UTG (UTGN) 10-Q 12 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Cover [Abstract]
Entity Registrant Name	UTG INC
Entity Central Index Key	0000832480
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	No
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		3,273,260
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Address, State or Province	KY

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Investments available for sale:
Fixed maturities, at fair value (amortized cost $160,799,432 and $159,959,855)	$ 173,703,436	$ 171,629,373	[1]
Equity securities, at fair value (cost $30,061,436 and $32,578,862)	51,459,924	78,661,793	[1]
Equity securities, at cost	10,417,247	10,919,247	[1]
Mortgage loans on real estate at amortized cost	9,099,364	8,223,286	[1]
Investment real estate	43,087,742	44,344,236	[1]
Notes receivable	20,798,050	19,487,458	[1]
Policy loans	8,732,681	8,803,876	[1]
Short-term investments	15,388,646	10,442,173
Total investments	332,687,090	352,511,442	[1]
Cash and cash equivalents	26,431,046	28,787,629	[1]
Accrued investment income	1,383,288	1,679,783	[1]
Reinsurance receivables:
Future policy benefits	25,468,524	25,655,161	[1]
Policy claims and other benefits	4,291,578	4,142,142	[1]
Cost of insurance acquired	4,660,108	4,846,321	[1]
Property and equipment, net of accumulated depreciation	407,735	427,736	[1]
Other assets	3,175,629	695,517	[1]
Total assets	398,504,998	418,745,731	[1]
Policy liabilities and accruals:
Future policyholder benefits	247,227,486	249,264,308	[1]
Policy claims and benefits payable	3,221,937	3,631,666	[1]
Other policyholder funds	433,873	404,177	[1]
Dividend and endowment accumulations	14,620,315	14,626,475	[1]
Income taxes payable	3,467,474	313,662	[1]
Deferred income taxes	7,080,403	13,222,604	[1]
Other liabilities	5,158,187	5,785,933	[1]
Total liabilities	281,209,675	287,248,825	[1]
Shareholders' equity:
Common stock - no par value, stated value $.001 per share. Authorized 7,000,000 shares - 3,274,919 and 3,277,830 shares outstanding	3,276	3,279	[1]
Additional paid-in capital	35,903,350	36,012,401	[1]
Retained earnings	71,000,617	85,979,678	[1]
Accumulated other comprehensive income	9,832,206	8,977,914	[1]
Total UTG shareholders' equity	116,739,449	130,973,272	[1]
Noncontrolling interests	555,874	523,634	[1]
Total shareholders' equity	117,295,323	131,496,906	[1]
Total liabilities and shareholders' equity	$ 398,504,998	$ 418,745,731	[1]
[1]	Balance sheet audited at December 31, 2018.

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Investments available for sale:
Fixed maturities, amortized cost	$ 160,799,432	$ 159,959,855
Equity securities, cost	$ 30,061,436	$ 32,578,862
Shareholders' equity:
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, stated value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	7,000,000	7,000,000
Common stock, outstanding (in shares)	3,274,919	3,277,830

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue:
Premiums and policy fees	$ 2,355,755	$ 2,503,205
Ceded reinsurance premiums and policy fees	(680,440)	(517,055)
Net investment income	2,830,186	3,112,024
Other income	59,042	63,838
Revenue before net investment gains (losses)	4,564,543	5,162,012
Net investment gains (losses):
Other realized investment gains, net	7,174,507	1,113,698
Change in fair value of equity securities	(24,684,444)	14,787,631
Total net investment gains (losses)	(17,509,937)	15,901,329
Total revenue	(12,945,394)	21,063,341
Benefits, claims and settlement expenses:
Life	3,540,361	3,427,200
Ceded reinsurance benefits and claims	(634,943)	(474,622)
Annuity	232,488	197,670
Dividends to policyholders	94,315	103,599
Commissions and amortization of deferred policy acquisition costs	(35,117)	(24,542)
Amortization of cost of insurance acquired	186,213	193,977
Operating expenses	1,986,692	2,144,389
Total benefits and other expenses	5,370,009	5,567,671
Income (loss) before income taxes	(18,315,403)	15,495,670
Income tax (benefit) expense	(3,368,582)	3,697,058
Net income (loss)	(14,946,821)	11,798,612
Net income attributable to noncontrolling interests	(32,240)	(153,733)
Net income (loss) attributable to common shareholders	$ (14,979,061)	$ 11,644,879
Amounts attributable to common shareholders
Basic income (loss) per share (in dollars per share)	$ (4.58)	$ 3.53
Diluted income (loss) per share (in dollars per share)	$ (4.58)	$ 3.53
Basic weighted average shares outstanding (in shares)	3,274,093	3,297,353
Diluted weighted average shares outstanding (in shares)	3,274,093	3,297,353

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract]
Net income (loss)	$ (14,946,821)	$ 11,798,612
Other comprehensive income (loss):
Unrealized holding gains (losses) arising during period, pre-tax	1,472,865	4,934,851
Tax (expense) benefit on unrealized holding gains (losses) arising during the period	(309,302)	(1,036,319)
Unrealized holding gains (losses) arising during period, net of tax	1,163,563	3,898,532
Less reclassification adjustment for gains (losses) included in net income	(391,483)	(15,055)
Tax (expense) benefit for gains included in net income (loss)	82,212	3,162
Reclassification adjustment for gains (losses) included in net income, net of tax	(309,271)	(11,893)
Subtotal: Other comprehensive income (loss), net of tax	854,292	3,886,639
Comprehensive income (loss)	(14,092,529)	15,685,251
Less comprehensive income attributable to noncontrolling interests	(32,240)	(153,733)
Comprehensive income (loss) attributable to UTG, Inc.	$ (14,124,769)	$ 15,531,518

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Noncontrolling Interest [Member]	Total
Balance at Dec. 31, 2018	$ 3,296	$ 36,567,865	$ 69,708,901	$ 62,495	$ 734,153	$ 107,076,710
Common stock issued during year	8	229,792	0	0	0	229,800
Treasury shares acquired	(7)	(212,380)	0	0	0	(212,387)
Net income (loss) attributable to common shareholders	0	0	11,644,879	0	0	11,644,879
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes	0	0	0	3,886,639	0	3,886,639
Contributions	0	0	0	0	0	0
Distributions	0	0	0	0	(245,750)	(245,750)
Gain attributable to noncontrolling interest	0	0	0	0	153,733	153,733
Balance at Mar. 31, 2019	3,297	36,585,277	81,353,780	3,949,134	642,136	122,533,624
Balance at Dec. 31, 2019	3,279	36,012,401	85,979,678	8,977,914	523,634	131,496,906	[1]
Common stock issued during year	6	201,543	0	0	0	201,549
Treasury shares acquired	(9)	(310,594)	0	0	0	(310,603)
Net income (loss) attributable to common shareholders	0	0	(14,979,061)	0	0	(14,979,061)
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes	0	0	0	854,292	0	854,292
Contributions	0	0	0	0	0	0
Distributions	0	0	0	0	0	0
Gain attributable to noncontrolling interest	0	0	0	0	32,240	32,240
Balance at Mar. 31, 2020	$ 3,276	$ 35,903,350	$ 71,000,617	$ 9,832,206	$ 555,874	$ 117,295,323
[1]	Balance sheet audited at December 31, 2018.

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net income (loss)	$ (14,946,821)	$ 11,798,612
Adjustments to reconcile net income to net cash used in operating activities:
Amortization (accretion) of investments	(98,297)	(39,703)
Realized investment gains, net	(7,174,507)	(1,113,698)
Change in fair value of equity securities	24,684,444	(14,787,631)
Amortization of cost of insurance acquired	186,213	193,977
Depreciation	156,652	323,406
Stock-based compensation	201,549	229,800
Charges for mortality and administration of universal life and annuity products	(1,583,889)	(1,619,743)
Interest credited to account balances	1,009,012	1,029,303
Change in accrued investment income	296,495	232,788
Change in reinsurance receivables	37,201	(61,726)
Change in policy liabilities and accruals	(1,943,479)	(772,518)
Change in income taxes receivable (payable)	3,153,812	612,616
Change in other assets and liabilities, net	(9,630,253)	3,839,857
Net cash used in operating activities	(5,651,868)	(134,660)
Proceeds from investments sold and matured:
Fixed maturities available for sale	8,626,339	2,023,974
Equity securities	13,350,043	33,075
Mortgage loans	61,847	1,945,760
Real estate	1,119,842	3,045,226
Notes receivable	2,189,408	1,537,984
Policy loans	387,870	410,831
Short-term investments	3,000,000	0
Total proceeds from investments sold and matured	28,735,349	8,996,850
Cost of investments acquired:
Fixed maturities available for sale	(9,038,928)	0
Equity securities	(3,547,593)	(46,509)
Mortgage loans	(931,378)	(3,575,500)
Real estate	0	(1,174,688)
Notes receivable	(3,500,000)	(4,416,008)
Policy loans	(316,675)	(324,587)
Short-term investments	(7,890,228)	0
Total cost of investments acquired	(25,224,802)	(9,537,292)
Net cash provided by (used in) investing activities	3,510,547	(540,442)
Cash flows from financing activities:
Policyholder contract deposits	1,187,672	1,264,011
Policyholder contract withdrawals	(1,092,331)	(1,231,379)
Purchase of treasury stock	(310,603)	(212,387)
Non controlling contributions (distributions) of consolidated subsidiary	0	(245,750)
Net cash used in financing activities	(215,262)	(425,505)
Net decrease in cash and cash equivalents	(2,356,583)	(1,100,607)
Cash and cash equivalents at beginning of period	28,787,629	20,150,162
Cash and cash equivalents at end of period	$ 26,431,046	$ 19,049,555

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2020
Basis of Presentation [Abstract]
Basis of Presentation	Note 1 – Basis of Presentation The accompanying Condensed Consolidated Balance Sheet as of March 31, 2020, 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, 2019. The Company’s results of operations for the three month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or for any other future period. 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 March 31, 2020, Mr. Correll owns or controls directly and indirectly approximately 65.70% 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.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Mar. 31, 2020
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 2 – Recently Issued Accounting Standards During the three months ended March 31, 2020, there were no additions to or changes in the critical accounting policies disclosed in the 2019 Form 10-K.

Investments

Investments	3 Months Ended
	Mar. 31, 2020
Investments [Abstract]
Investments	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, 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 $ 44,797,372 $ 1,751,954 $ - $ 46,549,326 U.S. special revenue and assessments 14,366,514 1,550,993 - 15,917,507 All other corporate bonds 101,635,546 10,052,499 (451,442) 111,236,603 $ 160,799,432 $ 13,355,446 $ (451,442) $ 173,703,436 December 31, 2019 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 $ 35,761,440 $ 402,832 $ (35,529) $ 36,128,743 U.S. special revenue and assessments 14,371,263 832,100 - 15,203,363 All other corporate bonds 109,827,152 10,470,115 - 120,297,267 $ 159,959,855 $ 11,705,047 $ (35,529) $ 171,629,373 The amortized cost and estimated market value of debt securities at March 31, 2020, 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 March 31, 2020 Amortized Cost Fair Value Due in one year or less $ 11,796,278 $ 12,089,426 Due after one year through five years 58,507,802 60,788,411 Due after five years through ten years 46,860,963 53,482,062 Due after ten years 43,634,389 47,343,537 Total $ 160,799,432 $ 173,703,436 The fair value of investments with sustained gross unrealized losses at March 31, 2020 and December 31, 2019 are as follows: March 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 $ 7,268,145 (451,442) - - 7,268,145 $ (451,442) Total fixed maturities $ 7,268,145 (451,442) - - 7,268,145 $ (451,442) December 31, 2019 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 $ 6,059,380 (35,529) - - 6,059,380 $ (35,529) Total fixed maturities $ 6,059,380 (35,529) - - 6,059,380 $ (35,529) Additional information regarding investments in an unrealized loss position is as follows: Less than 12 months 12 months or longer Total As of March 31, 2020 Fixed maturities 7 - 7 As of December 31, 2019 Fixed maturities 3 - 3 Substantially all of the unrealized losses on fixed maturities at March 31, 2020 and December 31, 2019 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, 2020 and December 31, 2019. Net Investment Gains (Losses) The following table presents net investment gains (losses) and the change in net unrealized gains on available-for-sale investments. Three Months Ended March 31, 2020 2019 Realized gains: Sales of fixed maturities $ 391,483 $ 15,055 Sales of equity securities 6,783,024 - Sales of real estate - 1,098,643 Total realized gains 7,174,507 1,113,698 Realized losses: Sales of fixed maturities - - Sales of equity securities - - Sales of real estate - - Other-than-temporary impairments - - Total realized losses - - Net realized investment gains (losses) 7,174,507 1,113,698 Change in fair value of equity securities: Change in fair value of equity securities held at the end of the period (24,684,444) 14,787,631 Change in fair value of equity securities (24,684,444) 14,787,631 Net investment gains (losses) $ (17,509,937) $ 15,901,329 Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income: Fixed maturities $ 1,472,865 $ 4,934,851 Net increase (decrease) $ 1,472,865 $ 4,934,851 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 Consolidated Statements of Operations. The Company did not recognize any other-than-temporary impairments during the first quarter of 2019 or 2020. Cost Method Investments The Company held equity investments with an aggregate cost of $10,417,247 and $10,919,247 at March 31, 2020 and December 31, 2019, respectively. These equity investments were not reported at fair value because it is not practicable to estimate their fair values due to insufficient information being available. Management 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 March 31, 2020. 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 three months ended March 31, 2020 and 2019, the Company acquired $931,378 and $3,575,500 in mortgage loans, respectively. FSNB services the majority of the Company’s mortgage loan portfolio. The Company pays FSNB a .25% servicing fee on these loans and a one-time fee at loan origination of .50% of the original loan cost to cover costs incurred by FSNB relating to the processing and establishment of the loan. During 2020 and 2019, the maximum and minimum lending rates for mortgage loans were: 2020 2019 Maximum rate Minimum rate Maximum rate Minimum rate Farm Loans 5.00% 5.00% 5.00% 5.00% Commercial Loans 7.50% 4.24% 7.50% 4.00% Residential Loans 5.50% 5.50% 8.00% 8.00% 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 March 31, 2020 and December 31, 2019. The following table summarizes the mortgage loan holdings of the Company for the periods ended: March 31, 2020 December 31, 2019 In good standing $ 9,099,364 $ 8,223,286 Total mortgage loans $ 9,099,364 $ 8,223,286 Investment Real Estate Investment real estate held for sale is reported at the lower of cost or fair value less cost to sell. Investment Real estate acquired through foreclosure, consisting of properties obtained through foreclosure proceedings or acceptance of a deed in lieu of foreclosure, is reported on an individual asset basis at the lower of cost or fair value, less disposal costs. Fair value is determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources. When properties are acquired through foreclosure, any excess of the loan balance at the time of foreclosure over the fair value of the real estate held as collateral is recognized and charged to the Consolidated Statements of Operations. Based upon Management’s evaluation of the real estate acquired through foreclosure, additional expense is recorded when necessary in an amount sufficient to reflect any declines in estimated fair value. The Company's investment real estate portfolio includes ownerships in oil and gas royalties. As of March 31, 2020 and December 31, 2019, investments in oil and gas royalties represented 43% and 44%, respectively, of the total investment real estate portfolio. 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 three months ended March 31, 2020 and 2019, the Company acquired $0 and $1,174,688 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 March 31, 2020 and December 31, 2019 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 three months ended March 31, 2020 and 2019 the Company acquired $3,500,000 and $4,416,008, 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.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2020
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 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 consist of common and preferred 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. 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 March 31, 2020. Level 1 Level 2 Level 3 Total Assets Fixed Maturities, available for sale $ 46,549,326 $ 127,154,110 $ - $ 173,703,436 Equity Securities 15,953,666 12,244,456 23,261,802 51,459,924 Total $ 62,502,992 $ 139,398,566 $ 23,261,802 $ 225,163,360 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, 2019. Level 1 Level 2 Level 3 Total Assets Fixed Maturities, available for sale $ 36,128,743 $ 135,500,630 $ - $ 171,629,373 Equity Securities 29,888,281 14,258,750 34,514,762 78,661,793 Total $ 66,017,024 $ 149,759,380 $ 34,514,762 $ 250,291,166 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 Total Balance at December 31, 2019 $ - $ 34,514,762 $ 34,514,762 Total unrealized gain or (losses): Included in net income (loss) - (2,296,374) (2,296,374) Included in other comprehensive income - - - Purchases - 1,331,382 1,331,382 Sales - (10,287,968) (10,287,968) Balance at March 31, 2020 $ - $ 23,261,802 $ 23,261,802 March 31, 2020 December 31, 2019 Change in fair value of equity securities included in net income (loss) relating to assets held $ (2,296,374) $ 6,461,670 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 equity investments based on a review of current financial information, earnings trends and similar companies in the same industries. There were no transfers in or out of Level 3 as of March 31, 2020. Transfers occur when there is a change in the availability of observable market information. 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 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 Consolidated Balance Sheets are shown below. Because the fair value for all 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. March 31, 2020 December 31, 2019 Assets Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Equity securities $ 10,417,247 $ 10,417,247 $ 10,919,247 $ 10,919,247 Mortgage loans on real estate 9,099,364 9,099,364 8,223,286 8,223,286 Investment real estate 43,087,742 43,087,742 44,344,236 44,344,236 Notes receivable 20,798,050 20,798,050 19,487,458 19,487,458 Policy loans 8,732,681 8,732,681 8,803,876 8,803,876 Short term investments 15,388,646 15,388,646 10,442,173 10,442,173 Cash and cash equivalents 26,431,046 26,431,046 28,787,629 28,787,629 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. Notes receivable 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. 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. The carrying amount of cash and cash equivalents in the Condensed Consolidated Balance Sheets 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 Balance Sheets 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.

Credit Arrangements

Credit Arrangements	3 Months Ended
	Mar. 31, 2020
Credit Arrangements [Abstract]
Credit Arrangements	Note 5 – Credit Arrangements Instrument Issue Date Maturity Date Revolving Credit Limit December 31, 2019 Borrowings Repayments March 31, 2020 Lines of Credit: UTG 11/20/2013 11/20/2020 $ 8,000,000 - - - - UG 6/2/2015 5/8/2020 10,000,000 - - - - The UTG line of credit carries interest at a fixed rate of 4.040% and is payable monthly. As collateral, UTG has pledged 100% of the During May of 2019, the Federal Home Loan Bank approved UG’s Cash Management Advance Application (“CMA”). The CMA gives the Company the option of selecting a variable rate of interest for up to 90 days or a fixed rate for a maximum of 30 days. The variable rate CMA is prepayable at any time without a fee, while the fixed CMA is not prepayable prior to maturity. The Company has pledged bonds with a collateral lendable value of $12,254,677. The Company is currently in the process of renewing the CMA.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2020
Shareholders' Equity [Abstract]
Shareholders' Equity	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 June of 2019, the Board of Directors of UTG authorized the repurchase of up to an additional $2.5 million of UTG's common stock, for a total repurchase of up to $18.5 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 three months ended March 31, 2020, the Company repurchased 8,955 shares through the stock repurchase program for $310,603. Through March 31, 2020, UTG has spent $15,083,699 in the acquisition of 1,178,313 shares under this program. During 2020, the Company issued 6,044 shares of stock to management and employees as compensation at a cost of $201,549. 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 three months ended March 31, 2020 and 2019, diluted earnings per share were the same as basic earnings per share since the Company had no dilutive instruments outstanding.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
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. The following table represents the total funding commitments and the unfunded commitment as of March 31, 2020 related to certain investments: Total Funding Commitment Unfunded Commitment RLF III, LLC $ 4,000,000 $ 398,120 Sovereign’s Capital, LP Fund I 500,000 20,000 Sovereign's Capital, LP Fund II 1,000,000 158,596 Sovereign's Capital, LP Fund III 3,000,000 2,137,079 Garden City Companies, LLC 2,000,000 1,956,688 Carrizo Springs Music, LLC 2,500,000 2,296,875 Modern Distributors, Inc. 7,200,000 3,700,000 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 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 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.

Other Cash Flow Disclosures

Other Cash Flow Disclosures	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 Interest $ - $ - Federal income tax - -

Concentrations of Credit Risk

Concentrations of Credit Risk	3 Months Ended
	Mar. 31, 2020
Concentrations of Credit Risk [Abstract]
Concentrations of Credit Risk	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 four states, the ability of our customers to pay their insurance premiums is impacted by the economic conditions in these areas. As of March 31, 2020 and 2019 , approximately 55% 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 March 31, 2020 and December 31, 2019, respectively. Insurance ceded represented 34% and 24% of premium income . 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 19% and 25% of the Company's total invested assets as of March 31, 2020 and December 31, 2019, respectively.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2020
Basis of Presentation [Abstract]
Basis of Presentation	The accompanying Condensed Consolidated Balance Sheet as of March 31, 2020, 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, 2019. The Company’s results of operations for the three month period ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or for any other future period.

Recently Issued Accounting St_2

Recently Issued Accounting Standards (Policies)	3 Months Ended
	Mar. 31, 2020
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	During the three months ended March 31, 2020, there were no additions to or changes in the critical accounting policies disclosed in the 2019 Form 10-K.

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2020
Investments [Abstract]
Available for Sale Securities	Investments in available for sale securities are summarized as follows: March 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 $ 44,797,372 $ 1,751,954 $ - $ 46,549,326 U.S. special revenue and assessments 14,366,514 1,550,993 - 15,917,507 All other corporate bonds 101,635,546 10,052,499 (451,442) 111,236,603 $ 160,799,432 $ 13,355,446 $ (451,442) $ 173,703,436 December 31, 2019 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 $ 35,761,440 $ 402,832 $ (35,529) $ 36,128,743 U.S. special revenue and assessments 14,371,263 832,100 - 15,203,363 All other corporate bonds 109,827,152 10,470,115 - 120,297,267 $ 159,959,855 $ 11,705,047 $ (35,529) $ 171,629,373
Debt Securities by Contractual Maturity	The amortized cost and estimated market value of debt securities at March 31, 2020, 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 March 31, 2020 Amortized Cost Fair Value Due in one year or less $ 11,796,278 $ 12,089,426 Due after one year through five years 58,507,802 60,788,411 Due after five years through ten years 46,860,963 53,482,062 Due after ten years 43,634,389 47,343,537 Total $ 160,799,432 $ 173,703,436
Fair Value of Investments with Sustained Gross Unrealized Losses	The fair value of investments with sustained gross unrealized losses at March 31, 2020 and December 31, 2019 are as follows: March 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 $ 7,268,145 (451,442) - - 7,268,145 $ (451,442) Total fixed maturities $ 7,268,145 (451,442) - - 7,268,145 $ (451,442) December 31, 2019 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 $ 6,059,380 (35,529) - - 6,059,380 $ (35,529) Total fixed maturities $ 6,059,380 (35,529) - - 6,059,380 $ (35,529)
Securities in Continuous Unrealized Loss Position	Additional information regarding investments in an unrealized loss position is as follows: Less than 12 months 12 months or longer Total As of March 31, 2020 Fixed maturities 7 - 7 As of December 31, 2019 Fixed maturities 3 - 3
Net Investment Gains (Losses) and Change in Net Unrealized Gains on AFS Investments	The following table presents net investment gains (losses) and the change in net unrealized gains on available-for-sale investments. Three Months Ended March 31, 2020 2019 Realized gains: Sales of fixed maturities $ 391,483 $ 15,055 Sales of equity securities 6,783,024 - Sales of real estate - 1,098,643 Total realized gains 7,174,507 1,113,698 Realized losses: Sales of fixed maturities - - Sales of equity securities - - Sales of real estate - - Other-than-temporary impairments - - Total realized losses - - Net realized investment gains (losses) 7,174,507 1,113,698 Change in fair value of equity securities: Change in fair value of equity securities held at the end of the period (24,684,444) 14,787,631 Change in fair value of equity securities (24,684,444) 14,787,631 Net investment gains (losses) $ (17,509,937) $ 15,901,329 Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income: Fixed maturities $ 1,472,865 $ 4,934,851 Net increase (decrease) $ 1,472,865 $ 4,934,851
Maximum and Minimum Lending Rates for Mortgage Loan	During 2020 and 2019, the maximum and minimum lending rates for mortgage loans were: 2020 2019 Maximum rate Minimum rate Maximum rate Minimum rate Farm Loans 5.00% 5.00% 5.00% 5.00% Commercial Loans 7.50% 4.24% 7.50% 4.00% Residential Loans 5.50% 5.50% 8.00% 8.00%
Mortgage Loan Holdings	The following table summarizes the mortgage loan holdings of the Company for the periods ended: March 31, 2020 December 31, 2019 In good standing $ 9,099,364 $ 8,223,286 Total mortgage loans $ 9,099,364 $ 8,223,286

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2020
Fair Value Measurements [Abstract]
Assets and Liabilities Measured at Fair Value on a 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 March 31, 2020. Level 1 Level 2 Level 3 Total Assets Fixed Maturities, available for sale $ 46,549,326 $ 127,154,110 $ - $ 173,703,436 Equity Securities 15,953,666 12,244,456 23,261,802 51,459,924 Total $ 62,502,992 $ 139,398,566 $ 23,261,802 $ 225,163,360 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, 2019. Level 1 Level 2 Level 3 Total Assets Fixed Maturities, available for sale $ 36,128,743 $ 135,500,630 $ - $ 171,629,373 Equity Securities 29,888,281 14,258,750 34,514,762 78,661,793 Total $ 66,017,024 $ 149,759,380 $ 34,514,762 $ 250,291,166
Reconciliation for Level 3 Assets Measured at Fair Value on a Recurring Basis	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 Total Balance at December 31, 2019 $ - $ 34,514,762 $ 34,514,762 Total unrealized gain or (losses): Included in net income (loss) - (2,296,374) (2,296,374) Included in other comprehensive income - - - Purchases - 1,331,382 1,331,382 Sales - (10,287,968) (10,287,968) Balance at March 31, 2020 $ - $ 23,261,802 $ 23,261,802 March 31, 2020 December 31, 2019 Change in fair value of equity securities included in net income (loss) relating to assets held $ (2,296,374) $ 6,461,670
Carrying Values and Estimated Fair Values of Financial Instruments not Recorded at Fair Value	The carrying values and estimated fair values of certain of the Company’s financial instruments not recorded at fair value in the Consolidated Balance Sheets are shown below. Because the fair value for all 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. March 31, 2020 December 31, 2019 Assets Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Equity securities $ 10,417,247 $ 10,417,247 $ 10,919,247 $ 10,919,247 Mortgage loans on real estate 9,099,364 9,099,364 8,223,286 8,223,286 Investment real estate 43,087,742 43,087,742 44,344,236 44,344,236 Notes receivable 20,798,050 20,798,050 19,487,458 19,487,458 Policy loans 8,732,681 8,732,681 8,803,876 8,803,876 Short term investments 15,388,646 15,388,646 10,442,173 10,442,173 Cash and cash equivalents 26,431,046 26,431,046 28,787,629 28,787,629

Credit Arrangements (Tables)

Credit Arrangements (Tables)	3 Months Ended
	Mar. 31, 2020
Credit Arrangements [Abstract]
Credit Arrangements	Instrument Issue Date Maturity Date Revolving Credit Limit December 31, 2019 Borrowings Repayments March 31, 2020 Lines of Credit: UTG 11/20/2013 11/20/2020 $ 8,000,000 - - - - UG 6/2/2015 5/8/2020 10,000,000 - - - -

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies [Abstract]
Total Funding Commitments and Unfunded Commitment	The following table represents the total funding commitments and the unfunded commitment as of March 31, 2020 related to certain investments: Total Funding Commitment Unfunded Commitment RLF III, LLC $ 4,000,000 $ 398,120 Sovereign’s Capital, LP Fund I 500,000 20,000 Sovereign's Capital, LP Fund II 1,000,000 158,596 Sovereign's Capital, LP Fund III 3,000,000 2,137,079 Garden City Companies, LLC 2,000,000 1,956,688 Carrizo Springs Music, LLC 2,500,000 2,296,875 Modern Distributors, Inc. 7,200,000 3,700,000

Other Cash Flow Disclosures (Ta

Other Cash Flow Disclosures (Tables)	3 Months Ended
	Mar. 31, 2020
Other Cash Flow Disclosures [Abstract]
Expenses Paid on a Cash Basis	On a cash basis, the Company paid the following expenses: Three Months Ended March 31, 2020 2019 Interest $ - $ - Federal income tax - -

Basis of Presentation (Details)

Basis of Presentation (Details)	Mar. 31, 2020
Chief Executive Officer and Chairman of the Board [Member]
Ownership Interest [Abstract]
Ownership interest percentage	65.70%
FSBI [Member] | FSNB [Member]
Ownership Interest [Abstract]
Ownership in subsidiary bank	100.00%

Investments, Available for Sale

Investments, Available for Sale Securities (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Fixed maturities [Abstract]
Original or amortized cost	$ 160,799,432	$ 159,959,855
Gross unrealized gains	13,355,446	11,705,047
Gross unrealized losses	(451,442)	(35,529)
Estimated fair value	173,703,436	171,629,373	[1]
Equity securities [Abstract]
Estimated fair value	51,459,924	78,661,793	[1]
U.S. Government and Govt. Agencies and Authorities [Member]
Fixed maturities [Abstract]
Original or amortized cost	44,797,372	35,761,440
Gross unrealized gains	1,751,954	402,832
Gross unrealized losses	0	(35,529)
Estimated fair value	46,549,326	36,128,743
U.S. Special Revenue and Assessments [Member]
Fixed maturities [Abstract]
Original or amortized cost	14,366,514	14,371,263
Gross unrealized gains	1,550,993	832,100
Gross unrealized losses	0	0
Estimated fair value	15,917,507	15,203,363
All Other Corporate Bonds [Member]
Fixed maturities [Abstract]
Original or amortized cost	101,635,546	109,827,152
Gross unrealized gains	10,052,499	10,470,115
Gross unrealized losses	(451,442)	0
Estimated fair value	$ 111,236,603	$ 120,297,267
[1]	Balance sheet audited at December 31, 2018.

Investments, Debt Securities by

Investments, Debt Securities by Contractual Maturity (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Amortized cost [Abstract]
Due in one year or less	$ 11,796,278
Due after one year through five years	58,507,802
Due after five years through ten years	46,860,963
Due after ten years	43,634,389
Original or amortized cost	160,799,432	$ 159,959,855
Fair value [Abstract]
Due in one year or less	12,089,426
Due after one year through five years	60,788,411
Due after five years through ten years	53,482,062
Due after ten years	47,343,537
Estimated fair value	$ 173,703,436	$ 171,629,373	[1]
[1]	Balance sheet audited at December 31, 2018.

Investments, Securities in Cont

Investments, Securities in Continuous Unrealized Loss Position (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
All Other Corporate Bonds [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	$ 7,268,145
12 months or longer, fair value	0
Total fair value	7,268,145
Less than 12 months, unrealized losses	(451,442)
12 months or longer, unrealized losses	0
Total unrealized losses	(451,442)
U.S. Government and Govt. Agencies and Authorities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value		$ 6,059,380
12 months or longer, fair value		0
Total fair value		6,059,380
Less than 12 months, unrealized losses		(35,529)
12 months or longer, unrealized losses		0
Total unrealized losses		(35,529)
Fixed Maturities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract]
Less than 12 months, fair value	7,268,145	6,059,380
12 months or longer, fair value	0	0
Total fair value	7,268,145	6,059,380
Less than 12 months, unrealized losses	(451,442)	(35,529)
12 months or longer, unrealized losses	0	0
Total unrealized losses	$ (451,442)	$ (35,529)

Investments, Number of Securiti

Investments, Number of Securities in Unrealized Loss Position (Details) - Security	Mar. 31, 2020	Dec. 31, 2019
Fixed Maturities [Abstract]
Less than 12 months, number of securities	7	3
12 months or longer, number of securities	0	0
Total number of securities	7	3

Investments, Net Investment Gai

Investments, Net Investment Gains (Losses) and Change in Net Unrealized Gains on Available-for-sale Investments (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Realized gains on available-for-sale investments [Abstract]
Total realized gains	$ 7,174,507	$ 1,113,698
Realized losses on available-for-sale investments [Abstract]
Other-than-temporary impairments	0	0
Total realized losses	0	0
Net realized investment gains (losses)	7,174,507	1,113,698
Change in fair value of equity securities [Abstract]
Change in fair value of equity securities held at the end of the period	(24,684,444)	14,787,631
Change in fair value of equity securities	(24,684,444)	14,787,631
Total net investment gains (losses)	(17,509,937)	15,901,329
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income [Abstract]
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income	1,472,865	4,934,851
Fixed Maturities [Member]
Realized gains on available-for-sale investments [Abstract]
Total realized gains	391,483	15,055
Realized losses on available-for-sale investments [Abstract]
Total realized losses	0	0
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income [Abstract]
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income	1,472,865	4,934,851
Equity Securities [Member]
Realized gains on available-for-sale investments [Abstract]
Total realized gains	6,783,024	0
Realized losses on available-for-sale investments [Abstract]
Total realized losses	0	0
Real Estate [Member]
Realized gains on available-for-sale investments [Abstract]
Total realized gains	0	1,098,643
Realized losses on available-for-sale investments [Abstract]
Total realized losses	$ 0	$ 0

Investments, Mortgage Loans, In

Investments, Mortgage Loans, Investment Real Estate, and Notes Receivable (Details) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Cost Method Investments [Abstract]
Equity Securities without Readily Determinable Fair Value, Amount	$ 10,417,247		$ 10,919,247	[1]
Mortgage Loans [Abstract]
Mortgage loans acquired, including discounted mortgage loans	$ 931,378		3,575,500
Servicing fee on loan	0.25%
Loan origination	0.50%
Loan limit threshold for appraised property value	80.00%
Mortgage loans reserve	$ 0		0
Mortgage loan holdings [Abstract]
In good standing	9,099,364		8,223,286
Total mortgage loans	$ 9,099,364		$ 8,223,286	[1]
Investment Real Estate [Abstract]
Investments in oil/gas royalties as a % of total investment real estate portfolio	43.00%		44.00%
Investment real estate acquired	$ 0	$ 1,174,688
Notes Receivable [Abstract]
Valuation allowance	0		$ 0
Notes Receivable acquired	$ 3,500,000	$ 4,416,008
Farm Loans [Member] | Maximum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	5.00%		5.00%
Farm Loans [Member] | Minimum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	5.00%		5.00%
Commercial Loans [Member] | Maximum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	7.50%		7.50%
Commercial Loans [Member] | Minimum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	4.24%		4.82%
Residential Loans [Member] | Maximum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	5.50%		8.00%
Residential Loans [Member] | Minimum [Member]
Mortgage Loans [Abstract]
Interest rate on mortgage loans	5.50%		8.00%
[1]	Balance sheet audited at December 31, 2018.

Fair Value Measurements, Assets

Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Assets [Abstract]
Fixed Maturities, available for sale	$ 173,703,436	$ 171,629,373	[1]
Equity Securities	51,459,924	78,661,793	[1]
Measured on a Recurring Basis [Member]
Assets [Abstract]
Fixed Maturities, available for sale	173,703,436	171,629,373
Equity Securities	51,459,924	78,661,793
Total	225,163,360	250,291,166
Measured on a Recurring Basis [Member] | Level 1 [Member]
Assets [Abstract]
Fixed Maturities, available for sale	46,549,326	36,128,743
Equity Securities	15,953,666	29,888,281
Total	62,502,992	66,017,024
Measured on a Recurring Basis [Member] | Level 2 [Member]
Assets [Abstract]
Fixed Maturities, available for sale	127,154,110	135,500,630
Equity Securities	12,244,456	14,258,750
Total	139,398,566	149,759,380
Measured on a Recurring Basis [Member] | Level 3 [Member]
Assets [Abstract]
Fixed Maturities, available for sale	0	0
Equity Securities	23,261,802	34,514,762
Total	$ 23,261,802	$ 34,514,762
[1]	Balance sheet audited at December 31, 2018.

Fair Value Measurements, Reconc

Fair Value Measurements, Reconciliation for Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	$ 34,514,762
Total unrealized gain or (losses) [Abstract]
Included in net income (loss)	(2,296,374)
Included in other comprehensive income	0
Purchases	1,331,382
Sales	(10,287,968)
Ending Balance	23,261,802	$ 34,514,762
Change in fair value of equity securities included in net income (loss) relating to assets held	(2,296,374)	6,461,670
Fixed Maturities, Available for Sale [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	0
Total unrealized gain or (losses) [Abstract]
Included in net income (loss)	0
Included in other comprehensive income	0
Purchases	0
Sales	0
Ending Balance	0	0
Equity Securities, Available for Sale [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning Balance	34,514,762
Total unrealized gain or (losses) [Abstract]
Included in net income (loss)	(2,296,374)
Included in other comprehensive income	0
Purchases	1,331,382
Sales	(10,287,968)
Ending Balance	$ 23,261,802	$ 34,514,762

Fair Value Measurements, Carryi

Fair Value Measurements, Carrying Values and Estimated Fair Values of Financial Instruments not Recorded at Fair Value (Details) - USD ($)	Mar. 31, 2020	Dec. 31, 2019
Carrying Amount [Member]
Assets [Abstract]
Equity securities	$ 10,417,247	$ 10,919,247
Mortgage loans on real estate	9,099,364	8,223,286
Investment real estate	43,087,742	44,344,236
Notes receivable	20,798,050	19,487,458
Policy loans	8,732,681	8,803,876
Short term investments	15,388,646	10,442,173
Cash and cash equivalents	26,431,046	28,787,629
Estimated Fair Value [Member]
Assets [Abstract]
Equity securities	10,417,247	10,919,247
Mortgage loans on real estate	9,099,364	8,223,286
Investment real estate	43,087,742	44,344,236
Notes receivable	20,798,050	19,487,458
Policy loans	8,732,681	8,803,876
Short term investments	15,388,646	10,442,173
Cash and cash equivalents	26,431,046	28,787,629
Equity securities	$ 10,417,247	$ 10,919,247	[1]
Minimum [Member]
Liabilities [Abstract]
Policy loan interest rate	4.00%
Maximum [Member]
Liabilities [Abstract]
Policy loan interest rate	8.00%
[1]	Balance sheet audited at December 31, 2018.

Credit Arrangements (Details)

Credit Arrangements (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Line of Credit Facility [Abstract]
Pledged Bonds	$ 12,254,667
Variable Rate [Member] | Maximum [Member]
Line of Credit Facility [Abstract]
Period of interest under CMA	90 days
Fixed Rate [Member] | Maximum [Member]
Line of Credit Facility [Abstract]
Period of interest under CMA	30 days
UTG 2013-11-20 [Member]
Line of Credit Facility [Abstract]
Interest Rate	4.04%
Frequency of payments	monthly
Assets Pledged	common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company.
UTG 2013-11-20 [Member] | UG [Member]
Line of Credit Facility [Abstract]
Issue Date	Nov. 20, 2013
Maturity Date	Nov. 20, 2020
Revolving Credit Limit	$ 8,000,000
Outstanding Balance	0	$ 0
Borrowings	0
Repayments	$ 0
Percentage of common voting stock pledged	100.00%
UG Avalon 2015-06-02 [Member] | UG [Member]
Line of Credit Facility [Abstract]
Issue Date	Jun. 2, 2015
Maturity Date	May 8, 2020
Revolving Credit Limit	$ 10,000,000
Outstanding Balance	0	$ 0
Borrowings	0
Repayments	$ 0

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($)	1 Months Ended	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2020	Mar. 31, 2019
Stock Repurchase Program [Abstract]
Stock repurchase program, additional amount authorized	$ 2,500,000
Stock repurchase program authorized amount	$ 18,500,000
Stock repurchased during period (in shares)		8,955
Amount paid to repurchase shares during the year		$ 310,603	$ 212,387
Amount of common stock repurchased		$ 15,083,699
Number of common stock acquired (in shares)		1,178,313
Number of shares issued (in shares)		6,044
Cost of shares issued		$ 201,549
Earnings Per Share Calculations [Abstract]
Dilutive instruments outstanding (in shares)		0	0

Commitments and Contingencies_2

Commitments and Contingencies (Details)	Mar. 31, 2020USD ($)
RLF III, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	$ 4,000,000
Unfunded Commitment	398,120
Sovereign's Capital, LP Fund I [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	500,000
Unfunded Commitment	20,000
Sovereign's Capital, LP Fund II [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	1,000,000
Unfunded Commitment	158,596
Sovereign's Capital, LP Fund III [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	3,000,000
Unfunded Commitment	2,137,079
Garden City Companies, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	2,000,000
Unfunded Commitment	1,956,688
Carrizo Springs Music, LLC [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	2,500,000
Unfunded Commitment	2,296,875
Modern Distributors, Inc [Member]
Total Funding Commitments and Unfunded Commitment [Abstract]
Total Funding Commitment	7,200,000
Unfunded Commitment	$ 3,700,000

Other Cash Flow Disclosures (De

Other Cash Flow Disclosures (Details) - USD ($)	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Other Cash Flow Disclosures [Abstract]
Interest	$ 0	$ 0
Federal income tax	$ 0	$ 0

Concentrations of Credit Risk (

Concentrations of Credit Risk (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2020USD ($)State	Mar. 31, 2019	Dec. 31, 2019
Concentrations [Abstract]
Number of states by which entity primarily serves | State	4
Maximum retention limits per life | $	$ 125,000
Reinsurer Concentration Risk [Member] | Life Insurance Ceded [Member]
Concentrations [Abstract]
Percentage of gross insurance in force	21.00%		20.00%
Percentage of premium income	34.00%	24.00%
Direct Premium Collected [Member] | Geographic Concentration Risk [Member] | Illinois, Ohio, Texas and West Virginia [Member]
Concentrations [Abstract]
Concentration risk, percentage	55.00%	55.00%
Invested Assets [Member] | Customer Concentration Risk [Member] | Oil and Gas Industry [Member]
Concentrations [Abstract]
Concentration risk, percentage	19.00%		25.00%