable	0	0
Level 3 [Member] | Preferred Stock [Member]
Assets [Abstract]
Held to maturity redeemable preferred stock	2,500,000	2,500,000
Level 3 [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities, at cost	15,977,368	21,891,896
Carrying Amount [Member]
Assets [Abstract]
Mortgage loans on real estate	15,318,176	30,698,694
Investment real estate	21,975,120	26,225,799
Notes receivable	14,009,225	14,424,127
Policy loans	6,018,248	6,567,434
Accrued investment income	2,001,064	1,371,677
Liabilities [Abstract]
Policy claims and benefits payable	4,188,917	4,072,879
Dividend and endowment accumulations	14,749,258	14,802,746
Notes payable	19,000,000	19,000,000
Carrying Amount [Member] | Preferred Stock [Member]
Assets [Abstract]
Held to maturity redeemable preferred stock	2,500,000	2,500,000
Carrying Amount [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities, at cost	15,977,368	21,891,896
Estimated Fair Value [Member]
Assets [Abstract]
Mortgage loans on real estate	14,447,026	29,735,873
Investment real estate	62,899,838	74,026,290
Notes receivable	14,189,147	14,812,523
Policy loans	6,018,248	6,567,434
Accrued investment income	2,001,064	1,371,677
Liabilities [Abstract]
Policy claims and benefits payable	4,188,917	4,072,879
Dividend and endowment accumulations	14,749,258	14,802,746
Notes payable	19,000,000	19,000,000
Estimated Fair Value [Member] | Preferred Stock [Member]
Assets [Abstract]
Held to maturity redeemable preferred stock	2,500,000	2,500,000
Estimated Fair Value [Member] | Common Stock [Member]
Assets [Abstract]
Equity securities, at cost	$ 15,977,368	$ 21,891,896

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Reinsurance (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Reinsurance [Abstract]
Retention amount limit	$ 125,000
Gross insurance in force	847,000,000	$ 897,000,000
Gross insurance ceded to reinsurers	172,000,000	$ 184,000,000
Retention limit amount of reinsurers	100,000
Cession on retention limit	$ 25,000
Percentage of reinsurers in force on accidental death benefits	100.00%
Percentage of future results sold	100.00%
Percentage in terms of reinsurance reserve credit	64.00%	64.00%
Effect of long duration reinsurance contracts on premiums earned [Abstract]
Direct	$ 7,918,235	$ 8,384,604
Assumed	0	0
Ceded	(2,553,010)	(2,697,382)
Net Premiums	$ 5,365,225	$ 5,687,222

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Cost of Insurance Acquired (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cost of insurance acquired [Roll Forward]
Interest rate used in amortization calculation	12.00%
Cost of insurance acquired, beginning of year	$ 2,698,153	$ 3,386,501
Interest accretion	418,722	501,324
Amortization	(1,079,979)	(1,189,672)
Net amortization	(661,257)	(688,348)
Cost of insurance acquired, end of year	2,036,896	$ 2,698,153
Interest Accretion [Abstract]
2024	339,372
2025	263,074
2026	189,374
2027	116,157
Amortization [Abstract]
2024	975,187
2025	877,240
2026	799,520
2027	292,926
Net Amortization [Abstract]
2024	635,815
2025	614,166
2026	610,146
2027	$ 176,769

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Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income tax expense (benefit) [Abstract]
Current tax expense (benefit)	$ (517,108)	$ 7,054,454
Deferred tax	372,861	2,517,685
Income tax expense (benefit)	$ (144,247)	$ 9,572,139
Income tax expense (benefit) reconciliation [Abstract]
United States statutory rate	21.00%	21.00%
Tax computed at statutory rate	$ 404,427	$ 9,226,662
Changes in taxes due to: [Abstract]
Non-controlling interest	(23,813)	(22,332)
Dividend received deduction	(109,642)	(142,790)
Oil and gas royalty's depletion	(106,797)	(170,123)
Other, including prior year true up	(308,422)	680,722
Income tax expense (benefit)	(144,247)	9,572,139
Deferred tax liability [Abstract]
Investments	11,862,470	10,794,061
Cost of insurance acquired	427,748	566,612
Management/consulting fees	(7,899)	(8,206)
Future policy benefits	(697,024)	(718,338)
Deferred gain on sale of subsidiary	1,387,490	1,387,490
Other liabilities	(284,350)	(330,488)
Reserves adjustment	96,105	144,158
Federal tax DAC	(236,950)	(253,151)
Loan loss reserve	(120,750)	0
Deferred tax liability	12,426,840	11,582,138
Gross deferred tax assets	1,939,816	1,808,474
Gross deferred tax liabilities	14,366,656	$ 13,390,612
Valuation allowance	$ 0
Income Tax Uncertainties [Abstract]
Tax years remaining subject to examination	2020 2021 2022 2023
Interest or penalties	$ 0

XML

Credit Arrangements (Details) - USD ($)	3 Months Ended	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2023	Dec. 31, 2022
Line of Credit Facility [Abstract]
Pledged bonds	$ 14,259,225	$ 14,259,225	$ 14,424,127
Asset Pledged as Collateral [Member]
Line of Credit Facility [Abstract]
Pledged bonds	20,258,602	$ 20,258,602
UTG 2013-11-20 [Member]
Line of Credit Facility [Abstract]
Issue Date		Nov. 20, 2013
Maturity Date		Nov. 20, 2024
Revolving Credit Limit	8,000,000	$ 8,000,000
Outstanding Balance	0	0	0
Borrowings		0
Repayments		$ 0
Assets Pledged		common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company ("UG")
UTG 2013-11-20 [Member] | UG [Member]
Line of Credit Facility [Abstract]
Percentage of common voting stock pledged		100.00%
Cash Management Advance [Member]
Line of Credit Facility [Abstract]
Borrowings	19,000,000
Cash Management Advance [Member] | Variable Rate [Member]
Line of Credit Facility [Abstract]
Interest Rate		5.47%
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. 04, 2024
Revolving Credit Limit	25,000,000	$ 25,000,000
Outstanding Balance	$ 19,000,000	19,000,000	$ 19,000,000
Borrowings		21,500,000
Repayments		$ 21,500,000

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Commitments and Contingencies (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Total Funding Commitments and Unfunded Commitment [Abstract]
Mortgage loan commitments	$ 878,132	$ 0
Notes receivable commitments	2,800,000	4,109,343
Unfunded Commitment	$ 16,153,903	$ 14,443,510

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Shareholders' Equity (Details) - USD ($)	1 Months Ended			12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Stock Repurchase Program [Abstract]
Stock repurchase program, additional amount authorized			$ 2,000,000
Stock repurchase program authorized amount	$ 22,000,000			$ 22,000,000
Stock repurchased during period (in shares)				30,646
Amount paid to repurchase shares during the year				$ 881,966	$ 685,808
Amount of common stock repurchased	$ 20,191,403			$ 20,191,403
Number of common stock acquired (in shares)	1,356,859			1,356,859
Earnings Per Share [Abstract]
Basic weighted average shares outstanding (in shares)				3,176,757	3,167,719
Weighted average dilutive options outstanding (in shares)				0	0
Diluted weighted average shares outstanding (in shares)				3,176,757	3,167,719
Statutory Restrictions [Abstract]
Minimum statutory surplus required to maintain	$ 2,500,000			$ 2,500,000
Period from declaration of ordinary dividend requires notification to insurance commissioner				5 days
Minimum period prior to payment of dividend requires notification to insurance commissioner				10 days
Percentage of statutory capital and surplus	10.00%			10.00%
Ordinary dividends paid				$ 2,000,000	$ 3,000,000
Period for which no extraordinary dividends paid				2 years
Outside Directors [Member]
Share-based Compensation [Abstract]
Annual retainer fee paid to director				$ 5,000
Per meeting fee paid to director				$ 2,500
Number of shares issued (in shares)	4,246	4,485
Stock issued during period (in dollars per share)	$ 30.01	$ 25.06		$ 30.01	$ 25.06
Cost of shares issued				$ 127,422	$ 112,394
Management and Employees [Member]
Share-based Compensation [Abstract]
Number of shares issued (in shares)				26,911	17,963
Cost of shares issued				$ 674,390	$ 486,798

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Statutory Accounting (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statutory Basis Net Income and Capital and Surplus [Abstract]
Net income	$ 8,320,315	$ 18,782,335
Capital and surplus	$ 91,828,094	$ 93,269,301

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Related Party Transactions (Details)		3 Months Ended	12 Months Ended
	Feb. 20, 2003 USD ($)	Dec. 31, 2023 USD ($) ft²	Dec. 31, 2023 USD ($) ft²	Dec. 31, 2022 USD ($) Company	Mar. 30, 2009 USD ($)
Related Party Transactions [Abstract]
Purchased trust preferred security offering	$ 4,000,000
Ownership interest in aircraft		30.10%	30.10%
Costs associated with aircraft			$ 307,442	$ 553,533
Administrative services and cost			$ 7,910,324	7,862,902
Servicing fee on loan			0.25%
Loan origination			0.50%
Servicing fees			$ 18,694	24,146
Origination fees			18,630	0
Reimbursement cost			$ 1,337,096	895,317
Percentage of processing fee reimbursed			100.00%
Reimbursement from associated entities			$ 1,438,450	1,134,315
Area of office space | ft²		8,000	8,000
Rent paid per month		$ 2,000	$ 2,000
Minimum [Member]
Related Party Transactions [Abstract]
Percentage of undivided participation in notes receivable			20.00%
Maximum [Member]
Related Party Transactions [Abstract]
Percentage of undivided participation in notes receivable			50.00%
FSBI [Member]
Related Party Transactions [Abstract]
Term for mandatory redemption			30 years
Term for call provision			5 years
Dividend rate			6.515%
Dividend income			$ 165,137	165,137
Common stock purchased					$ 1,000,000
FSNB [Member]
Related Party Transactions [Abstract]
Rental cost paid to FSNB			24,000	$ 24,000
Number of limited liability companies purchased | Company				3
Percentage of interest in participated loan		9.00%
BOD Loan - Funding commitment		$ 1,482,300
Loans participated to related parties		604,169	604,169
FSF [Member]
Related Party Transactions [Abstract]
Purchase price per entity				$ 1
Loans participated to related parties		$ 60,031	$ 60,031	$ 79,674

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Other Cash Flow Disclosures (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Other Cash Flow Disclosures [Abstract]
Interest	$ 44,814	$ 83,995
Federal income tax	$ 5,800,000	$ 1,890,000

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Concentrations (Details)	12 Months Ended
	Dec. 31, 2023 USD ($) Security State	Dec. 31, 2022 USD ($) 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, at fair value	103,409,836	$ 108,313,059
Equity securities, at fair value	156,550,812	150,053,686
Equity securities, at cost	15,977,368	21,891,896
Investment real estate	21,975,120	26,225,799	[1]
Notes receivable	14,009,225	14,424,127
Total investments	$ 364,891,021	$ 364,271,636
Equity Securities [Member]
Concentrations [Abstract]
Number of equity securities owned | Security	4	3
Oil and Gas Industry [Member]
Allocation of Oil and Gas Investments [Abstract]
Fixed maturities, at fair value	$ 1,075,240	$ 1,060,710
Equity securities, at fair value	84,066,203	86,811,806
Equity securities, at cost	5,826,381	13,840,908
Investment real estate	7,383,851	7,931,628
Notes receivable	2,000,000	1,950,657
Total investments	100,351,675	111,595,709
Oil and Gas Industry [Member] | Land, Minerals & Royalty Interests [Member]
Allocation of Oil and Gas Investments [Abstract]
Fixed maturities, at fair value	0	0
Equity securities, at fair value	84,066,203	86,811,806
Equity securities, at cost	5,826,381	13,840,908
Investment real estate	7,383,851	7,931,628
Notes receivable	2,000,000	1,950,657
Total investments	99,276,435	110,534,999
Oil and Gas Industry [Member] | Exploration [Member]
Allocation of Oil and Gas Investments [Abstract]
Fixed maturities, at fair value	1,075,240	1,060,710
Equity securities, at fair value	0	0
Equity securities, at cost	0	0
Investment real estate	0	0
Notes receivable	0	0
Total investments	$ 1,075,240	$ 1,060,710
Reinsurer Concentration Risk [Member] | Life Insurance Ceded [Member]
Concentrations [Abstract]
Percentage of gross insurance in force	20.00%	20.00%
Percentage of premium income	40.00%	40.00%
Direct Premium Collected [Member] | Geographic Concentration Risk [Member] | Illinois, Ohio, Texas and West Virginia [Member]
Concentrations [Abstract]
Concentration risk, percentage	51.00%	50.00%
Invested Assets [Member] | Customer Concentration Risk [Member] | Oil and Gas Industry [Member]
Concentrations [Abstract]
Concentration risk, percentage	28.00%	31.00%
Investments [Member] | Customer Concentration Risk [Member] | Oil and Gas Industry [Member] | Equity Securities [Member]
Concentrations [Abstract]
Concentration risk, percentage	73.00%	58.00%

[1] The Company has elected to reclassify certain investments to conform with the presentation for the year ended December 31, 2023. These reclassifications had no impact on previously reported net income.

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Revision of Previously Issued Consolidated Financial Statements (Details) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Unrealized holding gains (losses) arising during period, pre-tax	$ 2,867,943	$ (21,981,097)
Tax (expense) benefit on unrealized holding gains (losses) arising during the period	(592,591)	4,615,943
Unrealized holding gains (losses) arising during period, net of tax	2,275,352	(17,365,154)
Subtotal: Other comprehensive income (loss), net of tax	2,229,269	(17,364,737)
Comprehensive income	4,299,361	16,999,609
Comprehensive income attributable to UTG, Inc.	$ 4,185,964	16,893,268
As Previously Reported [Member]
Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Unrealized holding gains (losses) arising during period, pre-tax		(27,824,173)
Tax (expense) benefit on unrealized holding gains (losses) arising during the period		5,843,076
Unrealized holding gains (losses) arising during period, net of tax		(21,981,097)
Subtotal: Other comprehensive income (loss), net of tax		(21,980,680)
Comprehensive income		12,383,666
Comprehensive income attributable to UTG, Inc.		12,277,325
Adjustments [Member]
Consolidated Statements of Comprehensive Income (Loss) [Abstract]
Unrealized holding gains (losses) arising during period, pre-tax		5,843,076
Tax (expense) benefit on unrealized holding gains (losses) arising during the period		(1,227,133)
Unrealized holding gains (losses) arising during period, net of tax		4,615,943
Subtotal: Other comprehensive income (loss), net of tax		4,615,943
Comprehensive income		4,615,943
Comprehensive income attributable to UTG, Inc.		$ 4,615,943