⌧ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
□ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
UTG, INC.
|
||
(Exact name of registrant as specified in its charter)
|
||
Delaware
|
20-2907892
|
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
|
incorporation or organization)
|
Identification No.)
|
|
205 NORTH DEPOT STREET
|
||
STANFORD, KY 40484
|
||
(Address of principal executive offices) (Zip Code)
|
Securities registered pursuant to Section 12(b) of the Act:
|
|
Title of each class
|
Name of each exchange on which registered
|
None
|
None
|
Large accelerated filer □
|
Accelerated filer □
|
|
|
Non-accelerated filer □
|
Smaller reporting company ⌧
|
|
|
|
Emerging growth company □
|
PART I. Financial Information
|
3
|
Item 1. Financial Statements
|
3
|
Condensed Consolidated Balance Sheets
|
3
|
Condensed Consolidated Statements of Operations
|
4
|
Condensed Consolidated Statements of Comprehensive Income (Loss)
|
5
|
Condensed Consolidated Statements of Shareholders' Equity
|
6
|
Condensed Consolidated Statements of Cash Flows
|
8
|
Notes to Condensed Consolidated Financial Statements
|
9
|
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
22
|
Item 4. Controls and Procedures
|
27
|
PART II. Other Information
|
27
|
Item 1. Legal Proceedings
|
27
|
Item 1A. Risk Factors
|
27
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
27
|
Item 3. Defaults Upon Senior Securities
|
27
|
Item 4. Mine Safety Disclosures
|
27
|
Item 5. Other Information
|
27
|
Item 6. Exhibits
|
27
|
Signatures
|
28
|
September 30, 2020
|
December 31, 2019*
|
||||
ASSETS
|
|||||
Investments:
|
|||||
Investments available for sale:
|
|||||
Fixed maturities, at fair value (amortized cost $156,998,638 and $159,959,855)
|
$
|
176,720,947
|
$
|
171,629,373
|
|
Equity securities, at fair value (cost $33,521,163 and $32,578,862)
|
65,588,029
|
78,661,793
|
|||
Equity securities, at cost
|
14,417,247
|
10,919,247
|
|||
Mortgage loans on real estate at amortized cost
|
20,392,053
|
8,223,286
|
|||
Investment real estate
|
36,421,627
|
44,344,236
|
|||
Notes receivable
|
19,298,398
|
19,487,458
|
|||
Policy loans
|
8,727,991
|
8,803,876
|
|||
Short-term investments
|
7,973,910
|
10,442,173
|
|||
Total investments
|
349,540,202
|
352,511,442
|
|||
Cash and cash equivalents
|
24,723,191
|
28,787,629
|
|||
Accrued investment income
|
1,247,946
|
1,679,783
|
|||
Reinsurance receivables:
|
|||||
Future policy benefits
|
25,412,611
|
25,655,161
|
|||
Policy claims and other benefits
|
4,262,277
|
4,142,142
|
|||
Cost of insurance acquired
|
4,287,682
|
4,846,321
|
|||
Property and equipment, net of accumulated depreciation
|
367,999
|
427,736
|
|||
Income tax receivable
|
145,067
|
0
|
|||
Other assets
|
764,344
|
695,517
|
|||
Total assets
|
$
|
410,751,319
|
$
|
418,745,731
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|||||
Liabilities:
|
|||||
Policy liabilities and accruals:
|
|||||
Future policyholder benefits
|
$
|
245,084,324
|
$
|
249,264,308
|
|
Policy claims and benefits payable
|
3,811,781
|
3,631,666
|
|||
Other policyholder funds
|
402,225
|
404,177
|
|||
Dividend and endowment accumulations
|
14,764,957
|
14,626,475
|
|||
Income taxes payable
|
0
|
313,662
|
|||
Deferred income taxes
|
11,343,548
|
13,222,604
|
|||
Trading securities, at fair value (proceeds $5,584 and $0)
|
4,003
|
0
|
|||
Other liabilities
|
6,172,576
|
5,785,933
|
|||
Total liabilities
|
281,583,414
|
287,248,825
|
|||
Shareholders' equity:
|
|||||
Common stock - no par value, stated value $0.001 per share. Authorized 7,000,000 shares - 3,176,672 and 3,277,830 shares outstanding
|
3,177
|
3,279
|
|||
Additional paid-in capital
|
33,056,562
|
36,012,401
|
|||
Retained earnings
|
80,266,031
|
85,979,678
|
|||
Accumulated other comprehensive income
|
15,218,666
|
8,977,914
|
|||
Total UTG shareholders' equity
|
128,544,436
|
130,973,272
|
|||
Noncontrolling interests
|
623,469
|
523,634
|
|||
Total shareholders' equity
|
129,167,905
|
131,496,906
|
|||
Total liabilities and shareholders' equity
|
$
|
410,751,319
|
$
|
418,745,731
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
September 30,
|
September 30,
|
September 30,
|
September 30,
|
||||||||
2020
|
2019
|
2020
|
2019
|
||||||||
Revenue:
|
|||||||||||
Premiums and policy fees
|
$
|
2,285,170
|
$
|
2,385,113
|
$
|
7,020,901
|
$
|
7,319,807
|
|||
Ceded reinsurance premiums and policy fees
|
(757,649)
|
(678,941)
|
(2,128,125)
|
(2,009,252)
|
|||||||
Net investment income
|
2,231,360
|
2,818,669
|
8,083,200
|
8,632,402
|
|||||||
Other income
|
111,775
|
95,141
|
264,589
|
254,898
|
|||||||
Revenue before net investment gains (losses)
|
3,870,656
|
4,619,982
|
13,240,565
|
14,197,855
|
|||||||
Net investment gains (losses):
|
|||||||||||
Other realized investment gains, net
|
1,754,315
|
3,727,538
|
10,708,155
|
10,143,014
|
|||||||
Change in fair value of equity securities
|
(2,277,902)
|
(4,046,457)
|
(14,016,065)
|
10,838,322
|
|||||||
Total net investment gains (losses)
|
(523,587)
|
(318,919)
|
(3,307,910)
|
20,981,336
|
|||||||
Total revenue
|
3,347,069
|
4,301,063
|
9,932,655
|
35,179,191
|
|||||||
Benefits and other expenses:
|
|||||||||||
Benefits, claims and settlement expenses:
|
|||||||||||
Life
|
4,460,762
|
4,029,261
|
11,423,300
|
12,047,346
|
|||||||
Ceded reinsurance benefits and claims
|
(966,260)
|
(501,184)
|
(1,954,371)
|
(1,583,345)
|
|||||||
Annuity
|
250,486
|
265,413
|
742,023
|
770,452
|
|||||||
Dividends to policyholders
|
70,125
|
74,864
|
256,445
|
274,516
|
|||||||
Commissions and amortization of deferred policy acquisition costs
|
(35,865)
|
(39,665)
|
(99,541)
|
(102,784)
|
|||||||
Amortization of cost of insurance acquired
|
186,214
|
193,977
|
558,639
|
581,930
|
|||||||
Operating expenses
|
2,559,653
|
1,940,795
|
6,249,951
|
5,875,135
|
|||||||
Total benefits and other expenses
|
6,525,115
|
5,963,461
|
17,176,446
|
17,863,250
|
|||||||
Income (loss) before income taxes
|
(3,178,046)
|
(1,662,398)
|
(7,243,791)
|
17,315,941
|
|||||||
Income tax (benefit) expense
|
(765,421)
|
(578,549)
|
(1,629,979)
|
3,781,340
|
|||||||
Net income (loss)
|
(2,412,625)
|
(1,083,849)
|
(5,613,812)
|
13,534,601
|
|||||||
Net income attributable to noncontrolling interests
|
(34,081)
|
(32,795)
|
(99,835)
|
(294,308)
|
|||||||
Net income (loss) attributable to common shareholders
|
$
|
(2,446,706)
|
$
|
(1,116,644)
|
$
|
(5,713,647)
|
$
|
13,240,293
|
|||
Amounts attributable to common shareholders
|
|||||||||||
Basic income (loss) per share
|
$
|
(0.76)
|
$
|
(0.34)
|
$
|
(1.75)
|
$
|
4.03
|
|||
Diluted income (loss) per share
|
$
|
(0.76)
|
$
|
(0.34)
|
$
|
(1.75)
|
$
|
4.03
|
|||
Basic weighted average shares outstanding
|
3,221,049
|
3,279,684
|
3,256,217
|
3,289,133
|
|||||||
Diluted weighted average shares outstanding
|
3,221,049
|
3,279,684
|
3,256,217
|
3,289,133
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
September 30,
|
September 30,
|
September 30,
|
September 30,
|
||||||||
2020
|
2019
|
2020
|
2019
|
||||||||
Net income (loss)
|
$
|
(2,412,625)
|
$
|
(1,083,849)
|
$
|
(5,613,812)
|
$
|
13,534,601
|
|||
Other comprehensive income (loss):
|
|||||||||||
Unrealized holding gains (losses) arising during period, pre-tax
|
169,058
|
3,184,769
|
8,237,909
|
12,044,690
|
|||||||
Tax (expense) benefit on unrealized holding gains (losses) arising during the period
|
(35,502)
|
(668,802)
|
(1,729,961)
|
(2,529,385)
|
|||||||
Unrealized holding gains (losses) arising during period, net of tax
|
133,556
|
2,515,967
|
6,507,948
|
9,515,305
|
|||||||
Less reclassification adjustment for (gains) losses included in net income
|
0
|
30,793
|
(338,223)
|
25,564
|
|||||||
Tax expense (benefit) for gains included in net income (loss)
|
0
|
(6,466)
|
71,027
|
(5,368)
|
|||||||
Reclassification adjustment for (gains) losses included in net income, net of tax
|
0
|
24,327
|
(267,196)
|
20,196
|
|||||||
Subtotal: Other comprehensive income (loss), net of tax
|
133,556
|
2,540,294
|
6,240,752
|
9,535,501
|
|||||||
|
|
|
|
||||||||
Comprehensive income (loss)
|
(2,279,069)
|
1,456,445
|
626,940
|
23,070,102
|
|||||||
Less comprehensive income attributable to noncontrolling interests
|
(34,081)
|
(32,795)
|
(99,835)
|
(294,308)
|
|||||||
|
|
|
|
||||||||
Comprehensive income (loss) attributable to UTG, Inc.
|
$
|
(2,313,150)
|
$
|
1,423,650
|
$
|
527,105
|
$
|
22,775,794
|
Three Months Ended September 30, 2020
|
Common Stock
|
Additional Paid-In Capital
|
Retained Earnings
|
Accumulated Other
Comprehensive Income
|
Noncontrolling Interest
|
Total Shareholders' Equity
|
||||||
Balance at June 30, 2020
|
$
|
3,272
|
$
|
35,780,640
|
$
|
82,712,737
|
$
|
15,085,110
|
$
|
589,388
|
$
|
134,171,147
|
Common stock issued during year
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||
Treasury shares acquired
|
(95)
|
(2,724,078)
|
0
|
0
|
0
|
(2,724,173)
|
||||||
Net income (loss) attributable to common shareholders
|
0
|
0
|
(2,446,706)
|
0
|
0
|
(2,446,706)
|
||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and
taxes
|
0
|
0
|
0
|
133,556
|
0
|
133,556
|
||||||
Contributions
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||
Distributions
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||
Gain attributable to noncontrolling interest
|
0
|
0
|
0
|
0
|
34,081
|
34,081
|
||||||
Balance at September 30, 2020
|
$
|
3,177
|
$
|
33,056,562
|
$
|
80,266,031
|
$
|
15,218,666
|
$
|
623,469
|
$
|
129,167,905
|
Nine Months Ended September 30, 2020
|
Common Stock
|
Additional Paid-In Capital
|
Retained Earnings
|
Accumulated Other
Comprehensive Income
|
Noncontrolling Interest
|
Total Shareholders' Equity
|
||||||
Balance at December 31, 2019
|
$
|
3,279
|
$
|
36,012,401
|
$
|
85,979,678
|
$
|
8,977,914
|
$
|
523,634
|
$
|
131,496,906
|
Common stock issued during year
|
7
|
218,282
|
0
|
0
|
0
|
218,289
|
||||||
Treasury shares acquired
|
(109)
|
(3,174,121)
|
0
|
0
|
0
|
(3,174,230)
|
||||||
Net income (loss) attributable to common shareholders
|
0
|
0
|
(5,713,647)
|
0
|
0
|
(5,713,647)
|
||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and
taxes
|
0
|
0
|
0
|
6,240,752
|
0
|
6,240,752
|
||||||
Contributions
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||
Distributions
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||
Gain attributable to noncontrolling interest
|
0
|
0
|
0
|
0
|
99,835
|
99,835
|
||||||
Balance at September 30, 2020
|
$
|
3,177
|
$
|
33,056,562
|
$
|
80,266,031
|
$
|
15,218,666
|
$
|
623,469
|
$
|
129,167,905
|
Three Months Ended September 30, 2019
|
Common Stock
|
Additional Paid-In Capital
|
Retained Earnings
|
Accumulated Other
Comprehensive Income
|
Noncontrolling Interest
|
Total Shareholders' Equity
|
||||||
Balance at June 30, 2019
|
$
|
3,286
|
$
|
36,253,067
|
$
|
84,065,838
|
$
|
7,057,702
|
$
|
749,916
|
$
|
128,129,809
|
Common stock issued during year
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||
Treasury shares acquired
|
(9)
|
(287,914)
|
0
|
0
|
0
|
(287,923)
|
||||||
Net income attributable to common shareholders
|
0
|
0
|
(1,116,644)
|
0
|
0
|
(1,116,644)
|
||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and
taxes
|
0
|
0
|
0
|
2,540,294
|
0
|
2,540,294
|
||||||
Contributions
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||
Distributions
|
0
|
0
|
0
|
0
|
(289,912)
|
(289,912)
|
||||||
Gain attributable to noncontrolling interest
|
0
|
0
|
0
|
0
|
32,795
|
32,795
|
||||||
Balance at September 30, 2019
|
$
|
3,277
|
$
|
35,965,153
|
$
|
82,949,194
|
$
|
9,597,996
|
$
|
492,799
|
$
|
129,008,419
|
Nine Months Ended September 30, 2019
|
Common Stock
|
Additional Paid-In Capital
|
Retained Earnings
|
Accumulated Other
Comprehensive Income
|
Noncontrolling Interest
|
Total Shareholders' Equity
|
||||||
Balance at December 31, 2018
|
$
|
3,296
|
$
|
36,567,865
|
$
|
69,708,901
|
$
|
62,495
|
$
|
734,153
|
$
|
107,076,710
|
Common stock issued during year
|
7
|
246,527
|
0
|
0
|
0
|
246,534
|
||||||
Treasury shares acquired
|
(26)
|
(849,239)
|
0
|
0
|
0
|
(849,265)
|
||||||
Net income attributable to common shareholders
|
0
|
0
|
13,240,293
|
0
|
0
|
13,240,293
|
||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and
taxes
|
0
|
0
|
0
|
9,535,501
|
0
|
9,535,501
|
||||||
Contributions
|
0
|
0
|
0
|
0
|
0
|
0
|
||||||
Distributions
|
0
|
0
|
0
|
0
|
(535,662)
|
(535,662)
|
||||||
Gain attributable to noncontrolling interest
|
0
|
0
|
0
|
0
|
294,308
|
294,308
|
||||||
Balance at September 30, 2019
|
$
|
3,277
|
$
|
35,965,153
|
$
|
82,949,194
|
$
|
9,597,996
|
$
|
492,799
|
$
|
129,008,419
|
Nine Months Ended
|
|||||
September 30,
|
September 30,
|
||||
2020
|
2019
|
||||
Cash flows from operating activities:
|
|||||
Net income (loss)
|
$
|
(5,613,812)
|
$
|
13,534,601
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|||||
Amortization (accretion) of investments
|
(87,559)
|
28,936
|
|||
Realized investment gains, net
|
(10,708,155)
|
(10,143,014)
|
|||
Unrealized trading (gains) losses included in income
|
(1,581)
|
0
|
|||
Change in fair value of equity securities
|
14,016,065
|
(10,838,322)
|
|||
Amortization of cost of insurance acquired
|
558,639
|
581,930
|
|||
Depreciation
|
338,550
|
868,630
|
|||
Stock-based compensation
|
218,289
|
246,534
|
|||
Charges for mortality and administration of universal life and annuity products
|
(4,759,240)
|
(4,839,551)
|
|||
Interest credited to account balances
|
3,014,030
|
3,068,614
|
|||
Change in accrued investment income
|
431,837
|
375,806
|
|||
Change in reinsurance receivables
|
122,415
|
460,659
|
|||
Change in policy liabilities and accruals
|
(2,463,865)
|
(2,458,575)
|
|||
Change in income taxes receivable (payable)
|
(458,729)
|
78,738
|
|||
Change in other assets and liabilities, net
|
(3,373,186)
|
3,749,194
|
|||
Net cash used in operating activities
|
(8,766,302)
|
(5,285,820)
|
|||
Cash flows from investing activities:
|
|||||
Proceeds from investments sold and matured:
|
|||||
Fixed maturities available for sale
|
12,253,350
|
8,563,966
|
|||
Equity securities
|
17,071,364
|
10,219,197
|
|||
Mortgage loans
|
554,787
|
4,824,430
|
|||
Real estate
|
8,513,461
|
11,620,038
|
|||
Notes receivable
|
3,689,060
|
4,296,998
|
|||
Policy loans
|
914,651
|
1,324,183
|
|||
Short-term investments
|
10,500,000
|
0
|
|||
Total proceeds from investments sold and matured
|
53,496,673
|
40,848,812
|
|||
Cost of investments acquired:
|
|||||
Fixed maturities available for sale
|
(9,038,928)
|
(11,655,148)
|
|||
Equity securities
|
(12,011,489)
|
(1,323,310)
|
|||
Trading securities
|
5,584
|
(132,518)
|
|||
Mortgage loans
|
(12,692,488)
|
(4,216,644)
|
|||
Real estate
|
0
|
(1,729,000)
|
|||
Notes receivable
|
(3,500,000)
|
(8,532,796)
|
|||
Policy loans
|
(838,766)
|
(973,594)
|
|||
Short-term investments
|
(7,890,228)
|
0
|
|||
Total cost of investments acquired
|
(45,966,315)
|
(28,563,010)
|
|||
Net cash provided by investing activities
|
7,530,358
|
12,285,802
|
|||
Cash flows from financing activities:
|
|||||
Policyholder contract deposits
|
3,386,396
|
3,542,562
|
|||
Policyholder contract withdrawals
|
(3,040,660)
|
(3,578,980)
|
|||
Purchase of treasury stock
|
(3,174,230)
|
(849,265)
|
|||
Non controlling contributions (distributions) of consolidated subsidiary
|
0
|
(535,662)
|
|||
Net cash used in financing activities
|
(2,828,494)
|
(1,421,345)
|
|||
Net increase (decrease) in cash and cash equivalents
|
(4,064,438)
|
5,578,637
|
|||
Cash and cash equivalents at beginning of period
|
28,787,629
|
20,150,162
|
|||
Cash and cash equivalents at end of period
|
$
|
24,723,191
|
$
|
25,728,799
|
September 30, 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
|
$
|
44,789,865
|
$
|
1,418,625
|
$
|
0
|
$
|
46,208,490
|
||||
U.S. special revenue and assessments
|
14,356,937
|
1,487,743
|
0
|
15,844,680
|
||||||||
All other corporate bonds
|
97,851,836
|
16,815,941
|
0
|
114,667,777
|
||||||||
$
|
156,998,638
|
$
|
19,722,309
|
$
|
0
|
$
|
176,720,947
|
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
|
0
|
15,203,363
|
||||||||
All other corporate bonds
|
109,827,152
|
10,470,115
|
0
|
120,297,267
|
||||||||
$
|
159,959,855
|
$
|
11,705,047
|
$
|
(35,529)
|
$
|
171,629,373
|
Fixed Maturities Available for Sale
September 30, 2020
|
Amortized Cost
|
Fair Value
|
||||
Due in one year or less
|
$
|
26,793,810
|
$
|
27,113,305
|
||
Due after one year through five years
|
46,406,659
|
49,706,585
|
||||
Due after five years through ten years
|
32,831,635
|
37,877,774
|
||||
Due after ten years
|
24,192,862
|
28,870,286
|
||||
Fixed maturities with no single maturity date
|
26,773,672
|
33,152,997
|
||||
Total
|
$
|
156,998,638
|
$
|
176,720,947
|
September 30, 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
|
$
|
0
|
0
|
0
|
0
|
0
|
$
|
0
|
||||||||||
Total fixed maturities
|
$
|
0
|
0
|
0
|
0
|
0
|
$
|
0
|
||||||||||
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)
|
0
|
0
|
6,059,380
|
$
|
(35,529)
|
||||||||||
Total fixed maturities
|
$
|
6,059,380
|
(35,529)
|
0
|
0
|
6,059,380
|
$
|
(35,529)
|
||||||||||
Less than 12 months
|
12 months or longer
|
Total
|
|||
As of September 30, 2020
|
|||||
Fixed maturities
|
0
|
0
|
0
|
||
As of December 31, 2019
|
|||||
Fixed maturities
|
3
|
0
|
3
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
September 30,
|
September 30,
|
||||||||||
2020
|
2019
|
2020
|
2019
|
||||||||
Realized gains:
|
|||||||||||
Sales of fixed maturities
|
$
|
0
|
$
|
0
|
$
|
403,215
|
$
|
116,690
|
|||
Sales of equity securities
|
884,559
|
3,738,333
|
9,500,176
|
6,504,246
|
|||||||
Sales of real estate
|
869,756
|
20,000
|
869,756
|
3,796,850
|
|||||||
Other
|
0
|
0
|
0
|
0
|
|||||||
Total realized gains
|
1,754,315
|
3,758,333
|
10,773,147
|
10,417,786
|
|||||||
Realized losses:
|
|||||||||||
Sales of fixed maturities
|
0
|
(30,795)
|
(64,992)
|
(142,254)
|
|||||||
Sales of equity securities
|
0
|
0
|
0
|
0
|
|||||||
Sales of real estate
|
0
|
0
|
0
|
0
|
|||||||
Other-than-temporary
impairments
|
0
|
0
|
0
|
0
|
|||||||
Other
|
0
|
0
|
0
|
(132,518)
|
|||||||
Total realized losses
|
0
|
(30,795)
|
(64,992)
|
(274,772)
|
|||||||
Net realized investment gains (losses)
|
1,754,315
|
3,727,538
|
10,708,155
|
10,143,014
|
|||||||
Change in fair value of equity securities:
|
|||||||||||
Change in fair value of equity securities held at the end of the period
|
(2,277,902)
|
(4,046,457)
|
(14,016,065)
|
10,838,322
|
|||||||
Change in fair value of equity securities
|
(2,277,902)
|
(4,046,457)
|
(14,016,065)
|
10,838,322
|
|||||||
Net investment gains (losses)
|
$
|
(523,587)
|
$
|
(318,919)
|
$
|
(3,307,910)
|
$
|
20,981,336
|
|||
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive
income:
|
|||||||||||
Fixed maturities
|
$
|
169,058
|
$
|
3,184,769
|
$
|
8,237,909
|
$
|
12,044,690
|
|||
Net increase (decrease)
|
$
|
169,058
|
$
|
3,184,769
|
$
|
8,237,909
|
$
|
12,044,690
|
Three Months Ended
|
Nine Months Ended
|
|||||||
September 30,
|
September 30,
|
|||||||
2020
|
2019
|
2020
|
2019
|
|||||
Net gains (losses) recognized during the period on equity securities
|
$
|
(1,393,343)
|
$
|
(308,124)
|
$
|
(4,515,889)
|
$
|
17,342,568
|
Less: Net gains (losses) recognized during the period on equity securities sold during the period
|
884,559
|
3,738,333
|
9,500,176
|
6,504,246
|
||||
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date
|
$
|
(2,277,902)
|
$
|
(4,046,457)
|
$
|
(14,016,065)
|
$
|
10,838,322
|
Three Months Ended
|
|||||
September 30,
|
|||||
2020
|
2019
|
||||
Net unrealized gains (losses)
|
$
|
1,581
|
$
|
0
|
|
Net realized gains (losses)
|
0
|
0
|
|||
Net unrealized and realized gains (losses)
|
$
|
1,581
|
$
|
0
|
Nine Months Ended
|
|||||
September 30,
|
|||||
2020
|
2019
|
||||
Net unrealized gains (losses)
|
$
|
1,581
|
$
|
0
|
|
Net realized gains (losses)
|
0
|
0
|
|||
Net unrealized and realized gains (losses)
|
$
|
1,581
|
$
|
0
|
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%
|
4.82%
|
|||
Residential Loans
|
5.50%
|
5.50%
|
5.50%
|
5.50%
|
September 30, 2020
|
December 31, 2019
|
||||
In good standing
|
$
|
18,319,413
|
$
|
8,223,286
|
|
Overdue interest over 90 days
|
2,072,640
|
0
|
|||
Total mortgage loans
|
$
|
20,392,053
|
$
|
8,223,286
|
September 30, 2020
|
December 31, 2019
|
||||
Raw land
|
$
|
9,915,856
|
$
|
16,089,540
|
|
Commercial
|
5,414,238
|
4,908,028
|
|||
Residential
|
2,235,678
|
2,251,772
|
|||
Land, minerals and royalty interests
|
18,855,855
|
21,094,896
|
|||
Total investment real estate
|
$
|
36,421,627
|
$
|
44,344,236
|
September 30, 2020
|
Level 1
|
Level 2
|
Level 3
|
Net Asset Value
|
Total
|
|||||||||
Financial assets:
|
||||||||||||||
Fixed maturities available for sale:
|
||||||||||||||
U.S. Government and government agencies and authorities
|
$
|
46,208,490
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
46,208,490
|
||||
U.S. special revenue and assessments
|
0
|
15,844,680
|
0
|
0
|
15,844,680
|
|||||||||
Corporate securities
|
0
|
114,667,777
|
0
|
0
|
114,667,777
|
|||||||||
Total fixed maturities
|
46,208,490
|
130,512,457
|
0
|
0
|
176,720,947
|
|||||||||
Equity securities:
|
||||||||||||||
Common stocks
|
22,790,516
|
16,908,050
|
3,051,875
|
22,814,521
|
65,564,962
|
|||||||||
Preferred stocks
|
0
|
23,066
|
0
|
0
|
23,066
|
|||||||||
Total equity securities
|
22,790,516
|
16,931,116
|
3,051,875
|
22,814,521
|
65,588,028
|
|||||||||
Total financial assets
|
$
|
68,999,006
|
$
|
147,443,573
|
$
|
3,051,875
|
$
|
22,814,521
|
$
|
242,308,975
|
||||
Liabilities
|
||||||||||||||
Trading Securities
|
$
|
(4,003)
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
(4,003)
|
December 31, 2019
|
Level 1
|
Level 2
|
Level 3
|
Net Asset Value
|
Total
|
|||||||||
Financial assets:
|
||||||||||||||
Fixed maturities available for sale:
|
||||||||||||||
U.S. Government and government agencies and authorities
|
$
|
36,128,743
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
36,128,743
|
||||
U.S. special revenue and assessments
|
0
|
15,203,363
|
0
|
0
|
15,203,363
|
|||||||||
Corporate securities
|
0
|
120,297,267
|
0
|
0
|
120,297,267
|
|||||||||
Total fixed maturities
|
36,128,743
|
135,500,630
|
0
|
0
|
171,629,373
|
|||||||||
Equity securities:
|
||||||||||||||
Common stocks
|
29,888,281
|
14,258,750
|
10,274,810
|
24,239,952
|
78,661,793
|
|||||||||
Total equity securities
|
29,888,281
|
14,258,750
|
10,274,810
|
24,239,952
|
78,661,793
|
|||||||||
Total financial assets
|
$
|
66,017,024
|
$
|
149,759,380
|
$
|
10,274,810
|
$
|
24,239,952
|
$
|
250,291,166
|
Fixed Maturities,
Available for Sale
|
Equity Securities at Fair Value
|
Equity Securities at Net Asset Value
|
Total
|
||||||||
Balance at December 31, 2019
|
$
|
0
|
$
|
10,274,810
|
$
|
24,239,952
|
$
|
34,514,762
|
|||
Realized gains (losses)
|
0
|
6,284,302
|
0
|
6,284,302
|
|||||||
Unrealized gains (losses)
|
0
|
(3,850,560)
|
(2,809,324)
|
(6,659,884)
|
|||||||
Purchases
|
0
|
1,797,500
|
1,415,757
|
3,213,257
|
|||||||
Sales
|
0
|
(11,454,177)
|
(31,864)
|
(11,486,041)
|
|||||||
Balance at September 30, 2020
|
$
|
0
|
$
|
3,051,875
|
$
|
22,814,521
|
$
|
25,866,396
|
Financial Assets
|
Fair Value at September 30, 2020
|
Fair Value at December 31, 2019
|
Valuation Technique
|
||
Common stocks
|
$
|
22,814,521
|
$
|
24,239,952
|
Net Asset Value
|
Common stocks
|
3,051,875
|
10,274,810
|
Pricing Model
|
||
Total
|
$
|
25,866,396
|
$
|
34,514,762
|
Investment Company
|
Fair Value at September 30, 2020
|
Unfunded Commitments
|
Redemption Frequency
|
Redemption Notice Period
|
||
Common Stocks
|
||||||
Growth Equity
|
||||||
Redeemable
|
$
|
18,482,622
|
$
|
0
|
Quarterly
|
45 days
|
Non-Reedemable
|
4,331,899
|
2,295,675
|
n/a
|
n/a
|
||
Total
|
$
|
22,814,521
|
$
|
2,295,675
|
Investment Company
|
Fair Value at September 30, 2019
|
Unfunded Commitments
|
Redemption Frequency
|
Redemption Notice Period
|
||
Common Stocks
|
||||||
Growth Equity
|
||||||
Redeemable
|
$
|
21,270,734
|
$
|
0
|
Quarterly
|
45 days
|
Non-Reedemable
|
2,969,218
|
163,750
|
n/a
|
n/a
|
||
Total
|
$
|
24,239,952
|
$
|
163,750
|
Carrying
|
Estimated
|
|||||
September 30, 2020
|
Amount
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
|
Common stock, at cost
|
$
|
5,860,000
|
5,860,000
|
0
|
0
|
5,860,000
|
Preferred stock, at cost
|
8,557,247
|
8,557,247
|
0
|
0
|
8,557,247
|
|
Mortgage loans on real estate
|
20,392,053
|
20,614,085
|
0
|
0
|
20,614,085
|
|
Investment real estate
|
36,421,627
|
81,351,608
|
0
|
0
|
81,351,608
|
|
Notes receivable
|
19,298,398
|
22,380,946
|
0
|
0
|
22,380,946
|
|
Policy loans
|
8,727,991
|
8,727,991
|
0
|
0
|
8,727,991
|
Carrying
|
Estimated
|
|||||
December 31, 2019
|
Amount
|
Fair Value
|
Level 1
|
Level 2
|
Level 3
|
|
Common stock, at cost
|
$
|
7,875,145
|
7,875,145
|
0
|
0
|
7,875,145
|
Preferred stock, at cost
|
3,044,102
|
3,044,102
|
0
|
0
|
3,044,102
|
|
Mortgage loans on real estate
|
8,223,286
|
7,531,094
|
0
|
0
|
7,531,094
|
|
Investment real estate
|
44,344,236
|
88,483,424
|
0
|
0
|
88,483,424
|
|
Notes receivable
|
19,487,458
|
19,332,472
|
0
|
0
|
19,332,472
|
|
Policy loans
|
8,803,876
|
8,803,876
|
0
|
0
|
8,803,876
|
Instrument
|
Issue Date
|
Maturity Date
|
Revolving
Credit Limit
|
December 31, 2019
|
Borrowings
|
Repayments
|
September 30, 2020
|
|||||||||||||||
Lines of Credit:
|
||||||||||||||||||||||
UTG
|
11/20/2013
|
11/20/2020
|
$
|
8,000,000
|
0
|
0
|
0
|
0
|
||||||||||||||
UG
|
6/2/2015
|
5/7/2021
|
10,000,000
|
0
|
0
|
0
|
0
|
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
|
|||
Macritchie Storage II, LP
|
7,000,750
|
1,840,485
|
|||
Garden City Companies, LLC
|
2,000,000
|
1,956,688
|
|||
Carrizo Springs Music, LLC
|
2,500,000
|
1,115,000
|
|||
Modern Distributors, Inc.
|
7,200,000
|
3,700,000
|
Three Months Ended
|
|||||
September 30,
|
|||||
2020
|
2019
|
||||
Interest
|
$
|
0
|
$
|
0
|
|
Federal income tax
|
419,000
|
0
|
Nine Months Ended
|
|||||
September 30,
|
|||||
2020
|
2019
|
||||
Interest
|
$
|
0
|
$
|
0
|
|
Federal income tax
|
2,529,000
|
1,106,000
|
September 30, 2020
|
December 31, 2019
|
|||
Land, mineral, and royalty interests
|
$
|
57,246,945
|
$
|
80,182,100
|
Transportation
|
0
|
3,812,565
|
||
Exploration
|
1,258,750
|
2,824,810
|
||
Total
|
$
|
58,505,695
|
$
|
86,819,475
|
Three Months Ended
|
Nine Months Ended
|
||||||||||
September 30,
|
September 30,
|
||||||||||
2020
|
2019
|
2020
|
2019
|
||||||||
Net investment income
|
$
|
2,231,360
|
$
|
2,818,669
|
$
|
8,083,200
|
$
|
8,632,402
|
|||
Net investment gains (losses)
|
$
|
(523,587)
|
$
|
(318,919)
|
$
|
(3,307,910)
|
$
|
20,981,336
|
|||
Change in net unrealized investment gains (losses) on available-for-sale securities, pre-tax
|
$
|
169,058
|
$
|
3,184,769
|
$
|
8,237,909
|
$
|
12,044,690
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||
2020
|
2019
|
2020
|
2019
|
|||||
Fixed maturities available for sale
|
$
|
1,301,923
|
$
|
1,445,341
|
$
|
4,023,342
|
$
|
4,371,895
|
Equity securities
|
238,082
|
287,462
|
1,182,308
|
1,256,794
|
||||
Trading securities
|
1,581
|
-
|
1,581
|
-
|
||||
Mortgage loans
|
147,202
|
83,528
|
392,286
|
369,132
|
||||
Real estate
|
563,306
|
881,705
|
2,805,810
|
2,141,339
|
||||
Notes receivable
|
244,473
|
485,288
|
783,406
|
1,435,947
|
||||
Policy loans
|
139,602
|
149,979
|
444,280
|
460,995
|
||||
Cash and cash equivalents
|
284
|
(1,407)
|
53,458
|
2,815
|
||||
Short-term
|
38,429
|
59,980
|
141,509
|
143,620
|
||||
Total consolidated investment income
|
2,674,882
|
3,391,876
|
9,827,980
|
10,182,537
|
||||
Investment expenses
|
(443,522)
|
(573,207)
|
(1,744,780)
|
(1,550,135)
|
||||
Consolidated net investment income
|
$
|
2,231,360
|
$
|
2,818,669
|
$
|
8,083,200
|
$
|
8,632,402
|
Exhibit Number
|
Description
|
*31.1
|
Certification of Jesse T. Correll, Chief Executive Officer and Chairman of the Board of UTG, as required pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
*31.2
|
Certification of Theodore C. Miller, Chief Financial Officer, Senior Vice President and Corporate Secretary of UTG, as required pursuant to Section
302 of the Sarbanes-Oxley Act of 2002
|
*32.1
|
Certificate of Jesse T. Correll, Chief Executive Officer and Chairman of the Board of UTG, as required pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
*32.2
|
Certificate of Theodore C. Miller, Chief Financial Officer, Senior Vice President and Corporate Secretary of UTG, as required pursuant to Section
906 of the Sarbanes-Oxley Act of 2002
|
**101
|
Interactive Data File
|
Date:
|
November 13, 2020
|
|
By
|
/s/ James P. Rousey
|
|
|
|
|
James P. Rousey
|
|
|
|
|
President and Director
|
Date:
|
November 13, 2020
|
|
By
|
/s/ Theodore C. Miller
|
|
|
|
|
Theodore C. Miller
|
|
|
|
|
Senior Vice President and Chief Financial Officer
|
Exhibit 31.1
CERTIFICATIONS
|
|||||||
I, Jesse T. Correll, Chairman of the Board and Chief Executive Officer of UTG, Inc., certify that:
|
|||||||
1.
|
I have reviewed this quarterly report on Form 10-Q of the registrant, UTG, Inc.;
|
||||||
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
||||||
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects
the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
||||||
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)and 15d-15(f)) for the registrant and have:
|
||||||
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
||||||
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
||||||
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
||||||
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most
recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
||||||
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial
reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
||||||
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
||||||
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls
over financial reporting.
|
||||||
Date:
|
November 13, 2020 |
By:
|
/s/ Jesse T. Correll
|
Chairman of the Board and
|
|||
Chief Executive Officer
|
Exhibit 31.2
CERTIFICATIONS
|
||||||||
I, Theodore C. Miller, Senior Vice President, Corporate Secretary and Chief Financial Officer of UTG, Inc., certify that:
|
||||||||
1.
|
I have reviewed this quarterly report on Form 10-Q of the registrant, UTG, Inc.;
|
|||||||
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
|||||||
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects
the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
|||||||
4.
|
The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)and 15d-15(f)) for the registrant and have:
|
|||||||
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|||||||
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|||||||
c.
|
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|||||||
d.
|
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most
recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
|||||||
5.
|
The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial
reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):
|
|||||||
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
|
|||||||
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls
over financial reporting.
|
|||||||
Date:
|
November 13, 2020 |
By:
|
/s/ Theodore C. Miller
|
Senior Vice President, Corporate Secretary and
|
|||
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company
|
Date:
|
November 13, 2020
|
By:
|
/s/ Jesse T. Correll
|
Jesse T. Correll
|
|||
Chairman of the Board and
|
|||
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company
|
Date:
|
November 13, 2020
|
By:
|
/s/ Theodore C. Miller
|
Theodore C. Miller
|
|||
Senior Vice President, Corporate Secretary and
|
|||
Chief Financial Officer
|
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Oct. 31, 2020 |
|
Cover [Abstract] | ||
Entity Registrant Name | UTG INC | |
Entity Central Index Key | 0000832480 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
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 | 3,175,132 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Address, State or Province | KY |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Investments available for sale: | ||
Fixed maturities, amortized cost | $ 156,998,638 | $ 159,959,855 |
Equity securities, cost | 33,521,163 | 32,578,862 |
Liabilities: | ||
Trading securities, proceeds | $ 5,584 | $ 0 |
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) | 3,176,672 | 3,277,830 |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Revenue: | ||||
Premiums and policy fees | $ 2,285,170 | $ 2,385,113 | $ 7,020,901 | $ 7,319,807 |
Ceded reinsurance premiums and policy fees | (757,649) | (678,941) | (2,128,125) | (2,009,252) |
Net investment income | 2,231,360 | 2,818,669 | 8,083,200 | 8,632,402 |
Other income | 111,775 | 95,141 | 264,589 | 254,898 |
Revenue before net investment gains (losses) | 3,870,656 | 4,619,982 | 13,240,565 | 14,197,855 |
Net investment gains (losses): | ||||
Other realized investment gains, net | 1,754,315 | 3,727,538 | 10,708,155 | 10,143,014 |
Change in fair value of equity securities | (2,277,902) | (4,046,457) | (14,016,065) | 10,838,322 |
Total net investment gains (losses) | (523,587) | (318,919) | (3,307,910) | 20,981,336 |
Total revenue | 3,347,069 | 4,301,063 | 9,932,655 | 35,179,191 |
Benefits, claims and settlement expenses: | ||||
Life | 4,460,762 | 4,029,261 | 11,423,300 | 12,047,346 |
Ceded reinsurance benefits and claims | (966,260) | (501,184) | (1,954,371) | (1,583,345) |
Annuity | 250,486 | 265,413 | 742,023 | 770,452 |
Dividends to policyholders | 70,125 | 74,864 | 256,445 | 274,516 |
Commissions and amortization of deferred policy acquisition costs | (35,865) | (39,665) | (99,541) | (102,784) |
Amortization of cost of insurance acquired | 186,214 | 193,977 | 558,639 | 581,930 |
Operating expenses | 2,559,653 | 1,940,795 | 6,249,951 | 5,875,135 |
Total benefits and other expenses | 6,525,115 | 5,963,461 | 17,176,446 | 17,863,250 |
Income (loss) before income taxes | (3,178,046) | (1,662,398) | (7,243,791) | 17,315,941 |
Income tax (benefit) expense | (765,421) | (578,549) | (1,629,979) | 3,781,340 |
Net income (loss) | (2,412,625) | (1,083,849) | (5,613,812) | 13,534,601 |
Net income attributable to noncontrolling interests | (34,081) | (32,795) | (99,835) | (294,308) |
Net income (loss) attributable to common shareholders | $ (2,446,706) | $ (1,116,644) | $ (5,713,647) | $ 13,240,293 |
Amounts attributable to common shareholders | ||||
Basic income (loss) per share (in dollars per share) | $ (0.76) | $ (0.34) | $ (1.75) | $ 4.03 |
Diluted income (loss) per share (in dollars per share) | $ (0.76) | $ (0.34) | $ (1.75) | $ 4.03 |
Basic weighted average shares outstanding (in shares) | 3,221,049 | 3,279,684 | 3,256,217 | 3,289,133 |
Diluted weighted average shares outstanding (in shares) | 3,221,049 | 3,279,684 | 3,256,217 | 3,289,133 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract] | ||||
Net income (loss) | $ (2,412,625) | $ (1,083,849) | $ (5,613,812) | $ 13,534,601 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) arising during period, pre-tax | 169,058 | 3,184,769 | 8,237,909 | 12,044,690 |
Tax (expense) benefit on unrealized holding gains (losses) arising during the period | (35,502) | (668,802) | (1,729,961) | (2,529,385) |
Unrealized holding gains (losses) arising during period, net of tax | 133,556 | 2,515,967 | 6,507,948 | 9,515,305 |
Less reclassification adjustment for (gains) losses included in net income | 0 | 30,793 | (338,223) | 25,564 |
Tax expense (benefit) for gains included in net income (loss) | 0 | (6,466) | 71,027 | (5,368) |
Reclassification adjustment for (gains) losses included in net income, net of tax | 0 | 24,327 | (267,196) | 20,196 |
Subtotal: Other comprehensive income (loss), net of tax | 133,556 | 2,540,294 | 6,240,752 | 9,535,501 |
Comprehensive income (loss) | (2,279,069) | 1,456,445 | 626,940 | 23,070,102 |
Less comprehensive income attributable to noncontrolling interests | (34,081) | (32,795) | (99,835) | (294,308) |
Comprehensive income (loss) attributable to UTG, Inc. | $ (2,313,150) | $ 1,423,650 | $ 527,105 | $ 22,775,794 |
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 | 7 | 246,527 | 0 | 0 | 0 | 246,534 | |||
Treasury shares acquired | (26) | (849,239) | 0 | 0 | 0 | (849,265) | |||
Net income (loss) attributable to common shareholders | 0 | 0 | 13,240,293 | 0 | 0 | 13,240,293 | |||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | 9,535,501 | 0 | 9,535,501 | |||
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | |||
Distributions | 0 | 0 | 0 | 0 | (535,662) | (535,662) | |||
Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 294,308 | 294,308 | |||
Balance at Sep. 30, 2019 | 3,277 | 35,965,153 | 82,949,194 | 9,597,996 | 492,799 | 129,008,419 | |||
Balance at Jun. 30, 2019 | 3,286 | 36,253,067 | 84,065,838 | 7,057,702 | 749,916 | 128,129,809 | |||
Common stock issued during year | 0 | 0 | 0 | 0 | 0 | 0 | |||
Treasury shares acquired | (9) | (287,914) | 0 | 0 | 0 | (287,923) | |||
Net income (loss) attributable to common shareholders | 0 | 0 | (1,116,644) | 0 | 0 | (1,116,644) | |||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | 2,540,294 | 0 | 2,540,294 | |||
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | |||
Distributions | 0 | 0 | 0 | 0 | (289,912) | (289,912) | |||
Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 32,795 | 32,795 | |||
Balance at Sep. 30, 2019 | 3,277 | 35,965,153 | 82,949,194 | 9,597,996 | 492,799 | 129,008,419 | |||
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 | 7 | 218,282 | 0 | 0 | 0 | 218,289 | |||
Treasury shares acquired | (109) | (3,174,121) | 0 | 0 | 0 | (3,174,230) | |||
Net income (loss) attributable to common shareholders | 0 | 0 | (5,713,647) | 0 | 0 | (5,713,647) | |||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | 6,240,752 | 0 | 6,240,752 | |||
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | |||
Distributions | 0 | 0 | 0 | 0 | 0 | 0 | |||
Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 99,835 | 99,835 | |||
Balance at Sep. 30, 2020 | 3,177 | 33,056,562 | 80,266,031 | 15,218,666 | 623,469 | 129,167,905 | |||
Balance at Jun. 30, 2020 | 3,272 | 35,780,640 | 82,712,737 | 15,085,110 | 589,388 | 134,171,147 | |||
Common stock issued during year | 0 | 0 | 0 | 0 | 0 | 0 | |||
Treasury shares acquired | (95) | (2,724,078) | 0 | 0 | 0 | (2,724,173) | |||
Net income (loss) attributable to common shareholders | 0 | 0 | (2,446,706) | 0 | 0 | (2,446,706) | |||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | 133,556 | 0 | 133,556 | |||
Contributions | 0 | 0 | 0 | 0 | 0 | 0 | |||
Distributions | 0 | 0 | 0 | 0 | 0 | 0 | |||
Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 34,081 | 34,081 | |||
Balance at Sep. 30, 2020 | $ 3,177 | $ 33,056,562 | $ 80,266,031 | $ 15,218,666 | $ 623,469 | $ 129,167,905 | |||
|
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Cash flows from operating activities: | ||
Net income (loss) | $ (5,613,812) | $ 13,534,601 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Amortization (accretion) of investments | (87,559) | 28,936 |
Realized investment gains, net | (10,708,155) | (10,143,014) |
Unrealized trading (gains) losses included in income | (1,581) | 0 |
Change in fair value of equity securities | 14,016,065 | (10,838,322) |
Amortization of cost of insurance acquired | 558,639 | 581,930 |
Depreciation | 338,550 | 868,630 |
Stock-based compensation | 218,289 | 246,534 |
Charges for mortality and administration of universal life and annuity products | (4,759,240) | (4,839,551) |
Interest credited to account balances | 3,014,030 | 3,068,614 |
Change in accrued investment income | 431,837 | 375,806 |
Change in reinsurance receivables | 122,415 | 460,659 |
Change in policy liabilities and accruals | (2,463,865) | (2,458,575) |
Change in income taxes receivable (payable) | (458,729) | 78,738 |
Change in other assets and liabilities, net | (3,373,186) | 3,749,194 |
Net cash used in operating activities | (8,766,302) | (5,285,820) |
Proceeds from investments sold and matured: | ||
Fixed maturities available for sale | 12,253,350 | 8,563,966 |
Equity securities | 17,071,364 | 10,219,197 |
Mortgage loans | 554,787 | 4,824,430 |
Real estate | 8,513,461 | 11,620,038 |
Notes receivable | 3,689,060 | 4,296,998 |
Policy loans | 914,651 | 1,324,183 |
Short-term investments | 10,500,000 | 0 |
Total proceeds from investments sold and matured | 53,496,673 | 40,848,812 |
Cost of investments acquired: | ||
Fixed maturities available for sale | (9,038,928) | (11,655,148) |
Equity securities | (12,011,489) | (1,323,310) |
Trading securities | 5,584 | (132,518) |
Mortgage loans | (12,692,488) | (4,216,644) |
Real estate | 0 | (1,729,000) |
Notes receivable | (3,500,000) | (8,532,796) |
Policy loans | (838,766) | (973,594) |
Short-term investments | (7,890,228) | 0 |
Total cost of investments acquired | (45,966,315) | (28,563,010) |
Net cash provided by investing activities | 7,530,358 | 12,285,802 |
Cash flows from financing activities: | ||
Policyholder contract deposits | 3,386,396 | 3,542,562 |
Policyholder contract withdrawals | (3,040,660) | (3,578,980) |
Purchase of treasury stock | (3,174,230) | (849,265) |
Non controlling contributions (distributions) of consolidated subsidiary | 0 | (535,662) |
Net cash used in financing activities | (2,828,494) | (1,421,345) |
Net increase (decrease) in cash and cash equivalents | (4,064,438) | 5,578,637 |
Cash and cash equivalents at beginning of period | 28,787,629 | 20,150,162 |
Cash and cash equivalents at end of period | $ 24,723,191 | $ 25,728,799 |
Basis of Presentation |
9 Months Ended |
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Sep. 30, 2020 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The accompanying Condensed Consolidated Balance Sheet as of December 31, 2019, 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 and nine months ended September 30, 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. During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted the economic conditions in the U.S. and globally, accelerating during the first half of March, as federal, state, and local governments react to the public health crisis, creating significant uncertainties in the U.S. economy. The Company has not experienced a slow-down in activities, however government restrictions and client-imposed delays are evaluated daily and this could change. While the disruption is currently expected to be temporary, there is uncertainty around the duration. The Company cannot at this time predict the ultimate impact the pandemic will have on its results of operations, financial position, liquidity, or capital resources but such impact could be material. This document at times will refer to the Registrant’s largest shareholder, Mr. Jesse T. Correll and certain companies controlled by Mr. Correll. Mr. Correll holds a majority ownership of First Southern Funding, LLC (“FSF”), a Kentucky corporation, and First Southern Bancorp, Inc. (“FSBI”), a financial services holding company. FSBI operates through its 100% owned subsidiary bank, First Southern National Bank (“FSNB”). Banking activities are conducted through multiple locations within south-central and western Kentucky. Mr. Correll is Chief Executive Officer and Chairman of the Board of Directors of UTG and is currently UTG’s largest shareholder through his ownership control of FSF, FSBI and affiliates. At September 30, 2020, Mr. Correll owns or controls directly and indirectly approximately 64.95% 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 Standards |
9 Months Ended |
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Sep. 30, 2020 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Note 2 – Recently Issued Accounting Standards During the nine months ended September 30, 2020, there were no additions to or changes in the critical accounting policies disclosed in the 2019 Form 10-K. |
Investments |
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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:
The amortized cost and estimated market value of debt securities at September 30, 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.
The fair value of investments with sustained gross unrealized losses at September 30, 2020 and December 31, 2019 are as follows:
Additional information regarding investments in an unrealized loss position is as follows:
Substantially all of the unrealized losses on fixed maturities at 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 September 30, 2020 and December 31, 2019. Net Investment Gains (Losses) The following table presents net investment gains (losses) and the change in net unrealized gains (losses) on investments.
The following table presents net gains (losses) and the change in net unrealized gains (losses) on equity securities.
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 nine month periods ended September 30, 2020 or 2019. Cost Method Investments The Company held equity investments with an aggregate cost of $14,417,247 and $10,919,247 at September 30, 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 September 30, 2020. Trading Securities Securities designated as trading securities are reported at fair value, with gains or losses resulting from changes in fair value recognized in net investment income on the Condensed Consolidated Statements of Operations. Trading securities include exchange-traded equities and exchange-traded options. Trading securities carried as liabilities are securities sold short. A gain, limited to the price at which the security was sold short, or a loss, potentially unlimited in size, will be recognized upon the termination of the short sale. The fair value of derivatives included in trading security assets and trading security liabilities as of September 30, 2020 was $0 and $(4,003), respectively. The fair value of derivatives included in trading security assets and trading security liabilities as of December 31, 2019 was $0 and $0, respectively. Earnings from trading securities are classified in cash flows from operating activities. The derivatives held by the Company are for income generation purposes only. Trading revenue charged to net investment income from trading securities was:
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 nine months ended September 30, 2020 and 2019, the Company acquired $12,692,488 and $4,216,644 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:
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 September 30, 2020 and December 31, 2019. The following table summarizes the mortgage loan holdings of the Company for the periods ended:
Investment Real Estate Real estate held-for-investment is stated at cost less accumulated depreciation. Depreciation is computed on a straight-line basis for financial reporting purposes using estimated useful lives of 3 to 30 years. The Company periodically reviews its real estate held-for-investment for impairment and tests for recoverability whenever events or changes in circumstances indicate the carrying value may not be recoverable. During the nine month period ended September 30, 2020, no impairments were recognized on the investment real estate. Note 4 - Fair Value Measurements of the Condensed Consolidated Financial Statements provides further information regarding the fair value of financial instruments that are not measured at fair value. The investment real estate owned by the Company is included in this portion of the Note 4 - Fair Value Measurements disclosure. The following table provides an allocation of the Company's investment real estate by type:
The Company’s investment real estate portfolio includes ownership in oil and gas royalties. As of September 30, 2020 and December 31, 2019, investments in oil and gas royalties represented 52% and 44%, respectively, of the total investment real estate portfolio. See Note 9 – Concentrations of Credit Risk of the Condensed Consolidated Financial Statements for additional information regarding the allocation of the oil and gas investment real estate holdings by industry type. Gains and losses recognized on the disposition of the properties are recorded as realized gains and losses in the Condensed Consolidated Statements of Operations. During the nine months ended September 30, 2020 and 2019, the Company acquired $0 and $1,729,000 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 September 30, 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 nine months ended September 30, 2020 and 2019 the Company acquired $3,500,000 and $8,532,796 of notes receivable, respectively. Before a new note is issued, the applicant is subject to certain criteria set forth by Company Management to ensure quality control. Once the note is approved, the Company directly funds the note to the borrower. Several of the notes have participation agreements in place, whereas the Company has reduced its investment in the note receivable by participating a portion of the note to a third party. Similar to the mortgage loans, FSNB services several of the notes receivable. The Company, and the participants in the notes, share in the risk of loss associated with the terms of the note with the borrower, based upon their ownership percentage in the note. The Company has in place a monitoring system to provide Management with information regarding potential troubled loans. Short-Term Investments Short-term investments have remaining maturities exceeding three months and under 12 months at the time of purchase and are stated at amortized cost, which approximates fair value. The short-term investments consist of United States Treasury securities. Dung the nine months ended September 30, 2020 and 2019, the Company acquired $7,890,228 and $0, respectively, in short-term investments. |
Fair Value Measurements |
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Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Note 4 – Fair Value Measurements Fair Value Measurements on a Recurring Basis Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three levels based on the observability of valuation inputs: Level 1 – Valuation is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Valuation methodologies include quoted prices for similar assets and liabilities in active markets or quoted prices for identical, quoted prices for identical or similar assets or liabilities in markets that are not active, or the Company may use various valuation techniques or pricing models that use observable inputs to measure fair value. Level 3 – Valuation is based upon unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Unobservable inputs reflect the Company’s own assumptions about the inputs that market participants would use in pricing the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used:
The following is a description of the valuation techniques used the by Company to measure assets reported at fair value on a recurring basis. There have been no significant changes in the valuation techniques utilized by the Company for the nine months ended September 30, 2020. Available for Sale Securities Securities classified as available for sale are recorded at fair value on a recurring basis. Securities classified as Level 1 utilized fair value measurements based upon quoted market prices, when available. If quoted market prices are not available, the Company obtains fair value measurements from recently executed transactions, market price quotations, benchmark yields and issuer spreads to value Level 2 securities. In certain instances where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Fair value determinations for Level 3 measurements are estimated on a quarterly basis where assumptions used are reviewed to ensure the estimated fair value complies with accounting standard generally accepted in the United States. Equity Securities at Fair Value Equity securities consist of common stocks mainly in private equity investments, financial institutions and publicly traded corporations. Equity securities for which there is sufficient market data are categorized as Level 1 or 2 in the fair value hierarchy. For the equity securities in which quoted market prices are not available, the Company uses industry standard pricing methodologies, including discounted cash flow models that may incorporate various inputs such as payment expectations, risk of the investment, market data, and health of the underlying company. The inputs are based upon Management's assumptions and available market information. When evidence is believed to support a change to the carrying value from the transaction price, adjustments are made to reflect the expected cash flows, material events and market data. These investments are included in Level 3 of the fair value hierarchy. Equity Securities at Net Asset Value Certain equity securities carried at fair value, which do not have readily determinable fair values, use net asset value (“NAV”) and are excluded from the fair value hierarchy. These investments are generally not readily redeemable by the investee. See Note 7 – Commitments and Contingencies for additional information regarding unfunded commitments. Trading Securities Trading securities are recorded at fair value. They are classified as Level 1 and utilize fair value measurements based upon quoted market prices. Change in Level 3 Recurring Fair Value Measurements The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities.
Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at September 30, 2020 and December 31, 2019 may include changes in fair value that were attributable to both observable and unobservable inputs. Quantitative Information About Level 3 Fair Value Measurements The following table presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and include only those instrument for which information about the inputs is reasonably available to the Company, such as data from independent third-party valuation service providers and from internal valuation models.
Uncertainty of Fair Value Measurements The significant unobservable inputs used in the determination of the fair value of assets classified as Level 3 have an inherent measurement uncertainty that if changed could result in higher or lower fair value measurements of these assets as of the reporting date. Equity Securities at Fair Value Fair market value for equity securities is derived based on unobservable inputs, such as projected normalized revenues and industry standard multiples of revenue for the equity securities valued using pricing model. Significant increases (decreases) in either of those inputs in isolation would result in a significantly higher (lower) fair value measurement. Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share
Fair Value Measurements on a Nonrecurring Basis Certain assets are not carried at fair value on a recurring basis. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to re-measurement at fair value after initial recognition and the resulting re-measurement is reflected in the Consolidated Financial Statements. The Company did not recognize any re-measurements or impairments of financial instruments at September 30, 2020 or December 31, 2019. Fair Value Information About Financial Instruments Not Measured at Fair Value Certain assets are not carried at fair value on a recurring basis. Accordingly, such investments are only included in the fair value hierarchy disclosure when the investment is subject to re-measurement at fair value after initial recognition and the resulting re-measurement is reflected in the Consolidated Financial Statements. The following table presents the carrying amount and estimated fair values of the Company’s financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
The above estimated fair value amounts have been determined based upon the following valuation methodologies. Considerable judgment was required to interpret market data in order to develop these estimates. Accordingly, the estimates are not necessarily indicative of the amounts which could be realized in a current market exchange. The use of different market assumptions or estimation methodologies may have a material effect on the fair value amounts. The fair values of mortgage loans on real estate are estimated using discounted cash flow analyses and interest rates being offered for similar loans to borrowers with similar credit ratings. The inputs used to measure the fair value of our mortgage loans on real estate are classified as Level 3 within the fair value hierarchy. A portion of the mortgage loans balance consists of discounted mortgage loans. The Company has historically purchased non-performing discounted mortgage loans at a deep discount through an auction process led by the Federal Government. In general, the discounted loans are non-performing and there is a significant amount of uncertainty surrounding the timing and amount of cash flows to be received by the Company. Accordingly, the Company records its investment in the discounted loans at its original purchase price, which Management believes approximates fair value. The inputs used to measure the fair value of our discounted mortgage loans are classified as Level 3 within the fair value hierarchy. Investment real estate is recorded at the lower of the net investment in the real estate or the fair value of the real estate less costs to sell. The determination of fair value assessments are performed on a periodic, non-recurring basis by external appraisal and assessment of property values by Management. The inputs used to measure the fair value of our investment real estate are classified as Level 3 within the fair value hierarchy. The fair values of notes receivable are estimated using discounted cash flow analyses and interest rates being offered for similar loans to borrowers with similar credit ratings. The inputs used to measure the fair value of the notes receivable are classified as Level 3 within the fair value hierarchy. Policy loans are carried at the aggregate unpaid principal balances in the Condensed Consolidated Balance Sheets which approximate fair value, and earn interest at rates ranging from 4% to 8%. Individual policy liabilities in all cases equal or exceed outstanding policy loan balances. The inputs used to measure the fair value of our policy loans are classified as Level 3 within the fair value hierarchy. |
Credit Arrangements |
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Credit Arrangements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Arrangements | Note 5 – Credit Arrangements
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 common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company. During May of 2020, 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 $12,617,556. |
Shareholders' Equity |
9 Months Ended |
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Sep. 30, 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 September of 2020, the Board of Directors of UTG authorized the repurchase of up to an additional $1.5 million of UTG's common stock, for a total repurchase of up to $20 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 nine months ended September 30, 2020, the Company repurchased 107,822 shares through the stock repurchase program for $3,174,230. Through September 30, 2020, UTG has spent $17,947,326 in the acquisition of 1,277,180 shares under this program. During 2020, the Company issued 6,664 shares of stock to management and employees as compensation at a cost of $218,289. These awards are determined at the discretion of the Board of Directors. During the third quarter of 2020, the Company purchased 88,341 shares from Cumberland Lake Shell, Inc at a price of $29 per share for a total cost of $2,561,889. This single transaction represented a majority of the third quarter activity related to the share repurchase program. Earnings Per Share Calculations Earnings per share are based on the weighted average number of common shares outstanding during each period. For the nine months ended September 30, 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 |
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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 September 30, 2020 related to certain investments:
During 2006, the Company committed to invest in RLF III, LLC (“RLF”), which makes land-based investments in undervalued assets. RLF makes capital calls as funds are needed for continued land purchases. During 2012, the Company committed to invest in Sovereign’s Capital, LP Fund I (“Sovereign’s”), which invests in companies in emerging markets. Sovereign’s makes capital calls to investors as funds are needed. During 2015, the Company committed to invest in Sovereign’s Capital, LP Fund II (“Sovereign’s II”), which invests in companies in emerging markets. Sovereign’s II makes capital calls to investors as funds are needed. During 2018, the Company committed to invest in Sovereign’s Capital, LP Fund III (“Sovereign’s III”), which invests in companies in emerging markets. Sovereign’s III makes capital calls to investors as funds are needed. During 2018, the Company committed to fund a mortgage loan for Macritchie Storage II, LP ("Macritchie"). Macritchie makes draw requests on the loan as funds are needed to fund the construction project. During 2020, the Company committed to invest in Garden City Companies, LLC (“Garden City”), which invests primarily in companies in the healthcare, inspection/testing services and maintenance service arena. Garden City makes capital calls to investors as funds are needed. During 2020, the Company committed to invest in Carrizo Springs Music, LLC (“Carrizo”), which invests in music royalties. Carrizo makes capital calls to its investors as funds are needed to acquire the royalty rights. During 2020, the Company committed to fund a collateral loan for Modern Distributors, Inc. (“Modern Distributors”). Modern Distributors makes draw requests on the loan as funds are needed to fund a construction project. |
Other Cash Flow Disclosures |
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Other Cash Flow Disclosures | Note 8 – Other Cash Flow Disclosures On a cash basis, the Company paid the following expenses:
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Concentrations of Credit Risk |
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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 September 30, 2020 and 2019 , 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 20% of total life insurance in force at September 30, 2020 and December 31, 2019. Insurance ceded represented 37% of premium income for the nine months ended September 30, 2020 and 2019. 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 17% and 25% of the Company's total invested assets as of September 30, 2020 and December 31, 2019, respectively. The following table provides an allocation of the oil and gas investments by type.
The Company’s results of operations and financial condition have in the past been, and may in the future be, adversely affected by the degree of certain industry specific concentrations in the Company’s investment portfolio. The Company has significant exposure to investments associated with the oil and gas industry. Events or developments that have a negative effect on the oil and gas industry may adversely affect the valuation of our investments in this specific industry. The Company’s ability to sell its investments associated with the oil and gas industry may be limited. |
Basis of Presentation (Policies) |
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Sep. 30, 2020 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | The accompanying Condensed Consolidated Balance Sheet as of December 31, 2019, 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 and nine months ended September 30, 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 Standards (Policies) |
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Sep. 30, 2020 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | During the nine months ended September 30, 2020, there were no additions to or changes in the critical accounting policies disclosed in the 2019 Form 10-K. |
Investments (Tables) |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available for Sale Securities | Investments in available for sale securities are summarized as follows:
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Debt Securities by Contractual Maturity | The amortized cost and estimated market value of debt securities at September 30, 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.
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Fair Value of Investments with Sustained Gross Unrealized Losses | The fair value of investments with sustained gross unrealized losses at September 30, 2020 and December 31, 2019 are as follows:
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Securities in Continuous Unrealized Loss Position | Additional information regarding investments in an unrealized loss position is as follows:
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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 investments.
The following table presents net gains (losses) and the change in net unrealized gains (losses) on equity securities.
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Trading Revenue Charged to Investment Income from Trading Securities | Trading revenue charged to net investment income from trading securities was:
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Maximum and Minimum Lending Rates for Mortgage Loan | During 2020 and 2019, the maximum and minimum lending rates for mortgage loans were:
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Mortgage Loan Holdings | The following table summarizes the mortgage loan holdings of the Company for the periods ended:
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Investment Real Estate by Type | The following table provides an allocation of the Company's investment real estate by type:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis |
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Reconciliation for Level 3 Assets Measured at Fair Value on a Recurring Basis | Change in Level 3 Recurring Fair Value Measurements The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities.
Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at September 30, 2020 and December 31, 2019 may include changes in fair value that were attributable to both observable and unobservable inputs. |
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Quantitative Information About Level 3 Fair Value Measurements | Quantitative Information About Level 3 Fair Value Measurements The following table presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and include only those instrument for which information about the inputs is reasonably available to the Company, such as data from independent third-party valuation service providers and from internal valuation models.
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Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share | Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share
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Carrying Values and Estimated Fair Values of Financial Instruments not Recorded at Fair Value | The following table presents the carrying amount and estimated fair values of the Company’s financial instruments not measured at fair value and indicates the level in the fair value hierarchy of the estimated fair value measurement based on the observability of the inputs used:
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Credit Arrangements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Arrangements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Arrangements |
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Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 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 September 30, 2020 related to certain investments:
|
Other Cash Flow Disclosures (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Cash Flow Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expenses Paid on a Cash Basis | On a cash basis, the Company paid the following expenses:
|
Concentrations of Credit Risk (Tables) |
9 Months Ended | |||||||||||||||||||||||||
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Sep. 30, 2020 | ||||||||||||||||||||||||||
Concentrations of Credit Risk [Abstract] | ||||||||||||||||||||||||||
Allocation of Oil and Gas Investments by Type | The Company owns a variety of investments associated with the oil and gas industry. These investments represent approximately 17% and 25% of the Company's total invested assets as of September 30, 2020 and December 31, 2019, respectively. The following table provides an allocation of the oil and gas investments by type.
The Company’s results of operations and financial condition have in the past been, and may in the future be, adversely affected by the degree of certain industry specific concentrations in the Company’s investment portfolio. The Company has significant exposure to investments associated with the oil and gas industry. Events or developments that have a negative effect on the oil and gas industry may adversely affect the valuation of our investments in this specific industry. The Company’s ability to sell its investments associated with the oil and gas industry may be limited. |
Basis of Presentation (Details) |
Sep. 30, 2020 |
---|---|
Chief Executive Officer and Chairman of the Board [Member] | |
Ownership Interest [Abstract] | |
Ownership interest percentage | 64.95% |
FSBI [Member] | FSNB [Member] | |
Ownership Interest [Abstract] | |
Ownership in subsidiary bank | 100.00% |
Investments, Available for Sale Securities (Details) - USD ($) |
Sep. 30, 2020 |
Dec. 31, 2019 |
|||
---|---|---|---|---|---|
Fixed maturities [Abstract] | |||||
Original or amortized cost | $ 156,998,638 | $ 159,959,855 | |||
Gross unrealized gains | 19,722,309 | 11,705,047 | |||
Gross unrealized losses | 0 | (35,529) | |||
Estimated fair value | 176,720,947 | 171,629,373 | [1] | ||
Equity securities [Abstract] | |||||
Estimated fair value | 65,588,029 | 78,661,793 | [1] | ||
U.S. Government and Govt. Agencies and Authorities [Member] | |||||
Fixed maturities [Abstract] | |||||
Original or amortized cost | 44,789,865 | 35,761,440 | |||
Gross unrealized gains | 1,418,625 | 402,832 | |||
Gross unrealized losses | 0 | (35,529) | |||
Estimated fair value | 46,208,490 | 36,128,743 | |||
U.S. Special Revenue and Assessments [Member] | |||||
Fixed maturities [Abstract] | |||||
Original or amortized cost | 14,356,937 | 14,371,263 | |||
Gross unrealized gains | 1,487,743 | 832,100 | |||
Gross unrealized losses | 0 | 0 | |||
Estimated fair value | 15,844,680 | 15,203,363 | |||
All Other Corporate Bonds [Member] | |||||
Fixed maturities [Abstract] | |||||
Original or amortized cost | 97,851,836 | 109,827,152 | |||
Gross unrealized gains | 16,815,941 | 10,470,115 | |||
Gross unrealized losses | 0 | 0 | |||
Estimated fair value | $ 114,667,777 | $ 120,297,267 | |||
|
Investments, Debt Securities by Contractual Maturity (Details) - USD ($) |
Sep. 30, 2020 |
Dec. 31, 2019 |
|||
---|---|---|---|---|---|
Amortized cost [Abstract] | |||||
Due in one year or less | $ 26,793,810 | ||||
Due after one year through five years | 46,406,659 | ||||
Due after five years through ten years | 32,831,635 | ||||
Due after ten years | 24,192,862 | ||||
Fixed maturities with no single maturity date | 26,773,672 | ||||
Original or amortized cost | 156,998,638 | $ 159,959,855 | |||
Fair value [Abstract] | |||||
Due in one year or less | 27,113,305 | ||||
Due after one year through five years | 49,706,585 | ||||
Due after five years through ten years | 37,877,774 | ||||
Due after ten years | 28,870,286 | ||||
Fixed maturities with no single maturity date | 33,152,997 | ||||
Estimated fair value | $ 176,720,947 | $ 171,629,373 | [1] | ||
|
Investments, Securities in Continuous Unrealized Loss Position (Details) - USD ($) |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
All Other Corporate Bonds [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position [Abstract] | ||
Less than 12 months, fair value | $ 0 | |
12 months or longer, fair value | 0 | |
Total fair value | 0 | |
Less than 12 months, unrealized losses | 0 | |
12 months or longer, unrealized losses | 0 | |
Total unrealized losses | 0 | |
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 | 0 | 6,059,380 |
12 months or longer, fair value | 0 | 0 |
Total fair value | 0 | 6,059,380 |
Less than 12 months, unrealized losses | 0 | (35,529) |
12 months or longer, unrealized losses | 0 | 0 |
Total unrealized losses | $ 0 | $ (35,529) |
Investments, Number of Securities in Unrealized Loss Position (Details) - Security |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|
Fixed Maturities [Abstract] | ||
Less than 12 months, number of securities | 0 | 3 |
12 months or longer, number of securities | 0 | 0 |
Total number of securities | 0 | 3 |
Investments, Net Investment Gains (Losses) and Change in Net Unrealized Gains on Available-for-sale Investments (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Realized gains on available-for-sale investments [Abstract] | ||||
Total realized gains | $ 1,754,315 | $ 3,758,333 | $ 10,773,147 | $ 10,417,786 |
Realized losses on available-for-sale investments [Abstract] | ||||
Other-than-temporary impairments | 0 | 0 | 0 | 0 |
Total realized losses | 0 | (30,795) | (64,992) | (274,772) |
Net realized investment gains (losses) | 1,754,315 | 3,727,538 | 10,708,155 | 10,143,014 |
Change in fair value of equity securities [Abstract] | ||||
Net gains (losses) recognized during the period on equity securities | (1,393,343) | (308,124) | (4,515,889) | 17,342,568 |
Less: Net gains (losses) recognized during the period on equity securities sold during the period | 884,559 | 3,738,333 | 9,500,176 | 6,504,246 |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | (2,277,902) | (4,046,457) | (14,016,065) | 10,838,322 |
Change in fair value of equity securities | (2,277,902) | (4,046,457) | (14,016,065) | 10,838,322 |
Total net investment gains (losses) | (523,587) | (318,919) | (3,307,910) | 20,981,336 |
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 | 169,058 | 3,184,769 | 8,237,909 | 12,044,690 |
Fixed Maturities [Member] | ||||
Realized gains on available-for-sale investments [Abstract] | ||||
Total realized gains | 0 | 0 | 403,215 | 116,690 |
Realized losses on available-for-sale investments [Abstract] | ||||
Total realized losses | 0 | (30,795) | (64,992) | (142,254) |
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 | 169,058 | 3,184,769 | 8,237,909 | 12,044,690 |
Equity Securities [Member] | ||||
Realized gains on available-for-sale investments [Abstract] | ||||
Total realized gains | 884,559 | 3,738,333 | 9,500,176 | 6,504,246 |
Realized losses on available-for-sale investments [Abstract] | ||||
Total realized losses | 0 | 0 | 0 | 0 |
Real Estate [Member] | ||||
Realized gains on available-for-sale investments [Abstract] | ||||
Total realized gains | 869,756 | 20,000 | 869,756 | 3,796,850 |
Realized losses on available-for-sale investments [Abstract] | ||||
Total 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] | ||||
Total realized losses | $ 0 | $ 0 | $ 0 | $ (132,518) |
Investments, Trading Securities (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
|
Trading Securities [Abstract] | |||||
Fair value, derivatives included in trading security assets | $ 0 | $ 0 | $ 0 | ||
Fair value, derivative included in trading security liabilities | (4,003) | (4,003) | $ 0 | ||
Trading Revenue Charged to Net Investment Income from Trading Securities [Abstract] | |||||
Net unrealized gains (losses) | 1,581 | $ 0 | 1,581 | $ 0 | |
Net realized gains (losses) | 0 | 0 | 0 | 0 | |
Net unrealized and realized gains (losses) | $ 1,581 | $ 0 | $ 1,581 | $ 0 |
Investments, Mortgage Loans, Investment Real Estate, Notes Receivable, and Short-Term Investments (Details) - USD ($) |
9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
||||
Cost Method Investments [Abstract] | ||||||
Equity Securities without Readily Determinable Fair Value, Amount | $ 14,417,247 | $ 10,919,247 | [1] | |||
Mortgage Loans [Abstract] | ||||||
Mortgage loans acquired, including discounted mortgage loans | $ 12,692,488 | 4,216,644 | ||||
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 | 18,319,413 | 8,223,286 | ||||
Overdue interest over 90 days | 2,072,640 | 0 | ||||
Total mortgage loans | 20,392,053 | 8,223,286 | [1] | |||
Investment Real Estate [Abstract] | ||||||
Impairment on investment real estate | 0 | |||||
Total investment real estate | $ 36,421,627 | $ 44,344,236 | [1] | |||
Investments in oil/gas royalties as a % of total investment real estate portfolio | 52.00% | 44.00% | ||||
Investment real estate acquired | $ 0 | $ 1,729,000 | ||||
Notes Receivable [Abstract] | ||||||
Valuation allowance | 0 | $ 0 | ||||
Notes receivable acquired | 3,500,000 | 8,532,796 | ||||
Short-Term Investments [Abstract] | ||||||
Short-term investments acquired | 7,890,228 | $ 0 | ||||
Raw Land [Member] | ||||||
Investment Real Estate [Abstract] | ||||||
Total investment real estate | 9,915,856 | 16,089,540 | ||||
Commercial [Member] | ||||||
Investment Real Estate [Abstract] | ||||||
Total investment real estate | 5,414,238 | 4,908,028 | ||||
Residential [Member] | ||||||
Investment Real Estate [Abstract] | ||||||
Total investment real estate | 2,235,678 | 2,251,772 | ||||
Land, Minerals and Royalty Interests [Member] | ||||||
Investment Real Estate [Abstract] | ||||||
Total investment real estate | $ 18,855,855 | $ 21,094,896 | ||||
Minimum [Member] | ||||||
Investment Real Estate [Abstract] | ||||||
Estimated useful life | 3 years | |||||
Maximum [Member] | ||||||
Investment Real Estate [Abstract] | ||||||
Estimated useful life | 30 years | |||||
Farm Loans [Member] | Minimum [Member] | ||||||
Mortgage Loans [Abstract] | ||||||
Interest rate on mortgage loans | 5.00% | 5.00% | ||||
Farm Loans [Member] | Maximum [Member] | ||||||
Mortgage Loans [Abstract] | ||||||
Interest rate on mortgage loans | 5.00% | 5.00% | ||||
Commercial Loans [Member] | Minimum [Member] | ||||||
Mortgage Loans [Abstract] | ||||||
Interest rate on mortgage loans | 4.24% | 4.82% | ||||
Commercial Loans [Member] | Maximum [Member] | ||||||
Mortgage Loans [Abstract] | ||||||
Interest rate on mortgage loans | 7.50% | 7.50% | ||||
Residential Loans [Member] | Minimum [Member] | ||||||
Mortgage Loans [Abstract] | ||||||
Interest rate on mortgage loans | 5.50% | 5.50% | ||||
Residential Loans [Member] | Maximum [Member] | ||||||
Mortgage Loans [Abstract] | ||||||
Interest rate on mortgage loans | 5.50% | 5.50% | ||||
|
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) |
Sep. 30, 2020 |
Dec. 31, 2019 |
Sep. 30, 2019 |
|||
---|---|---|---|---|---|---|
Assets [Abstract] | ||||||
Fixed maturities available for sale | $ 176,720,947 | $ 171,629,373 | [1] | |||
Equity securities | 65,588,029 | 78,661,793 | [1] | |||
Liabilities [Abstract] | ||||||
Trading Securities | (4,003) | 0 | ||||
U.S. Government and Government Agencies and Authorities [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 46,208,490 | 36,128,743 | ||||
Net Asset Value [Member] | ||||||
Assets [Abstract] | ||||||
Equity securities | 22,814,521 | $ 24,239,952 | ||||
Measured on a Recurring Basis [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 176,720,947 | 171,629,373 | ||||
Equity securities | 65,588,028 | 78,661,793 | ||||
Total financial assets | 242,308,975 | 250,291,166 | ||||
Liabilities [Abstract] | ||||||
Trading Securities | (4,003) | |||||
Measured on a Recurring Basis [Member] | U.S. Government and Government Agencies and Authorities [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 46,208,490 | 36,128,743 | ||||
Measured on a Recurring Basis [Member] | U.S. Special Revenue and Assessments [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 15,844,680 | 15,203,363 | ||||
Measured on a Recurring Basis [Member] | Corporate Securities [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 114,667,777 | 120,297,267 | ||||
Measured on a Recurring Basis [Member] | Common Stock [Member] | ||||||
Assets [Abstract] | ||||||
Equity securities | 65,564,962 | 78,661,793 | ||||
Measured on a Recurring Basis [Member] | Preferred Stock [Member] | ||||||
Assets [Abstract] | ||||||
Equity securities | 23,066 | |||||
Measured on a Recurring Basis [Member] | Net Asset Value [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 0 | 0 | ||||
Equity securities | 22,814,521 | 24,239,952 | ||||
Total financial assets | 22,814,521 | 24,239,952 | ||||
Liabilities [Abstract] | ||||||
Trading Securities | 0 | |||||
Measured on a Recurring Basis [Member] | Net Asset Value [Member] | U.S. Government and Government Agencies and Authorities [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 0 | 0 | ||||
Measured on a Recurring Basis [Member] | Net Asset Value [Member] | U.S. Special Revenue and Assessments [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 0 | 0 | ||||
Measured on a Recurring Basis [Member] | Net Asset Value [Member] | Corporate Securities [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 0 | 0 | ||||
Measured on a Recurring Basis [Member] | Net Asset Value [Member] | Common Stock [Member] | ||||||
Assets [Abstract] | ||||||
Equity securities | 22,814,521 | 24,239,952 | ||||
Measured on a Recurring Basis [Member] | Net Asset Value [Member] | Preferred Stock [Member] | ||||||
Assets [Abstract] | ||||||
Equity securities | 0 | |||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 46,208,490 | 36,128,743 | ||||
Equity securities | 22,790,516 | 29,888,281 | ||||
Total financial assets | 68,999,006 | 66,017,024 | ||||
Liabilities [Abstract] | ||||||
Trading Securities | (4,003) | |||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | U.S. Government and Government Agencies and Authorities [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 46,208,490 | 36,128,743 | ||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | U.S. Special Revenue and Assessments [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 0 | 0 | ||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Corporate Securities [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 0 | 0 | ||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Common Stock [Member] | ||||||
Assets [Abstract] | ||||||
Equity securities | 22,790,516 | 29,888,281 | ||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Preferred Stock [Member] | ||||||
Assets [Abstract] | ||||||
Equity securities | 0 | |||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 130,512,457 | 135,500,630 | ||||
Equity securities | 16,931,116 | 14,258,750 | ||||
Total financial assets | 147,443,573 | 149,759,380 | ||||
Liabilities [Abstract] | ||||||
Trading Securities | 0 | |||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | U.S. Government and Government Agencies and Authorities [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 0 | 0 | ||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | U.S. Special Revenue and Assessments [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 15,844,680 | 15,203,363 | ||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Corporate Securities [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 114,667,777 | 120,297,267 | ||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Common Stock [Member] | ||||||
Assets [Abstract] | ||||||
Equity securities | 16,908,050 | 14,258,750 | ||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Preferred Stock [Member] | ||||||
Assets [Abstract] | ||||||
Equity securities | 23,066 | |||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 0 | 0 | ||||
Equity securities | 3,051,875 | 10,274,810 | ||||
Total financial assets | 3,051,875 | 10,274,810 | ||||
Liabilities [Abstract] | ||||||
Trading Securities | 0 | |||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | U.S. Government and Government Agencies and Authorities [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 0 | 0 | ||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | U.S. Special Revenue and Assessments [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 0 | 0 | ||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Corporate Securities [Member] | ||||||
Assets [Abstract] | ||||||
Fixed maturities available for sale | 0 | 0 | ||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Common Stock [Member] | ||||||
Assets [Abstract] | ||||||
Equity securities | 3,051,875 | $ 10,274,810 | ||||
Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Preferred Stock [Member] | ||||||
Assets [Abstract] | ||||||
Equity securities | $ 0 | |||||
|
Fair Value Measurements, Reconciliation for Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) |
9 Months Ended |
---|---|
Sep. 30, 2020
USD ($)
| |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning Balance | $ 34,514,762 |
Total unrealized gain or (losses) [Abstract] | |
Realized gains (losses) | 6,284,302 |
Unrealized gains (losses) | (6,659,884) |
Purchases | 3,213,257 |
Sales | (11,486,041) |
Ending Balance | 25,866,396 |
Beginning Balance | 34,514,762 |
Total unrealized gain or (losses) [Abstract] | |
Ending Balance | 25,866,396 |
Fixed Maturities, Available for Sale [Member] | |
Total unrealized gain or (losses) [Abstract] | |
Beginning Balance | 0 |
Total unrealized gain or (losses) [Abstract] | |
Realized gains (losses) | 0 |
Unrealized gains (losses) | 0 |
Purchases | 0 |
Sales | 0 |
Ending Balance | 0 |
Equity Securities [Member] | |
Total unrealized gain or (losses) [Abstract] | |
Beginning Balance | 10,274,810 |
Total unrealized gain or (losses) [Abstract] | |
Realized gains (losses) | 6,284,302 |
Unrealized gains (losses) | (3,850,560) |
Purchases | 1,797,500 |
Sales | (11,454,177) |
Ending Balance | 3,051,875 |
Equity Securities at Net Asset Value [Member] | |
Total unrealized gain or (losses) [Abstract] | |
Beginning Balance | 24,239,952 |
Total unrealized gain or (losses) [Abstract] | |
Realized gains (losses) | 0 |
Unrealized gains (losses) | (2,809,324) |
Purchases | 1,415,757 |
Sales | (31,864) |
Ending Balance | $ 22,814,521 |
Fair Value Measurements, Quantitative Information About Level 3 and Investments in Certain Entities Carried at Fair Value (Details) - USD ($) |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Dec. 31, 2019 |
||||
Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract] | ||||||
Financial assets, fair value | $ 25,866,396 | $ 34,514,762 | ||||
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract] | ||||||
Equity securities | 65,588,029 | 78,661,793 | [1] | |||
Unfunded commitments | 2,295,675 | $ 163,750 | ||||
Growth Equity Redeemable [Member] | ||||||
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract] | ||||||
Unfunded commitments | $ 0 | $ 0 | ||||
Redemption frequency | Quarterly | |||||
Redemption notice period | 45 days | 45 days | ||||
Growth Equity Non-Redeemable [Member] | ||||||
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract] | ||||||
Unfunded commitments | $ 2,295,675 | $ 163,750 | ||||
Net Asset Value [Member] | ||||||
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract] | ||||||
Equity securities | 22,814,521 | 24,239,952 | ||||
Net Asset Value [Member] | Growth Equity Redeemable [Member] | ||||||
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract] | ||||||
Equity securities | 18,482,622 | 21,270,734 | ||||
Net Asset Value [Member] | Growth Equity Non-Redeemable [Member] | ||||||
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract] | ||||||
Equity securities | 4,331,899 | $ 2,969,218 | ||||
Net Asset Value [Member] | Common Stock [Member] | ||||||
Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract] | ||||||
Financial assets, fair value | 22,814,521 | 24,239,952 | ||||
Pricing Model [Member] | Common Stock [Member] | ||||||
Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract] | ||||||
Financial assets, fair value | $ 3,051,875 | $ 10,274,810 | ||||
|
Fair Value Measurements, Carrying Values and Estimated Fair Values of Financial Instruments not Recorded at Fair Value (Details) - USD ($) |
Sep. 30, 2020 |
Dec. 31, 2019 |
|||
---|---|---|---|---|---|
Carrying Amount [Member] | |||||
Assets [Abstract] | |||||
Mortgage loans on real estate | $ 20,392,053 | $ 8,223,286 | |||
Investment real estate | 36,421,627 | 44,344,236 | |||
Notes receivable | 19,298,398 | 19,487,458 | |||
Policy loans | 8,727,991 | 8,803,876 | |||
Carrying Amount [Member] | Common Stock [Member] | |||||
Assets [Abstract] | |||||
Equity securities, at cost | 5,860,000 | 7,875,145 | |||
Carrying Amount [Member] | Preferred Stock [Member] | |||||
Assets [Abstract] | |||||
Equity securities, at cost | 8,557,247 | 3,044,102 | |||
Estimated Fair Value [Member] | |||||
Assets [Abstract] | |||||
Mortgage loans on real estate | 20,614,085 | 7,531,094 | |||
Investment real estate | 81,351,608 | 88,483,424 | |||
Notes receivable | 22,380,946 | 19,332,472 | |||
Policy loans | 8,727,991 | 8,803,876 | |||
Estimated Fair Value [Member] | Common Stock [Member] | |||||
Assets [Abstract] | |||||
Equity securities, at cost | 5,860,000 | 7,875,145 | |||
Estimated Fair Value [Member] | Preferred Stock [Member] | |||||
Assets [Abstract] | |||||
Equity securities, at cost | 8,557,247 | 3,044,102 | |||
Equity securities, at cost | $ 14,417,247 | 10,919,247 | [1] | ||
Minimum [Member] | |||||
Liabilities [Abstract] | |||||
Policy loan interest rate | 4.00% | ||||
Maximum [Member] | |||||
Liabilities [Abstract] | |||||
Policy loan interest rate | 8.00% | ||||
Level 1 [Member] | |||||
Assets [Abstract] | |||||
Mortgage loans on real estate | $ 0 | 0 | |||
Investment real estate | 0 | 0 | |||
Notes receivable | 0 | 0 | |||
Policy loans | 0 | 0 | |||
Level 2 [Member] | |||||
Assets [Abstract] | |||||
Mortgage loans on real estate | 0 | 0 | |||
Investment real estate | 0 | 0 | |||
Notes receivable | 0 | 0 | |||
Policy loans | 0 | 0 | |||
Level 3 [Member] | |||||
Assets [Abstract] | |||||
Mortgage loans on real estate | 20,614,085 | 7,531,094 | |||
Investment real estate | 81,351,608 | 88,483,424 | |||
Notes receivable | 22,380,946 | 19,332,472 | |||
Policy loans | 8,727,991 | 8,803,876 | |||
Common Stock [Member] | Level 1 [Member] | |||||
Assets [Abstract] | |||||
Equity securities, at cost | 0 | 0 | |||
Common Stock [Member] | Level 2 [Member] | |||||
Assets [Abstract] | |||||
Equity securities, at cost | 0 | 0 | |||
Common Stock [Member] | Level 3 [Member] | |||||
Assets [Abstract] | |||||
Equity securities, at cost | 5,860,000 | 7,875,145 | |||
Preferred Stock [Member] | Level 1 [Member] | |||||
Assets [Abstract] | |||||
Equity securities, at cost | 0 | 0 | |||
Preferred Stock [Member] | Level 2 [Member] | |||||
Assets [Abstract] | |||||
Equity securities, at cost | 0 | 0 | |||
Preferred Stock [Member] | Level 3 [Member] | |||||
Assets [Abstract] | |||||
Equity securities, at cost | $ 8,557,247 | $ 3,044,102 | |||
|
Credit Arrangements (Details) - USD ($) |
9 Months Ended | |
---|---|---|
Sep. 30, 2020 |
Dec. 31, 2019 |
|
Line of Credit Facility [Abstract] | ||
Pledged Bonds | $ 12,617,556 | |
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. 02, 2015 | |
Maturity Date | May 07, 2021 | |
Revolving Credit Limit | $ 10,000,000 | |
Outstanding Balance | 0 | $ 0 |
Borrowings | 0 | |
Repayments | $ 0 |
Shareholders' Equity (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | |
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Stock Repurchase Program [Abstract] | ||||
Stock repurchase program, additional amount authorized | $ 1,500,000 | |||
Stock repurchase program authorized amount | 20,000,000 | $ 20,000,000 | $ 20,000,000 | |
Stock repurchased during period (in shares) | 107,822 | |||
Amount paid to repurchase shares during the year | $ 3,174,230 | $ 849,265 | ||
Amount of common stock repurchased | $ 17,947,326 | $ 17,947,326 | $ 17,947,326 | |
Number of common stock acquired (in shares) | 1,277,180 | 1,277,180 | 1,277,180 | |
Number of shares issued (in shares) | 6,664 | |||
Cost of shares issued | $ 218,289 | |||
Earnings Per Share Calculations [Abstract] | ||||
Dilutive instruments outstanding (in shares) | 0 | 0 | ||
Cumberland Lake Shell, Inc [Member] | ||||
Stock Repurchase Program [Abstract] | ||||
Stock repurchased during period (in shares) | 88,341 | |||
Amount paid to repurchase shares during the year | $ 2,561,889 | |||
Stock purchase price (in dollars per share) | $ 29 |
Commitments and Contingencies (Details) |
Sep. 30, 2020
USD ($)
|
---|---|
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 |
Macritchie Storage II, LP [Member] | |
Total Funding Commitments and Unfunded Commitment [Abstract] | |
Total Funding Commitment | 7,000,750 |
Unfunded Commitment | 1,840,485 |
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 | 1,115,000 |
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 (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2020 |
Sep. 30, 2019 |
Sep. 30, 2020 |
Sep. 30, 2019 |
|
Other Cash Flow Disclosures [Abstract] | ||||
Interest | $ 0 | $ 0 | $ 0 | $ 0 |
Federal income tax | $ 419,000 | $ 0 | $ 2,529,000 | $ 1,106,000 |
Concentrations of Credit Risk (Details) |
9 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2020
USD ($)
State
|
Sep. 30, 2019 |
Dec. 31, 2019
USD ($)
|
||||
Concentrations [Abstract] | ||||||
Number of states by which entity primarily serves | State | 4 | |||||
Maximum retention limits per life | $ 125,000 | |||||
Allocation of Oil and Gas Investments [Abstract] | ||||||
Investment | 349,540,202 | $ 352,511,442 | [1] | |||
Oil and Gas Industry [Member] | ||||||
Allocation of Oil and Gas Investments [Abstract] | ||||||
Investment | 58,505,695 | 86,819,475 | ||||
Oil and Gas Industry [Member] | Land, Mineral, and Royalty Interests [Member] | ||||||
Allocation of Oil and Gas Investments [Abstract] | ||||||
Investment | 57,246,945 | 80,182,100 | ||||
Oil and Gas Industry [Member] | Transportation [Member] | ||||||
Allocation of Oil and Gas Investments [Abstract] | ||||||
Investment | 0 | 3,812,565 | ||||
Oil and Gas Industry [Member] | Exploration [Member] | ||||||
Allocation of Oil and Gas Investments [Abstract] | ||||||
Investment | $ 1,258,750 | $ 2,824,810 | ||||
Reinsurer Concentration Risk [Member] | Life Insurance Ceded [Member] | ||||||
Concentrations [Abstract] | ||||||
Percentage of gross insurance in force | 20.00% | 20.00% | ||||
Percentage of premium income | 37.00% | 37.00% | ||||
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 | 17.00% | 25.00% | ||||
|
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