SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

For the quarterly period ended ~~June 30, 2021~~March 31, 2022

For the transition period from _____________ to ____________

Commission File No. 000-16867

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

Common Stock, stated value $.001 per share

Non-accelerated filer □

Smaller reporting company ☒

Emerging growth company ☐

PART II. Other Information

Part 1. Financial Information.

Item 1. Financial Statements.

Condensed Consolidated Balance Sheets (Unaudited)

Fixed maturities, at fair value (amortized cost $131,085,585 and $146,017,864)

Fixed maturities, at fair value (amortized cost $122,031,325 and $127,949,963)

* Balance sheet audited at December 31, ~~2020.~~2021.

See accompanying notes.

Condensed Consolidated Statements of Operations (Unaudited)

See accompanying notes.

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

See accompanying notes.

~~Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)~~

Comprehensive Income

~~See accompanying notes.~~

Condensed Consolidated Statements of ~~Shareholders’~~Shareholders' Equity (Unaudited)

Comprehensive Income

See accompanying notes.

Condensed Consolidated Statements of Cash Flows (Unaudited)

See accompanying notes.

Notes to Condensed Consolidated Financial Statements

Note 1 – Basis of Presentation

The accompanying Condensed Consolidated Balance Sheet as of ~~June 30, 2021,~~March 31, 2022, which has been derived from audited consolidated financial statements, and the unaudited interim Condensed Consolidated Financial Statements include the accounts of UTG, Inc. (the “Parent”) and its subsidiaries (collectively with the Parent, the “Company”). All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for audited annual financial statements. The information furnished includes all adjustments and accruals of a normal recurring nature, which in the opinion of Management, are necessary for a fair presentation of the results for the interim periods. The unaudited Condensed Consolidated Financial Statements included herein and these related notes should be read in conjunction with the Company’s consolidated financial statements, and the notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, ~~2020~~2021. The Company’s results of operations for the ~~three and six months~~three-months ended ~~June 30, 2021~~March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021 or for any other future period.

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

This document at times will refer to the Registrant’s largest shareholder, Mr. Jesse T. Correll and certain companies controlled by Mr. Correll. Mr. Correll holds a majority ownership of First Southern Funding, LLC (“FSF”), a Kentucky corporation, and First Southern Bancorp, Inc. (“FSBI”), a financial services holding company. FSBI operates through its 100% owned subsidiary bank, First Southern National Bank (“FSNB”). Banking activities are conducted through multiple locations within south-central and western Kentucky. Mr. Correll is Chief Executive Officer and Chairman of the Board of Directors of UTG and is currently UTG’s largest shareholder through his ownership control of FSF, FSBI and affiliates. At ~~June 30, 2021,~~March 31, 2022, Mr. Correll owns or controls directly and indirectly approximately ~~65.02%~~65.22% of UTG’s outstanding stock.

UTG’s life insurance subsidiary, Universal Guaranty Life Insurance Company (“UG”), has several wholly-owned and majority-owned subsidiaries. The subsidiaries were formed to hold certain real estate investments. The real estate investments were placed into the limited liability companies and partnerships to provide additional protection to the policyholders and to UG.

Certain amounts in prior periods have been reclassified to conform with the current period presentation.

Note 2 – Recently Issued Accounting Standards

During the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, there were no additions to or changes in the critical accounting policies disclosed in the ~~2020~~2021 Form 10-K.

Note 3 – Investments

Available for Sale Securities – Fixed Maturity Securities

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

Investments in available for sale securities are summarized as follows:

March 31, 2022	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	21,311,435	$	40,954	$	(465,755	)	$	20,886,634
U.S. special revenue and assessments		7,539,433		984,102		0			8,523,535
All other corporate bonds		93,180,457		3,503,148		(237,455	)		96,446,150
	$	122,031,325	$	4,528,204	$	(703,210	)	$	125,856,319

June 30, 2021	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
December 31, 2021									Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities	$	23,274,044	$	683,042	$	0	$	23,957,086	$	25,312,358	$	355,623	$	(17,078	)	$	25,650,903
U.S. special revenue and assessments		11,546,895		1,013,220		0		12,560,115		7,540,867		982,668		0			8,523,535
All other corporate bonds		96,264,646		13,468,218		0		109,732,864		95,096,738		11,692,705		0			106,789,443
	$	131,085,585	$	15,164,480	$	0	$	146,250,065	$	127,949,963	$	13,030,996	$	(17,078	)	$	140,963,881

December 31, 2020 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value
Investments available for sale:
Fixed maturities
U.S. Government and govt. agencies and authorities $ 36,285,535 $ 1,186,999 $ 0 $ 37,472,534
U.S. special revenue and assessments 11,556,980 1,382,164 0 12,939,144
All other corporate bonds 98,175,349 17,604,617 (411,647 ) 115,368,319
$ 146,017,864 $ 20,173,780 $ (411,647 ) $ 165,779,997

The amortized cost and estimated market value of debt securities at ~~June 30, 2021,~~March 31, 2022, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Fixed Maturities Available for Sale
June 30, 2021
Amortized Cost Fair Value
Due in one year or less $ 13,537,448 $ 13,702,990
Due after one year through five years 42,747,908 45,774,071
Due after five years through ten years 25,688,722 29,045,145
Due after ten years 22,246,160 25,789,400
Fixed maturities with no single maturity date 26,865,347 31,938,459
Total $ 131,085,585 $ 146,250,065

Fixed Maturities Available for Sale March 31, 2022	Amortized Cost		Fair Value
Due in one year or less	$	6,997,599	$	7,025,545
Due after one year through five years		45,895,603		46,136,979
Due after five years through ten years		20,054,401		21,610,306
Due after ten years		22,131,718		22,672,885
Fixed maturities with no single maturity date		26,952,004		28,410,604
Total	$	122,031,325	$	125,856,319

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

June 30, 2021	Less than 12 months					12 months or longer				Total
March 31, 2022															Less than 12 months						12 months or longer				Total
	Fair value			Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses			Fair value			Unrealized losses			Fair value		Unrealized losses		Fair value		Unrealized losses
U.S. Government and govt. agencies and authorities																$	13,344,699		(465,755	)		0		0		13,344,699		$	(465,755	)
All other corporate bonds		$	0		0		0		0		0		$	0			11,632,779		(237,455	)		0		0		11,632,779			(237,455	)
Total fixed maturities		$	0		0		0		0		0		$	0		$	24,977,478		(703,210	)		0		0		24,977,478		$	(703,210	)

December 31, 2020 Less than 12 months 12 months or longer Total
Fair value Unrealized losses Fair value Unrealized losses Fair value Unrealized losses
All other corporate bonds $ 4,937 (63 ) 0 (411,584 ) 4,937 $ (411,647 )
Total fixed maturities $ 4,937 (63 ) 0 (411,584 ) 4,937 $ (411,647 )

December 31, 2021	Less than 12 months						12 months or longer				Total
	Fair value			Unrealized losses			Fair value		Unrealized losses		Fair value		Unrealized losses
U.S. Government and govt. agencies and authorities		$	4,042,825		(17,078	)		0		0		4,042,825		$	(17,078	)
Total fixed maturities		$	4,042,825		(17,078	)		0		0		4,042,825		$	(17,078	)

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

	Less than 12 months		12 months or longer		Total		Less than 12 months		12 months or longer		Total
As of June 30, 2021
As of March 31, 2022
Fixed maturities		0		0		0		17		0		17
As of December 31, 2020
As of December 31, 2021
Fixed maturities		1		1		2		3		0		3

Substantially all of the unrealized losses on fixed maturities at March 31, 2022 and December 31, ~~2020~~2021 are attributable to changes in market interest rates and general disruptions in the credit market subsequent to purchase. The Company does not currently intend to sell nor does it expect to be required to sell any of the securities in an unrealized loss position. Based upon the Company’s expected continuation of receipt of contractually required principal and interest payments and its intent and ability to retain the securities until price recovery, as well as the Company’s evaluation of other relevant factors, the Company deems these securities to be temporarily impaired as of March 31, 2022 and December 31, ~~2020.~~2021.

Net Investment Gains (Losses)

The following table presents net investment gains (losses) and the change in net unrealized gains ~~(losses)~~ on available-for-sale investments.

	Three Months Ended						Six Months Ended						Three Months Ended
	June 30,						June 30,						March 31,
	2021			2020			2021			2020			2022			2021
Realized gains:
Sales of fixed maturities	$	34,236		$	11,732		$	34,236		$	403,215		$	4,369		$	0
Sales of equity securities		3,006,835			646,351			3,019,207			988,558			385,358			12,372
Sales of real estate		1,247,193			0			1,383,252			0			4,458,442			136,059
Other		0			0			0			0
Total realized gains		4,288,264			658,083			4,436,695			1,391,773			4,848,169			148,431
Realized losses:
Sales of fixed maturities		0			(64,992	)		0			(64,992	)
Sales of equity securities		(803	)		(2,571,937	)		(4,188	)		(3,422,627	)		(68,020	)		(3,385	)
Sales of real estate		0			0			0			0
Other-than-temporary impairments		(411,584	)		0			(411,584	)		0
Other		0			0			0			0
Total realized losses		(412,387	)		(2,636,929	)		(415,772	)		(3,487,619	)		(68,020	)		(3,385	)
Net realized investment gains (losses)		3,875,877			(1,978,846	)		4,020,923			(2,095,846	)		4,780,149			145,046
Change in fair value of equity securities:
Change in fair value of equity securities held at the end of the period		195,136			16,704,460			20,375,015			(688,477	)		8,154,629			20,179,879
Change in fair value of equity securities		195,136			16,704,460			20,375,015			(688,477	)		8,154,629			20,179,879
Net investment gains (losses)	$	4,071,013		$	14,725,614		$	24,395,938		$	(2,784,323	)	$	12,934,778		$	20,324,925
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income:
Fixed maturities	$	2,505,067		$	6,595,986		$	(4,975,001	)	$	8,068,851		$	(9,184,559	)	$	(7,480,068	)
Net increase (decrease)	$	2,505,067		$	6,595,986		$	(4,975,001	)	$	8,068,851		$	(9,184,559	)	$	(7,480,068	)

Other-Than-Temporary Impairments

The Company regularly reviews its investment securities for factors that may indicate that a decline in fair value of an investment is other than temporary. The factors considered by Management in its regular review to identify and recognize other-than-temporary impairment losses on fixed maturities include, but are not limited to: the length of time and extent to which the fair value has been less than cost; the Company’s intent to sell, or be required to sell, the debt security before the anticipated recovery of its remaining amortized cost basis; the financial condition and near-term prospects of the issuer; adverse changes in ratings announced by one or more rating agencies; subordinated credit support, whether the issuer of a debt security has remained current on principal and interest payments; current expected cash flows; whether the decline in fair value appears to be issuer specific or, alternatively, a reflection of general market or industry conditions, including the effect of changes in market interest rates. If the Company intends to sell a debt security, or it is more likely than not that it would be required to sell a debt security before the recovery of its amortized cost basis, the entire difference between the security’s amortized cost basis and its fair value at the balance sheet date would be recognized by a charge to other-than-temporary losses in the Condensed Consolidated Statements of Operations.

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

The Company recognized an other-than-temporary impairment of $(411,584) on one fixed maturity security during the second quarter of 2021. The other-than-temporary impairment was recognized due to the length of time the investment remained in an unrealized loss position. The Company did not recognize any other-than-temporary impairments during the ~~six~~three month ~~period~~periods ended ~~June 30, 2020.~~March 31, 2022 and 2021.

Cost Method Investments

The Company held equity investments with an aggregate cost of $14,543,343 ~~and $14,389,189~~ at ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020, respectively.~~2021. These equity investments were not reported at fair value because it is not practicable to estimate their fair values due to insufficient information being available. Management did not identify any events or changes in circumstances that might have a significant adverse effect on the reported value of those investments. Based on Management’s evaluation of the expected cash flow of the investments, and the Company’s ability and intent to hold the investments for a reasonable period of time, the Company does not deem an other-than-temporary impairment necessary at ~~June 30, 2021.~~March 31, 2022.

Trading Securities

Securities designated as trading securities are reported at fair value, with gains or losses resulting from changes in fair value recognized in net investment income on the Condensed Consolidated Statements of Operations. Trading securities include exchange-traded equities and exchange-traded options. Trading securities carried as liabilities are securities sold short. A gain, limited to the price at which the security was sold short, or a loss, potentially unlimited in size, will be recognized upon the termination of the short sale. The fair value of derivatives included in trading security assets and trading security liabilities as of ~~June 30, 2021~~March 31, 2022 was $0 and ~~$675,~~$5,291, respectively. The fair value of derivatives included in trading security assets and trading security liabilities as of December 31, ~~2020~~2021 was $0 and ~~$12,219,~~$1,116, respectively. Earnings from trading securities are classified in cash flows from operating activities. The derivatives held by the Company are for income generation purposes only.

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

	Three Months Ended				Three Months Ended
	June 30,				March 31,
	2021		2020		2022			2021
Net unrealized gains (losses)	$	950	$	0	$	(470	)	$	2,734
Net realized gains (losses)		18,304		0		(2,516	)		10,954
Net unrealized and realized gains (losses)	$	19,254	$	0	$	(2,986	)	$	13,688

Six Months Ended
June 30,
2021 2020
Net unrealized gains (losses) $ (1,784 ) $ 0
Net realized gains (losses) 7,350 0
Net unrealized and realized gains (losses) $ 5,566 $ 0

Mortgage Loans

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

During the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ the Company acquired ~~$747,941~~$1,546,165 and ~~$5,098,138~~$387,039 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 ~~2021~~2022 and ~~2020,~~2021, the maximum and minimum lending rates for mortgage loans were:

2021 2020
Maximum rate Minimum rate Maximum rate Minimum rate
Farm Loans 5.00 % 4.50 % 4.50 % 4.50 %
Commercial Loans 5.25 % 4.10 % 5.25 % 4.24 %
Residential Loans 4.95 % 4.95 % 4.95 % 4.95 %

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

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

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

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

A mortgage loan reserve is established and adjusted based on Management’s quarterly analysis of the portfolio and any deterioration in value of the underlying property which would reduce the net realizable value of the property below its current carrying value. The mortgage loan reserve was $0 at ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020.~~2021.

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

June 30, 2021 December 31, 2020
In good standing $ 11,905,187 $ 18,704,351
Overdue interest over 90 days 2,080,773 2,098,014
Total mortgage loans $ 13,985,960 $ 20,802,365

	March 31, 2022		December 31, 2021
In good standing	$	28,366,979	$	27,102,789
Overdue interest over 90 days		2,080,773		2,080,773
Total mortgage loans	$	30,447,752	$	29,183,562

Investment Real Estate

Real estate held-for-investment is stated at cost less accumulated depreciation. Depreciation is computed on a straight-line basis for financial reporting purposes using estimated useful lives of 3 to 30 years. The Company periodically reviews its real estate held-for-investment for impairment and tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable. During the ~~six~~three months ended ~~June 30, 2021,~~March 31, 2022, 0 impairments were recognized on the investment real estate.

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

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

	June 30, 2021		December 31, 2020		March 31, 2022		December 31, 2021
Raw land	$	11,050,401	$	11,727,103	$	13,603,157	$	14,538,507
Commercial		2,710,224		3,530,064		5,266,333		4,347,423
Residential		3,279,519		2,797,648		3,642,113		3,813,936
Land, minerals and royalty interests		18,258,702		20,031,576		16,474,237		17,048,395
Total investment real estate	$	35,298,846	$	38,086,391	$	38,985,840	$	39,748,261

The Company’s investment real estate portfolio includes ownership in oil and gas royalties. As of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, investments in oil and gas royalties represented ~~52%~~42% and ~~48%~~43%, respectively, of the total investment real estate portfolio. See Note 9 – Concentrations of Credit Risk of the Condensed Consolidated Financial Statements for additional information regarding the allocation of the oil and gas investment real estate holdings by industry type.

Gains and losses recognized on the disposition of the properties are recorded as realized gains and losses in the Condensed Consolidated Statements of Operations. During the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ the Company acquired ~~$1,402,593~~$1,680,959 and $0$780,781 of investment real estate, respectively.

Notes Receivable

Notes receivable represent collateral loans and promissory notes issued by the Company and are reported at their unpaid principal balances, adjusted for valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. The valuation allowance as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 was $0. Interest accruals are analyzed based on the likelihood of repayment. The Company does not utilize a specified number of days delinquent to cause an automatic non-accrual status. During the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021 ~~and 2020~~ the Company acquired ~~$6,000,000~~$2,060,657 and ~~$3,500,000~~$0 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.

~~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 the six months ended June 30, 2021 and 2020, the Company acquired $0 and $7,890,228, respectively, in short-term investments.~~

Note 4 – Fair Value Measurements

Fair Value Measurements on a Recurring Basis

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

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

Level 2 – Valuation methodologies include quoted prices for similar assets and liabilities in active markets or quoted prices for identical, quoted prices for identical or similar assets or liabilities in markets that are not active, or the Company may use various valuation techniques or pricing models that use observable inputs to measure fair value.

Level 3 – Valuation is based upon unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset or liability.

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

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

June 30, 2021	Level 1			Level 2		Level 3		Net Asset Value		Total
March 31, 2022													Level 1			Level 2		Level 3		Net Asset Value		Total
Financial assets:
Fixed maturities available for sale:
U.S. Government and government agencies and authorities	$	23,957,086		$	0	$	0	$	0	$	23,957,086		$	20,886,634		$	0	$	0	$	0	$	20,886,634
U.S. special revenue and assessments		0			12,560,115		0		0		12,560,115			0			8,523,535		0		0		8,523,535
Corporate securities		0			109,732,864		0		0		109,732,864			0			96,446,150		0		0		96,446,150
Total fixed maturities		23,957,086			122,292,979		0		0		146,250,065			20,886,634			104,969,685		0		0		125,856,319
Equity securities:
Common stocks		46,025,180			15,350,400		3,970,854		55,027,440		120,373,874			47,769,839			16,612,364		5,997,848		60,449,399		130,829,450
Preferred stocks		0			31,026		750,000		0		781,026			0			20,779		1,247,000		0		1,267,779
Total equity securities		46,025,180			15,381,426		4,720,854		55,027,440		121,154,900			47,769,839			16,633,143		7,244,848		60,449,399		132,097,229
Total financial assets	$	69,982,266		$	137,674,405	$	4,720,854	$	55,027,440	$	267,404,965		$	68,656,473		$	121,602,828	$	7,244,848	$	60,449,399	$	257,953,548

Liabilities
Trading securities	$	(675	)	$	0	$	0	$	0	$	(675	)	$	(5,291	)	$	0	$	0	$	0	$	(5,291	)

December 31, 2020	Level 1			Level 2		Level 3		Net Asset Value		Total
December 31, 2021													Level 1			Level 2		Level 3		Net Asset Value		Total
Financial assets:
Fixed maturities available for sale:
U.S. Government and government agencies and authorities	$	37,472,534		$	0	$	0	$	0	$	37,472,534		$	25,650,903		$	0	$	0	$	0	$	25,650,903
U.S. special revenue and assessments		0			12,939,144		0		0		12,939,144			0			8,523,535		0		0		8,523,535
Corporate securities		0			115,368,319		0		0		115,368,319			0			106,789,443		0		0		106,789,443
Total fixed maturities		37,472,534			128,307,463		0		0		165,779,997			25,650,903			115,312,978		0		0		140,963,881
Equity securities:
Common stocks		28,477,005			15,922,869		3,161,120		30,496,625		78,057,619			40,784,660			16,711,180		5,861,486		57,603,597		120,960,923
Preferred stocks		0			17,568		0		0		17,568			0			21,198		1,247,000		0		1,268,198
Total equity securities		28,477,005			15,940,437		3,161,120		30,496,625		78,075,187			40,784,660			16,732,378		7,108,486		57,603,597		122,229,121
Total financial assets	$	65,949,539		$	144,247,900	$	3,161,120	$	30,496,625	$	243,855,184		$	66,435,563		$	132,045,356	$	7,108,486	$	57,603,597	$	263,193,002

Liabilities
Trading securities	$	(12,219	)	$	0	$	0	$	0	$	(12,219	)	$	(1,116	)	$	0	$	0	$	0	$	(1,116	)

The following is a description of the valuation techniques used the by Company to measure assets reported at fair value on a recurring basis. There have been no significant changes in the valuation techniques utilized by the Company for the ~~six~~three months ended ~~June 30, 2021.~~March 31, 2022.

Available for Sale Securities

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

Equity Securities at Fair Value

Equity securities consist of common stocks mainly in private equity investments, financial institutions and publicly traded corporations. Equity securities for which there is sufficient market data are categorized as Level 1 or 2 in the fair value hierarchy. For the equity securities in which quoted market prices are not available, the Company uses industry standard pricing methodologies, including discounted cash flow models that may incorporate various inputs such as payment expectations, risk of the investment, market data, and health of the underlying company. The inputs are based upon Management’s assumptions and available market information. When evidence is believed to support a change to the carrying value from the transaction price, adjustments are made to reflect the expected cash flows, material events and market data. These investments are included in Level 3 of the fair value hierarchy.

Equity Securities at Net Asset Value

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

Trading Securities

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

Change in Level 3 Recurring Fair Value Measurements

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

	Equity Securities at Fair Value			Equity Securities at Net Asset Value		Total			Equity Securities at Fair Value		Equity Securities at Net Asset Value			Total
Balance at December 31, 2020	$	3,161,120		$	30,496,625	$	33,657,745
Balance at December 31, 2021									$	7,108,486	$	57,603,597		$	64,712,083
Realized gains (losses)		756,307			0		756,307			0		327,863			327,863
Unrealized gains (losses)		(243,123	)		7,543,329		7,300,206			136,362		2,736,783			2,873,145
Purchases		1,802,857			16,987,486		18,790,343			0		2,020,272			2,020,272
Sales		(756,307	)		0		(756,307	)		0		(2,239,116	)		(2,239,116	)
Balance at June 30, 2021	$	4,720,854		$	55,027,440	$	59,748,294
Balance at March 31, 2022									$	7,244,848	$	60,449,399		$	67,694,247

Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021 may include changes in fair value that were attributable to both observable and unobservable inputs.

Quantitative Information About Level 3 Fair Value Measurements

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

Financial Assets	Fair Value at June 30, 2021		Fair Value at December 31, 2020		Valuation Technique	Fair Value at March 31, 2022		Fair Value at December 31, 2021		Valuation Technique
Equities	$	55,027,440	$	30,496,625	Net Asset Value	$	60,449,399	$	57,603,597	Net Asset Value
Equities		4,720,854		3,161,120	Pricing Model		7,244,848		7,108,486	Pricing Model
Total	$	59,748,294	$	33,657,745		$	67,694,247	$	64,712,083

Uncertainty of Fair Value Measurements

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

Equity Securities at Fair Value

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

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

Investment Company	Fair Value at June 30, 2021		Unfunded Commitments		Redemption Frequency		Redemption Notice Period		Fair Value at March 31, 2022		Unfunded Commitments		Redemption Frequency		Redemption Notice Period
Common Stocks
Growth Equity
Redeemable	$	29,081,716	$	0	Quarterly		45 days		$	30,317,654	$	0	Quarterly		45 days
Non-Redeemable		25,945,724		6,378,944		n/a		n/a		30,131,745		8,798,728		n/a		n/a
Total	$	55,027,440	$	6,378,944					$	60,449,399	$	8,798,728

Fair Value at December 31, 2020

Unfunded Commitments

Redemption Frequency

Redemption Notice Period

Fair Value at December 31, 2021

Unfunded Commitments

Redemption Frequency

Redemption Notice Period

Fair Value Measurements on a Nonrecurring Basis

Certain assets are not carried at fair value on a recurring basis. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to re-measurement at fair value after initial recognition and the resulting re-measurement is reflected in the Condensed Consolidated Financial Statements. The Company did not recognize any re-measurements or impairments of financial instruments at ~~June 30, 2021~~March 31, 2022 or December 31, ~~2020.~~2021.

Fair Value Information About Financial Instruments Not Measured at Fair Value

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

	Carrying		Estimated								Carrying		Estimated
June 30, 2021	Amount		Fair Value		Level 1		Level 2		Level 3
March 31, 2022											Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Common stock, at cost	$	5,860,000		5,860,000		0		0		5,860,000	$	5,860,000		5,860,000		0		0		5,860,000
Preferred stock, at cost		8,683,343		8,683,343		0		0		8,683,343		8,683,343		8,683,343		0		0		8,683,343
Mortgage loans on real estate		13,985,960		13,985,960		0		0		13,985,960		30,447,752		30,447,752		0		0		30,447,752
Investment real estate		35,298,846		80,069,238		0		0		80,069,238		38,985,840		93,134,969		0		0		93,134,969
Notes receivable		23,100,967		23,111,132		0		0		23,111,132		15,939,190		15,939,190		0		0		15,939,190
Policy loans		8,483,130		8,483,130		0		0		8,483,130		7,321,614		7,321,614		0		0		7,321,614
Liabilities
Notes payable												10,000,000		10,000,000		0		10,000,000		0

	Carrying		Estimated								Carrying		Estimated
December 31, 2020	Amount		Fair Value		Level 1		Level 2		Level 3
December 31, 2021											Amount		Fair Value		Level 1		Level 2		Level 3
Assets
Common stock, at cost	$	5,860,000		5,860,000		0		0		5,860,000	$	5,860,000		5,860,000		0		0		5,860,000
Preferred stock, at cost		8,529,189		8,529,189		0		0		8,529,189		8,683,343		8,683,343		0		0		8,683,343
Mortgage loans on real estate		20,802,365		20,802,365		0		0		20,802,365		29,183,562		29,183,562		0		0		29,183,562
Investment real estate		38,086,391		82,689,332		0		0		82,689,332		39,748,261		96,463,112		0		0		96,463,112
Notes receivable		17,682,296		17,709,894		0		0		17,709,894		17,722,976		17,722,976		0		0		17,722,976
Policy loans		8,590,524		8,590,524		0		0		8,590,524		7,390,497		7,390,497		0		0		7,390,497
Liabilities
Notes payable												24,000,000		24,000,000		0		24,000,000		0

The above estimated fair value amounts have been determined based upon the following valuation methodologies. Considerable judgment was required to interpret market data in order to develop these estimates. Accordingly, the estimates are not necessarily indicative of the amounts which could be realized in a current market exchange. The use of different market assumptions or estimation methodologies may have a material effect on the fair value amounts.

The fair values of mortgage loans on real estate are estimated using discounted cash flow analyses and interest rates being offered for similar loans to borrowers with similar credit ratings. The inputs used to measure the fair value of our mortgage loans on real estate are classified as Level 3 within the fair value hierarchy.

A portion of the mortgage loans balance consists of discounted mortgage loans. The Company has historically purchased non-performing discounted mortgage loans at a deep discount through an auction process led by the Federal Government. In general, the discounted loans are non-performing and there is a significant amount of uncertainty surrounding the timing and amount of cash flows to be received by the Company. Accordingly, the Company records its investment in the discounted loans at its original purchase price, which Management believes approximates fair value. The inputs used to measure the fair value of our discounted mortgage loans are classified as Level 3 within the fair value hierarchy.

Investment real estate is recorded at the lower of the net investment in the real estate or the fair value of the real estate less costs to sell. The determination of fair value assessments are performed on a periodic, non-recurring basis by external appraisal and assessment of property values by Management. The inputs used to measure the fair value of our investment real estate are classified as Level 3 within the fair value hierarchy.

The fair values of notes receivable are estimated using discounted cash flow analyses and interest rates being offered for similar loans to borrowers with similar credit ratings. The inputs used to measure the fair value of the notes receivable are classified as Level 3 within the fair value hierarchy.

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

Note 5 – Credit Arrangements

The UTG line of credit carries interest at a fixed rate of 3.750% and is payable monthly. As collateral, UTG has pledged 100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company.

During ~~May~~October of 2021, the Federal Home Loan Bank approved ~~UG’s~~UG's Cash Management Advance ~~Application (“CMA”~~("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 ~~$12,129,569.~~ $20,201,749. During May of 2022, the Company borrowed an additional $9.5 million on the CMA and Management will utilize the funds for investing activities. The interest rate on the borrowed funds is variable and currently is 0.76%.

The CMA is a source of overnight liquidity utilized to address the day-to-day cash needs of a Company. In order to provide the Company with multiple lending options, Management also applied for, and the FHLB approved, the Company's Repurchase ("REPO") Advance Application for $25 million. The REPO Advance requires a minimum borrowing of $15 million and provides financing for one day to one year at a fixed rate of interest. The Company has enough qualifying investments for collateral pledging of $25 million total against these 2 borrowing vehicles.

Note 6 – Shareholders’ Equity

Stock Repurchase Program – The Board of Directors of UTG has authorized the repurchase in the open market or in privately negotiated transactions of UTG’s common stock. At a meeting of the Board of Directors in ~~September~~March of ~~2020,~~2022, the Board of Directors of UTG authorized the repurchase of up to an additional $~~1.5~~2 million of UTG’s common stock, for a total repurchase of up to $2022 million of UTG’s common stock in the open market or in privately negotiated transactions. Company Management has broad authority to operate the program, including the discretion of whether to purchase shares and the ability to suspend or terminate the program. Open market purchases are made based on the last available market price but may be limited. During the ~~six~~three months ended ~~June 30, 2021~~March 31, 2022, the Company repurchased ~~8,849~~9,849 shares through the stock repurchase program for $~~238,971~~267,433. Through ~~June 30, 2021~~March 31, 2022, UTG has spent $~~18,325,220~~18,891,063 in the acquisition of ~~1,291,114~~1,311,754 shares under this program.

During ~~2021,~~2022, the Company issued ~~6,294~~17,963 shares of stock to management and employees as compensation at a cost of ~~$170,538.~~$486,797. These awards are determined at the discretion of the Board of Directors.

Earnings Per Share Calculations

Earnings per share are based on the weighted average number of common shares outstanding during each period. For the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020,~~ diluted earnings per share were the same as basic earnings per share since the Company had 0 dilutive instruments outstanding.

Note 7 – Commitments and Contingencies

The insurance industry has experienced a number of civil jury verdicts which have been returned against life and health insurers in the jurisdictions in which the Company does business involving the insurers’ sales practices, alleged agent misconduct, failure to properly supervise agents, and other matters. Some of the lawsuits have resulted in the award of substantial judgments against the insurer, including material amounts of punitive damages. In some states, juries have substantial discretion in awarding punitive damages in these circumstances. In the normal course of business, the Company is involved from time to time in various legal actions and other state and federal proceedings. Management is of the opinion that the ultimate disposition of the matters will not have a materially adverse effect on the Company’s results of operations or financial position.

Under the insurance guaranty fund laws in most states, insurance companies doing business in a participating state can be assessed up to prescribed limits for policyholder losses incurred by insolvent or failed insurance companies. Although the Company cannot predict the amount of any future assessments, most insurance guaranty fund laws currently provide that an assessment may be excused or deferred if it would threaten an insurer’s financial strength. Mandatory assessments may be partially recovered through a reduction in future premium tax in some states. The Company does not believe such assessments will be materially different from amounts already provided for in the condensed consolidated financial statements, though the Company has no control over such assessments.

The following table represents the total funding commitments and the unfunded commitment as of ~~June 30, 2021~~March 31, 2022 related to certain investments:

	Total Funding Commitment		Unfunded Commitment		Total Funding Commitment		Unfunded Commitment
RLF III, LLC	$	4,000,000	$	398,120	$	4,000,000	$	398,120
Sovereign’s Capital, LP Fund I		500,000		13,000		500,000		13,000
Sovereign's Capital, LP Fund II		1,000,000		109,033		1,000,000		92,034
Sovereign's Capital, LP Fund III		3,000,000		1,033,840		3,000,000		641,440
Macritchie Storage II, LP		7,000,750		1,656,075		7,000,750		833,358
Garden City Companies, LLC		2,000,000		1,872,425		2,000,000		1,496,507
Carrizo Springs Music, LLC		5,000,000		2,252,211		5,000,000		189,711
Modern Distributors, Inc.		7,200,000		3,700,000
Legacy Venture X, LLC		3,000,000		2,760,000		3,000,000		1,950,000
QCC Investment Co., LLC		1,500,000		150,000		1,500,000		150,000
Great American Media Group, LLC						4,000,000		4,000,000
Sovereign's Capital Evergreen Fund I, LLC						3,000,000		300,454
PBEX, LLC						2,000,000		1,199,343
Sovereign's Capital Lower Middle Market Fund II, LP						3,000,000		2,968,950

During 2006, the Company committed to invest in RLF III, LLC (“RLF”), which makes land-based investments in undervalued assets. RLF makes capital calls as funds are needed for continued land purchases.

During 2012, the Company committed to invest in Sovereign’s Capital, LP Fund I (“Sovereign’s”), which invests in companies in emerging markets. Sovereign’s makes capital calls to investors as funds are needed.

During 2015, the Company committed to invest in Sovereign’s Capital, LP Fund II (“Sovereign’s II”), which invests in companies in emerging markets. Sovereign’s II makes capital calls to investors as funds are needed.

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

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

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

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

During 2020, the Company committed to ~~fund a collateral loan for Modern Distributors, Inc. (“Modern Distributors”). Modern Distributors makes draw requests on the loan as funds are needed to fund a construction project.~~

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

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

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

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

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

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

Note 8 – Other Cash Flow Disclosures

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

Three Months Ended
June 30,
2021 2020
Interest $ 0 $ 0
Federal income tax 0 2,110,000

	Six Months Ended						Three Months Ended
	June 30,						March 31,
	2021			2020			2022			2021
Interest		$	0		$	0		$	11,809		$	0
Federal income tax			1,202,000			2,110,000			0			1,202,000

Note 9 – Concentrations of Credit Risk

The Company maintains cash balances in financial institutions that at times may exceed federally insured limits. The Company maintains its primary operating cash accounts with First Southern National Bank, an affiliate of the largest shareholder of UTG, Mr. Jesse Correll, the Company’s CEO and Chairman. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents.

Because UTG serves primarily individuals located in 4 states, the ability of our customers to pay their insurance premiums is impacted by the economic conditions in these areas. As of ~~June 30, 2021~~March 31, 2022 and ~~2020~~2021, approximately ~~52%~~50% and ~~55%~~57%, respectively, of the Company’s total direct premium was collected from Illinois, Ohio, Texas and West Virginia. Thus, results of operations are heavily dependent upon the strength of these economies.

The Company reinsures that portion of insurance risk which is in excess of its retention limits. Retention limits range up to $125,000 per life. Life insurance ceded represented 21% and 20% of total life insurance in force at ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020~~2021, respectively. Insurance ceded represented ~~36%~~38% and 33% of premium income for the ~~six~~three months ended ~~June 30,~~March 31, 2022 and 2021, ~~and 2020~~respectively. The Company would be liable for the reinsured risks ceded to other companies to the extent that such reinsuring companies are unable to meet their obligations.

The Company owns a variety of investments associated with the oil and gas industry. These investments represent approximately ~~24%~~25% and ~~20%~~22% of the Company’s total invested assets as of ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, respectively. The following table provides an allocation of the oil and gas investments by type.

June 30, 2021	Land, Minerals & Royalty Interests		Exploration		Total
March 31, 2022							Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,292,850	$	1,292,850	$	0	$	1,171,950	$	1,171,950
Equity securities, at fair value		62,439,697		0		62,439,697		68,049,661		0		68,049,661
Investment real estate		18,258,702		0		18,258,702		16,474,237		0		16,474,237
Notes receivable		6,000,000		0		6,000,000		5,800,657		0		5,800,657
Total	$	86,698,399	$	1,292,850	$	87,991,249	$	90,324,555	$	1,171,950	$	91,496,505

December 31, 2020	Land, Minerals & Royalty Interests		Exploration		Total
December 31, 2021							Land, Minerals & Royalty Interests		Exploration		Total
Fixed maturities, at fair value	$	0	$	1,268,670	$	1,268,670	$	0	$	1,249,040	$	1,249,040
Equity securities, at fair value		41,551,468		0		41,551,468		60,932,033		0		60,932,033
Investment real estate		20,031,576		0		20,031,576		16,351,500		0		16,351,500
Notes receivable		6,000,000		0		6,000,000		5,000,000		0		5,000,000
Total	$	67,583,044	$	1,268,670	$	68,851,714	$	82,283,533	$	1,249,040	$	83,532,573

At ~~June 30, 2021~~March 31, 2022 and December 31, ~~2020,~~2021, the Company owned 2 equity securities that represented approximately ~~56%~~52% and ~~47%~~53%, 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.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Cautionary Statement Regarding Forward-Looking Statements

Critical Accounting Policies

Results of Operations

The following table summarizes ~~our~~the Company's investment performance.

The following table reflects net investment income of the Company:

Investment Information

Consolidated Liquidity

ITEM 4. CONTROLS AND PROCEDURES

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

ITEM 1A. RISK FACTORS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

ITEM 4. MINE SAFETY DISCLOSURES

ITEM 5. OTHER INFORMATION

	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)

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

PART I. Financial Information	4
Item 1. Financial Statements	4
Condensed Consolidated Balance Sheets	4
Condensed Consolidated Statements of Operations	5
Condensed Consolidated Statements of Comprehensive Income (Loss)	6
Condensed Consolidated Statements of Shareholders’ Equity	7
Condensed Consolidated Statements of Cash Flows	98
Notes to Condensed Consolidated Financial Statements	109
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	2322
Item 4. Controls and Procedures	29
PART II. Other Information	3029
Item 1. Legal Proceedings	3029
Item 1A. Risk Factors	3029
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	3029
Item 3. Defaults Upon Senior Securities	3029
Item 4. Mine Safety Disclosures	3029
Item 5. Other Information	3029
Item 6. Exhibits	3029
Signatures	3130

		June 30, 2021		December 31, 2020*			March 31, 2022		December 31, 2021*
ASSETS	ASSETS					ASSETS
Investments:
Investments available for sale:
Fixed maturities, at fair value (amortized cost $131,085,585 and $146,017,864)		$	146,250,065	$	165,779,997
Equity securities, at fair value (cost $61,058,683 and $36,833,795)			121,154,900		78,075,187
Fixed maturities, at fair value (amortized cost $122,031,325 and $127,949,963)							$	125,856,319	$	140,963,881
Equity securities, at fair value (cost $70,136,129 and $68,403,168)								132,097,229		122,229,121
Equity securities, at cost			14,543,343		14,389,189			14,543,343		14,543,343
Mortgage loans on real estate at amortized cost			13,985,960		20,802,365			30,447,752		29,183,562
Investment real estate			35,298,846		38,086,391			38,985,840		39,748,261
Notes receivable			23,100,967		17,682,296			15,939,190		17,722,976
Policy loans			8,483,130		8,590,524			7,321,614		7,390,497
Total investments			362,817,211		343,405,949			365,191,287		371,781,641

Cash and cash equivalents			30,980,881		39,025,754			24,264,752		30,787,278
Accrued investment income			1,326,810		1,341,643			977,899		1,264,159
Reinsurance receivables:
Future policy benefits			25,043,878		25,267,920			24,885,324		24,740,562
Policy claims and other benefits			3,965,697		3,988,088			4,304,148		4,426,997
Cost of insurance acquired			3,743,626		4,101,471			3,214,414		3,386,501
Property and equipment, net of accumulated depreciation			310,322		348,170
Income tax receivable			803,265		0			0		975,373
Other assets			652,821		1,577,098			1,865,990		1,097,246
Total assets		$	429,644,511	$	419,056,093		$	424,703,814	$	438,459,757

LIABILITIES AND SHAREHOLDERS' EQUITY	LIABILITIES AND SHAREHOLDERS' EQUITY					LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Policy liabilities and accruals:
Future policyholder benefits		$	239,471,396	$	243,990,881		$	233,829,014	$	235,367,680
Policy claims and benefits payable			4,588,575		4,169,569			3,723,265		3,941,305
Other policyholder funds			353,451		365,761			337,144		345,248
Dividend and endowment accumulations			14,745,229		14,836,158			14,694,064		14,686,166
Income taxes payable			0		268,497			74,469		0
Deferred income taxes			15,960,900		12,995,714			13,343,942		13,680,396
Trading securities, at fair value (proceeds $652 and $11,246)			675		12,219
Notes payable								10,000,000		24,000,000
Trading securities, at fair value (proceeds $5,907 and $2,202)								5,291		1,116
Other liabilities			5,059,652		5,275,803			5,272,673		5,193,039
Total liabilities			280,179,878		281,914,602			281,279,862		297,214,950

Shareholders' equity:
Common stock - 0 par value, stated value $0.001 per share. Authorized 7,000,000 shares - 3,173,009 and 3,175,564 shares outstanding			3,174		3,176
Common stock - 0 par value, stated value $0.001 per share. Authorized 7,000,000 shares - 3,174,783 and 3,166,669 shares outstanding								3,176		3,167
Additional paid-in capital			32,956,587		33,025,018			32,999,942		32,780,587
Retained earnings			104,035,750		88,068,284			106,923,670		97,731,347
Accumulated other comprehensive income			11,952,095		15,584,241			2,993,898		10,253,151
Total UTG shareholders' equity			148,947,606		136,680,719			142,920,686		140,768,252
Noncontrolling interests			517,027		460,772			503,266		476,555
Total shareholders' equity			149,464,633		137,141,491			143,423,952		141,244,807
Total liabilities and shareholders' equity		$	429,644,511	$	419,056,093		$	424,703,814	$	438,459,757

		Three Months Ended						Six Months Ended
		June 30,			June 30,			June 30,			June 30,
		2021			2020			2021			2020
Revenue:
Premiums and policy fees		$	2,296,481		$	2,379,976		$	4,595,544		$	4,735,731
Ceded reinsurance premiums and policy fees			(696,061	)		(690,036	)		(1,288,535	)		(1,370,476	)
Net investment income			2,082,359			3,021,654			4,042,026			5,851,840
Other income			94,470			93,772			189,205			152,814
Revenue before net investment gains (losses)			3,777,249			4,805,366			7,538,240			9,369,909
Net investment gains (losses):
Other-than-temporary impairments			(411,584	)		0			(411,584	)		0
Other realized investment gains, net			4,287,461			(1,978,846	)		4,432,507			(2,095,846	)
Change in fair value of equity securities			195,136			16,704,460			20,375,015			(688,477	)
Total net investment gains (losses)	��		4,071,013			14,725,614			24,395,938			(2,784,323	)
Total revenue			7,848,262			19,530,980			31,934,178			6,585,586

Benefits and other expenses:
Benefits, claims and settlement expenses:
Life			4,025,758			3,422,177			8,020,609			6,962,538
Ceded reinsurance benefits and claims			(577,515	)		(353,168	)		(986,666	)		(988,111	)
Annuity			255,538			259,049			493,093			491,537
Dividends to policyholders			86,476			92,005			174,284			186,320
Commissions and amortization of deferred policy acquisition costs			(30,754	)		(28,559	)		(56,908	)		(63,676	)
Amortization of cost of insurance acquired			179,102			186,212			357,845			372,425
Operating expenses			1,734,156			1,703,606			3,837,533			3,690,298
Total benefits and other expenses			5,672,761			5,281,322			11,839,790			10,651,331

Income (loss) before income taxes			2,175,501			14,249,658			20,094,388			(4,065,745	)
Income tax (benefit) expense			350,499			2,504,024			4,070,667			(864,558	)

Net income (loss)			1,825,002			11,745,634			16,023,721			(3,201,187	)

Net income attributable to noncontrolling interests			(26,502	)		(33,514	)		(56,255	)		(65,754	)

Net income (loss) attributable to common shareholders		$	1,798,500		$	11,712,120		$	15,967,466		$	(3,266,941	)

Amounts attributable to common shareholders
Basic income (loss) per share		$	0.57		$	3.58		$	5.03		$	(1.00	)

Diluted income (loss) per share		$	0.57		$	3.58		$	5.03		$	(1.00	)

Basic weighted average shares outstanding			3,175,027			3,272,715			3,176,012			3,273,395

Diluted weighted average shares outstanding			3,175,027			3,272,715			3,176,012			3,273,395

Large accelerated filer □	Accelerated filer □

Non-accelerated filer □	Smaller reporting company ☒

	Emerging growth company ☐

Three Months Ended June 30, 2021	Common Stock			Additional Paid-In Capital			Retained Earnings		Accumulated Other Comprehensive Income		Noncontrolling Interest		Total Shareholders’ Equity

Balance at March 31, 2021	$	3,178		$	33,065,925		$	102,237,250	$	9,674,987	$	490,525	$	145,471,865
Common stock issued during year		1			16,772			0		0		0		16,773
Treasury shares acquired		(5	)		(126,110	)		0		0		0		(126,115	)
Net income (loss) attributable to common shareholders		0			0			1,798,500		0		0		1,798,500
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes		0			0			0		2,277,108		0		2,277,108
Contributions		0			0			0		0		0		0
Distributions		0			0			0		0		0		0
Gain attributable to noncontrolling interest		0			0			0		0		26,502		26,502
Balance at June 30, 2021	$	3,174		$	32,956,587		$	104,035,750	$	11,952,095	$	517,027	$	149,464,633

Six Months Ended June 30, 2021	Common Stock			Additional Paid-In Capital			Retained Earnings		Accumulated Other Comprehensive Income			Noncontrolling Interest		Total Shareholders’ Equity

Balance at December 31, 2020	$	3,176		$	33,025,018		$	88,068,284	$	15,584,241		$	460,772	$	137,141,491
Common stock issued during year		7			170,531			0		0			0		170,538
Treasury shares acquired		(9	)		(238,962	)		0		0			0		(238,971	)
Net income (loss) attributable to common shareholders		0			0			15,967,466		0			0		15,967,466
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes		0			0			0		(3,632,146	)		0		(3,632,146	)
Contributions		0			0			0		0			0		0
Distributions		0			0			0		0			0		0
Gain attributable to noncontrolling interest		0			0			0		0			56,255		56,255
Balance at June 30, 2021	$	3,174		$	32,956,587		$	104,035,750	$	11,952,095		$	517,027	$	149,464,633

Three Months Ended June 30, 2020	Common Stock			Additional Paid-In Capital			Retained Earnings		Accumulated Other Comprehensive Income		Noncontrolling Interest		Total Shareholders’ Equity
Three Months Ended March 31, 2022																Common Stock			Additional Paid-In Capital			Retained Earnings		Accumulated Other Comprehensive Income			Noncontrolling Interest			Total Shareholders' Equity

Balance at March 31, 2020	$	3,276		$	35,903,350		$	71,000,617	$	9,832,206	$	555,874	$	117,295,323
Balance at December 31, 2021																$	3,167		$	32,780,587		$	97,731,347	$	10,253,151		$	476,555		$	141,244,807
Common stock issued during year		1			16,739			0		0		0		16,740			18			486,779			0		0			0			486,797
Treasury shares acquired		(5	)		(139,449	)		0		0		0		(139,454	)		(9	)		(267,424	)		0		0			0			(267,433	)
Net income attributable to common shareholders		0			0			11,712,120		0		0		11,712,120
Net income (loss) attributable to common shareholders																	0			0			9,192,323		0			0			9,192,323
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes		0			0			0		5,252,904		0		5,252,904			0			0			0		(7,259,253	)		0			(7,259,253	)
Contributions		0			0			0		0		0		0			0			0			0		0			0			0
Distributions		0			0			0		0		0		0			0			0			0		0			(3	)		(3	)
Gain attributable to noncontrolling interest		0			0			0		0		33,514		33,514			0			0			0		0			26,714			26,714
Balance at June 30, 2020	$	3,272		$	35,780,640		$	82,712,737	$	15,085,110	$	589,388	$	134,171,147
Balance at March 31, 2022																$	3,176		$	32,999,942		$	106,923,670	$	2,993,898		$	503,266		$	143,423,952

Six Months Ended June 30, 2020	Common Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income		Noncontrolling Interest		Total Shareholders’ Equity

Balance at December 31, 2019	$	3,279		$	36,012,401		$	85,979,678		$	8,977,914	$	523,634	$	131,496,906
Common stock issued during year		7			218,282			0			0		0		218,289
Treasury shares acquired		(14	)		(450,043	)		0			0		0		(450,057	)
Net income attributable to common shareholders		0			0			(3,266,941	)		0		0		(3,266,941	)
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes		0			0			0			6,107,196		0		6,107,196
Contributions		0			0			0			0		0		0
Distributions		0			0			0			0		0		0
Gain attributable to noncontrolling interest		0			0			0			0		65,754		65,754
Balance at June 30, 2020	$	3,272		$	35,780,640		$	82,712,737		$	15,085,110	$	589,388	$	134,171,147

Three Months Ended March 31, 2021	Common Stock			Additional Paid-In Capital			Retained Earnings		Accumulated Other Comprehensive Income			Noncontrolling Interest		Total Shareholders' Equity

Balance at December 31, 2020	$	3,176		$	33,025,018		$	88,068,284	$	15,584,241		$	460,772	$	137,141,491
Common stock issued during year		6			153,759			0		0			0		153,765
Treasury shares acquired		(4	)		(112,852	)		0		0			0		(112,856	)
Net income attributable to common shareholders		0			0			14,168,966		0			0		14,168,966
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes		0			0			0		(5,909,254	)		0		(5,909,254	)
Contributions		0			0			0		0			0		0
Distributions		0			0			0		0			0		0
Gain attributable to noncontrolling interest		0			0			0		0			29,753		29,753
Balance at March 31, 2021	$	3,178		$	33,065,925		$	102,237,250	$	9,674,987		$	490,525	$	145,471,865

Instrument	Issue Date	Maturity Date	Revolving Credit Limit		December 31, 2020		Borrowings	Repayments	June 30, 2021		Issue Date	Maturity Date	Revolving Credit Limit		December 31, 2021		Borrowings	Repayments	March 31, 2022
Lines of Credit:
UTG	11/20/2013	11/20/2021	$	8,000,000		0	0	0	$	0	11/20/2013	11/20/2022	$	8,000,000		0	0	0	$	0
UG	6/2/2015	5/6/2022		10,000,000		0	0	0		0
UG - CMA											10/21/2021	10/7/2022		25,000,000		24,000,000	0	14,000,000		10,000,000
UG - REPO											10/21/2021	10/7/2022		25,000,000		0	0	0		0

		Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020

Fixed maturities available for sale	$	1,176,332	$	1,312,095	$	2,379,814	$	2,721,419
Equity securities		273,353		188,824		570,952		944,226
Trading securities		5,566		0		19,254		0
Mortgage loans		111,817		159,285		381,621		245,084
Real estate		778,605		1,635,847		1,333,329		2,242,504
Notes receivable		299,999		336,712		493,870		538,933
Policy loans		163,705		166,708		296,499		304,678
Cash and cash equivalents		0		4,132		0		103,080
Short-term		586		46,836		1,148		53,174
Total consolidated investment income		2,809,963		3,850,439		5,476,487		7,153,098
Investment expenses		(727,604)		(828,785)		(1,434,461)		(1,301,258)
Consolidated net investment income	$	2,082,359	$	3,021,654	$	4,042,026	$	5,851,840

Exhibit Number	Description
*31.1	Certification of Jesse T. Correll, Chief Executive Officer and Chairman of the Board of UTG, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*31.2	Certification of Theodore C. Miller, Chief Financial Officer, ~~and~~ Senior Vice President and Corporate Secretary of UTG, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
*32.1	Certificate of Jesse T. Correll, Chief Executive Officer and Chairman of the Board of UTG, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
*32.2	Certificate of Theodore C. Miller, Chief Financial Officer, ~~and~~ Senior Vice President and Corporate Secretary of UTG, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
**101	The following financial statements from the Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Shareholders' Equity, (v) Condensed Consolidated Statements of Cash Flows and (vi) Notes to the Condensed Consolidated Financial Statements (detail tagged).
**104	Cover Page Interactive Data File (formatted in iXBRL and included in exhibit 101).

Date:	~~August~~May 13, ~~2021~~2022	By	/s/ James P. Rousey
			James P. Rousey
			President and Director

Date:	~~August~~May 13, ~~2021~~2022	By	/s/ Theodore C. Miller
			Theodore C. Miller
			Senior Vice President
			and Chief Financial Officer