Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | UTG INC | |
Entity Central Index Key | 0000832480 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 3,281,551 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Address, State or Province | KY | |
Entity Address, Country | US |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | [1] |
Investments available for sale: | |||
Fixed maturities, at fair value (amortized cost $158,339,368 and $160,895,869) | $ 167,734,370 | $ 160,960,784 | |
Equity securities, at fair value (cost $32,270,013 and $34,885,107) | 80,707,408 | 67,664,482 | |
Equity securities, at cost | 11,901,503 | 12,118,617 | |
Mortgage loans on real estate at amortized cost | 8,761,822 | 9,069,111 | |
Investment real estate | 46,635,583 | 52,518,577 | |
Notes receivable | 29,417,513 | 23,717,312 | |
Policy loans | 8,979,490 | 9,204,222 | |
Total investments | 354,137,689 | 335,253,105 | |
Cash and cash equivalents | 25,229,997 | 20,150,162 | |
Accrued investment income | 1,979,294 | 2,119,882 | |
Reinsurance receivables: | |||
Future policy benefits | 25,820,733 | 26,117,936 | |
Policy claims and other benefits | 4,012,594 | 4,053,882 | |
Cost of insurance acquired | 5,234,274 | 5,622,227 | |
Property and equipment, net of accumulated depreciation | 474,792 | 688,567 | |
Income tax receivable | 304,875 | 279,333 | |
Other assets | 1,465,376 | 1,263,242 | |
Total assets | 418,659,624 | 395,548,336 | |
Policy liabilities and accruals: | |||
Future policyholder benefits | 250,974,481 | 253,852,368 | |
Policy claims and benefits payable | 4,179,809 | 4,267,481 | |
Other policyholder funds | 407,793 | 372,072 | |
Dividend and endowment accumulations | 14,692,562 | 14,608,838 | |
Deferred income taxes | 14,263,808 | 9,113,480 | |
Other liabilities | 6,011,362 | 6,257,387 | |
Total liabilities | 290,529,815 | 288,471,626 | |
Shareholders' equity: | |||
Common stock - no par value, stated value $.001 per share. Authorized 7,000,000 shares - 3,285,715 and 3,295,870 shares outstanding | 3,286 | 3,296 | |
Additional paid-in capital | 36,253,067 | 36,567,865 | |
Retained earnings | 84,065,838 | 69,708,901 | |
Accumulated other comprehensive income | 7,057,702 | 62,495 | |
Total UTG shareholders' equity | 127,379,893 | 106,342,557 | |
Noncontrolling interests | 749,916 | 734,153 | |
Total shareholders' equity | 128,129,809 | 107,076,710 | |
Total liabilities and shareholders' equity | $ 418,659,624 | $ 395,548,336 | |
[1] | Balance sheet audited at December 31, 2018. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Investments available for sale: | ||
Fixed maturities, amortized cost | $ 158,339,368 | $ 160,895,869 |
Equity securities, cost | $ 32,270,013 | $ 34,885,107 |
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) | 3,285,715 | 3,295,870 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue: | ||||
Premiums and policy fees | $ 2,431,489 | $ 2,539,905 | $ 4,934,694 | $ 5,189,876 |
Ceded reinsurance premiums and policy fees | (813,256) | (773,198) | (1,330,311) | (1,512,163) |
Net investment income | 2,701,709 | 3,618,978 | 5,813,733 | 6,687,096 |
Other income | 95,919 | 119,622 | 159,757 | 180,557 |
Revenue before net investment gains (losses) | 4,415,861 | 5,505,307 | 9,577,873 | 10,545,366 |
Net investment gains (losses): | ||||
Other realized investment gains, net | 5,301,778 | 115,204 | 6,415,476 | 649,446 |
Change in fair value of equity securities | 97,148 | 11,231,720 | 14,884,779 | 15,360,956 |
Total net investment gains (losses) | 5,398,926 | 11,346,924 | 21,300,255 | 16,010,402 |
Total revenue | 9,814,787 | 16,852,231 | 30,878,128 | 26,555,768 |
Benefits, claims and settlement expenses: | ||||
Life | 4,590,885 | 4,369,689 | 8,018,085 | 8,538,483 |
Ceded reinsurance benefits and claims | (607,539) | (262,738) | (1,082,161) | (951,150) |
Annuity | 307,369 | 274,580 | 505,039 | 531,464 |
Dividends to policyholders | 96,053 | 97,291 | 199,652 | 224,290 |
Commissions and amortization of deferred policy acquisition costs | (38,577) | (35,885) | (63,119) | (76,456) |
Amortization of cost of insurance acquired | 193,976 | 201,517 | 387,953 | 403,033 |
Operating expenses | 1,789,951 | 1,784,832 | 3,934,340 | 3,870,651 |
Total benefits and other expenses | 6,332,118 | 6,429,286 | 11,899,789 | 12,540,315 |
Income before income taxes | 3,482,669 | 10,422,945 | 18,978,339 | 14,015,453 |
Income tax expense | 662,831 | 2,151,209 | 4,359,889 | 3,056,972 |
Net income | 2,819,838 | 8,271,736 | 14,618,450 | 10,958,481 |
Net income attributable to noncontrolling interests | (107,780) | (122,987) | (261,513) | (152,487) |
Net income attributable to common shareholders | $ 2,712,058 | $ 8,148,749 | $ 14,356,937 | $ 10,805,994 |
Amounts attributable to common shareholders | ||||
Basic income per share (in dollars per share) | $ 0.82 | $ 2.46 | $ 4.36 | $ 3.26 |
Diluted income per share (in dollars per share) | $ 0.82 | $ 2.46 | $ 4.36 | $ 3.26 |
Basic weighted average shares outstanding (in shares) | 3,290,617 | 3,311,319 | 3,293,940 | 3,318,167 |
Diluted weighted average shares outstanding (in shares) | 3,290,617 | 3,311,319 | 3,293,940 | 3,318,167 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract] | ||||
Net income | $ 2,819,838 | $ 8,271,736 | $ 14,618,450 | $ 10,958,481 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) arising during period, pre-tax | 3,925,070 | (1,941,236) | 8,859,921 | (6,226,539) |
Tax (expense) benefit on unrealized holding gains (losses) arising during the period | (824,264) | 407,659 | (1,860,583) | 1,307,573 |
Unrealized holding gains (losses) arising during period, net of tax | 3,100,806 | (1,533,577) | 6,999,338 | (4,918,966) |
Less reclassification adjustment for gains (losses) included in net income | 9,826 | (115,204) | (5,229) | (115,204) |
Tax (expense) benefit for gains included in net income | (2,064) | 24,193 | 1,098 | 24,193 |
Reclassification adjustment for gains (losses) included in net income, net of tax | 7,762 | (91,011) | (4,131) | (91,011) |
Subtotal: Other comprehensive income (loss), net of tax | 3,108,568 | (1,624,588) | 6,995,207 | (5,009,977) |
Comprehensive income (loss) | 5,928,406 | 6,647,148 | 21,613,657 | 5,948,504 |
Less comprehensive income attributable to noncontrolling interests | (107,780) | (122,987) | (261,513) | (152,487) |
Comprehensive income (loss) attributable to UTG, Inc. | $ 5,820,626 | $ 6,524,161 | $ 21,352,144 | $ 5,796,017 |
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 | |
Adoption of Accounting Standards Update No 2016-01 | ASU 2016-01 [Member] | $ 0 | $ 0 | $ 18,277,328 | $ (18,277,328) | $ 0 | $ 0 | |
Balance at Dec. 31, 2017 | 3,333 | 37,536,164 | 39,040,456 | 32,952,338 | 899,227 | 110,431,518 | |
Balance at Dec. 31, 2017 | 3,333 | 37,536,164 | 57,317,784 | 14,675,010 | 899,227 | 110,431,518 | |
Common stock issued during year | 10 | 246,747 | 0 | 0 | 0 | 246,757 | |
Treasury shares acquired | (38) | (953,381) | 0 | 0 | 0 | (953,419) | |
Net income attributable to common shareholders | 0 | 0 | 10,805,994 | 0 | 0 | 10,805,994 | |
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | (5,009,977) | 0 | (5,009,977) | |
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | |
Distributions | 0 | 0 | 0 | 0 | (247,592) | (247,592) | |
Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 152,487 | 152,487 | |
Balance at Jun. 30, 2018 | 3,305 | 36,829,530 | 68,123,778 | 9,665,033 | 804,122 | 115,425,768 | |
Balance at Mar. 31, 2018 | 3,318 | 37,165,939 | 59,975,029 | 11,289,621 | 928,581 | 109,362,488 | |
Common stock issued during year | 1 | 16,756 | 0 | 0 | 0 | 16,757 | |
Treasury shares acquired | (14) | (353,165) | 0 | 0 | 0 | (353,179) | |
Net income attributable to common shareholders | 0 | 0 | 8,148,749 | 0 | 0 | 8,148,749 | |
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | (1,624,588) | 0 | (1,624,588) | |
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | |
Distributions | 0 | 0 | 0 | 0 | (247,446) | (247,446) | |
Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 122,987 | 122,987 | |
Balance at Jun. 30, 2018 | 3,305 | 36,829,530 | 68,123,778 | 9,665,033 | 804,122 | 115,425,768 | |
Balance at Dec. 31, 2018 | 3,296 | 36,567,865 | 69,708,901 | 62,495 | 734,153 | 107,076,710 | [1] |
Common stock issued during year | 7 | 246,527 | 0 | 0 | 0 | 246,534 | |
Treasury shares acquired | (17) | (561,325) | 0 | 0 | 0 | (561,342) | |
Net income attributable to common shareholders | 0 | 0 | 14,356,937 | 0 | 0 | 14,356,937 | |
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | 6,995,207 | 0 | 6,995,207 | |
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 | 261,513 | 261,513 | |
Balance at Jun. 30, 2019 | 3,286 | 36,253,067 | 84,065,838 | 7,057,702 | 749,916 | 128,129,809 | |
Balance at Mar. 31, 2019 | 3,297 | 36,585,277 | 81,353,780 | 3,949,134 | 642,136 | 122,533,624 | |
Common stock issued during year | 1 | 16,735 | 0 | 0 | 0 | 16,736 | |
Treasury shares acquired | (12) | (348,945) | 0 | 0 | 0 | (348,957) | |
Net income attributable to common shareholders | 0 | 0 | 2,712,058 | 0 | 0 | 2,712,058 | |
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | 3,108,568 | 0 | 3,108,568 | |
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | |
Distributions | 0 | 0 | 0 | 0 | 0 | 0 | |
Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 107,780 | 107,780 | |
Balance at Jun. 30, 2019 | $ 3,286 | $ 36,253,067 | $ 84,065,838 | $ 7,057,702 | $ 749,916 | $ 128,129,809 | |
[1] | Balance sheet audited at December 31, 2018. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 14,618,450 | $ 10,958,481 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Amortization (accretion) of investments | (32,084) | 163,471 |
Realized investment gains, net | (6,415,476) | (649,446) |
Change in fair value of equity securities | (14,884,779) | (15,360,956) |
Amortization of cost of insurance acquired | 387,953 | 403,033 |
Depreciation | 594,399 | 572,751 |
Stock-based compensation | 246,534 | 246,757 |
Charges for mortality and administration of universal life and annuity products | (3,235,159) | (3,304,604) |
Interest credited to account balances | 2,052,343 | 2,119,747 |
Change in accrued investment income | 140,588 | 131,976 |
Change in reinsurance receivables | 338,491 | 469,778 |
Change in policy liabilities and accruals | (1,317,789) | (658,483) |
Change in income taxes receivable (payable) | (25,242) | 6,177 |
Change in other assets and liabilities, net | 2,842,382 | 6,438,057 |
Net cash provided by (used in) operating activities | (4,689,389) | 1,536,739 |
Proceeds from investments sold and matured: | ||
Fixed maturities available for sale | 4,566,651 | 12,881,864 |
Equity securities | 4,939,893 | 716,323 |
Mortgage loans | 4,381,319 | 2,240,015 |
Real estate | 10,687,242 | 9,472,966 |
Notes receivable | 1,827,987 | 824,062 |
Policy loans | 930,639 | 1,087,790 |
Short-term investments | 0 | 2,114,000 |
Total proceeds from investments sold and matured | 27,333,731 | 29,337,020 |
Cost of investments acquired: | ||
Fixed maturities available for sale | (2,507,805) | (15,304,506) |
Equity securities | (115,013) | (9,010,290) |
Trading securities | (132,518) | 0 |
Mortgage loans | (4,014,455) | 0 |
Real estate | (1,408,021) | (8,420,117) |
Notes receivable | (7,528,188) | (4,000,000) |
Policy loans | (705,906) | (960,620) |
Short-term investments | 0 | (2,114,000) |
Total cost of investments acquired | (16,411,906) | (39,809,533) |
Net cash provided by (used in) investing activities | 10,921,825 | (10,472,513) |
Cash flows from financing activities: | ||
Policyholder contract deposits | 2,410,517 | 2,426,333 |
Policyholder contract withdrawals | (2,756,026) | (3,569,583) |
Purchase of treasury stock | (561,342) | (953,419) |
Non controlling contributions (distributions) of consolidated subsidiary | (245,750) | (247,592) |
Net cash used in financing activities | (1,152,601) | (2,344,261) |
Net increase (decrease) in cash and cash equivalents | 5,079,835 | (11,280,035) |
Cash and cash equivalents at beginning of period | 20,150,162 | 25,434,199 |
Cash and cash equivalents at end of period | $ 25,229,997 | $ 14,154,164 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The accompanying Condensed Consolidated Balance Sheet as of December 31, 2018, 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, 2018. The Company’s results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 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 June 30, 2019, Mr. Correll owns or controls directly and indirectly approximately 65.48% 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 confirm with the current period presentation. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Note 2 – Recently Issued Accounting Standards During the six months ended June 30, 2019, there were no additions to or changes in the critical accounting policies disclosed in the 2018 Form 10-K. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, 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 $ 28,164,007 $ 442,298 $ (10,749 ) $ 28,595,556 U.S. special revenue and assessments 15,349,588 800,970 - 16,150,558 All other corporate bonds 114,825,773 8,242,262 (79,779 ) 122,988,256 $ 158,339,368 $ 9,485,530 $ (90,528 ) $ 167,734,370 December 31, 2018 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 $ 25,649,410 $ 149,006 $ (138,222 ) $ 25,660,194 U.S. special revenue and assessments 16,350,486 334,300 (4,406 ) 16,680,380 All other corporate bonds 118,895,973 2,569,287 (2,845,050 ) 118,620,210 $ 160,895,869 $ 3,052,593 $ (2,987,678 ) $ 160,960,784 The amortized cost and estimated market value of debt securities at June 30, 2019, 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, 2019 Amortized Cost Fair Value Due in one year or less $ 5,499,672 $ 5,509,330 Due after one year through five years 53,118,244 54,924,695 Due after five years through ten years 50,778,328 55,399,160 Due after ten years 48,943,124 51,901,185 Total $ 158,339,368 $ 167,734,370 The fair value of investments with sustained gross unrealized losses at June 30, 2019 and December 31, 2018 are as follows: June 30, 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 $ 1,498,320 (2,252 ) 2,673,346 (8,497 ) 4,171,666 $ (10,749 ) All other corporate bonds - - 948,490 (79,779 ) 948,490 (79,779 ) Total fixed maturities $ 1,498,320 (2,252 ) 3,621,836 (88,276 ) 5,120,156 $ (90,528 ) December 31, 2018 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 $ 6,429,700 (49,904 ) 1,592,679 (88,318 ) 8,022,379 $ (138,222 ) U.S. special revenue and assessments 4,023,920 (4,406 ) - - 4,023,920 (4,406 ) All other corporate bonds 49,270,729 (2,033,507 ) 15,337,739 (811,543 ) 64,608,468 (2,845,050 ) Total fixed maturities $ 59,724,349 (2,087,817 ) 16,930,418 (899,861 ) 76,654,767 $ (2,987,678 ) 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, 2019 Fixed maturities 1 3 4 As of December 31, 2018 Fixed maturities 30 10 40 Substantially all of the unrealized losses on fixed maturities at June 30, 2019 and December 31, 2018 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, 2019 and December 31, 2018. Net Investment Gains (Losses) The following table presents net investment gains (losses) and the change in net unrealized gains (losses) on available-for-sale investments. Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Realized gains: Sales of fixed maturities $ 101,633 $ 373,662 $ 116,688 $ 373,662 Sales of equity securities 2,765,915 - 2,765,915 - Sales of real estate 2,678,207 - 3,776,850 534,242 Other - - - - Total realized gains 5,545,755 373,662 6,659,453 907,904 Realized losses: Sales of fixed maturities (111,459 ) (258,458 ) (111,459 ) (258,458 ) Sales of equity securities - - - - Sales of real estate - - - - Other-than-temporary impairments - - - - Other (132,518 ) - (132,518 ) - Total realized losses (243,977 ) (258,458 ) (243,977 ) (258,458 ) Net realized investment gains (losses) 5,301,778 115,204 6,415,476 649,446 Change in fair value of equity securities: Change in fair value of equity securities held at the end of the period 97,148 11,231,720 14,884,779 15,360,956 Change in fair value of equity securities 97,148 11,231,720 14,884,779 15,360,956 Net investment gains (losses) $ 5,398,926 $ 11,346,924 $ 21,300,255 $ 16,010,402 Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income: Fixed maturities $ 3,925,070 $ (1,941,236 ) $ 8,859,921 $ (6,226,539 ) Equity securities - - - - Net increase (decrease) $ 3,925,070 $ (1,941,236 ) $ 8,859,921 $ (6,226,539 ) 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 six months ended June 30, 2019 or 2018. Cost Method Investments The Company held equity investments with an aggregate cost of $11,901,503 and $12,118,617 at June 30, 2019 and December 31, 2018, 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 June 30, 2019. Mortgage Loans The Company, from time to time, acquires mortgage loans through participation agreements with FSNB. FSNB has been able to provide the Company with additional expertise and experience in underwriting commercial and residential mortgage loans, which provide more attractive yields than the traditional bond market. The Company is able to receive participations from FSNB for three primary reasons: 1) FSNB has already reached its maximum lending limit to a single borrower, but the borrower is still considered a suitable risk; 2) the interest rate on a particular loan may be fixed for a long period that is more suitable for UG given its asset-liability structure; and 3) FSNB’s loan growth might at times outpace its deposit growth, resulting in FSNB participating such excess loan growth rather than turning customers away. For originated loans, the Company’s Management is responsible for the final approval of such loans after evaluation. Before a new loan is issued, the applicant is subject to certain criteria set forth by Company Management to ensure quality control. These criteria include, but are not limited to, a credit report, personal financial information such as outstanding debt, sources of income, and personal equity. Once the loan is approved, the Company directly funds the loan to the borrower. The Company bears all risk of loss associated with the terms of the mortgage with the borrower. During the six months ended June 30, 2019 and 2018, the Company acquired $4,014,455 and $0 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 2019 and 2018, the maximum and minimum lending rates for mortgage loans were: 2019 2018 Maximum rate Minimum rate Maximum rate Minimum rate Farm Loans 5.00% 5.00% 5.00% 5.00% Commercial Loans 7.50% 4.80% 7.50% 4.00% Residential Loans 8.00% 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 June 30, 2019 and December 31, 2018. The following table summarizes the mortgage loan holdings of the Company for the periods ended: June 30, 2019 December 31, 2018 In good standing $ 6,922,475 $ 7,169,272 Overdue interest over 90 days 1,839,347 1,899,839 Total mortgage loans $ 8,761,822 $ 9,069,111 Investment Real Estate 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. Gains and losses recognized on the disposition of the properties are recorded as realized gains and losses in the Condensed Consolidated Statements of Operations. Notes Receivable Notes receivable represent collateral loans and promissory notes issued by the Company and are reported at their unpaid principal balances, adjusted for valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. The valuation allowance as of June 30, 2019 and December 31, 2018 was $0. Interest accruals are analyzed based on the likelihood of repayment. The Company does not utilize a specified number of days delinquent to cause an automatic non-accrual status. During the six months ended June 30, 2019 and 2018 the Company acquired 7,528,188 and $4,000,000, 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019. Level 1 Level 2 Level 3 Total Assets Fixed Maturities, available for sale $ 28,595,556 $ 138,715,887 $ 422,927 $ 167,734,370 Equity Securities 36,103,927 13,042,505 31,560,976 80,707,408 Total $ 64,699,483 $ 151,758,392 $ 31,983,903 $ 248,441,778 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, 2018. Level 1 Level 2 Level 3 Total Assets Fixed Maturities, available for sale $ 25,660,194 $ 134,865,746 $ 434,844 $ 160,960,784 Equity Securities 27,634,283 10,557,031 29,473,168 67,664,482 Total $ 53,294,477 $ 145,422,777 $ 29,908,012 $ 228,625,266 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, 2018 $ 434,844 $ 29,473,168 $ 29,908,012 Total unrealized gain or (losses): Included in net income (loss) - 4,221,408 4,221,408 Included in other comprehensive income - - - Purchases - - - Sales (11,917 ) (2,133,600 ) (2,145,517 ) Balance at June 30, 2019 $ 422,927 $ 31,560,976 $ 31,983,903 June 30, 2019 December 31, 2018 Change in fair value of equity securities included in net income (loss) relating to assets held $ 4,221,408 $ 4,633,751 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 June 30, 2019. 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. June 30, 2019 December 31, 2018 Assets Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value $ 11,901,503 $ 11,901,503 $ 12,118,617 $ 12,118,617 8,761,822 8,761,822 9,069,111 9,069,111 46,635,583 46,635,583 52,518,577 52,518,577 29,417,513 29,417,513 23,717,312 23,717,312 8,979,490 8,979,490 9,204,222 9,204,222 25,229,997 25,229,997 20,150,162 20,150,162 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 | 6 Months Ended |
Jun. 30, 2019 | |
Credit Arrangements [Abstract] | |
Credit Arrangements | Note 5 – Credit Arrangements Instrument Issue Date Maturity Date Revolving Credit Limit December 31, 2018 Borrowings Repayments June 30, 2019 Lines of Credit: UTG 11/20/2013 11/20/2019 $ 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 5.125% and is payable monthly. As collateral, UTG has pledged 100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company. During May 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 is currently in the process of renewing the CMA. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
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 six months ended June 30, 2019, the Company repurchased 18,343 shares through the stock repurchase program for $561,342. Through June 30, 2019, UTG has spent $14,425,071 million in the acquisition of 1,158,449 shares under this program. During 2019, the Company issued 8,188 shares of stock to management and employees as compensation at a cost of $246,534. These awards are determined at the discretion of the Board of Directors. Earnings Per Share Calculations Earnings per share are based on the weighted average number of common shares outstanding during each period. For the six months ended June 30, 2019 and 2018, 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 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 24,493 Sovereign's Capital, LP Fund II 1,000,000 240,566 Sovereign's Capital, LP Fund III 1,000,000 900,000 Barton Springs Music, LLC 1,750,000 1,158,500 Master Mineral Holdings III, LP 4,000,000 296,979 During 2006, the Company committed to invest in RLF III, LLC (“RLF”), which makes land-based investments in undervalued assets. RLF makes capital calls as funds are needed for continued land purchases. During 2012, the Company committed to invest in Sovereign’s Capital, LP Fund I (“Sovereign’s”), which invests in companies in emerging markets. Sovereign’s makes capital calls to investors as funds are needed. During 2015, the Company committed to invest in Sovereign’s Capital, LP Fund II (“Sovereign’s II”), which invests in companies in emerging markets. Sovereign’s II makes capital calls to investors as funds are needed. During 2018, the Company committed to invest in Sovereign’s Capital, LP Fund III (“Sovereign’s III”), which invests in companies in emerging markets. Sovereign’s III makes capital calls to investors as funds are needed. During 2018, the Company committed to invest in Barton Springs Music, LLC (“Barton”), which invests in music royalties. Barton makes capital calls to its investors as funds are needed to acquire the royalty rights. During 2018, the Company committed to invest in Master Mineral Holdings III, LP (“MMH”), which purchases land for leasing opportunities to those looking to harvest natural resources. MMH makes capital calls to its investors as funds are needed for continued land purchases. |
Other Cash Flow Disclosures
Other Cash Flow Disclosures | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 2018 Interest $ - $ - Federal income tax 1,106,000 67,000 Six Months Ended June 30, 2019 2018 Interest $ - $ - Federal income tax 1,106,000 67,000 |
Concentrations of Credit Risk
Concentrations of Credit Risk | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and 2018 , approximately 55% and 56%, respectively, of the Company’s total direct premium was collected from Illinois, Ohio, Texas and West Virginia. Thus, results of operations are heavily dependent upon the strength of these economies. The Company reinsures that portion of insurance risk which is in excess of its retention limits. Retention limits range up to $125,000 per life. Life insurance ceded represented 21% and 20% of total life insurance in force at June 30, 2019 and December 31, 2018, respectively. Insurance ceded represented 34% and 36% 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 27% and 25% of the Company's total invested assets as of June 30, 2019 and December 31, 2018, respectively. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The accompanying Condensed Consolidated Balance Sheet as of December 31, 2018, 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, 2018. The Company’s results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or for any other future period. |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | During the six months ended June 30, 2019, there were no additions to or changes in the critical accounting policies disclosed in the 2018 Form 10-K. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Investments [Abstract] | |
Available for Sale Securities | Investments in available for sale securities are summarized as follows: June 30, 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 $ 28,164,007 $ 442,298 $ (10,749 ) $ 28,595,556 U.S. special revenue and assessments 15,349,588 800,970 - 16,150,558 All other corporate bonds 114,825,773 8,242,262 (79,779 ) 122,988,256 $ 158,339,368 $ 9,485,530 $ (90,528 ) $ 167,734,370 December 31, 2018 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 $ 25,649,410 $ 149,006 $ (138,222 ) $ 25,660,194 U.S. special revenue and assessments 16,350,486 334,300 (4,406 ) 16,680,380 All other corporate bonds 118,895,973 2,569,287 (2,845,050 ) 118,620,210 $ 160,895,869 $ 3,052,593 $ (2,987,678 ) $ 160,960,784 |
Debt Securities by Contractual Maturity | The amortized cost and estimated market value of debt securities at June 30, 2019, 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, 2019 Amortized Cost Fair Value Due in one year or less $ 5,499,672 $ 5,509,330 Due after one year through five years 53,118,244 54,924,695 Due after five years through ten years 50,778,328 55,399,160 Due after ten years 48,943,124 51,901,185 Total $ 158,339,368 $ 167,734,370 |
Fair Value of Investments with Sustained Gross Unrealized Losses | The fair value of investments with sustained gross unrealized losses at June 30, 2019 and December 31, 2018 are as follows: June 30, 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 $ 1,498,320 (2,252 ) 2,673,346 (8,497 ) 4,171,666 $ (10,749 ) All other corporate bonds - - 948,490 (79,779 ) 948,490 (79,779 ) Total fixed maturities $ 1,498,320 (2,252 ) 3,621,836 (88,276 ) 5,120,156 $ (90,528 ) December 31, 2018 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 $ 6,429,700 (49,904 ) 1,592,679 (88,318 ) 8,022,379 $ (138,222 ) U.S. special revenue and assessments 4,023,920 (4,406 ) - - 4,023,920 (4,406 ) All other corporate bonds 49,270,729 (2,033,507 ) 15,337,739 (811,543 ) 64,608,468 (2,845,050 ) Total fixed maturities $ 59,724,349 (2,087,817 ) 16,930,418 (899,861 ) 76,654,767 $ (2,987,678 ) |
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 June 30, 2019 Fixed maturities 1 3 4 As of December 31, 2018 Fixed maturities 30 10 40 |
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 (losses) on available-for-sale investments. Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Realized gains: Sales of fixed maturities $ 101,633 $ 373,662 $ 116,688 $ 373,662 Sales of equity securities 2,765,915 - 2,765,915 - Sales of real estate 2,678,207 - 3,776,850 534,242 Other - - - - Total realized gains 5,545,755 373,662 6,659,453 907,904 Realized losses: Sales of fixed maturities (111,459 ) (258,458 ) (111,459 ) (258,458 ) Sales of equity securities - - - - Sales of real estate - - - - Other-than-temporary impairments - - - - Other (132,518 ) - (132,518 ) - Total realized losses (243,977 ) (258,458 ) (243,977 ) (258,458 ) Net realized investment gains (losses) 5,301,778 115,204 6,415,476 649,446 Change in fair value of equity securities: Change in fair value of equity securities held at the end of the period 97,148 11,231,720 14,884,779 15,360,956 Change in fair value of equity securities 97,148 11,231,720 14,884,779 15,360,956 Net investment gains (losses) $ 5,398,926 $ 11,346,924 $ 21,300,255 $ 16,010,402 Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income: Fixed maturities $ 3,925,070 $ (1,941,236 ) $ 8,859,921 $ (6,226,539 ) Equity securities - - - - Net increase (decrease) $ 3,925,070 $ (1,941,236 ) $ 8,859,921 $ (6,226,539 ) |
Maximum and Minimum Lending Rates for Mortgage Loan | During 2019 and 2018, the maximum and minimum lending rates for mortgage loans were: 2019 2018 Maximum rate Minimum rate Maximum rate Minimum rate Farm Loans 5.00% 5.00% 5.00% 5.00% Commercial Loans 7.50% 4.80% 7.50% 4.00% Residential Loans 8.00% 5.50% 8.00% 8.00% |
Mortgage Loan Holdings | The following table summarizes the mortgage loan holdings of the Company for the periods ended: June 30, 2019 December 31, 2018 In good standing $ 6,922,475 $ 7,169,272 Overdue interest over 90 days 1,839,347 1,899,839 Total mortgage loans $ 8,761,822 $ 9,069,111 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019. Level 1 Level 2 Level 3 Total Assets Fixed Maturities, available for sale $ 28,595,556 $ 138,715,887 $ 422,927 $ 167,734,370 Equity Securities 36,103,927 13,042,505 31,560,976 80,707,408 Total $ 64,699,483 $ 151,758,392 $ 31,983,903 $ 248,441,778 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, 2018. Level 1 Level 2 Level 3 Total Assets Fixed Maturities, available for sale $ 25,660,194 $ 134,865,746 $ 434,844 $ 160,960,784 Equity Securities 27,634,283 10,557,031 29,473,168 67,664,482 Total $ 53,294,477 $ 145,422,777 $ 29,908,012 $ 228,625,266 |
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, 2018 $ 434,844 $ 29,473,168 $ 29,908,012 Total unrealized gain or (losses): Included in net income (loss) - 4,221,408 4,221,408 Included in other comprehensive income - - - Purchases - - - Sales (11,917 ) (2,133,600 ) (2,145,517 ) Balance at June 30, 2019 $ 422,927 $ 31,560,976 $ 31,983,903 June 30, 2019 December 31, 2018 Change in fair value of equity securities included in net income (loss) relating to assets held $ 4,221,408 $ 4,633,751 |
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. June 30, 2019 December 31, 2018 Assets Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value $ 11,901,503 $ 11,901,503 $ 12,118,617 $ 12,118,617 8,761,822 8,761,822 9,069,111 9,069,111 46,635,583 46,635,583 52,518,577 52,518,577 29,417,513 29,417,513 23,717,312 23,717,312 8,979,490 8,979,490 9,204,222 9,204,222 25,229,997 25,229,997 20,150,162 20,150,162 |
Credit Arrangements (Tables)
Credit Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Credit Arrangements [Abstract] | |
Credit Arrangements | Instrument Issue Date Maturity Date Revolving Credit Limit December 31, 2018 Borrowings Repayments June 30, 2019 Lines of Credit: UTG 11/20/2013 11/20/2019 $ 8,000,000 - - - - UG 6/2/2015 5/8/2020 10,000,000 - - - - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies [Abstract] | |
Total Funding Commitments and Unfunded Commitment | The following table represents the total funding commitments and the unfunded commitment as of June 30, 2019 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 24,493 Sovereign's Capital, LP Fund II 1,000,000 240,566 Sovereign's Capital, LP Fund III 1,000,000 900,000 Barton Springs Music, LLC 1,750,000 1,158,500 Master Mineral Holdings III, LP 4,000,000 296,979 |
Other Cash Flow Disclosures (Ta
Other Cash Flow Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 2018 Interest $ - $ - Federal income tax 1,106,000 67,000 Six Months Ended June 30, 2019 2018 Interest $ - $ - Federal income tax 1,106,000 67,000 |
Basis of Presentation (Details)
Basis of Presentation (Details) | Jun. 30, 2019 |
Chief Executive Officer and Chairman of the Board [Member] | |
Ownership Interest [Abstract] | |
Ownership interest percentage | 65.48% |
FSBI [Member] | FSNB [Member] | |
Ownership Interest [Abstract] | |
Ownership in subsidiary bank | 100.00% |
Investments, Available for Sale
Investments, Available for Sale Securities (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
Fixed maturities [Abstract] | |||
Original or amortized cost | $ 158,339,368 | $ 160,895,869 | |
Gross unrealized gains | 9,485,530 | 3,052,593 | |
Gross unrealized losses | (90,528) | (2,987,678) | |
Fair value | 167,734,370 | 160,960,784 | [1] |
Equity securities [Abstract] | |||
Estimated fair value | 80,707,408 | 67,664,482 | [1] |
U.S. Government and Govt Agencies and Authorities [Member] | |||
Fixed maturities [Abstract] | |||
Original or amortized cost | 28,164,007 | 25,649,410 | |
Gross unrealized gains | 442,298 | 149,006 | |
Gross unrealized losses | (10,749) | (138,222) | |
Fair value | 28,595,556 | 25,660,194 | |
US Special Revenue and Assessments [Member] | |||
Fixed maturities [Abstract] | |||
Original or amortized cost | 15,349,588 | 16,350,486 | |
Gross unrealized gains | 800,970 | 334,300 | |
Gross unrealized losses | 0 | (4,406) | |
Fair value | 16,150,558 | 16,680,380 | |
All Other Corporate Bonds [Member] | |||
Fixed maturities [Abstract] | |||
Original or amortized cost | 114,825,773 | 118,895,973 | |
Gross unrealized gains | 8,242,262 | 2,569,287 | |
Gross unrealized losses | (79,779) | (2,845,050) | |
Fair value | $ 122,988,256 | $ 118,620,210 | |
[1] | Balance sheet audited at December 31, 2018. |
Investments, Debt Securities by
Investments, Debt Securities by Contractual Maturity (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
Amortized cost [Abstract] | |||
Due in one year or less | $ 5,499,672 | ||
Due after one year through five years | 53,118,244 | ||
Due after five years through ten years | 50,778,328 | ||
Due after ten years | 48,943,124 | ||
Original or amortized cost | 158,339,368 | $ 160,895,869 | |
Fair value [Abstract] | |||
Due in one year or less | 5,509,330 | ||
Due after one year through five years | 54,924,695 | ||
Due after five years through ten years | 55,399,160 | ||
Due after ten years | 51,901,185 | ||
Fair value | $ 167,734,370 | $ 160,960,784 | [1] |
[1] | Balance sheet audited at December 31, 2018. |
Investments, Securities in Cont
Investments, Securities in Continuous Unrealized Loss Position (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
U.S. Government and Govt Agencies and Authorities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | $ 1,498,320 | $ 6,429,700 |
12 months or longer, fair value | 2,673,346 | 1,592,679 |
Total fair value | 4,171,666 | 8,022,379 |
Less than 12 months, unrealized losses | (2,252) | (49,904) |
12 months or longer, unrealized losses | (8,497) | (88,318) |
Total unrealized losses | (10,749) | (138,222) |
US Special Revenue and Assessments [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 4,023,920 | |
12 months or longer, fair value | 0 | |
Total fair value | 4,023,920 | |
Less than 12 months, unrealized losses | (4,406) | |
12 months or longer, unrealized losses | 0 | |
Total unrealized losses | (4,406) | |
All Other Corporate Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 0 | 49,270,729 |
12 months or longer, fair value | 948,490 | 15,337,739 |
Total fair value | 948,490 | 64,608,468 |
Less than 12 months, unrealized losses | 0 | (2,033,507) |
12 months or longer, unrealized losses | (79,779) | (811,543) |
Total unrealized losses | (79,779) | (2,845,050) |
Fixed Maturities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | 1,498,320 | 59,724,349 |
12 months or longer, fair value | 3,621,836 | 16,930,418 |
Total fair value | 5,120,156 | 76,654,767 |
Less than 12 months, unrealized losses | (2,252) | (2,087,817) |
12 months or longer, unrealized losses | (88,276) | (899,861) |
Total unrealized losses | $ (90,528) | $ (2,987,678) |
Investments, Number of Securiti
Investments, Number of Securities in Unrealized Loss Position (Details) - Security | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed Maturities [Abstract] | ||
Less than 12 months, number of securities | 1 | 30 |
12 months or longer, number of securities | 3 | 10 |
Total number of securities | 4 | 40 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Realized gains on available-for-sale investments [Abstract] | ||||
Total realized gains | $ 5,545,755 | $ 373,662 | $ 6,659,453 | $ 907,904 |
Realized losses on available-for-sale investments [Abstract] | ||||
Other-than-temporary impairments | 0 | 0 | 0 | 0 |
Realized losses | (243,977) | (258,458) | (243,977) | (258,458) |
Net realized investment gains (losses) | 5,301,778 | 115,204 | 6,415,476 | 649,446 |
Change in fair value of equity securities [Abstract] | ||||
Change in fair value of equity securities held at the end of the period | 97,148 | 11,231,720 | 14,884,779 | 15,360,956 |
Change in fair value of equity securities | 97,148 | 11,231,720 | 14,884,779 | 15,360,956 |
Total net investment gains (losses) | 5,398,926 | 11,346,924 | 21,300,255 | 16,010,402 |
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 | 3,925,070 | (1,941,236) | 8,859,921 | (6,226,539) |
Fixed Maturities [Member] | ||||
Realized gains on available-for-sale investments [Abstract] | ||||
Total realized gains | 101,633 | 373,662 | 116,688 | 373,662 |
Realized losses on available-for-sale investments [Abstract] | ||||
Realized losses | (111,459) | (258,458) | (111,459) | (258,458) |
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 | 3,925,070 | (1,941,236) | 8,859,921 | (6,226,539) |
Equity Securities [Member] | ||||
Realized gains on available-for-sale investments [Abstract] | ||||
Total realized gains | 2,765,915 | 0 | 2,765,915 | 0 |
Realized losses on available-for-sale investments [Abstract] | ||||
Realized losses | 0 | 0 | 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 | 0 | 0 | 0 | 0 |
Real Estate [Member] | ||||
Realized gains on available-for-sale investments [Abstract] | ||||
Total realized gains | 2,678,207 | 0 | 3,776,850 | 534,242 |
Realized losses on available-for-sale investments [Abstract] | ||||
Realized losses | 0 | 0 | 0 | 0 |
Other [Member] | ||||
Realized gains on available-for-sale investments [Abstract] | ||||
Total realized gains | 0 | 0 | 0 | 0 |
Realized losses on available-for-sale investments [Abstract] | ||||
Realized losses | $ (132,518) | $ 0 | $ (132,518) | $ 0 |
Investments, Mortgage Loans, In
Investments, Mortgage Loans, Investment Real Estate, and Notes Receivable (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | ||
Cost Method Investments [Abstract] | ||||
Equity Securities without Readily Determinable Fair Value, Amount | $ 11,901,503 | $ 12,118,617 | [1] | |
Mortgage Loans [Abstract] | ||||
Mortgage loans acquired, including discounted mortgage loans | $ 4,014,455 | 0 | ||
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 | 6,922,475 | 7,169,272 | ||
Overdue interest over 90 days | 1,839,347 | 1,899,839 | ||
Total mortgage loans | 8,761,822 | 9,069,111 | [1] | |
Notes Receivable [Abstract] | ||||
Valuation allowance | 0 | $ 0 | ||
Notes Receivable acquired | $ 7,528,188 | $ 4,000,000 | ||
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 | 4.80% | 4.00% | ||
Residential Loans [Member] | Maximum [Member] | ||||
Mortgage Loans [Abstract] | ||||
Interest rate on mortgage loans | 8.00% | 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 ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
Assets [Abstract] | |||
Fixed Maturities, available for sale | $ 167,734,370 | $ 160,960,784 | [1] |
Equity Securities | 80,707,408 | 67,664,482 | [1] |
Measured on a Recurring Basis [Member] | |||
Assets [Abstract] | |||
Fixed Maturities, available for sale | 167,734,370 | 160,960,784 | |
Equity Securities | 80,707,408 | 67,664,482 | |
Total | 248,441,778 | 228,625,266 | |
Measured on a Recurring Basis [Member] | Level 1 [Member] | |||
Assets [Abstract] | |||
Fixed Maturities, available for sale | 28,595,556 | 25,660,194 | |
Equity Securities | 36,103,927 | 27,634,283 | |
Total | 64,699,483 | 53,294,477 | |
Measured on a Recurring Basis [Member] | Level 2 [Member] | |||
Assets [Abstract] | |||
Fixed Maturities, available for sale | 138,715,887 | 134,865,746 | |
Equity Securities | 13,042,505 | 10,557,031 | |
Total | 151,758,392 | 145,422,777 | |
Measured on a Recurring Basis [Member] | Level 3 [Member] | |||
Assets [Abstract] | |||
Fixed Maturities, available for sale | 422,927 | 434,844 | |
Equity Securities | 31,560,976 | 29,473,168 | |
Total | $ 31,983,903 | $ 29,908,012 | |
[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 ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | $ 29,908,012 | |
Total unrealized gain or (losses) [Abstract] | ||
Included in net income (loss) | 4,221,408 | |
Included in other comprehensive income | 0 | |
Purchases | 0 | |
Sales | (2,145,517) | |
Ending Balance | 31,983,903 | $ 29,908,012 |
Change in fair value of equity securities included in net income (loss) relating to assets held | 4,221,408 | 4,633,751 |
Fixed Maturities, Available for Sale [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 434,844 | |
Total unrealized gain or (losses) [Abstract] | ||
Included in net income (loss) | 0 | |
Included in other comprehensive income | 0 | |
Purchases | 0 | |
Sales | (11,917) | |
Ending Balance | 422,927 | 434,844 |
Equity Securities, Available for Sale [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Beginning Balance | 29,473,168 | |
Total unrealized gain or (losses) [Abstract] | ||
Included in net income (loss) | 4,221,408 | |
Included in other comprehensive income | 0 | |
Purchases | 0 | |
Sales | (2,133,600) | |
Ending Balance | $ 31,560,976 | $ 29,473,168 |
Fair Value Measurements, Carryi
Fair Value Measurements, Carrying Values and Estimated Fair Values of Financial Instruments not Recorded at Fair Value (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | |
Carrying Amount [Member] | |||
Assets [Abstract] | |||
Equity securities | $ 11,901,503 | $ 12,118,617 | |
Mortgage loans on real estate | 8,761,822 | 9,069,111 | |
Investment real estate | 46,635,583 | 52,518,577 | |
Notes receivable | 29,417,513 | 23,717,312 | |
Policy loans | 8,979,490 | 9,204,222 | |
Cash and cash equivalents | 25,229,997 | 20,150,162 | |
Estimated Fair Value [Member] | |||
Assets [Abstract] | |||
Equity securities | 11,901,503 | 12,118,617 | |
Mortgage loans on real estate | 8,761,822 | 9,069,111 | |
Investment real estate | 46,635,583 | 52,518,577 | |
Notes receivable | 29,417,513 | 23,717,312 | |
Policy loans | 8,979,490 | 9,204,222 | |
Cash and cash equivalents | 25,229,997 | 20,150,162 | |
Equity securities | $ 11,901,503 | $ 12,118,617 | [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 ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Variable Rate [Member] | Maximum [Member] | ||
Credit Arrangements [Abstract] | ||
Period of interest under CMA | 90 days | |
Fixed Rate [Member] | Maximum [Member] | ||
Credit Arrangements [Abstract] | ||
Period of interest under CMA | 30 days | |
UTG 2013-11-20 [Member] | ||
Credit Arrangements [Abstract] | ||
Interest Rate | 5.125% | |
Frequency of payments | monthly | |
Assets Pledged | 100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company. | |
UTG 2013-11-20 [Member] | UG [Member] | ||
Credit Arrangements [Abstract] | ||
Issue Date | Nov. 20, 2013 | |
Maturity Date | Nov. 20, 2019 | |
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] | ||
Credit Arrangements [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 | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | |
Stock Repurchase Program [Abstract] | |||
Stock repurchase program authorized amount | $ 18,500,000 | $ 18,500,000 | |
Additional amount approved | $ 2,500,000 | ||
Stock repurchased during period (in shares) | 18,343 | ||
Amount paid to repurchase shares during the year | $ 561,342 | $ 953,419 | |
Amount of common stock repurchased | $ 14,425,071 | ||
Number of common stock acquired (in shares) | 1,158,449 | 1,158,449 | |
Number of shares issued (in shares) | 8,188 | ||
Cost of shares issued | $ 246,534 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) | Jun. 30, 2019USD ($) |
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 | 24,493 |
Sovereigns Capital LP Fund II [Member] | |
Total Funding Commitments and Unfunded Commitment [Abstract] | |
Total Funding Commitment | 1,000,000 |
Unfunded Commitment | 240,566 |
Sovereigns Capital LP Fund III [Member] | |
Total Funding Commitments and Unfunded Commitment [Abstract] | |
Total Funding Commitment | 1,000,000 |
Unfunded Commitment | 900,000 |
Barton Springs Music, LLC [Member] | |
Total Funding Commitments and Unfunded Commitment [Abstract] | |
Total Funding Commitment | 1,750,000 |
Unfunded Commitment | 1,158,500 |
Master Mineral Holdings III, LP [Member] | |
Total Funding Commitments and Unfunded Commitment [Abstract] | |
Total Funding Commitment | 4,000,000 |
Unfunded Commitment | $ 296,979 |
Other Cash Flow Disclosures (De
Other Cash Flow Disclosures (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Cash Flow Disclosures [Abstract] | ||||
Interest | $ 0 | $ 0 | $ 0 | $ 0 |
Federal income tax | $ 1,106,000 | $ 67,000 | $ 1,106,000 | $ 67,000 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)State | Jun. 30, 2018 | Jun. 30, 2019USD ($)State | Jun. 30, 2018 | Dec. 31, 2018 | |
Concentrations [Abstract] | |||||
Number of states by which entity primarily serves | State | 4 | 4 | |||
Maximum retention limits per life | $ | $ 125,000 | $ 125,000 | |||
Reinsurer Concentration Risk [Member] | Life Insurance Ceded [Member] | |||||
Concentrations [Abstract] | |||||
Percentage of gross insurance in force | 21.00% | 21.00% | 20.00% | ||
Percentage of premium income | 34.00% | 36.00% | |||
Direct Premium Collected [Member] | Geographic Concentration Risk [Member] | Illinois, Ohio, Texas and West Virginia [Member] | |||||
Concentrations [Abstract] | |||||
Concentration risk, percentage | 55.00% | 56.00% | |||
Invested Assets [Member] | Customer Concentration Risk [Member] | Oil and Gas Industry [Member] | |||||
Concentrations [Abstract] | |||||
Concentration risk, percentage | 27.00% | 25.00% |