SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 31, 2014

CAPITAL STOCK TRANSACTIONS [Abstract]

CAPITAL STOCK TRANSACTIONS

Note 9 – Shareholders' Equity

Stock Repurchase Program – The Board of Directors of UTG has authorized the repurchase in the open market or in privately negotiated transactions of UTG's common stock. During December of 2014, the Board of Directors approved a resolution to increase the repurchase amount by $1 million for a total repurchase of $7 million.  Repurchased shares are available for future issuance for general corporate purposes.  This program can be terminated at any time.  Open market purchases are made based on the last available market price and are generally limited to a maximum per share price of the most recent reported per share GAAP equity book value of the Company. During 2014, the Company repurchased 74,172 shares through the stock repurchase program for $996,851.  Through December 31, 2014, UTG has spent $6.1 million in the acquisition of 662,698 shares under this program.

Director Compensation - Effective September 18, 2013, each outside Director will annually receive $8,000 as a retainer and $1,000 per meeting attended.  The compensation, however, shall be paid in UTG common stock.  The value will be determined annually on the close of business December 20th or the next business day should December 20^th be a weekend or holiday, based on the activity of the year just ending.  UTG's director compensation policy also provides that Directors who are employees of UTG or its affiliates do not receive any compensation for their services as Directors except for reimbursement for reasonable travel expenses for attending each meeting. In December of 2014, the Company issued 4,755 shares of its common stock as compensation to the Directors.  The shares were valued at $14.50 per share, the market value at the date of issue. During 2014, the Company recorded $68,948 in operating expense related to the stock issuance.  In December of 2013, the Company issued 3,162 shares of its common stock as compensation to the Directors.  The shares were valued at $10.75 per share, the market value at the date of issue.  During 2013, the Company recorded $33,992in operating expense related to this stock issuance.

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

	2014	2013
Basic weighted average shares outstanding	3,750,239	3,787,913
Weighted average dilutive options outstanding	0	0
Diluted weighted average shares outstanding	3,750,239	3,787,913

The computation of diluted earnings per share is the same as basic earnings per share for the years ending December 31, 2014 and 2013, as there were no outstanding securities, options or other offers that give the right to receive or acquire common shares of UTG.

Statutory Restrictions – Restrictions exist on the flow of funds to UTG from its insurance subsidiary.  Statutory regulations require life insurance subsidiaries to maintain certain minimum amounts of capital and surplus. UG is required to maintain minimum statutory surplus of $2,500,000. At December 31, 2014, substantially all of the consolidated shareholders' equity represents net assets of UTG's subsidiaries.

UG is domiciled in the state of Ohio. Ohio requires notification within five business days to the insurance commissioner following the declaration of any ordinary dividend and at least ten calendar days prior to payment of such dividend.  Ordinary dividends are defined as the greater of: a) prior year statutory net income or b) 10 % of statutory capital and surplus.  Extraordinary dividends (amounts in excess of ordinary dividend limitations) require prior approval of the insurance commissioner and are not restricted to a specific calculation.  UG paid ordinary dividends of $4,800,000 and $2,700,000 to UTG in 2014 and 2013, respectively. No extraordinary dividends were paid during the two year period. UTG used the dividends received during 2013 and 2014 to retire its outstanding debt and purchase outstanding shares of UTG stock.