UTG (UTGN) 10-Q 12 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2014	Jun. 30, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	UTG INC
Entity Central Index Key	832,480
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		0
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015

Balance Sheet

Balance Sheet - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Investments available for sale:
Fixed maturities, at fair value (amortized cost $185,763,176 and $188,634,364)	$ 191,348,772	$ 197,481,456
Equity securities, at fair value (cost $41,696,686 and $39,275,638)	45,408,711	40,996,002
Trading securities, at fair value (cost $0 and $5,179,850)	0	3,826,250
Mortgage loans on real estate at amortized cost	9,769,560	14,060,930
Discounted mortgage loans on real estate at cost	5,516,065	9,101,052
Investment real estate	53,131,234	51,007,101
Policy loans	10,832,464	11,104,485
Short-term investments	4,012,988	4,382,181
Total investments	320,019,794	331,959,457
Cash and cash equivalents	20,644,252	13,977,443
Accrued investment income	2,791,394	2,662,865
Reinsurance receivables:
Future policy benefits	27,803,444	27,906,905
Policy claims and other benefits	3,974,728	3,788,294
Cost of insurance acquired	8,594,182	9,047,984
Deferred policy acquisition costs	0	0
Property and equipment, net of accumulated depreciation	2,245,082	2,475,829
Income tax receivable	608,895	0
Other assets	8,386,188	8,081,461
Total assets	395,067,959	399,900,238
Policy liabilities and accruals:
Future policyholder benefits	272,253,359	275,044,909
Policy claims and benefits payable	3,079,759	3,208,324
Other policyholder funds	482,350	341,248
Dividend and endowment accumulations	14,251,790	14,239,054
Income tax payable	0	1,933,243
Deferred income taxes	9,326,383	9,413,794
Notes payable	2,400,000	4,400,000
Trading securities, at fair value (proceeds $95,986 and $464,215)	89,848	23,853
Other liabilities	9,018,024	7,723,213
Total liabilities	310,901,513	316,327,638
Shareholders' equity:
Common stock - no par value, stated value $.001 per share. Authorized 7,000,000 shares - 3,705,263 and 3,706,780 shares outstanding	3,705	3,706
Additional paid-in capital	43,094,647	43,122,944
Retained earnings	33,861,628	32,145,662
Accumulated other comprehensive income	6,028,583	6,853,974
Total UTG shareholders' equity	82,988,563	82,126,286
Noncontrolling interests	1,177,883	1,446,314
Total shareholders' equity	84,166,446	83,572,600
Total liabilities and shareholders' equity	$ 395,067,959	$ 399,900,238

Balance Sheet Parenthetical

Balance Sheet Parenthetical - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Investments available for sale:
Available-for-sale Debt Securities, Amortized Cost Basis	$ 185,763,176	$ 188,634,364
Equity securities, cost	41,696,686	39,275,638
Trading securities, cost	0	5,179,850
Liabilities:
Trading Securities, Proceeds	$ 95,986	$ 464,215
Shareholders' equity:
Common stock, stated value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	7,000,000	7,000,000
Common stock, outstanding (in shares)	3,705,263	3,706,780

Income Statement

Income Statement - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Premiums and policy fees	$ 2,861,481	$ 3,357,360	$ 5,798,995	$ 6,091,047
Ceded reinsurance premiums and policy fees	(777,916)	(827,040)	(1,557,242)	(1,608,023)
Net investment income	2,055,900	4,028,304	8,010,402	8,561,423
Other income	148,037	500,113	315,430	1,020,544
Revenues before realized gains	4,287,502	7,058,737	12,567,585	14,064,991
Realized investment gains (losses), net:
Other-than-temporary impairments	0	0	0	0
Other realized investment gains, net	1,522,414	1,694,037	4,426,320	1,971,461
Total realized investment gains, net	1,522,414	1,694,037	4,426,320	1,971,461
Total revenue	5,809,916	8,752,774	16,993,905	16,036,452
Benefits, claims and settlement expenses:
Life	5,197,017	6,445,808	9,873,230	13,131,855
Ceded Reinsurance benefits and claims	(627,557)	(1,124,076)	(1,122,253)	(2,326,546)
Annuity	280,984	283,662	530,234	562,239
Dividends to policyholders	120,962	130,145	251,598	266,317
Amortization of cost of insurance acquired	226,901	246,412	453,802	492,824
Commissions and amortization of deferred policy acquisition costs	(42,051)	(5,927)	(84,276)	(107,064)
Operating expenses	2,148,087	2,730,362	4,347,182	5,386,480
Interest expense	23,550	110,326	61,523	292,158
Total benefits and other expenses	7,327,893	8,816,712	14,311,040	17,698,263
Loss before income taxes	(1,517,977)	(63,938)	2,682,865	(1,661,811)
Income tax (expense) benefit	646,356	274,876	(814,893)	467,387
Net loss	(871,621)	210,938	1,867,972	(1,194,424)
Net income attributable to noncontrolling interests	83,832	(196,079)	(152,006)	(319,033)
Net loss attributable to common shareholders'	$ (787,789)	$ 14,859	$ 1,715,966	$ (1,513,457)
Amounts attributable to common shareholders':
Basic loss per share	$ (0.21)	$ 0	$ 0.46	$ (0.40)
Diluted loss per share	$ (0.21)	$ 0	$ 0.46	$ (0.40)
Basic weighted average shares outstanding	3,712,325	3,765,354	3,710,038	3,768,643
Diluted weighted average shares outstanding	3,712,325	3,765,354	3,710,038	3,768,643

Condensed Consolidated Statemen

Condensed Consolidated Statement of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Condensed Consolidated Statement of Comprehensive Income (Unaudited) [Abstract]
Net income (loss)	$ (871,621)	$ 210,938	$ 1,867,972	$ (1,194,424)
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses) arising during period	(4,156,380)	3,985,260	(446,781)	9,302,065
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	1,454,733	(1,394,841)	156,373	(3,255,723)
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax	(2,701,647)	2,590,419	(290,408)	6,046,342
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax	(706,760)	(86,066)	(823,051)	(338,074)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax	247,366	30,123	288,068	118,326
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	(459,394)	(55,943)	(534,983)	(219,748)
Subtotal: Other comprehensive income (loss), net of tax	(3,161,041)	2,534,476	(825,391)	5,826,594
Comprehensive income (loss)	(4,032,662)	2,745,414	1,042,581	4,632,170
Less comprehensive income attributable to noncontrolling interests	83,832	(196,079)	(152,006)	(319,033)
Comprehensive income (loss) attributable to UTG, Inc.	$ (3,948,830)	$ 2,549,335	$ 890,575	$ 4,313,137

Statement of Cash Flows

Statement of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net loss attributable to common shareholders	$ 1,715,966	$ (1,513,457)
Adjustments to reconcile net loss to net cash used in operating activities
Amortization (accretion) of investments	(3,008,714)	(835,649)
Realized investment gains, net	(4,426,320)	(1,971,461)
Unrealized trading (gains) losses included in income	1,019,262	(15,622)
Amortization of deferred policy acquisition costs	0	25,828
Amortization of cost of insurance acquired	453,802	492,824
Depreciation	396,041	673,213
Net income attributable to noncontrolling interest	152,006	319,033
Charges for mortality and administration of universal life and annuity products	(3,325,645)	(3,352,060)
Interest credited to account balances	2,533,573	2,607,793
Change in accrued investment income	(128,529)	(34,623)
Change in reinsurance receivables	(82,973)	225,406
Change in policy liabilities and accruals	(1,672,749)	(3,004,690)
Change in income taxes receivable (payable)	(2,542,138)	12,582
Change in other assets and liabilities, net	1,459,220	1,852,980
Net cash used in operating activities	(7,457,198)	(4,517,903)
Proceeds from investments sold and matured:
Fixed maturities available for sale	10,878,924	14,200,536
Equity securities available for sale	5,697,643	4,120,242
Trading securities	112,879	1,116,500
Mortgage loans	9,291,371	1,154,443
Discounted mortgage loans	4,597,610	2,609,104
Real estate	9,713,102	8,599,113
Policy loans	958,134	1,700,041
Short term investment	388,392	0
Total proceeds from investments sold and matured	41,638,055	33,499,979
Cost of investments acquired:
Fixed maturities available for sale	(7,408,461)	(11,436,600)
Equity securities available for sale	(4,125,392)	(2,462,226)
Trading securities	(463,895)	(13,901)
Mortgage loans	(5,000,000)	(1,727,681)
Discounted mortgage loans	(44,175)	(16,723)
Real estate	(6,904,517)	(4,487,029)
Policy loans	(686,113)	(1,332,401)
Short-term investments	(19,200)	(4,832,980)
Total cost of investments acquired	(24,651,753)	(26,309,541)
Net cash provided by investing activities	16,986,302	7,190,438
Cash flows from financing activities:
Policyholder contract deposits	2,712,136	2,773,092
Policyholder contract withdrawals	(3,013,592)	(3,181,015)
Payments of principal on notes payable/line of credit	(2,000,000)	(900,000)
Purchase of treasury stock	(28,297)	(173,774)
Non-controlling distributions of consolidated subsidiary	(532,542)	(78,009)
Sale of block of business	0	(3,045,574)
Net cash provided by (used in) financing activities	(2,862,295)	(4,605,280)
Net increase (decrease) in cash and cash equivalents	6,666,809	(1,932,745)
Cash and cash equivalents at beginning of period	13,977,443	19,838,618
Cash and cash equivalents at end of period	$ 20,644,252	$ 17,905,873

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2015
BASIS OF PRESENTATION [Abstract]
BASIS OF PRESENTATION	Note 1 – Basis of Presentation The accompanying Condensed Consolidated Balance Sheet as of December 31, 2014 , 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" or "UTG") 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, 2014 . The Company's results of operations for the three and six month June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or for any other future period. This document at times will refer to UTG'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, 2015, Mr. Correll owns or controls directly and indirectly approximately 57.52% 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.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	6 Months Ended
	Jun. 30, 2015
NEW ACCOUNTING STANDARDS [Abstract]
NEW ACCOUNTING STANDARDS	Note 2 – Recently Issued Accounting Standards In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis

INVESTMENTS

INVESTMENTS	6 Months Ended
	Jun. 30, 2015
INVESTMENTS [Abstract]
INVESTMENTS	Note 3 – Investments Available for Sale Securities – Fixed Maturity and Equity 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: June 30, 2015 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investments available for sale: Fixed maturities U.S. Government and govt. agencies and authorities $ 21,624,172 $ 1,777,869 $ (8,415) $ 23,393,626 U.S. special revenue and assessments 1,137,625 11,570 (790) 1,148,405 Public utilities 399,935 46,643 0 446,578 All other corporate bonds 162,601,444 6,783,429 (3,024,710) 166,360,163 185,763,176 8,619,511 (3,033,915) 191,348,772 Equity securities 41,696,686 4,294,519 (582,494) 45,408,711 Total $ 227,459,862 $ 12,914,030 $ (3,616,409) $ 236,757,483 December 31, 2014 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investments available for sale: Fixed maturities U.S. Government and govt. agencies and authorities $ 23,036,161 $ 1,970,791 $ (50,184) $ 24,956,768 States, municipalities and political subdivisions 95,000 2,385 0 97,385 U.S. special revenue and assessments 1,137,702 13,739 (202,930) 948,511 Collateralized mortgage obligations 1,005,081 92,091 (6) 1,097,166 Public utilities 399,927 55,913 0 455,840 All other corporate bonds 162,960,493 8,624,486 (1,659,193) 169,925,786 188,634,364 10,759,405 (1,912,313) 197,481,456 Equity securities 39,275,638 2,260,855 (540,491) 40,996,002 Total $ 227,910,002 $ 13,020,260 $ (2,452,804) $ 238,477,458 The amortized cost and estimated market value of debt securities at June 30, 2015, 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, 2015 Amortized Cost Estimated Fair Value Due in one year or less $ 4,260,506 $ 4,345,587 Due after one year through five years 18,449,941 19,437,005 Due after five years through ten years 71,592,928 74,596,197 Due after ten years 91,459,801 92,969,983 Total $ 185,763,176 $ 191,348,772 The fair value of investments with sustained gross unrealized losses at June 30, 2015 and December 31, 2014 are as follows: June 30, 2015 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 $ 0 0 $ 4,989,455 (8,415) $ 4,989,455 (8,415) U.S. Special Revenue and Assessments 986,530 (790) 0 0 986,530 (790) All other corporate bonds 63,408,203 (1,843,917) 3,415,171 (1,180,793) 66,823,374 (3,024,710) Total fixed maturities $ 64,394,733 (1,844,707) $ 8,404,626 (1,189,208) $ 72,799,359 (3,033,915) Equity securities $ 3,173,588 (582,494) $ 0 0 $ 3,173,588 (582,494) December 31, 2014 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 $ 0 0 $ 4,947,265 (50,184) $ 4,947,265 (50,184) U.S. special revenue and assessments 0 0 784,390 (202,930) 784,390 (202,930) Collateralized mortgage obligations 0 0 1,012 (6) 1,012 (6) All other corporate bonds 28,954,477 (416,560) 3,535,206 (1,242,633) 32,489,683 (1,659,193) Total fixed maturities $ 28,954,477 (416,560) $ 9,267,873 (1,495,753) $ 38,222,350 (1,912,313) Equity securities $ 6,067,132 (540,491) $ 0 0 $ 6,067,132 (540,491) Additional information regarding investments in an unrealized loss position is as follows: Less than 12 months 12 months or longer Total As of June 30, 2015 Fixed maturities 38 4 42 Equity securities 14 0 14 As of December 31, 2014 Fixed maturities 18 7 25 Equity securities 25 0 25 Substantially all of the unrealized losses on fixed maturities available for sale and equity securities at June 30, 2015 and December 31, 2014 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 June 30, 2015 and December 31, 2014 . 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. Equity securities may experience other-than-temporary impairments in the future based on the prospects for full recovery in value in a reasonable period of time and the Company's ability and intent to hold the security to recovery. If a decline in fair value is judged by Management to be other-than-temporary or Management does not have the intent or ability to hold a security, a loss is recognized by a charge to other-than-temporary impairment losses in the Condensed Consolidated Statements of Operations. Based on Management's review of the investment portfolio, the Company did not record any losses for other-than-temporary impairments in the Condensed Consolidated Statements of Operations for the six month period ended June 30, 2015 and 2014 . 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, 2015 was $0 and $(89,848), respectively. The fair value of derivatives included in trading security assets and trading security liabilities as of December 31, 2014 was $6,250 and $(23,853), 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. As of June 30, 2015, the Company reclassified its remaining exchange-traded equity trading security to the available for sale category. The fair value of the security at the time of the reclassification was $3,224,000 . Trading securities are purchased and held primarily for purposes of selling them in the near term and reflect active and frequent buying and selling. Management analyzed the recent buying and selling activity related to the exchange-traded equity and deems the available for sale category to better reflect management's intent for this security going forward. Through June 30, 2015, unrealized gains and losses from this exchange-traded equity were recorded as a component of earnings. Future unrealized gains/losses will be reported as a component of comprehensive income. Trading revenue charged to net investment income from trading securities was: Three Months Ended June 30, 2015 2014 Net unrealized gains (losses) $ 71,632 $ (245,029) Net realized gains (losses) (92,310) 150,365 Net unrealized and realized gains (losses) $ (20,678) $ (94,664) Six Months Ended June 30, 2015 2014 Net unrealized gains (losses) $ 1,019,262 $ 15,622 Net realized gains (losses) (515,967) 171,538 Net unrealized and realized gains (losses) $ 503,295 $ 187,160 Mortgage Loans As of June 30, 2015 and December 31, 2014, the Company's mortgage loan portfolio contained 27 and 33 mortgage loans, including discounted mortgage loans, with a carrying value of $15,285,625 and $23,161,982, respectively. 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. Given the uncertainty of the current market, Management has taken a conservative approach with the discounted mortgage loans and has classified all discounted mortgage loans held as non-accrual. In such status, the Company is not recording any accrued interest income nor is it recording any accrual of discount on the loans held. Discount accruals reported during 2015 and 2014 were the result of the loan basis already being fully paid. On the remainder of the mortgage loan portfolio, 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 Company acquires the discounted mortgage loans at below contract value, and believes that it will fully recover its carrying value upon disposal, therefore no reserve for delinquent loans is deemed necessary. Those loans not currently paying any interest or principal are being vigorously worked by Management. The current discounted commercial mortgage loan portfolio has an average price of 34.26 % of face value and Management has determined that this deep discount provides a financial cushion or built in allowance for any of the loans that are not currently performing within the portfolio of loans purchased.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	Note 4 – Fair Value Measurements The Company measures its assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets based on the framework set forth in the GAAP fair value accounting guidance. The framework establishes a fair value hierarchy of three levels based upon the transparency of information used in measuring the fair value of assets or liabilities as of the measurement date. The fair value hierarchy prioritizes the inputs in the valuation techniques used to measure fair value into three categories. Level 1 – Valuation is based upon quoted prices for identical assets or liabilities in active markets that the Company is able to access. Level 1 fair value is not subject to valuation adjustments. Level 2 – Valuation is based upon quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active. In addition, 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. The Company determines the existence of an active market for an asset or liability based on its judgment as to whether transactions for the asset or liability occur in such market with sufficient frequency and volume to provide reliable pricing information. If the Company concludes that there has been a significant decrease in the volume and level of activity for an investment in relation to normal market activity for such investment, adjustments to transactions and quoted prices are made to estimate fair value. The inputs used in the valuation techniques employed by the Company are provided by nationally recognized pricing services, external investment managers and internal resources. To assess these inputs, the Company's review process includes, but is not limited to, quantitative analysis including benchmarking, initial and ongoing evaluations of methodologies used by external parties to calculate fair value, and ongoing evaluations of fair value estimates based on the Company's knowledge and monitoring of market conditions. The Company periodically reviews the pricing service provider's policies and procedures for valuing securities. The assumptions underlying the valuations from external service providers, including unobservable inputs, are generally not readily available as this information is often deemed proprietary. Accordingly, the Company is unable to obtain comprehensive information regarding these assumptions and methodologies. The Company's investments in fixed maturity securities available for sale, equity securities available for sale and trading securities assets and liabilities are carried at fair value. The following are the Company's methodologies and valuation techniques for assets and liabilities measured at fair value. Fixed maturities available for sale mainly consist of U.S. treasury securities and corporate debt securities. The Company employs a market approach to the valuation of securities where there are sufficient market transactions involving identical or comparable assets. If sufficient market data is not available for identical or comparable assets, the Company uses an income approach to valuation. The majority of the financial instruments included in fixed maturity securities available for sale are evaluated utilizing observable inputs; accordingly, they are categorized in either Level 1 or Level 2 of the fair value hierarchy. However, in instances where significant inputs utilized in valuation of the securities are unobservable, the securities are categorized in Level 3 of the fair value hierarchy. Corporate securities primarily include fixed rate corporate bonds. Inputs utilized in connection with the Company's valuation techniques relating to this class of securities include recently executed transactions, market price quotations, benchmark yields and issuer spreads. Corporate securities are categorized in Level 2 of the fair value hierarchy. U.S. treasury securities are based on quoted prices in active markets and are generally categorized in Level 1 of the fair value hierarchy. Equity securities available for sale consist of common and preferred stocks mainly in private equity investments, financial institutions and insurance companies. 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 transaction price is used as the best estimate of fair value at inception. When evidence is believed to support a change to the carrying value from the transaction price, adjustments are made to reflect the expected exit values. The Company performs ongoing reviews of the underlying investments. The reviews consist of the evaluations of expected cash flows, material events and market data. These investments are included in Level 3 of the fair value hierarchy. Securities designated as trading securities consist of exchange traded equities and exchange traded options. These securities are primarily valued at quoted active market prices, and are therefore categorized as Level 1 in the fair value hierarchy. The following table presents the Company's assets and liabilities measured at fair value in the Condensed Consolidated Balance Sheet on a recurring basis as of June 30, 2015. Level 1 Level 2 Level 3 Total Assets Fixed Maturities, available for sale $ 11,889,848 $ 178,531,725 $ 927,199 $ 191,348,772 Equity Securities, available for sale 10,751,651 7,135,365 27,521,695 45,408,711 Total $ 22,641,499 $ 185,667,090 $ 28,448,894 $ 236,757,483 Liabilities Trading Securities $ 89,848 $ 0 $ 0 $ 89,848 The following table presents the Company's assets and liabilities measured at fair value in the Condensed Consolidated Balance Sheet on a recurring basis as of December 31, 2014. Level 1 Level 2 Level 3 Total Assets Fixed Maturities, available for sale $ 13,374,878 $ 183,236,853 $ 869,725 $ 197,481,456 Equity Securities, available for sale 4,756,292 7,361,076 28,878,634 40,996,002 Trading Securities 3,826,250 0 0 3,826,250 Total $ 21,957,420 $ 190,597,929 $ 29,748,359 $ 242,303,708 Liabilities Trading Securities $ 23,853 $ 0 $ 0 $ 23,853 The following table provides reconciliations for Level 3 assets measured at fair value on a recurring basis. Transfers into and out of Level 3 are recognized as of the end of the quarter in which they occur. Fixed Maturities, Available for Sale Equity Securities, Available for Sale Total Balance at December 31, 2014 $ 869,725 $ 28,878,634 $ 29,748,359 Total unrealized gains (losses): Included in realized gains(losses) 0 0 0 Included in other comprehensive income 57,474 415,774 473,248 Purchases 0 1,005,625 1,005,625 Sales $ 0 $ (2,778,338) $ (2,778,338) Balance at June 30, 2015 927,199 27,521,695 28,448,894 The Level 3 securities include collateralized debt obligations of trust preferred securities issued by banks and insurance companies and certain equity securities with unobservable inputs. The Company computed fair value of Level 3 investments based on a review of current financial information, earnings trends and similar companies in the same industries. Certain assets are not carried at fair value on a recurring basis, including investments such as mortgage loans and policy loans. 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 carrying values and estimated fair values of certain of the Company's financial instruments not recorded at fair value in the Condensed Consolidated Balance Sheets are shown below. Because the fair value for all Condensed Consolidated Balance Sheet items are not required to be disclosed, the aggregate fair value amounts presented below are not reflective of the underlying value of the Company. June 30, 2015 December 31, 2014 Assets Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Mortgage loans on real estate $ 9,769,560 $ 10,103,835 $ 14,060,930 $ 14,236,676 Discounted mortgage loans 5,516,065 5,516,065 9,101,052 9,101,052 Investment real estate 53,131,234 53,131,234 51,007,101 51,007,101 Policy loans 10,832,464 10,832,464 11,104,485 11,104,485 Cash and cash equivalents 20,644,252 20,644,252 13,977,443 13,977,443 Short term investments 4,012,988 4,012,988 4,382,181 4,382,181 Collateral and non-collateral loans 5,212,560 5,212,560 5,612,560 5,612,560 Liabilities Notes payable 2,400,000 2,400,000 4,400,000 4,400,000 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. The Company has 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. 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 %. The carrying amount of cash and cash equivalents in the condensed consolidated financial statements approximates fair value given the highly liquid nature of the instruments. The inputs used to measure the fair value of our cash and cash equivalents are classified as Level 1 within the fair value hierarchy. The carrying amount of short term investments in the condensed consolidated financial statements approximates fair value. The inputs used to measure the fair value of our short term investments are classified as Level 3 within the fair value hierarchy. The Company invests in collateral and non-collateral loans that are reported in the other assets balance on the Company's Consolidated Balance Sheets. The loans are carried at their unpaid principal balances, which approximates fair value. The inputs used to measure the fair value of the loans are classified as Level 3 within the fair value hierarchy. The carrying value is a reasonable estimate of fair value for notes payable 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.

CREDIT ARRANGEMENTS

CREDIT ARRANGEMENTS	6 Months Ended
	Jun. 30, 2015
NOTES PAYABLE [Abstract]
CREDIT ARRANGEMENTS	Note 5 – Credit Arrangements At June 30, 2015 and December 31, 2014, the Company had the following outstanding debt: Outstanding Principal Balance Instrument Issue Date Maturity Date June 30, 2015 December 31, 2014 Promissory Note: UTG Avalon 12/29/2014 4/1/2018 2,400,000 4,400,000 Instrument Issue Date Maturity Date Revolving Credit Limit December 31, 2014 Borrowings Repayments June 30, 2015 Lines of Credit: UTG 2013-11-20 2015-11-20 $ 8,000,000 $ 0 0 0 $ 0 UG 2015-06-02 2016-05-19 10,000,000 0 0 0 0 The UTG Avalon promissory note issued on December 29, 2014 carries interest at a rate of 3.5 % with interest payable quarterly beginning in July of 2015 . The interest is a variable rate that is equal to the lowest of the U.S. Prime Rates as published in the money section of the Wall Street Journal. The interest rate is subject to change monthly and any change in interest rate is effective the first day of the month following the rate change. Principal is due upon maturity of the note. During the second and third quarters of 2015, UTG Avalon repaid $2,000,000 and $1,500,000, respectively, of the outstanding principal balance on the promissory note. The principal payments were paid by UTG and as a result of the payment, intercompany promissory notes receivable/payable were established. The UTG line of credit carries interest at a fixed rate of 3.75% 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 ("UG"). . During June of 2015, 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 consolidated scheduled principal reductions on the notes payable for the next five years are as follows: Year Amount 2015 $ 0 2016 0 2017 0 2018 2,400,000 2019 0

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2015
CAPITAL STOCK TRANSACTIONS [Abstract]
CAPITAL STOCK TRANSACTIONS	Note 6 – Shareholders' Equity Stock Repurchase Programs 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 on June 3, 2015, the Board of Directors of UTG authorized the repurchase of up to an additional $1,000,000 of UTG's common stock, for a total repurchase of $8,000,000. Repurchased shares are available for future issuance for general corporate purposes. This program can be suspended or terminated at any time without further notice. Open market purchases are made based on the last available market price and are generally limited to a maximum per share price of the most recent reported per share GAAP equity book value of the Company. During the six month period ended June 30, 2015, the Company repurchased 15,858 shares through the stock repurchase program for $222, 266. Through June 30, 2015 , UTG has spent $6,345,392 in the acquisition of 678,556 shares under this program. On July 20, 2015, the Board of Directors of UTG also clarified and amended the terms on which UTG may repurchase shares in the program and gave Company management broad authority to operate the program, including the discretion of whether to purchase shares and the ability to suspend or terminate the program. The program may be suspended or terminated at any time without further notice. Earnings Per Share Calculations Earnings per share are based on the weighted average number of common shares outstanding during each period. For the three and six months ended June 30, 2015 and 2014 , diluted earnings per share were the same as basic earnings per share since the Company had no

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	Note 7 – Commitments and Contingencies The insurance industry has experienced a number of civil jury verdicts which have been returned against life and health insurers in the jurisdictions in which the Company does business involving the insurers' sales practices, alleged agent misconduct, failure to properly supervise agents, and other matters. Some of the lawsuits have resulted in the award of substantial judgments against the insurer, including material amounts of punitive damages. In some states, juries have substantial discretion in awarding punitive damages in these circumstances. In the normal course of business, the Company is involved from time to time in various legal actions and other state and federal proceedings. Management is of the opinion that the ultimate disposition of the matters will not have a materially adverse effect on the Company's results of operations or financial position. Under the insurance guaranty fund laws in most states, insurance companies doing business in a participating state can be assessed up to prescribed limits for policyholder losses incurred by insolvent or failed insurance companies. Although the Company cannot predict the amount of any future assessments, most insurance guaranty fund laws currently provide that an assessment may be excused or deferred if it would threaten an insurer's financial strength. Mandatory assessments may be partially recovered through a reduction in future premium tax in some states. The Company does not believe such assessments will be materially different from amounts already provided for in the condensed consolidated financial statements, though the Company has no control over such assessments. Within the Company's trading accounts, certain trading securities carried as liabilities represent 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 following table represents the total funding commitments and the unfunded commitment as of June 30, 2015 related to certain investments: Total Funding Unfunded Commitment Commitment RLF III, LLC $ 4,000,000 $ 398,120 Llano Music, LLC 4,000,000 1,904,000 Marcellus HBPI, LLP 1,800,000 141,300 Sovereign's Capital, LP Fund I 500,000 185,000 MM-Appalachia IV, LP 3,300,000 825,000 UGLIC, LLC 1,600,000 320,000 Sovereign's Capital, LP Fund II 1,000,000 950,000 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 2010, the Company made a commitment to invest in Llano Music, LLC ("Llano"), which invests in music royalties. Llano makes capital calls to its investors as funds are needed to acquire the royalty rights. During 2012, the Company committed to invest in Marcellus HBPI, LLP, which purchases land for leasing opportunities to those looking to harvest natural resources. Marcellus HPBI, LLP makes capital calls to investors 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 2013, the Company committed to invest in MM-Appalachia IV, LP, which purchases land for leasing opportunities to those looking to harvest natural resources. MM-Appalachia IV, LP makes capital calls to investors as funds are needed for continued land purchases. During January of 2015, MM-Appalachia IV, LP called $371,250 of the unfunded commitment. Also, in January of 2015, the Company committed to invest an additional $825,000 in MM-Appalachia IV, LP. During 2014, the Company committed to invest in UGLIC, LLC, which purchases real estate tax receivables. UGLIC, LLC makes capital calls as funds are needed for additional purchases. During 2015, the Company committed to invest in Sovereign's Capital, LP Fund II ("Sovereign's"), which invests in companies in emerging markets. Sovereign's makes capital calls to investors as funds are needed.

OTHER CASH FLOW DISCLOSURES

OTHER CASH FLOW DISCLOSURES	6 Months Ended
	Jun. 30, 2015
OTHER CASH FLOW DISCLOSURES [Abstract]
OTHER CASH FLOW DISCLOSURES	Note 8 – Other Cash Flow Disclosures On a cash basis, the Company paid the following expenses: Three Months Ended June 30, 2015 2014 Interest $ 0 $ 14,648 Federal income tax 0 0 Six Months Ended June 30, 2015 2014 Interest $ 0 $ 34,320 Federal income tax 3,000,000 0

CONCENTRATIONS

CONCENTRATIONS	6 Months Ended
	Jun. 30, 2015
CONCENTRATIONS [Abstract]
CONCENTRATIONS	N 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.

NEW ACCOUNTING STANDARDS (Polic

NEW ACCOUNTING STANDARDS (Policies)	6 Months Ended
	Jun. 30, 2015
NEW ACCOUNTING STANDARDS [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	Note 2 – Recently Issued Accounting Standards In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis

INVESTMENTS (Tables)

INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
INVESTMENTS [Abstract]
Amortized cost and estimated values of investments in securities including investments held for sale	Investments in available for sale securities are summarized as follows: June 30, 2015 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investments available for sale: Fixed maturities U.S. Government and govt. agencies and authorities $ 21,624,172 $ 1,777,869 $ (8,415) $ 23,393,626 U.S. special revenue and assessments 1,137,625 11,570 (790) 1,148,405 Public utilities 399,935 46,643 0 446,578 All other corporate bonds 162,601,444 6,783,429 (3,024,710) 166,360,163 185,763,176 8,619,511 (3,033,915) 191,348,772 Equity securities 41,696,686 4,294,519 (582,494) 45,408,711 Total $ 227,459,862 $ 12,914,030 $ (3,616,409) $ 236,757,483 December 31, 2014 Original or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Investments available for sale: Fixed maturities U.S. Government and govt. agencies and authorities $ 23,036,161 $ 1,970,791 $ (50,184) $ 24,956,768 States, municipalities and political subdivisions 95,000 2,385 0 97,385 U.S. special revenue and assessments 1,137,702 13,739 (202,930) 948,511 Collateralized mortgage obligations 1,005,081 92,091 (6) 1,097,166 Public utilities 399,927 55,913 0 455,840 All other corporate bonds 162,960,493 8,624,486 (1,659,193) 169,925,786 188,634,364 10,759,405 (1,912,313) 197,481,456 Equity securities 39,275,638 2,260,855 (540,491) 40,996,002 Total $ 227,910,002 $ 13,020,260 $ (2,452,804) $ 238,477,458
Amortized cost and estimated market value of debt securities, by contractual maturity	The amortized cost and estimated market value of debt securities at June 30, 2015, 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, 2015 Amortized Cost Estimated Fair Value Due in one year or less $ 4,260,506 $ 4,345,587 Due after one year through five years 18,449,941 19,437,005 Due after five years through ten years 71,592,928 74,596,197 Due after ten years 91,459,801 92,969,983 Total $ 185,763,176 $ 191,348,772
Fair value of investments with sustained gross unrealized losses	The fair value of investments with sustained gross unrealized losses at June 30, 2015 and December 31, 2014 are as follows: June 30, 2015 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 $ 0 0 $ 4,989,455 (8,415) $ 4,989,455 (8,415) U.S. Special Revenue and Assessments 986,530 (790) 0 0 986,530 (790) All other corporate bonds 63,408,203 (1,843,917) 3,415,171 (1,180,793) 66,823,374 (3,024,710) Total fixed maturities $ 64,394,733 (1,844,707) $ 8,404,626 (1,189,208) $ 72,799,359 (3,033,915) Equity securities $ 3,173,588 (582,494) $ 0 0 $ 3,173,588 (582,494) December 31, 2014 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 $ 0 0 $ 4,947,265 (50,184) $ 4,947,265 (50,184) U.S. special revenue and assessments 0 0 784,390 (202,930) 784,390 (202,930) Collateralized mortgage obligations 0 0 1,012 (6) 1,012 (6) All other corporate bonds 28,954,477 (416,560) 3,535,206 (1,242,633) 32,489,683 (1,659,193) Total fixed maturities $ 28,954,477 (416,560) $ 9,267,873 (1,495,753) $ 38,222,350 (1,912,313) Equity securities $ 6,067,132 (540,491) $ 0 0 $ 6,067,132 (540,491) Additional information regarding investments in an unrealized loss position is as follows: Less than 12 months 12 months or longer Total As of June 30, 2015 Fixed maturities 38 4 42 Equity securities 14 0 14 As of December 31, 2014 Fixed maturities 18 7 25 Equity securities 25 0 25
Trading revenue charged to investment	Trading revenue charged to net investment income from trading securities was: Three Months Ended June 30, 2015 2014 Net unrealized gains (losses) $ 71,632 $ (245,029) Net realized gains (losses) (92,310) 150,365 Net unrealized and realized gains (losses) $ (20,678) $ (94,664) Six Months Ended June 30, 2015 2014 Net unrealized gains (losses) $ 1,019,262 $ 15,622 Net realized gains (losses) (515,967) 171,538 Net unrealized and realized gains (losses) $ 503,295 $ 187,160

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS [Abstract]
Financial assets and liabilities measured on recurring basis	The following table presents the Company's assets and liabilities measured at fair value in the Condensed Consolidated Balance Sheet on a recurring basis as of June 30, 2015. Level 1 Level 2 Level 3 Total Assets Fixed Maturities, available for sale $ 11,889,848 $ 178,531,725 $ 927,199 $ 191,348,772 Equity Securities, available for sale 10,751,651 7,135,365 27,521,695 45,408,711 Total $ 22,641,499 $ 185,667,090 $ 28,448,894 $ 236,757,483 Liabilities Trading Securities $ 89,848 $ 0 $ 0 $ 89,848 The following table presents the Company's assets and liabilities measured at fair value in the Condensed Consolidated Balance Sheet on a recurring basis as of December 31, 2014. Level 1 Level 2 Level 3 Total Assets Fixed Maturities, available for sale $ 13,374,878 $ 183,236,853 $ 869,725 $ 197,481,456 Equity Securities, available for sale 4,756,292 7,361,076 28,878,634 40,996,002 Trading Securities 3,826,250 0 0 3,826,250 Total $ 21,957,420 $ 190,597,929 $ 29,748,359 $ 242,303,708 Liabilities Trading Securities $ 23,853 $ 0 $ 0 $ 23,853 The following table provides reconciliations for Level 3 assets measured at fair value on a recurring basis. Transfers into and out of Level 3 are recognized as of the end of the quarter in which they occur. Fixed Maturities, Available for Sale Equity Securities, Available for Sale Total Balance at December 31, 2014 $ 869,725 $ 28,878,634 $ 29,748,359 Total unrealized gains (losses): Included in realized gains(losses) 0 0 0 Included in other comprehensive income 57,474 415,774 473,248 Purchases 0 1,005,625 1,005,625 Sales $ 0 $ (2,778,338) $ (2,778,338) Balance at June 30, 2015 927,199 27,521,695 28,448,894
Estimated fair value of financial instruments required to be valued by ASC 820	The carrying values and estimated fair values of certain of the Company's financial instruments not recorded at fair value in the Condensed Consolidated Balance Sheets are shown below. Because the fair value for all Condensed Consolidated Balance Sheet items are not required to be disclosed, the aggregate fair value amounts presented below are not reflective of the underlying value of the Company. June 30, 2015 December 31, 2014 Assets Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Mortgage loans on real estate $ 9,769,560 $ 10,103,835 $ 14,060,930 $ 14,236,676 Discounted mortgage loans 5,516,065 5,516,065 9,101,052 9,101,052 Investment real estate 53,131,234 53,131,234 51,007,101 51,007,101 Policy loans 10,832,464 10,832,464 11,104,485 11,104,485 Cash and cash equivalents 20,644,252 20,644,252 13,977,443 13,977,443 Short term investments 4,012,988 4,012,988 4,382,181 4,382,181 Collateral and non-collateral loans 5,212,560 5,212,560 5,612,560 5,612,560 Liabilities Notes payable 2,400,000 2,400,000 4,400,000 4,400,000

CREDIT ARRANGEMENTS (Tables)

CREDIT ARRANGEMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
NOTES PAYABLE [Abstract]
Schedule of promissory note	At June 30, 2015 and December 31, 2014, the Company had the following outstanding debt: Outstanding Principal Balance Instrument Issue Date Maturity Date June 30, 2015 December 31, 2014 Promissory Note: UTG Avalon 12/29/2014 4/1/2018 2,400,000 4,400,000
Schedule of lines of credit	Instrument Issue Date Maturity Date Revolving Credit Limit December 31, 2014 Borrowings Repayments June 30, 2015 Lines of Credit: UTG 2013-11-20 2015-11-20 $ 8,000,000 $ 0 0 0 $ 0 UG 2015-06-02 2016-05-19 10,000,000 0 0 0 0
Scheduled principal reduction on notes payable for the next five years	The consolidated scheduled principal reductions on the notes payable for the next five years are as follows: Year Amount 2015 $ 0 2016 0 2017 0 2018 2,400,000 2019 0

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
Funding commitment and unfunded commitment	The following table represents the total funding commitments and the unfunded commitment as of June 30, 2015 related to certain investments: Total Funding Unfunded Commitment Commitment RLF III, LLC $ 4,000,000 $ 398,120 Llano Music, LLC 4,000,000 1,904,000 Marcellus HBPI, LLP 1,800,000 141,300 Sovereign's Capital, LP Fund I 500,000 185,000 MM-Appalachia IV, LP 3,300,000 825,000 UGLIC, LLC 1,600,000 320,000 Sovereign's Capital, LP Fund II 1,000,000 950,000

OTHER CASH FLOW DISCLOSURES (Ta

OTHER CASH FLOW DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2015
OTHER CASH FLOW DISCLOSURES [Abstract]
Expenses paid on a cash basis	On a cash basis, the Company paid the following expenses: Three Months Ended June 30, 2015 2014 Interest $ 0 $ 14,648 Federal income tax 0 0 Six Months Ended June 30, 2015 2014 Interest $ 0 $ 34,320 Federal income tax 3,000,000 0

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - Jun. 30, 2015	Total
Subsidiary or Equity Method Investee [Line Items]
Ownership in subsidiary bank (in hundredths)	100.00%
Related Party Disclosure [Line Items]
Ownership or control of outstanding common stock directly or indirectly (in hundredths)	57.52%

INVESTMENTS (Details)

INVESTMENTS (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)SecurityLoans	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)SecurityLoans	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)SecurityLoans
Amortized cost and estimated value of debt securities, by contractual maturity [Abstract]
Due in one year or less	$ 4,345,587		$ 4,345,587
Due after one year through five years	19,437,005		19,437,005
Due after five years through ten years	74,596,197		74,596,197
Due after ten years	92,969,983		92,969,983
Collateralized mortgage obligations	0		0
Total	191,348,772		191,348,772
Fixed maturities [Abstract]
Original or Amortized Cost	227,459,862		227,459,862		$ 227,910,002
Gross Unrealized Gains			12,914,030	$ 13,020,260
Gross Unrealized Losses			(3,616,409)	(2,452,804)
Estimated Market Value	236,757,483		236,757,483		238,477,458
Amortized cost and estimated market value of debt securities, by contractual maturity [Abstract]
Due in one year or less	4,260,506		4,260,506
Due after one year through five years	18,449,941		18,449,941
Due after five years through ten years	71,592,928		71,592,928
Due after ten years	91,459,801		91,459,801
Collateralized mortgage obligation	0		0
Total	185,763,176		185,763,176		188,634,364
Trading Securities [Abstract]
Fair value, derivatives included in trading security assets	0		0		6,250
Fair value, derivative included in trading security liabilities	(89,848)		(89,848)		$ (23,853)
trading transfer to available for sale securities	3,224,000		3,224,000
Trading securities, net unrealized gain (loss)	71,632	$ (245,029)	1,019,262	15,622
Trading securities, realized gain (loss)	(92,310)	150,365	(515,967)	171,538
Increase (Decrease) in Trading Securities [Abstract]
Net Realized and Unrealized Gain (Loss) on Trading Securities	$ (20,678)	(94,664)	$ 503,295	187,160
Mortgages [Abstract]
Number of Mortgage Loans including Discounted Mortgage Loans | Loans	27		27		33
Mortgage Loans including Discounted Mortgage Loans	$ 15,285,625		$ 15,285,625		$ 23,161,982
Mortgage loans reserve
Average purchase price to outstanding loan (in hundredths)	34.26%
U.S. Government and Government Agencies and Authorities [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	$ 21,624,172		21,624,172		$ 23,036,161
Gross Unrealized Gains			1,777,869	1,970,791
Gross Unrealized Losses			(8,415)	(50,184)
Estimated Market Value	23,393,626		23,393,626		24,956,768
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	0		0		0
Less than 12 months, Unrealized losses			0	0
Twelve months or longer, Fair value	4,989,455		4,989,455		4,947,265
Twelve months or longer, Unrealized losses		(50,184)	(8,415)
Total Fair value	4,989,455		4,989,455		4,947,265
Total Unrealized losses		(50,184)	(8,415)
US Special Revenue and Assessments [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	1,137,625		1,137,625		1,137,702
Gross Unrealized Gains			11,570	13,739
Gross Unrealized Losses			(790)	(202,930)
Estimated Market Value	1,148,405		1,148,405		948,511
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	986,530		986,530		0
Less than 12 months, Unrealized losses			(790)	0
Twelve months or longer, Fair value	0		0		784,390
Twelve months or longer, Unrealized losses		(202,930)	0
Total Fair value	986,530		986,530		784,390
Total Unrealized losses		(202,930)	(790)
States, Municipalities and Political Subdivisions [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	0		0		95,000
Gross Unrealized Gains			0	2,385
Gross Unrealized Losses			0	0
Estimated Market Value	0		0		97,385
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value					0
Less than 12 months, Unrealized losses				0
Twelve months or longer, Fair value					0
Twelve months or longer, Unrealized losses		0
Total Fair value					0
Total Unrealized losses		$ 0
Collateralized Mortgage Obligations [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	0		0		1,005,081
Gross Unrealized Gains			0	92,091
Gross Unrealized Losses			0	(6)
Estimated Market Value	0		0		1,097,166
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	0		0		0
Less than 12 months, Unrealized losses			0	0
Twelve months or longer, Fair value	0		0		1,012
Twelve months or longer, Unrealized losses			0	(6)
Total Fair value	0		0		1,012
Total Unrealized losses			0	(6)
Public Utilities [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	399,935		399,935		399,927
Gross Unrealized Gains			46,643	55,913
Gross Unrealized Losses			0	0
Estimated Market Value	446,578		446,578		455,840
Debt Securities [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	185,763,176		185,763,176		188,634,364
Gross Unrealized Gains			8,619,511	10,759,405
Gross Unrealized Losses			(3,033,915)	(1,912,313)
Estimated Market Value	191,348,772		191,348,772		197,481,456
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	64,394,733		64,394,733		28,954,477
Less than 12 months, Unrealized losses			(1,844,707)	(416,560)
Twelve months or longer, Fair value	8,404,626		8,404,626		9,267,873
Twelve months or longer, Unrealized losses			(1,189,208)	(1,495,753)
Total Fair value	$ 72,799,359		72,799,359		$ 38,222,350
Total Unrealized losses			$ (3,033,915)	(1,912,313)
Less than 12 months Number of Securities | Security	38		38		18
Twelve months or longer Number of Securities | Security	4		4		7
Total Number of Securities | Security	42		42		25
Equity Securities [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	$ 41,696,686		$ 41,696,686		$ 39,275,638
Gross Unrealized Gains			4,294,519	2,260,855
Gross Unrealized Losses			(582,494)	(540,491)
Estimated Market Value	45,408,711		45,408,711		40,996,002
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	3,173,588		3,173,588		6,067,132
Less than 12 months, Unrealized losses			(582,494)	(540,491)
Twelve months or longer, Fair value	0		0		0
Twelve months or longer, Unrealized losses			0	0
Total Fair value	$ 3,173,588		3,173,588		$ 6,067,132
Total Unrealized losses			$ (582,494)	(540,491)
Less than 12 months Number of Securities | Security	14		14		25
Twelve months or longer Number of Securities | Security	0		0		0
Total Number of Securities | Security	14		14		25
All Other Corporate Bonds [Member]
Fixed maturities [Abstract]
Original or Amortized Cost	$ 162,601,444		$ 162,601,444		$ 162,960,493
Gross Unrealized Gains			6,783,429	8,624,486
Gross Unrealized Losses			(3,024,710)	(1,659,193)
Estimated Market Value	166,360,163		166,360,163		169,925,786
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, Fair value	63,408,203		63,408,203		28,954,477
Less than 12 months, Unrealized losses			(1,843,917)	(416,560)
Twelve months or longer, Fair value	3,415,171		3,415,171		3,535,206
Twelve months or longer, Unrealized losses			(1,180,793)	(1,242,633)
Total Fair value	$ 66,823,374		66,823,374		$ 32,489,683
Total Unrealized losses			$ (3,024,710)	$ (1,659,193)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Carrying Amount [Member]
Assets [Abstract]
Mortgage loans on real estate	$ 9,769,560	$ 9,769,560	$ 14,060,930
Discounted mortgage loans	5,516,065	5,516,065	9,101,052
Investment real estate	53,131,234	53,131,234	51,007,101
Policy Loans	10,832,464	10,832,464	11,104,485
Cash and cash equivalents	20,644,252	20,644,252	13,977,443
Other Assets, Fair Value Disclosure	4,012,988	4,012,988	4,382,181
Financing Receivable, Gross	5,212,560	5,212,560	5,612,560
Liabilities [Abstract]
Notes payable	2,400,000	2,400,000	4,400,000
Estimated Fair Value [Member]
Assets [Abstract]
Mortgage loans on real estate	10,103,835	10,103,835	14,236,676
Discounted mortgage loans	5,516,065	5,516,065	9,101,052
Investment real estate	53,131,234	53,131,234	51,007,101
Policy Loans	10,832,464	10,832,464	11,104,485
Cash and cash equivalents	20,644,252	20,644,252	13,977,443
Other Assets, Fair Value Disclosure	4,012,988	4,012,988	4,382,181
Financing Receivable, Gross	5,212,560	5,212,560	5,612,560
Liabilities [Abstract]
Notes payable	2,400,000	2,400,000	4,400,000
Fixed Maturities, available for sale	191,348,772	191,348,772	197,481,456
Trading Securities	0	0	3,826,250
Trading Securities	89,848	89,848	23,853
Beginning Balance		29,748,359
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unobservable Input, Realized Gain (Loss), Total	0
Total Unrealized Gains (Losses) Included in Other Comprehensive Income	473,248
Purchases	1,005,625
Sales		(2,778,338)
Ending Balance	28,448,894	28,448,894
Discounted mortgage loans	5,516,065	5,516,065	9,101,052
Investment real estate	53,131,234	53,131,234	51,007,101
Cash and cash equivalents	20,644,252	$ 20,644,252	13,977,443	$ 17,905,873	$ 19,838,618
Policy loan interest rate, minimum (in hundredths)		4.00%
Policy loan interest rate, maximum (in hundredths)		8.00%
Fixed Maturities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		$ 869,725
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unobservable Input, Realized Gain (Loss), Total	0
Total Unrealized Gains (Losses) Included in Other Comprehensive Income	57,474
Purchases	0
Sales		0
Ending Balance	927,199	927,199
Equity Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance		28,878,634
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Unobservable Input, Realized Gain (Loss), Total	0
Total Unrealized Gains (Losses) Included in Other Comprehensive Income	415,774
Purchases	1,005,625
Sales		(2,778,338)
Ending Balance	27,521,695	27,521,695
Measured on a recurring basis [Member]
Assets [Abstract]
Fixed Maturities, available for sale	191,348,772	191,348,772	197,481,456
Equity Securities, available for sale	45,408,711	45,408,711	40,996,002
Trading Securities	0	0	3,826,250
Total Financial Assets	236,757,483	236,757,483	242,303,708
Liabilities [Abstract]
Trading Securities	89,848	89,848	23,853
Measured on a recurring basis [Member] | Level 1 [Member]
Assets [Abstract]
Fixed Maturities, available for sale	11,889,848	11,889,848	13,374,878
Equity Securities, available for sale	10,751,651	10,751,651	4,756,292
Trading Securities	0	0	3,826,250
Total Financial Assets	22,641,499	22,641,499	21,957,420
Liabilities [Abstract]
Trading Securities	89,848	89,848	23,853
Measured on a recurring basis [Member] | Level 2 [Member]
Assets [Abstract]
Fixed Maturities, available for sale	178,531,725	178,531,725	183,236,853
Equity Securities, available for sale	7,135,365	7,135,365	7,361,076
Trading Securities	0	0	0
Total Financial Assets	185,667,090	185,667,090	190,597,929
Liabilities [Abstract]
Trading Securities	0	0	0
Measured on a recurring basis [Member] | Level 3 [Member]
Assets [Abstract]
Fixed Maturities, available for sale	927,199	927,199	869,725
Equity Securities, available for sale	27,521,695	27,521,695	28,878,634
Trading Securities	0	0	0
Total Financial Assets	28,448,894	28,448,894	29,748,359
Liabilities [Abstract]
Trading Securities	$ 0	$ 0	$ 0

CREDIT ARRANGEMENTS (Details)

CREDIT ARRANGEMENTS (Details) - USD ($)	Jul. 09, 2015	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Lines of Credit [Line Items]
Repayments		$ 2,000,000
Frequency of Payments		quarterly
Scheduled principal reductions on notes payable for the next five years [Abstract]
2,013		$ 0	$ 0
2,014		0	0
2,015		0	0
2,016		2,400,000	2,400,000
2,017		0	$ 0
Subsequent Event [Member]
Lines of Credit [Line Items]
Repayments	$ 1,500,000
HPG Acquisition 2007-02-07 [Member]
Debt Instrument [Line Items]
Issue Date			Dec. 29, 2014
Maturity Date			Apr. 1, 2018
Outstanding Principal Balance		2,400,000	$ 2,400,000	$ 4,400,000
UTG 2012-11-20 [Member]
Lines of Credit [Line Items]
Issue Date			Nov. 20, 2013
Maturity Date			Nov. 20, 2015
Revolving Credit Limit		8,000,000	$ 8,000,000
Outstanding Balance		0	0	0
Borrowings			0
Repayments			$ 0
Interest Rate			3.75%
Assets Pledged			100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company (“UG”).
UTG Avalon 2013-03-28 [Member]
Lines of Credit [Line Items]
Issue Date			Jun. 2, 2015
Maturity Date			May 19, 2016
Revolving Credit Limit		10,000,000	$ 10,000,000
Outstanding Balance		$ 0	0	$ 0
Borrowings			0
Repayments			$ 0
Interest Rate			3.50%

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 03, 2015
STOCK REPURCHASE PROGRAM [Abstract]
Stock repurchase program authorized amount	$ 8,000,000,000,000	$ 1,000,000
Treasury Stock, Shares, Acquired	15,858
Amount paid to repurchase shares during the year	$ 222,266
Amount of common stock repurchased	$ 6,345,392
Number of common stock acquired (in shares)	678,556

COMMITMENTS AND CONTINGENCIES27

COMMITMENTS AND CONTINGENCIES (Details) - Jun. 30, 2015 - USD ($) None in scaling factor is -9223372036854775296	Total
Liability for contingent costs [Line Items]
Litigation Settlement, Amount	$ 0
ACAP [Member]
Liability for contingent costs [Line Items]
Loss Contingency Accrual, Ending Balance	0
Loss Contingency	$ 0
Share Conversion
RLF III, LLC [Member]
Investment Commitment [Line Items]
Total Funding Commitment	$ 4,000,000
Unfunded Commitment	398,120
Llano Music, LLC [Member]
Investment Commitment [Line Items]
Total Funding Commitment	4,000,000
Unfunded Commitment	1,904,000
Marcellus HBPI, LLP [Member]
Investment Commitment [Line Items]
Total Funding Commitment	1,800,000
Unfunded Commitment	141,300
Sovereign's Capital, LP Fund I [Member]
Investment Commitment [Line Items]
Total Funding Commitment	500,000
Unfunded Commitment	185,000
Sovereign's Capital LP Fund II [Member]
Investment Commitment [Line Items]
Total Funding Commitment	1,000,000
Unfunded Commitment	950,000
MM-Appalachia IV, LP [Member]
Investment Commitment [Line Items]
Total Funding Commitment	3,300,000
Unfunded Commitment	825,000
UGLIC, LLC [Member]
Investment Commitment [Line Items]
Total Funding Commitment	1,600,000
Unfunded Commitment	$ 320,000

OTHER CASH FLOW DISCLOSURES (De

OTHER CASH FLOW DISCLOSURES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
OTHER CASH FLOW DISCLOSURES [Abstract]
Interest expense paid	$ 0	$ 14,648	$ 0	$ 34,320
Federal income tax	0	$ 0	3,000,000	$ 0
Noncash transaction LOC	0		0
Cash to purchaser			0
Approximate future policyholder benefits			0
Approximate cost of insurance acquired	0
Noncash transaction short term investments	0		0
Noncash transaction real estate	$ 0		$ 0