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 |
(Exact name of registrant as specified in its charter) |
||
(State or other jurisdiction of |
(I.R.S. Employer |
|
incorporation or organization) |
Identification No.) |
|
(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 □ |
Smaller reporting company |
|
Emerging growth company |
Part I. Financial Information |
4 |
Item 1. Financial Statements |
4 |
Condensed Consolidated Balance Sheets |
4 |
Condensed Consolidated Statements of Operations |
5 |
Condensed Consolidated Statements of Comprehensive Income (Loss) |
6 |
Condensed Consolidated Statements of Shareholders’ Equity |
7 |
Condensed Consolidated Statements of Cash Flows |
9 |
Notes to Condensed Consolidated Financial Statements |
10 |
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations |
25 |
Item 4. Controls and Procedures |
33 |
Part II. Other Information |
33 |
Item 1. Legal Proceedings |
33 |
Item 1A. Risk Factors |
33 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
33 |
Item 3. Defaults Upon Senior Securities |
33 |
Item 4. Mine Safety Disclosures |
33 |
Item 5. Other Information |
33 |
Item 6. Exhibits |
33 |
Signatures |
34 |
June 30, 2024 |
December 31, 2023* |
|||||||
ASSETS |
||||||||
Investments: |
||||||||
Investments, available for sale: |
||||||||
Fixed maturities, at fair value (amortized cost $ |
$ |
$ |
||||||
Held to maturity redeemable preferred stock, at amortized cost |
||||||||
Equity securities, at fair value (cost $ |
||||||||
Equity securities, at cost |
||||||||
Mortgage loans on real estate, at amortized cost (net of credit loss reserve of $ |
||||||||
Notes receivable (net of credit loss reserve of $ |
||||||||
Investment real estate, net |
||||||||
Policy loans |
||||||||
Short-term investments |
||||||||
Total investments |
||||||||
Cash and cash equivalents |
||||||||
Accrued investment income |
||||||||
Reinsurance receivables: |
||||||||
Future policy benefits |
||||||||
Policy claims and other benefits |
||||||||
Cost of insurance acquired |
||||||||
Income tax receivable |
||||||||
Other assets |
||||||||
Total assets |
$ |
$ |
||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Liabilities: |
||||||||
Policy liabilities and accruals: |
||||||||
Future policyholder benefits |
$ |
$ |
||||||
Policy claims and benefits payable |
||||||||
Other policyholder funds |
||||||||
Dividend and endowment accumulations |
||||||||
Deferred income taxes |
||||||||
Notes payable |
||||||||
Other liabilities |
||||||||
Total liabilities |
||||||||
Shareholders' equity: |
||||||||
Common stock - |
||||||||
Additional paid-in capital |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive loss |
( |
) |
( |
) |
||||
Total UTG shareholders' equity |
||||||||
Noncontrolling interests |
||||||||
Total shareholders' equity |
||||||||
Total liabilities and shareholders' equity |
$ |
$ |
||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Revenue: |
||||||||||||||||
Premiums and policy fees |
$ |
$ |
$ |
$ |
||||||||||||
Ceded reinsurance premiums and policy fees |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net investment income |
||||||||||||||||
Other income |
||||||||||||||||
Revenue before net investment gains (losses) |
||||||||||||||||
Net investment gains (losses): |
||||||||||||||||
Other realized investment gains, net |
||||||||||||||||
Change in fair value of equity securities |
( |
) |
||||||||||||||
Total net investment gains (losses) |
( |
) |
||||||||||||||
Total revenue |
||||||||||||||||
Benefits and other expenses: |
||||||||||||||||
Benefits, claims and settlement expenses: |
||||||||||||||||
Life |
||||||||||||||||
Ceded reinsurance benefits and claims |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Annuity |
||||||||||||||||
Dividends to policyholders |
||||||||||||||||
Commissions and amortization of deferred policy acquisition costs |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Amortization of cost of insurance acquired |
||||||||||||||||
Operating expenses |
||||||||||||||||
Interest expense |
||||||||||||||||
Total benefits and other expenses |
||||||||||||||||
Income (loss) before income taxes |
( |
) |
||||||||||||||
Income tax expense (benefit) |
( |
) |
||||||||||||||
Net income (loss) |
( |
) |
||||||||||||||
Net income attributable to noncontrolling interests |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net income (loss) attributable to common shareholders |
$ |
$ |
$ |
$ |
( |
) |
||||||||||
Amounts attributable to common shareholders |
||||||||||||||||
Basic income (loss) per share |
$ |
$ |
$ |
4.93 |
$ |
(2.15 |
) |
|||||||||
Diluted income (loss) per share |
$ |
$ |
$ |
4.93 |
$ |
(2.15 |
) |
|||||||||
Basic weighted average shares outstanding |
||||||||||||||||
Diluted weighted average shares outstanding |
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
June 30, |
June 30, |
|||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Net income (loss) |
$ |
$ |
$ |
$ |
( |
) |
||||||||||
Other comprehensive income (loss): |
||||||||||||||||
Unrealized holding gains (losses) arising during period, pre-tax |
( |
) |
( |
) |
( |
) |
||||||||||
Tax (expense) benefit on unrealized holding gains (losses) arising during the period |
( |
) |
||||||||||||||
Unrealized holding gains (losses) arising during period, net of tax |
( |
) |
( |
) |
( |
) |
||||||||||
Less reclassification adjustment for gains included in net income (loss) |
( |
) |
( |
) |
||||||||||||
Tax expense for gains included in net income (loss) |
||||||||||||||||
Reclassification adjustment for gains included in net income (loss), net of tax |
( |
) |
( |
) |
||||||||||||
Subtotal: Other comprehensive income (loss), net of tax |
( |
) |
( |
) |
( |
) |
||||||||||
Comprehensive income (loss) |
( |
) |
( |
) |
||||||||||||
Less comprehensive income attributable to noncontrolling interests |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Comprehensive income (loss) attributable to UTG, Inc. |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
||||||||
Three Months Ended June 30, 2024 |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Noncontrolling Interest |
Total Shareholders’ Equity |
||||||||||||||||||
Balance at April 1, 2024 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Treasury shares acquired |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Net income attributable to common shareholders |
||||||||||||||||||||||||
Unrealized holding loss on securities net of noncontrolling interest and reclassification adjustment and taxes |
( |
) |
( |
) |
||||||||||||||||||||
Gain attributable to noncontrolling interest |
||||||||||||||||||||||||
Balance at June 30, 2024 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Six Months Ended June 30, 2024 |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Noncontrolling Interest |
Total Shareholders’ Equity |
||||||||||||||||||
Balance at January 1, 2024 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Common stock issued during year |
||||||||||||||||||||||||
Treasury shares acquired |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Net income attributable to common shareholders |
||||||||||||||||||||||||
Unrealized holding loss on securities net of noncontrolling interest and reclassification adjustment and taxes |
( |
) |
( |
) |
||||||||||||||||||||
Gain attributable to noncontrolling interest |
||||||||||||||||||||||||
Balance at June 30, 2024 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Three Months Ended June 30, 2023 |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Noncontrolling Interest |
Total Shareholders’ Equity |
||||||||||||||||||
Balance at April 1, 2023 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Treasury shares acquired |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Net income attributable to common shareholders |
||||||||||||||||||||||||
Unrealized holding loss on securities net of noncontrolling interest and reclassification adjustment and taxes |
( |
) |
( |
) |
||||||||||||||||||||
Gain attributable to noncontrolling interest |
||||||||||||||||||||||||
Balance at June 30, 2023 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Six Months Ended June 30, 2023 |
Common Stock |
Additional Paid-In Capital |
Retained Earnings |
Accumulated Other Comprehensive Income (Loss) |
Noncontrolling Interest |
Total Shareholders’ Equity |
||||||||||||||||||
Balance at January 1, 2023 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Adoption of new accounting standard |
( |
) |
( |
) |
||||||||||||||||||||
( |
) |
|||||||||||||||||||||||
Common stock issued during year |
||||||||||||||||||||||||
Treasury shares acquired |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Net loss attributable to common shareholders |
( |
) |
( |
) |
||||||||||||||||||||
Unrealized holding income on securities net of noncontrolling interest and reclassification adjustment and taxes |
||||||||||||||||||||||||
Gain attributable to noncontrolling interest |
||||||||||||||||||||||||
Balance at June 30, 2023 |
$ |
$ |
$ |
$ |
( |
) |
$ |
$ |
||||||||||||||||
Six Months Ended |
||||||||
June 30, |
June 30, |
|||||||
2024 |
2023 |
|||||||
Cash flows from operating activities: |
||||||||
Net income (loss) |
$ |
$ |
( |
) |
||||
Adjustments to reconcile net income (loss) to net cash used in operating activities: |
||||||||
Accretion of investments |
( |
) |
( |
) |
||||
Realized investment gains, net |
( |
) |
( |
) |
||||
Change in fair value of equity securities |
( |
) |
||||||
Amortization of cost of insurance acquired |
||||||||
Provision for deferred income taxes |
( |
) |
||||||
Depreciation and depletion |
||||||||
Stock-based compensation |
||||||||
Charges for mortality and administration of universal life and annuity products |
( |
) |
( |
) |
||||
Interest credited to account balances |
||||||||
Change in accrued investment income |
( |
) |
||||||
Change in reinsurance receivables |
||||||||
Change in policy liabilities and accruals |
( |
) |
( |
) |
||||
Change in income taxes receivable (payable) |
( |
) |
||||||
Change in other assets and liabilities, net |
( |
) |
||||||
Net cash used in operating activities |
( |
) |
( |
) |
||||
Cash flows from investing activities: |
||||||||
Proceeds from investments sold and matured: |
||||||||
Fixed maturities available for sale |
||||||||
Equity securities |
||||||||
Trading securities |
||||||||
Mortgage loans |
||||||||
Notes receivable |
||||||||
Real estate |
||||||||
Policy loans |
||||||||
Short-term investments |
||||||||
Total proceeds from investments sold and matured |
||||||||
Cost of investments acquired: |
||||||||
Equity securities |
( |
) |
( |
) |
||||
Trading securities |
( |
) |
||||||
Mortgage loans |
( |
) |
( |
) |
||||
Notes receivable |
( |
) |
( |
) |
||||
Real estate |
( |
) |
( |
) |
||||
Policy loans |
( |
) |
( |
) |
||||
Short-term investments |
( |
) |
( |
) |
||||
Total cost of investments acquired |
( |
) |
( |
) |
||||
Net cash provided by investing activities |
||||||||
Cash flows from financing activities: |
||||||||
Policyholder contract deposits |
||||||||
Policyholder contract withdrawals |
( |
) |
( |
) |
||||
Payments of principal on notes payable/line of credit |
( |
) |
( |
) |
||||
Purchase of treasury stock |
( |
) |
( |
) |
||||
Net cash used in financing activities |
( |
) |
( |
) |
||||
Net decrease in cash and cash equivalents |
( |
) |
( |
) |
||||
Cash and cash equivalents at beginning of period |
||||||||
Cash and cash equivalents at end of period |
$ |
$ |
||||||
June 30, 2024 |
Original or Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||
U.S. Government and govt. agencies and authorities |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
U.S. special revenue and assessments |
( |
) |
||||||||||||||
All other corporate bonds |
( |
) |
||||||||||||||
Total fixed maturities, available for sale |
( |
) |
||||||||||||||
Redeemable preferred stock |
||||||||||||||||
Total |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
December 31, 2023 |
Original or Amortized Cost |
Gross Unrealized Gains |
Gross Unrealized Losses |
Fair Value |
||||||||||||
U.S. Government and govt. agencies and authorities |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
U.S. special revenue and assessments |
( |
) |
||||||||||||||
All other corporate bonds |
( |
) |
||||||||||||||
Total fixed maturities, available for sale |
( |
) |
||||||||||||||
Redeemable preferred stock |
||||||||||||||||
Total |
$ |
$ |
$ |
( |
) |
$ |
||||||||||
Fixed Maturity Securities June 30, 2024 |
Amortized Cost |
Fair Value |
||||||
Due in one year or less |
$ |
$ |
||||||
Due after one year through five years |
||||||||
Due after five years through ten years |
||||||||
Due after ten years |
||||||||
Fixed maturities with no single maturity date |
||||||||
Total |
$ |
$ |
||||||
June 30, 2024 |
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 |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
|||||||||||||||
U.S. Special Revenue and Assessments |
( |
) |
( |
) |
||||||||||||||||||||
All other corporate bonds |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Total fixed maturities |
$ |
( |
) |
( |
) |
$ |
( |
) |
||||||||||||||||
December 31, 2023 |
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 |
$ |
( |
) |
( |
) |
$ |
( |
) |
||||||||||||||||
U.S. special revenue and assessments |
( |
) |
( |
) |
||||||||||||||||||||
All other corporate bonds |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
Total fixed maturities |
$ |
( |
) |
( |
) |
$ |
( |
) |
||||||||||||||||
Less than 12 months |
12 months or longer |
Total |
||||||||||
As of June 30, 2024 |
||||||||||||
Fixed maturities |
||||||||||||
As of December 31, 2023 |
||||||||||||
Fixed maturities |
||||||||||||
June 30, 2024 |
December 31, 2023 |
|||||||
Unrealized appreciation (depreciation) on available-for-sale securities |
$ |
( |
) |
$ |
( |
) |
||
Deferred income taxes |
||||||||
Net unrealized appreciation (depreciation) on available-for-sale securities |
$ |
( |
) |
$ |
( |
) |
||
2024 |
2023 |
|||||||||||||||
Maximum rate |
Minimum rate |
Maximum rate |
Minimum rate |
|||||||||||||
Farm Loans |
% |
% |
% |
% |
||||||||||||
Commercial Loans |
% |
% |
% |
% |
||||||||||||
Residential Loans |
% |
% |
% |
% |
||||||||||||
June 30, 2024 |
December 31, 2023 |
||||
In good standing |
$ |
$ |
|||
Total mortgage loans |
$ |
$ |
|||
June 30, 2024 |
December 31, 2023 |
|||||||
Farm |
$ |
$ |
||||||
Commercial |
||||||||
Residential |
||||||||
Total mortgage loans |
||||||||
Less allowance for credit losses |
( |
) |
( |
) |
||||
Total mortgage loans, net |
$ |
$ |
||||||
June 30, 2024 |
December 31, 2023 |
|||||||
Notes receivable |
$ |
$ |
||||||
Less allowance for credit losses |
( |
) |
( |
) |
||||
Total notes receivable, net |
$ |
$ |
||||||
June 30, 2024 |
December 31, 2023 |
|||||||
Raw land |
$ |
$ |
||||||
Commercial |
||||||||
Residential |
||||||||
Land, minerals and royalty interests |
||||||||
Total investment real estate |
$ |
$ |
||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
June 30, |
June 30, |
|||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Realized gains: |
||||||||||||||||
Sales of fixed maturities |
$ |
$ |
$ |
$ |
||||||||||||
Sales of equity securities |
||||||||||||||||
Sales of real estate |
||||||||||||||||
Sales of short-term investments |
||||||||||||||||
Total realized gains |
||||||||||||||||
Realized losses: |
||||||||||||||||
Sales of equity securities |
( |
) |
( |
) |
||||||||||||
Sales of short-term investments |
( |
) |
0 |
( |
) |
0 |
||||||||||
Total realized losses |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||
Net realized investment gains |
||||||||||||||||
Change in fair value of equity securities: |
||||||||||||||||
Change in fair value of equity securities held at the end of the period |
( |
) |
||||||||||||||
Change in fair value of equity securities |
( |
) |
||||||||||||||
Net investment gains (losses) |
$ |
$ |
$ |
$ |
( |
) |
||||||||||
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income: |
||||||||||||||||
Fixed maturities |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
||||||
Net increase (decrease) |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
||||||
June 30, 2024 |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||
Fixed maturity securities: |
||||||||||||||||
U.S. Government and government agencies and authorities |
$ |
$ |
$ |
$ |
||||||||||||
U.S. special revenue and assessments |
||||||||||||||||
Corporate securities |
||||||||||||||||
Total fixed maturities |
||||||||||||||||
Equity securities: |
||||||||||||||||
Common stocks |
||||||||||||||||
Limited liability companies |
||||||||||||||||
Total equity securities |
||||||||||||||||
Short-term investments |
||||||||||||||||
Total financial assets |
$ |
$ |
$ |
$ |
||||||||||||
December 31, 2023 |
Level 1 |
Level 2 |
Level 3 |
Total |
||||||||||||
Fixed maturity securities: |
||||||||||||||||
U.S. Government and government agencies and authorities |
$ |
$ |
$ |
$ |
||||||||||||
U.S. special revenue and assessments |
||||||||||||||||
Corporate securities |
||||||||||||||||
Total fixed maturities |
||||||||||||||||
Equity securities: |
||||||||||||||||
Common stocks |
||||||||||||||||
Limited liability companies |
||||||||||||||||
Total equity securities |
||||||||||||||||
Short-term investments |
||||||||||||||||
Total financial assets |
$ |
$ |
$ |
$ |
||||||||||||
Investments in |
||||||||||||
Investments in Common Stocks |
Limited Liability Companies |
Total |
||||||||||
Balance at December 31, 2023 |
$ |
$ |
$ |
|||||||||
Realized gains (losses) |
||||||||||||
Unrealized gains (losses) |
||||||||||||
Purchases |
||||||||||||
Sales |
||||||||||||
Balance at June 30, 2024 |
$ |
$ |
$ |
|||||||||
Financial Assets |
Fair Value at June 30, 2024 |
Fair Value at December 31, 2023 |
Valuation Technique |
||||||
Common stocks |
$ |
$ |
Pricing Model |
||||||
Limited liability companies |
Pricing Model |
||||||||
Total |
$ |
$ |
|||||||
Investment Category |
Fair Value at June 30, 2024 |
Unfunded Commitments |
Redemption Frequency |
Redemption Notice Period |
||||||||||||
Equity securities |
||||||||||||||||
Growth Equity |
||||||||||||||||
Redeemable |
||||||||||||||||
Limited partnership |
$ |
$ |
||||||||||||||
Non-redeemable |
||||||||||||||||
Limited liability companies |
n/a |
n/a |
||||||||||||||
Limited partnerships |
n/a |
n/a |
||||||||||||||
Total |
$ |
$ |
||||||||||||||
Investment Category |
Fair Value at December 31, 2023 |
Unfunded Commitments |
Redemption Frequency |
Redemption Notice Period |
||||||||||||
Equity securities |
||||||||||||||||
Growth Equity |
||||||||||||||||
Redeemable |
||||||||||||||||
Limited partnership |
$ |
$ |
||||||||||||||
Non-redeemable |
||||||||||||||||
Limited liability companies |
n/a |
n/a |
||||||||||||||
Limited partnerships |
n/a |
n/a |
||||||||||||||
Total |
$ |
$ |
||||||||||||||
Carrying |
Estimated |
|||||||||||||||||||
June 30, 2024 |
Amount |
Fair Value |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||||
Assets |
||||||||||||||||||||
Held to maturity redeemable preferred stock |
$ |
|||||||||||||||||||
Equity securities, at cost |
||||||||||||||||||||
Mortgage loans on real estate |
||||||||||||||||||||
Notes receivable |
||||||||||||||||||||
Investment real estate |
||||||||||||||||||||
Policy loans |
||||||||||||||||||||
Accrued investment income |
||||||||||||||||||||
Liabilities |
||||||||||||||||||||
Policy claims and benefits payable |
||||||||||||||||||||
Dividend and endowment accumulations |
||||||||||||||||||||
Carrying |
Estimated |
|||||||||||||||||||
December 31, 2023 |
Amount |
Fair Value |
Level 1 |
Level 2 |
Level 3 |
|||||||||||||||
Assets |
||||||||||||||||||||
Held to maturity redeemable preferred stock |
$ |
|||||||||||||||||||
Equity securities, at cost |
||||||||||||||||||||
Mortgage loans on real estate |
||||||||||||||||||||
Notes receivable |
||||||||||||||||||||
Investment real estate |
||||||||||||||||||||
Policy loans |
||||||||||||||||||||
Accrued investment income |
||||||||||||||||||||
Liabilities |
||||||||||||||||||||
Policy claims and benefits payable |
||||||||||||||||||||
Dividend and endowment accumulations |
||||||||||||||||||||
Notes payable |
||||||||||||||||||||
Instrument |
Issue Date |
Maturity Date |
Revolving Credit Limit |
December 31, 2023 |
Borrowings |
Repayments |
June 30, 2024 |
||||||||||
Lines of Credit: |
|||||||||||||||||
UTG |
$ |
$ |
|||||||||||||||
UG - CMA |
|||||||||||||||||
Three Months Ended |
||||||||
June 30, |
||||||||
2024 |
2023 |
|||||||
Interest |
$ |
$ |
||||||
Federal income tax |
||||||||
Six Months Ended |
||||||||
June 30, |
||||||||
2024 |
2023 |
|||||||
Interest |
$ |
$ |
||||||
Federal income tax |
||||||||
June 30, 2024 |
Land, Minerals & Royalty Interests |
Exploration |
Total |
|||||||
Fixed maturities, at fair value |
$ |
$ |
$ |
|||||||
Equity securities, at fair value |
||||||||||
Equity securities, at cost |
||||||||||
Investment real estate |
||||||||||
Notes receivable |
||||||||||
Total |
$ |
$ |
$ |
|||||||
December 31, 2023 |
Land, Minerals & Royalty Interests |
Exploration |
Total |
|||||||
Fixed maturities, at fair value |
$ |
$ |
$ |
|||||||
Equity securities, at fair value |
||||||||||
Equity securities, at cost |
||||||||||
Investment real estate |
||||||||||
Notes receivable |
||||||||||
Total |
$ |
$ |
$ |
|||||||
Three Months Ended |
Six Months Ended |
||||||||||
June 30, |
June 30, |
||||||||||
2024 |
2023 |
2024 |
2023 |
||||||||
Net investment income |
$ |
4,295,721 |
$ |
3,243,796 |
$ |
7,344,510 |
$ |
6,561,961 |
|||
Net investment gains |
$ |
414,120 |
$ |
319,310 |
$ |
451,590 |
$ |
1,035,610 |
|||
Change in net unrealized investment gains (losses) on equity securities, pre-tax |
$ |
6,848,994 |
$ |
1,459,478 |
$ |
18,869,400 |
$ |
(7,185,996) |
|||
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||
2024 |
2023 |
2024 |
2023 |
|||||
Fixed maturities available for sale |
$ |
881,343 |
$ |
1,005,668 |
1,878,024 |
$ |
2,020,258 |
|
Fixed maturities held to maturity |
41,171 |
41,171 |
82,342 |
81,889 |
||||
Equity securities |
813,055 |
384,268 |
1,234,729 |
1,345,535 |
||||
Trading securities |
7,301 |
0 |
0 |
0 |
||||
Mortgage loans |
209,405 |
336,042 |
418,261 |
674,451 |
||||
Real estate |
2,411,441 |
1,752,808 |
4,166,282 |
3,366,715 |
||||
Notes receivable |
319,262 |
287,660 |
630,684 |
732,978 |
||||
Policy loans |
113,694 |
116,853 |
214,652 |
224,216 |
||||
Short-term investments |
157,910 |
41,827 |
490,515 |
99,203 |
||||
Cash and cash equivalents |
478,120 |
208,666 |
782,947 |
366,539 |
||||
Total consolidated investment income |
5,432,702 |
4,174,963 |
9,898,436 |
8,911,784 |
||||
Investment expenses |
(1,136,981) |
(931,167) |
(2,553,926) |
(2,349,823) |
||||
Consolidated net investment income |
$ |
4,295,721 |
$ |
3,243,796 |
$ |
7,344,510 |
$ |
6,561,961 |
Three Months Ended |
Six Months Ended |
|||||||
June 30, |
June 30, |
|||||||
2024 |
2023 |
2024 |
2023 |
|||||
Fixed maturities available for sale |
$ |
0 |
$ |
25,000 |
$ |
0 |
$ |
45,833 |
Equity securities |
285,578 |
155,324 |
285,578 |
240,508 |
||||
Real estate |
128,559 |
138,986 |
166,020 |
725,760 |
||||
Short-term investments |
(17) |
0 |
(8) |
23,509 |
||||
Consolidated net realized investment gains |
414,120 |
319,310 |
451,590 |
1,035,610 |
||||
Change in fair value of equity securities |
6,848,994 |
1,459,478 |
18,869,400 |
(7,185,996) |
||||
$ |
7,263,114 |
$ |
1,778,788 |
$ |
19,320,990 |
$ |
(6,150,386) |
|
June 30, 2024 |
Amount |
As a % of Total Investments |
As a % of Total Assets |
||||
Fixed maturities, available for sale |
$ |
96,080,683 |
26% |
22% |
|||
Fixed maturities, held to maturity |
2,500,000 |
1% |
1% |
||||
Equity securities, at fair value |
177,296,271 |
48% |
41% |
||||
Equity securities, at cost |
16,771,998 |
5% |
4% |
||||
Mortgage loans |
15,632,978 |
4% |
4% |
||||
Real estate |
30,244,425 |
8% |
7% |
||||
Notes receivable |
14,096,559 |
4% |
3% |
||||
Policy loans |
5,826,833 |
2% |
1% |
||||
Short-term investments |
8,073,676 |
2% |
2% |
||||
Total investments |
$ |
366,523,423 |
100% |
84% |
December 31, 2023 |
Amount |
As a % of Total Investments |
As a % of Total Assets |
||||
Fixed maturities, available for sale |
$ |
103,409,836 |
28% |
23% |
|||
Fixed maturities, held to maturity |
2,500,000 |
1% |
1% |
||||
Equity securities, at fair value |
156,550,812 |
43% |
35% |
||||
Equity securities, at cost |
15,977,368 |
4% |
4% |
||||
Mortgage loans |
15,318,176 |
4% |
3% |
||||
Real estate |
21,975,120 |
6% |
5% |
||||
Notes receivable |
14,009,225 |
4% |
3% |
||||
Policy loans |
6,018,248 |
2% |
1% |
||||
Short-term investments |
29,132,236 |
8% |
7% |
||||
Total investments |
$ |
364,891,021 |
100% |
83% |
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 and Senior Vice President 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 and Senior Vice President of UTG, as required pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
**101 |
The following financial statements from the Quarterly Report on Form 10-Q for the quarter ended June 30, 2024, formatted in Inline Extensible Business Reporting Language (iXBRL): (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Shareholders' Equity, (v) Condensed Consolidated Statements of Cash Flows and (vi) Notes to the Condensed Consolidated Financial Statements (detail tagged). |
**104 |
Cover Page Interactive Data File (formatted in iXBRL and included in exhibit 101). |
Date: |
August 12, 2024 |
By |
/s/ Jesse T. Correll |
|
Jesse T. Correll |
||||
Chairman of the Board, Chief Executive Officer, President and Director (Principal Executive Officer) |
Date: |
August 12, 2024 |
By |
/s/ Theodore C. Miller |
|
Theodore C. Miller |
||||
Chief Financial Officer and Senior Vice President (Principal Financial and Accounting Officer) |
|
Exhibit 31.1
CERTIFICATIONS
|
|||||||
|
I, Jesse T. Correll, Chairman of the Board, Chief Executive Officer, and President 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:
|
August 12, 2024 |
By:
|
/s/ Jesse T. Correll
|
|
Chairman of the Board,
|
|||
|
Chief Executive Officer, and President
|
|||
|
Exhibit 31.2
CERTIFICATIONS
|
||||||||
|
I, Theodore C. Miller, Senior Vice President 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:
|
August 12, 2024 |
By:
|
/s/ Theodore C. Miller
|
|
Senior Vice President 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:
|
August 12, 2024
|
By:
|
/s/ Jesse T. Correll
|
|
Jesse T. Correll
|
|||
|
Chairman of the Board,
|
|||
|
Chief Executive Officer, and President
|
|
(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:
|
August 12, 2024 |
By:
|
/s/ Theodore C. Miller
|
|
Theodore C. Miller
|
|||
|
Senior Vice President and
|
|||
|
Chief Financial Officer
|
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Investments, available for sale: | ||
| Fixed maturities, amortized cost | $ 104,458,333 | $ 109,554,738 |
| Equity securities, cost | 91,366,652 | 89,387,893 |
| Mortgage loans on real estate, credit loss reserve | 231,000 | 274,000 |
| Notes receivable, credit loss reserve | $ 208,000 | $ 250,000 |
| 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) | 3,168,086 | 3,165,320 |
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Revenue: | ||||
| Premiums and policy fees | $ 1,925,873 | $ 2,087,436 | $ 3,925,958 | $ 4,144,617 |
| Ceded reinsurance premiums and policy fees | (502,822) | (807,170) | (1,032,583) | (1,324,981) |
| Net investment income | 4,295,721 | 3,243,796 | 7,344,510 | 6,561,961 |
| Other income | 86,702 | 70,233 | 154,969 | 106,818 |
| Revenue before net investment gains (losses) | 5,805,474 | 4,594,295 | 10,392,854 | 9,488,415 |
| Net investment gains (losses): | ||||
| Other realized investment gains, net | 414,120 | 319,310 | 451,590 | 1,035,610 |
| Change in fair value of equity securities | 6,848,994 | 1,459,478 | 18,869,400 | (7,185,996) |
| Total net investment gains (losses) | 7,263,114 | 1,778,788 | 19,320,990 | (6,150,386) |
| Total revenue | 13,068,588 | 6,373,083 | 29,713,844 | 3,338,029 |
| Benefits, claims and settlement expenses: | ||||
| Life | 2,594,722 | 4,499,416 | 6,239,173 | 8,148,440 |
| Ceded reinsurance benefits and claims | (183,518) | (883,655) | (1,348,870) | (1,497,016) |
| Annuity | 252,357 | 257,811 | 504,092 | 509,443 |
| Dividends to policyholders | 80,098 | 81,704 | 161,375 | 168,702 |
| Commissions and amortization of deferred policy acquisition costs | (25,202) | (26,298) | (55,485) | (54,154) |
| Amortization of cost of insurance acquired | 158,954 | 165,325 | 317,908 | 330,639 |
| Operating expenses | 2,126,516 | 2,035,539 | 4,208,238 | 4,307,415 |
| Interest expense | 0 | 2,897 | 11,600 | 16,820 |
| Total benefits and other expenses | 5,003,927 | 6,132,739 | 10,038,031 | 11,930,289 |
| Income (loss) before income taxes | 8,064,661 | 240,344 | 19,675,813 | (8,592,260) |
| Income tax expense (benefit) | 1,560,283 | 131,662 | 3,992,912 | (1,789,190) |
| Net income (loss) | 6,504,378 | 108,682 | 15,682,901 | (6,803,070) |
| Net income attributable to noncontrolling interests | (29,191) | (29,022) | (58,208) | (59,512) |
| Net income (loss) attributable to common shareholders | $ 6,475,187 | $ 79,660 | $ 15,624,693 | $ (6,862,582) |
| Amounts attributable to common shareholders | ||||
| Basic income (loss) per share (in dollars per share) | $ 2.04 | $ 0.03 | ||
| Diluted income (loss) per share (in dollars per share) | $ 2.04 | $ 0.03 | ||
| Basic weighted average shares outstanding (in shares) | 3,169,060 | 3,185,576 | 3,169,216 | 3,187,327 |
| Diluted weighted average shares outstanding (in shares) | 3,169,060 | 3,185,576 | 3,169,216 | 3,187,327 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract] | ||||
| Net income (loss) | $ 6,504,378 | $ 108,682 | $ 15,682,901 | $ (6,803,070) |
| Other comprehensive income (loss): | ||||
| Unrealized holding gains (losses) arising during period, pre-tax | (761,765) | (1,725,615) | (2,204,904) | 1,084,884 |
| Tax (expense) benefit on unrealized holding gains (losses) arising during the period | 165,818 | 366,527 | 468,878 | (220,222) |
| Unrealized holding gains (losses) arising during period, net of tax | (595,947) | (1,359,088) | (1,736,026) | 864,662 |
| Less reclassification adjustment for gains included in net income (loss) | 0 | (25,000) | 0 | (45,833) |
| Tax expense for gains included in net income (loss) | 0 | 5,250 | 0 | 9,625 |
| Reclassification adjustment for gains included in net income (loss), net of tax | 0 | (19,750) | 0 | (36,208) |
| Subtotal: Other comprehensive income (loss), net of tax | (595,947) | (1,378,838) | (1,736,026) | 828,454 |
| Comprehensive income | 5,908,431 | (1,270,156) | 13,946,875 | (5,974,616) |
| Less comprehensive income attributable to noncontrolling interests | (29,191) | (29,022) | (58,208) | (59,512) |
| Comprehensive income attributable to UTG, Inc. | $ 5,879,240 | $ (1,299,178) | $ 13,888,667 | $ (6,034,128) |
Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) |
Common Stock [Member] |
Additional Paid-In Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Noncontrolling Interest [Member] |
Total |
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Common Stock [Member]
|
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Additional Paid-In Capital [Member]
|
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Retained Earnings [Member]
|
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
|
Cumulative Effect, Period of Adoption, Adjusted Balance [Member]
Noncontrolling Interest [Member]
|
Cumulative Effect, Period of Adoption, Adjusted Balance [Member] |
|||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at Dec. 31, 2022 | $ 3,166 | $ 32,693,972 | $ 131,989,352 | $ (7,111,586) | $ 453,472 | $ 158,028,376 | |||||||||
| Balance (ASU 2016-13 [Member]) at Dec. 31, 2022 | 0 | 0 | (454,250) | 0 | 0 | (454,250) | $ 3,166 | $ 32,693,972 | $ 131,535,102 | $ (7,111,586) | $ 453,472 | $ 157,574,126 | |||
| Common stock issued during year | 27 | 674,363 | 0 | 0 | 0 | 674,390 | |||||||||
| Treasury shares acquired | (9) | (231,571) | 0 | 0 | 0 | (231,580) | |||||||||
| Net income (loss) attributable to common shareholders | 0 | 0 | (6,862,582) | 0 | 0 | (6,862,582) | |||||||||
| Unrealized holding income (loss) on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | 828,454 | 0 | 828,454 | |||||||||
| Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 59,512 | 59,512 | |||||||||
| Balance at Jun. 30, 2023 | 3,184 | 33,136,764 | 124,672,520 | (6,283,132) | 512,984 | 152,042,320 | |||||||||
| Balance at Mar. 31, 2023 | 3,189 | 33,268,111 | 124,592,860 | (4,904,294) | 483,962 | 153,443,828 | |||||||||
| Treasury shares acquired | (5) | (131,347) | 0 | 0 | 0 | (131,352) | |||||||||
| Net income (loss) attributable to common shareholders | 0 | 0 | 79,660 | 0 | 0 | 79,660 | |||||||||
| Unrealized holding income (loss) on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | (1,378,838) | 0 | (1,378,838) | |||||||||
| Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 29,022 | 29,022 | |||||||||
| Balance at Jun. 30, 2023 | 3,184 | 33,136,764 | 124,672,520 | (6,283,132) | 512,984 | 152,042,320 | |||||||||
| Balance at Dec. 31, 2023 | 3,167 | 32,613,817 | 133,491,797 | (4,882,317) | 463,329 | 161,689,793 | [1] | ||||||||
| Common stock issued during year | 10 | 299,304 | 0 | 0 | 0 | 299,314 | |||||||||
| Treasury shares acquired | (7) | (216,738) | 0 | 0 | 0 | (216,745) | |||||||||
| Net income (loss) attributable to common shareholders | 0 | 0 | 15,624,693 | 0 | 0 | 15,624,693 | |||||||||
| Unrealized holding income (loss) on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | (1,736,026) | 0 | (1,736,026) | |||||||||
| Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 58,208 | 58,208 | |||||||||
| Balance at Jun. 30, 2024 | 3,170 | 32,696,383 | 149,116,490 | (6,618,343) | 521,537 | 175,719,237 | |||||||||
| Balance at Mar. 31, 2024 | 3,173 | 32,804,211 | 142,641,303 | (6,022,396) | 492,346 | 169,918,637 | |||||||||
| Treasury shares acquired | (3) | (107,828) | 0 | 0 | 0 | (107,831) | |||||||||
| Net income (loss) attributable to common shareholders | 0 | 0 | 6,475,187 | 0 | 0 | 6,475,187 | |||||||||
| Unrealized holding income (loss) on securities net of noncontrolling interest and reclassification adjustment and taxes | 0 | 0 | 0 | (595,947) | 0 | (595,947) | |||||||||
| Gain attributable to noncontrolling interest | 0 | 0 | 0 | 0 | 29,191 | 29,191 | |||||||||
| Balance at Jun. 30, 2024 | $ 3,170 | $ 32,696,383 | $ 149,116,490 | $ (6,618,343) | $ 521,537 | $ 175,719,237 | |||||||||
| |||||||||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) |
6 Months Ended | |
|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Cash flows from operating activities: | ||
| Net income (loss) | $ 15,682,901 | $ (6,803,070) |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
| Accretion of investments | (399,110) | (81,839) |
| Realized investment gains, net | (451,590) | (1,035,610) |
| Change in fair value of equity securities | (18,869,400) | 7,185,996 |
| Amortization of cost of insurance acquired | 317,908 | 330,639 |
| Provision for deferred income taxes | 3,898,349 | (2,081,472) |
| Depreciation and depletion | 789,739 | 318,475 |
| Stock-based compensation | 299,314 | 674,390 |
| Charges for mortality and administration of universal life and annuity products | (2,737,821) | (2,869,847) |
| Interest credited to account balances | 1,794,213 | 1,835,166 |
| Change in accrued investment income | 10,282 | (86,472) |
| Change in reinsurance receivables | 697,801 | 149,553 |
| Change in policy liabilities and accruals | (2,173,115) | (2,426,980) |
| Change in income taxes receivable (payable) | 24,563 | (4,767,718) |
| Change in other assets and liabilities, net | (325,402) | 3,603,668 |
| Net cash used in operating activities | (1,441,368) | (6,055,121) |
| Proceeds from investments sold and matured: | ||
| Fixed maturities available for sale | 5,000,000 | 2,045,833 |
| Equity securities | 4,813,238 | 4,285,222 |
| Trading securities | 102,699 | 0 |
| Mortgage loans | 1,844,701 | 1,755,829 |
| Notes receivable | 754,667 | 4,338,516 |
| Real estate | 2,503,900 | 4,365,571 |
| Policy loans | 680,012 | 776,616 |
| Short-term investments | 22,500,000 | 9,740,815 |
| Total proceeds from investments sold and matured | 38,199,217 | 27,308,402 |
| Cost of investments acquired: | ||
| Equity securities | (7,198,349) | (6,292,534) |
| Trading securities | (102,699) | 0 |
| Mortgage loans | (2,111,502) | (217,864) |
| Notes receivable | (800,000) | (2,953,241) |
| Real estate | (11,396,924) | (3,581,370) |
| Policy loans | (488,597) | (486,969) |
| Short-term investments | (950,925) | (9,701,297) |
| Total cost of investments acquired | (23,048,996) | (23,233,275) |
| Net cash provided by investing activities | 15,150,221 | 4,075,127 |
| Cash flows from financing activities: | ||
| Policyholder contract deposits | 2,049,905 | 2,063,085 |
| Policyholder contract withdrawals | (2,233,320) | (2,300,206) |
| Payments of principal on notes payable/line of credit | (19,000,000) | (19,000,000) |
| Purchase of treasury stock | (216,745) | (231,580) |
| Net cash used in financing activities | (19,400,160) | (19,468,701) |
| Net decrease in cash and cash equivalents | (5,691,307) | (21,448,695) |
| Cash and cash equivalents at beginning of period | 41,185,196 | 45,290,385 |
| Cash and cash equivalents at end of period | $ 35,493,889 | $ 23,841,690 |
Basis of Presentation |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Basis of Presentation [Abstract] | |
| Basis of Presentation |
Note 1 – Basis of Presentation
The accompanying Condensed Consolidated Balance Sheet as of June 30, 2024, 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, 2023. The Company’s results of operations for the six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other future period.
This document at times will refer to the Registrant’s largest shareholder, Mr. Jesse T. Correll and certain companies controlled by Mr. Correll. Mr. Correll holds a majority ownership of First Southern Funding, LLC (“FSF”), a Kentucky corporation, and First Southern Bancorp, Inc. (“FSBI”), a financial services holding company. FSBI operates through its 100% owned subsidiary bank, First Southern National Bank (“FSNB”). Banking activities are conducted through multiple locations within south-central and western Kentucky. Mr. Correll is Chairman of the Board of Directors, Chief Executive Officer, President, and a Director of UTG and is currently UTG’s largest shareholder through his ownership control of FSF, FSBI and affiliates. At June 30, 2024, Mr. Correll owns or controls directly and indirectly approximately 65.97% 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 |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Recently Issued Accounting Standards [Abstract] | |
| Recently Issued Accounting Standards |
Note 2 – Recently Issued Accounting Standards
During the six months ended June 30, 2024, there were no additions to or changes in the critical accounting policies disclosed in the 2023 Form 10-K.
|
Investments |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments |
Note 3 – Investments
Investment in 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 fixed maturity securities are summarized by type as follows:
The amortized cost and estimated market value of fixed maturity securities at June 30, 2024, by contractual maturity, is shown below.
Actual maturities may differ from contractual maturities due to the exercise of call or prepayment options.
By insurance statute, the majority of the Company’s investment portfolio is invested in investment grade securities to provide ample protection for policyholders.
Below investment grade debt securities generally provide higher yields and involve greater risks than investment grade debt securities because their issuers typically are more highly leveraged and more vulnerable to adverse economic conditions than investment grade issuers. In addition, the trading market for these securities is usually more limited than for investment grade debt securities. Debt securities classified as below-investment grade are those that receive a Standard & Poor’s rating of BB+ or below.
The Company held below investment grade investments with an estimated market value of $0 as of June 30, 2024 and December 31, 2023.
The following tables present the estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position:
Additional information regarding investments in an unrealized loss position is as follows:
Allowance for Credit Loss - Available for Sale Securities
Management considers a wide range of factors about the security issuer and uses its best judgment in evaluating the cause of the decline in the estimated fair value of the security and in assessing the prospects for near-term recovery. Inherent in management’s evaluation of the security are assumptions and estimates about the operations of the issuer and its future earnings potential. Considerations used in the credit loss evaluation process include, but are not limited to: (1) the extent to which the estimated fair value has been below amortized cost, (2) adverse conditions specifically related to a security, an industry sector, adverse change in the financial condition of the issuer of the security, (3) payment structure of the security and likelihood of the issuer being able to make payments, (4) failure of the issuer to make scheduled interest and principal payments, (5) whether the issuer, or series of issuers or an industry has suffered a catastrophic loss or has exhausted natural resources, (6) whether the Company has the intent to sell or will more likely than not be required to sell a particular security before the decline in estimated fair value below amortized cost recovers, (7) changes in the rating of the security by a rating agency, and (8) other subjective factors.
Substantially all of the unrealized losses on fixed maturity securities at June 30, 2024 and December 31, 2023 are attributable to changes in market interest rates and general disruptions in the credit market subsequent to purchase. At June 30, 2024, the Company did not intend to sell its securities in an unrealized loss position, and it was not more likely than not that the Company would be required to sell these securities before the anticipated recovery of the remaining amortized cost. Therefore, the Company concluded that these securities had not incurred a credit loss and should not have an allowance for credit loss at June 30, 2024.
Future provisions for credit loss will depend primarily on economic fundamentals, issuer performance, and changes in credit ratings.
Net unrealized losses included in other comprehensive income (loss) for investments classified as available-for-sale, net of the effect of deferred income taxes, assuming that the depreciation had been realized as of June 30, 2024 and December 31, 2023:
Cost Method Equity Investments
The Company held equity investments with an aggregate cost of $16,771,998 and $15,977,368 at June 30, 2024 and December 31, 2023, 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 reviews and considers events or changes in circumstances that might have a significant adverse effect on the reported value of those investments. Management did not identify any events or changes in circumstances that might have a significant adverse effect on the reported value of those investments.
Mortgage Loans
The Company, from time to time, acquires mortgage loans through participation agreements with FSNB. FSNB has been able to provide the Company with additional expertise and experience in underwriting commercial and residential mortgage loans, which provide more attractive yields than the traditional bond market. The Company is able to receive participations from FSNB for three primary reasons: 1) FSNB has already reached its maximum lending limit to a single borrower, but the borrower is still considered a suitable risk; 2) the interest rate on a particular loan may be fixed for a long period that is more suitable for UG given its asset-liability structure; and 3) FSNB’s loan growth might at times outpace its deposit growth, resulting in FSNB participating such excess loan growth rather than turning customers away. For originated loans, the Company’s Management is responsible for the final approval of such loans after evaluation. Before a new loan is issued, the applicant is subject to certain criteria set forth by Company Management to ensure quality control. These criteria include, but are not limited to, a credit report, personal financial information such as outstanding debt, sources of income, and personal equity. Once the loan is approved, the Company directly funds the loan to the borrower. The Company bears all risk of loss associated with the terms of the mortgage with the borrower.
During the six months ended June 30, 2024 and 2023, the Company acquired $2,111,502 and $217,864 in mortgage loans, respectively. FSNB services the majority of the Company’s mortgage loan portfolio. The Company pays FSNB a 0.25% servicing fee on these loans and a one-time fee at loan origination of 0.50% of the original loan cost to cover costs incurred by FSNB relating to the processing and establishment of the loan.
During 2024 and 2023, 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. 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.
The following table summarizes the mortgage loan holdings of the Company:
The following is a summary of the mortgage loans outstanding and the related allowance for credit losses:
There were no past due loans as of June 30, 2024 and December 31, 2023.
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. Interest accruals are analyzed based on the likelihood of repayment. The Company does not utilize a specified number of days delinquent to cause an automatic non-accrual status. During the six months ended June 30, 2024 and 2023 the Company acquired $800,000 and $2,953,241 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 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.
The following is a summary of the notes receivable outstanding and the related allowance for credit losses:
Allowance for Credit Loss - Loans
The allowance for credit loss ("ACL") is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when Management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off.
The allowance for credit losses represents Management's estimate of lifetime credit losses inherent in loans as of the balance sheet date. The allowance for credit losses is estimated by Management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts.
The Company measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. The Company has identified the following portfolio segments - mortgage loans on real estate and notes receivable.
The allowance for credit losses calculation includes subjective adjustments for qualitative risk factors that are likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments may increase or reduce reserve levels and include adjustments for risk tolerance, loan review and audit results, asset quality and portfolio trends, industry concentrations, external factors and economic conditions.
Loans that do not share risk characteristics are evaluated on an individual basis. When Management determines that foreclosure is probable and the borrower is experiencing financial difficulty, the expected credit losses are based on the fair value of collateral at the reporting date unadjusted for selling costs as appropriate.
Allowance for Credit Loss - Unfunded Commitments
Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit issued to meet customer financing needs. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for off-balance sheet loan commitments is represented by the contractual amount of those instruments. Such financial instruments are recorded when they are funded.
The Company records an allowance for credit losses on off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to provision for unfunded commitments in the Company's income statements. The allowance for credit losses on off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur as well a any third-party guarantees. The allowance for unfunded commitments as of June 30, 2024 and December 31, 2023 was $36,000 and $51,000, respectively, and is included in other liabilities on the Company's Condensed Consolidated Balance Sheets.
Allowance for Credit Loss - Accrued Interest
Accrued interest is not included in the ACL and if deemed uncollectible, it is charged against interest income when determined to be uncollectible.
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 six months ended June 30, 2024, 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 June 30, 2024 and December 31, 2023, investments in oil and gas royalties represented 22% and 34%, 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 six months ended June 30, 2024 and 2023, the Company acquired $11,396,924 and $3,581,370 of investment real estate, respectively.
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.
During 2024 and 2023, the Company acquired $950,925 and $9,701,297, respectively, in short-term investments.
Net Investment Gains (Losses)
The following table presents net investment gains (losses) and the change in net unrealized gains on available-for-sale investments.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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:
Total assets included in the fair value hierarchy exclude certain equity securities that were measured at estimated fair value using the net asset value (“NAV”) per share practical expedient. At June 30, 2024 and December 31, 2023, the estimated fair value of such investments was $67,333,167 and $54,989,319, respectively. These investments are generally not readily redeemable by the investee.
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 six months ended June 30, 2024.
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 standards generally accepted in the United States.
Equity Securities at Fair Value
Equity securities consist of common and preferred stocks and limited liability companies 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.
Change in Recurring Fair Value Measurements
The following table presents the changes in Level 3 equity securities measured at fair value on a recurring basis, and the and related to the Level 3 equity securities.
Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the table above. As a result, the unrealized gains (losses) on instruments held at June 30, 2024 and December 31, 2023 may include changes in fair value that were attributable to both observable and unobservable inputs.
Assets and liabilities are transferred into Level 3 when a significant input cannot be corroborated with market observable data. This occurs when market activity decreases significantly and underlying inputs cannot be observed, current prices are not available, and/or when there are significant variances in quoted prices, thereby affecting transparency. Assets and liabilities are transferred out of Level 3 when circumstances change such that a significant input can be corroborated with market observable data. This may be due to a significant increase in market activity, a specific event, or one or more significant input(s) becoming observable.
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 includes only those instruments 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
The Company holds certain equity securities that are measured at estimated fair value using the NAV per share practical expedient. These investments are generally not readily redeemable by the investee. The following tables provide additional information regarding the assets carried at NAV.
Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share
The following are descriptions of the Company's assets held at NAV.
The Company invested in a limited partnership that was formed under the laws of the State of Delaware on October 5, 1999, as a Delaware limited partnership (“LP”). The Limited Partnership Agreement provides for the Fund to continue until dissolved. There are significant restrictions to the dissolution process, which are outlined in the LP Agreement. The Fund invests in listed equity and fixed income securities as well as non-listed securities, including direct-owned minerals and other royalties. In 2013, UG entered into an irrevocable subscription agreement to invest in the LP.
The Company invested in a Limited Liability Company ("LLC") that was formed under the laws of the state of Delaware in 2020. The LLC agreement provides for the Company to continue until dissolved. There are significant restrictions to the dissolution process, which are outlined in the LLC Agreement. The LLC Company was formed for the purpose of acquiring, making investments in, and owning, holding, and growing operating businesses through the United States. In 2020, UG entered into a LLC Agreement to invest in this LLC.
The Company invested in a Limited Liability Company ("LLC") that was formed under the laws of the state of Delaware. The LLC was formed on October 15, 2020 to provide long-term investment returns. The Company will continue to operate until December 31, 2032, or until each of the investment funds in which the LLC invests terminates, unless terminated earlier or extended in accordance with the Operating Agreement. In 2020, UG completed the Subscription Agreement to become an investor in this LLC.
The Company invested in a Limited Liability Company ("LLC") that was formed under the laws of the state of Delaware. The LLC was formed on July 1, 2022 to amplify philanthropy by primarily investing in venture capital investment funds and in direct venture capital investments of operating companies. The Company will continue to operate until December 31, 2034, or until each of the investment funds in which the LLC invests terminates, unless terminated earlier or extended in accordance with the Operating Agreement. In 2022, the Company completed the Subscription Agreement to become an investor in this LLC.
The Company invested in a Limited Liability Company ("LLC") that was formed under the laws of the state of Delaware. The LLC was organized solely for the purpose owning, managing, supervising and disposing of the investment. The Partnership will continue in existence for the investment period (subject to extension), unless sooner terminated by operation of law or pursuant to any provision of the Limited Partnership Agreement. In 2022, the Company entered into a Limited Partnership Agreement to invest in this LP.
The Company invested in a closed-end LP fund that was formed pursuant to the laws of the State of Delaware under a limited partners agreement (the “Agreement”) on April 6, 2015 and is scheduled to terminate on the tenth anniversary of the final closing date, unless terminated sooner or extended in accordance with the Agreement. The purpose of the LP is to make investments in and pursue targets that educate, train, and inspire men and women in the United States and around the world to value free enterprise, business, and economics to improve the quality of their lives and the lives and the lives of those in their communities. In 2015, the Company entered into a Limited Partnership Agreement to invest in this LP.
The Company invested in a closed-end LP fund that was formed pursuant to the laws of the State of Delaware under a limited partners agreement (the “Agreement”) on September 5, 2018 (the “Agreement”), and is scheduled to terminate on the twelfth anniversary of the Final Closing Date, unless terminated sooner or extended in accordance with the Agreement. The purpose of the Partnership is to make investments in and pursue targets that educate, train, and inspire men and women in the United States and around the world to value free enterprise, business, and economics to improve the quality of their lives and the lives and the lives of those in their communities. In 2018, the Company entered into a Limited Partnership Agreement to invest in this LP.
The Company invested in a Limited Liability Company ("LLC") that was formed under the laws of the state of Delaware. The LLC was formed September 29, 2021 for the purpose of investing in companies located in emerging markets. The Limited Liability Company Agreement provides for LLC to continue until dissolved, unless terminated earlier through terms specified in the Operating Agreement. In 2021, the Company entered into a Limited Liability Company Agreement to invest in the LLC.
The Company invested in a LP that was formed pursuant to the laws of the state of Delaware under a limited partnership agreement on October 27, 2021 (the “Agreement”) and is scheduled to terminate on the tenth anniversary of the Final Closing Date, unless terminated sooner or extended in accordance with the Agreement. The Partnership is organized for the principal purposes of acquiring, holding, supervising, managing and disposing of investment in recapitalization, management buyouts, and corporate divestitures of Portfolio Companies operating in various segments of the U.S. lower middle markets. In 2022, the Company entered into a Limited Partnership Agreement to invest in this LP.
The Company invested in a LLC that was formed as an Alabama Limited Liability Company on April 6, 2022. The Limited Liability Company Agreement provides for the LLC to continue until dissolved, unless terminated earlier through terms specified in the Operating Agreement. The purpose of Trivela is to (1) acquire, own and operate football (soccer) clubs (each a “Target Company”) (2) establish investment vehicles for the acquisition of Target Companies (3) sponsor private placements of securities on behalf of each investment vehicle (4) manage the operations of each investment vehicle & Target Company on a fee for services basis (5) engage in any lawful act or activity incidental to the Business as reasonably determined by the managers. The Company entered into a Limited Liability Company Agreement to invest in Trivela Group, LLC.
The Company invested in a LP that was formed as a Delaware Limited Partnership on September 22, 2023. The Limited Partnership Agreement states that the LP shall continue, unless the Partnership is sooner dissolved , until the fifteenth (15th) anniversary of the final closing, provided, that the General Partner may further extend the term of the Partnership beyond the aforementioned term with the approval of a majority in interest of the limited partners for up to two consecutive period of five years. The nature of the business to be conducted and promoted by the partnership is to: (1) acquire, own, and operate one or more clubs, (2) establish subsidiaries for the acquisition of clubs and club ownership interests, (3) pursue and exploit business, investment or real estate opportunities related or incidental to clubs, their stadiums or any other sport or entertainment activities, and (4) engage in any lawful act or activity incidental to the foregoing purposes, as determined by the general partner.
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 June 30, 2024 or December 31, 2023.
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.
Held to maturity redeemable preferred stock is carried at cost, which approximates fair value.
Certain equity securities are reported at their cost basis, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. It is not practicable to estimate their fair values due to insufficient information being available.
The fair values of mortgage loans on real estate are estimated using discounted cash flow analyses and interest rates being offered for similar loans to borrowers with similar credit ratings. The inputs used to measure the fair value of our mortgage loans on real estate are classified as Level 3 within the fair value hierarchy.
The 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.
Investment real estate is recorded at the lower of the net investment in the real estate or the fair value of the real estate less costs to sell. The determination of fair value assessments are performed on a periodic, non-recurring basis by external appraisal and assessment of property values by Management. The inputs used to measure the fair value of our investment real estate are classified as Level 3 within the fair value hierarchy.
Policy loans are carried at the aggregate unpaid principal balances in the Condensed Consolidated Balance Sheets which approximate fair value, and earn interest at rates ranging from 4% to 8%. Individual policy liabilities in all cases equal or exceed outstanding policy loan balances. The inputs used to measure the fair value of our policy loans are classified as Level 3 within the fair value hierarchy.
The carrying value of accrued investment income approximates its fair value.
The carrying amounts reported for policy claims and benefits payable approximates fair value.
The carrying value for dividend and endowment accumulations approximates fair value.
The carrying value for notes payable is a reasonable estimate of fair value subject to floating rates of interest. The fair value of notes payable with fixed rate borrowings is determined based on the borrowing rates currently available to the Company for loans with similar terms and average maturities. The inputs used to measure the fair value of notes payable are classified as Level 2 within the fair value hierarchy.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Arrangements |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Arrangements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Arrangements |
Note 5 – Credit Arrangements
UTG has a variable rate revolving line of credit. As collateral, UTG has pledged 100% of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company.
During October of 2023, 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 $19,780,423. During the first quarter of 2024, the Company repaid the entire outstanding principal balance.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| 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. The Board of Directors of UTG authorized the repurchase of up to $22 million of UTG’s common stock in the open market or in privately negotiated transactions. Company Management has broad authority to operate the program, including the discretion of whether to purchase shares and the ability to suspend or terminate the program. Open market purchases are made based on the last available market price but may be limited. During the six months ended June 30, 2024, the Company repurchased 7,178 shares through the stock repurchase program for $216,745. Through June 30, 2024, UTG has spent $20,408,146 in the acquisition of 1,364,037 shares under this program.
During 2024, the Company issued 9,944 shares of stock to management and employees as compensation at a cost of $299,314. These awards are determined at the discretion of the Board of Directors.
Earnings Per Share Calculations
Earnings per share are based on the weighted average number of common shares outstanding during each period. For the six months ended June 30, 2024 and 2023, diluted earnings per share were the same as basic earnings per share since the Company had no dilutive instruments outstanding.
|
Commitments and Contingencies |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Commitments and Contingencies [Abstract] | |
| Commitments and Contingencies |
Note 7 – Commitments and Contingencies
The insurance industry has experienced a number of civil jury verdicts which have been returned against life and health insurers in the jurisdictions in which the Company does business involving the insurers’ sales practices, alleged agent misconduct, failure to properly supervise agents, and other matters. Some of the lawsuits have resulted in the award of substantial judgments against the insurer, including material amounts of punitive damages. In some states, juries have substantial discretion in awarding punitive damages in these circumstances. In the normal course of business, the Company is involved from time to time in various legal actions and other state and federal proceedings. Management is of the opinion that the ultimate disposition of the matters will not have a materially adverse effect on the Company’s results of operations or financial position.
Under the insurance guaranty fund laws in most states, insurance companies doing business in a participating state can be assessed up to prescribed limits for policyholder losses incurred by insolvent or failed insurance companies. Although the Company cannot predict the amount of any future assessments, most insurance guaranty fund laws currently provide that an assessment may be excused or deferred if it would threaten an insurer’s financial strength. Mandatory assessments may be partially recovered through a reduction in future premium tax in some states. The Company does not believe such assessments will be materially different from amounts already provided for in the consolidated financial statements, though the Company has no control over such assessments.
Mortgage Loan Commitments - The Company commits to lend funds under mortgage loan commitments. The amounts of these mortgage loan commitments were $165,661 and $878,132 at June 30, 2024 and December 31, 2023, respectively.
Notes Receivable Commitments - The Company commits to lend funds under notes receivable funding commitments. The amounts of these notes receivable commitments were $2,000,000 and $2,800,000 at June 30, 2024 and December 31, 2023, respectively.
Commitments to Fund Limited Liability Company and Limited Partnership Investments - The Company commits to fund investments in limited liability companies and limited partnership. The amounts of the unfunded commitments were $12,802,375 and $16,153,903 at June 30, 2024 and December 31, 2023, respectively.
|
Other Cash Flow Disclosures |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Cash Flow Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Cash Flow Disclosures |
Note 8 – Other Cash Flow Disclosures
On a cash basis, the Company paid the following expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations of Credit Risk |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Concentrations [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 three states, the ability of the Company's customers to pay their insurance premiums is impacted by the economic conditions in these areas. As of June 30, 2024 and 2023, approximately 51% and 50%, respectively, of the Company’s total direct premium was collected from Illinois, Ohio, and Texas. Thus, results of operations are heavily dependent upon the strength of these economies.
The Company reinsures that portion of insurance risk which is in excess of its retention limits. Retention limits range up to $125,000 per life. Life insurance ceded represented 21% and 20% of total life insurance in force at June 30, 2024 and December 31, 2023, respectively. Insurance ceded represented 32% and 34% of premium income for the six months ended June 30, 2024 and 2023, respectively. 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 31% and 28% of the Company’s total invested assets as of June 30, 2024 and December 31, 2023, respectively. The following table provides an allocation of the oil and gas investments by type.
At June 30, 2024 and December 31, 2023, the Company owned 4 equity securities that represented approximately 76% and 73%, respectively, of the total investments associated with the oil and gas industry.
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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Insider Trading Arrangements |
3 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Trading Arrangements, by Individual | |
| Rule 10b5-1 Arrangement Adopted | false |
| Non-Rule 10b5-1 Arrangement Adopted | false |
| Rule 10b5-1 Arrangement Terminated | false |
| Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies) |
6 Months Ended |
|---|---|
Jun. 30, 2024 | |
| Basis of Presentation [Abstract] | |
| Basis of Presentation |
The accompanying Condensed Consolidated Balance Sheet as of June 30, 2024, 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, 2023. The Company’s results of operations for the six months ended June 30, 2024 are not necessarily indicative of the results that may be expected for the year ending December 31, 2024 or for any other future period.
This document at times will refer to the Registrant’s largest shareholder, Mr. Jesse T. Correll and certain companies controlled by Mr. Correll. Mr. Correll holds a majority ownership of First Southern Funding, LLC (“FSF”), a Kentucky corporation, and First Southern Bancorp, Inc. (“FSBI”), a financial services holding company. FSBI operates through its 100% owned subsidiary bank, First Southern National Bank (“FSNB”). Banking activities are conducted through multiple locations within south-central and western Kentucky. Mr. Correll is Chairman of the Board of Directors, Chief Executive Officer, President, and a Director of UTG and is currently UTG’s largest shareholder through his ownership control of FSF, FSBI and affiliates. At June 30, 2024, Mr. Correll owns or controls directly and indirectly approximately 65.97% of UTG’s outstanding stock.
|
Investments (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Available for Sale Securities |
Investments in fixed maturity securities are summarized by type as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Securities by Contractual Maturity |
The amortized cost and estimated market value of fixed maturity securities at June 30, 2024, by contractual maturity, is shown below.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Estimated Fair Value and Gross Unrealized Losses of Fixed Maturity Securities in Unrealized Loss Position |
The following tables present the estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities in Continuous Unrealized Loss Position |
Additional information regarding investments in an unrealized loss position is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Unrealized Losses Included in Other Comprehensive Income (Loss) |
Net unrealized losses included in other comprehensive income (loss) for investments classified as available-for-sale, net of the effect of deferred income taxes, assuming that the depreciation had been realized as of June 30, 2024 and December 31, 2023:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Maximum and Minimum Lending Rates for Mortgage Loan |
During 2024 and 2023, the maximum and minimum lending rates for mortgage loans were:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Mortgage Loans Holdings |
The following table summarizes the mortgage loan holdings of the Company:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Mortgage Loans Outstanding and Related Allowance for Credit Losses |
The following is a summary of the mortgage loans outstanding and the related allowance for credit losses:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Notes Receivables |
The following is a summary of the notes receivable outstanding and the related allowance for credit losses:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment Real Estate by Type |
The following table provides an allocation of the Company’s investment real estate by type:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net Investment Gains (Losses) and Change in Net Unrealized Gains (Losses) on Investments |
The following table presents net investment gains (losses) and the change in net unrealized gains on available-for-sale investments.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Assets and Liabilities Measured at Fair Value on a Recurring Basis |
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:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation for Level 3 Assets Measured at Fair Value on a Recurring Basis |
Change in Recurring Fair Value Measurements
The following table presents the changes in Level 3 equity securities measured at fair value on a recurring basis, and the and related to the Level 3 equity securities.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 includes only those instruments 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.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Arrangements (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Arrangements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Credit Arrangements |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Cash Flow Disclosures (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Concentrations [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 31% and 28% of the Company’s total invested assets as of June 30, 2024 and December 31, 2023, respectively. The following table provides an allocation of the oil and gas investments by type.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation (Details) |
Jun. 30, 2024 |
|---|---|
| Chief Executive Officer and Chairman of the Board [Member] | |
| Ownership Interest [Abstract] | |
| Ownership interest percentage | 65.97% |
| FSBI [Member] | FSNB [Member] | |
| Ownership Interest [Abstract] | |
| Ownership in subsidiary bank | 100.00% |
Investments, Available for Sale Securities (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
|||
|---|---|---|---|---|---|
| Fixed maturities [Abstract] | |||||
| Original or amortized cost | $ 104,458,333 | $ 109,554,738 | |||
| Fair value | 96,080,683 | 103,409,836 | [1] | ||
| Held-to-Maturity [Abstract] | |||||
| Original or amortized cost | 2,500,000 | 2,500,000 | [1] | ||
| Available-for-Sale and Held-to-Maturity [Abstract] | |||||
| Original or amortized cost | 106,958,333 | 112,054,738 | |||
| Gross unrealized gains | 37,317 | 89,004 | |||
| Gross unrealized losses | (8,414,967) | (6,233,906) | |||
| Fair value | 98,580,683 | 105,909,836 | |||
| Total Fixed Maturities, Available for Sale [Member] | |||||
| Fixed maturities [Abstract] | |||||
| Original or amortized cost | 104,458,333 | 109,554,738 | |||
| Gross unrealized gains | 37,317 | 89,004 | |||
| Gross unrealized losses | (8,414,967) | (6,233,906) | |||
| Fair value | 96,080,683 | 103,409,836 | |||
| U.S. Government and Govt. Agencies and Authorities [Member] | |||||
| Fixed maturities [Abstract] | |||||
| Original or amortized cost | 14,315,878 | 14,316,976 | |||
| Gross unrealized gains | 0 | 0 | |||
| Gross unrealized losses | (718,083) | (729,197) | |||
| Fair value | 13,597,795 | 13,587,779 | |||
| U.S. Special Revenue and Assessments [Member] | |||||
| Fixed maturities [Abstract] | |||||
| Original or amortized cost | 7,525,907 | 7,528,985 | |||
| Gross unrealized gains | 0 | 0 | |||
| Gross unrealized losses | (345,583) | (220,527) | |||
| Fair value | 7,180,324 | 7,308,458 | |||
| All Other Corporate Bonds [Member] | |||||
| Fixed maturities [Abstract] | |||||
| Original or amortized cost | 82,616,548 | 87,708,777 | |||
| Gross unrealized gains | 37,317 | 89,004 | |||
| Gross unrealized losses | (7,351,301) | (5,284,182) | |||
| Fair value | 75,302,564 | 82,513,599 | |||
| Redeemable Preferred Stock [Member] | |||||
| Held-to-Maturity [Abstract] | |||||
| Original or amortized cost | 2,500,000 | 2,500,000 | |||
| Gross unrealized gains | 0 | 0 | |||
| Gross unrealized losses | 0 | 0 | |||
| Fair value | $ 2,500,000 | $ 2,500,000 | |||
| |||||
Investments, Debt Securities by Contractual Maturity (Details) |
Jun. 30, 2024
USD ($)
|
|---|---|
| Amortized cost [Abstract] | |
| Due in one year or less | $ 9,057,941 |
| Due after one year through five years | 43,617,942 |
| Due after five years through ten years | 5,387,968 |
| Due after ten years | 21,768,156 |
| Fixed maturities with no single maturity date | 27,126,326 |
| Original or amortized cost | 106,958,333 |
| Fair value [Abstract] | |
| Due in one year or less | 8,986,940 |
| Due after one year through five years | 41,844,703 |
| Due after five years through ten years | 5,343,825 |
| Due after ten years | 19,210,935 |
| Fixed maturities with no single maturity date | 23,194,280 |
| Fair value | $ 98,580,683 |
Investments, Securities in Continuous Unrealized Loss Position (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Fixed Maturity Securities, Estimated Fair Value [Abstract] | ||
| Less than 12 months | $ 6,413,845 | $ 2,042,000 |
| 12 months or longer, fair value | 86,937,358 | 93,077,414 |
| Total | 93,351,203 | 95,119,414 |
| Fixed Maturity Securities, Unrealized Losses [Abstract] | ||
| Less than 12 months | (55,883) | (6,015) |
| 12 months or longer | (8,359,084) | (6,227,891) |
| Total | (8,414,967) | (6,233,906) |
| U.S. Government and Govt. Agencies and Authorities [Member] | ||
| Fixed Maturity Securities, Estimated Fair Value [Abstract] | ||
| Less than 12 months | 495,371 | 1,497,390 |
| 12 months or longer, fair value | 13,102,424 | 12,090,389 |
| Total | 13,597,795 | 13,587,779 |
| Fixed Maturity Securities, Unrealized Losses [Abstract] | ||
| Less than 12 months | (2,480) | (3,696) |
| 12 months or longer | (715,603) | (725,501) |
| Total | (718,083) | (729,197) |
| U.S. Special Revenue and Assessments [Member] | ||
| Fixed Maturity Securities, Estimated Fair Value [Abstract] | ||
| Less than 12 months | 0 | 0 |
| 12 months or longer, fair value | 7,180,324 | 7,308,458 |
| Total | 7,180,324 | 7,308,458 |
| Fixed Maturity Securities, Unrealized Losses [Abstract] | ||
| Less than 12 months | 0 | 0 |
| 12 months or longer | (345,583) | (220,527) |
| Total | (345,583) | (220,527) |
| All Other Corporate Bonds [Member] | ||
| Fixed Maturity Securities, Estimated Fair Value [Abstract] | ||
| Less than 12 months | 5,918,474 | 544,610 |
| 12 months or longer, fair value | 66,654,610 | 73,678,567 |
| Total | 72,573,084 | 74,223,177 |
| Fixed Maturity Securities, Unrealized Losses [Abstract] | ||
| Less than 12 months | (53,403) | (2,319) |
| 12 months or longer | (7,297,898) | (5,281,863) |
| Total | $ (7,351,301) | $ (5,284,182) |
Investments, Number of Securities in Unrealized Loss Position (Details) - Security |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Fixed Maturities, Number of Securities in Unrealized Loss Position [Abstract] | ||
| Less than 12 months | 5 | 2 |
| 12 months or longer | 45 | 45 |
| Total | 50 | 47 |
Investments, Net Unrealized Losses Included in Other Comprehensive Income (Loss) (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Net Unrealized Losses Included in Other Comprehensive Income (Loss) for Investments Classifies as Available-for-Sale [Abstract] | ||
| Unrealized appreciation (depreciation) on available-for-sale securities | $ (8,377,650) | $ (6,180,148) |
| Deferred income taxes | 1,759,307 | 1,297,831 |
| Net unrealized appreciation (depreciation) on available-for-sale securities | $ (6,618,343) | $ (4,882,317) |
Investments, Cost Method Investments (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
|||
|---|---|---|---|---|---|
| Investments [Abstract] | |||||
| Mortgage loans on real estate | $ 16,771,998 | $ 15,977,368 | [1] | ||
| |||||
Investments, Mortgage Loans, Investment Real Estate, Notes Receivable, and Short-Term Investments (Details) - USD ($) |
6 Months Ended | 12 Months Ended | ||||
|---|---|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Dec. 31, 2023 |
||||
| Mortgage Loans [Abstract] | ||||||
| Mortgage loans acquired, including discounted mortgage loans | $ 2,111,502 | $ 217,864 | ||||
| Servicing fee on loan | 0.25% | |||||
| Loan origination | 0.50% | |||||
| Loan limit threshold for appraised property value | 80.00% | |||||
| Mortgage loan holdings [Abstract] | ||||||
| Mortgage loans, gross | $ 15,863,978 | $ 15,592,176 | ||||
| Less allowance for credit losses | (231,000) | (274,000) | ||||
| Mortgage loans, net | 15,632,978 | 15,318,176 | [1] | |||
| Investment Real Estate [Abstract] | ||||||
| Impairment on investment real estate | 0 | |||||
| Total investment real estate | $ 30,244,425 | $ 21,975,120 | [1] | |||
| Oil & Gas Royalties - as a % of total Inv RE | 22.00% | 34.00% | ||||
| Investment real estate acquired | $ 11,396,924 | 3,581,370 | ||||
| Notes Receivable [Abstract] | ||||||
| Notes receivable acquired | 800,000 | 2,953,241 | ||||
| Notes receivable | 14,304,559 | $ 14,259,225 | ||||
| Less allowance for credit losses | (208,000) | (250,000) | ||||
| Total notes receivable, net | 14,096,559 | 14,009,225 | [1] | |||
| Short-Term Investments [Abstract] | ||||||
| Short-term investments acquired | $ 950,925 | $ 9,701,297 | ||||
| Minimum [Member] | ||||||
| Investment Real Estate [Abstract] | ||||||
| Estimated useful life | 3 years | |||||
| Maximum [Member] | ||||||
| Investment Real Estate [Abstract] | ||||||
| Estimated useful life | 30 years | |||||
| Unfunded Loan Commitments [Member] | ||||||
| Notes Receivable [Abstract] | ||||||
| Less allowance for credit losses | $ 36,000 | 51,000 | ||||
| Raw Land [Member] | ||||||
| Investment Real Estate [Abstract] | ||||||
| Total investment real estate | 17,165,537 | 6,971,930 | ||||
| Commercial [Member] | ||||||
| Investment Real Estate [Abstract] | ||||||
| Total investment real estate | 4,438,091 | 4,106,938 | ||||
| Residential [Member] | ||||||
| Investment Real Estate [Abstract] | ||||||
| Total investment real estate | 1,949,708 | 3,512,408 | ||||
| Land, Minerals and Royalty Interests [Member] | ||||||
| Investment Real Estate [Abstract] | ||||||
| Total investment real estate | 6,691,089 | 7,383,844 | ||||
| In Good Standing [Member] | ||||||
| Mortgage loan holdings [Abstract] | ||||||
| Mortgage loans, net | 15,632,978 | 15,318,176 | ||||
| Past Due [Member] | ||||||
| Notes Receivable [Abstract] | ||||||
| Notes receivable | 0 | 0 | ||||
| Farm Loans [Member] | ||||||
| Mortgage loan holdings [Abstract] | ||||||
| Mortgage loans, gross | $ 326,385 | $ 332,417 | ||||
| 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] | ||||||
| Mortgage loan holdings [Abstract] | ||||||
| Mortgage loans, gross | $ 14,068,452 | $ 13,764,209 | ||||
| Commercial Loans [Member] | Minimum [Member] | ||||||
| Mortgage Loans [Abstract] | ||||||
| Interest rate on mortgage loans | 4.00% | 4.00% | ||||
| Commercial Loans [Member] | Maximum [Member] | ||||||
| Mortgage Loans [Abstract] | ||||||
| Interest rate on mortgage loans | 10.00% | 8.75% | ||||
| Residential Loans [Member] | ||||||
| Mortgage loan holdings [Abstract] | ||||||
| Mortgage loans, gross | $ 1,469,141 | $ 1,495,550 | ||||
| Residential Loans [Member] | Minimum [Member] | ||||||
| Mortgage Loans [Abstract] | ||||||
| Interest rate on mortgage loans | 4.15% | 4.15% | ||||
| Residential Loans [Member] | Maximum [Member] | ||||||
| Mortgage Loans [Abstract] | ||||||
| Interest rate on mortgage loans | 5.00% | 5.00% | ||||
| ||||||
Investments, Net Investment Gains (Losses) and Change in Net Unrealized Gains (Losses) on Investments (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Realized gains on available-for-sale investments [Abstract] | ||||
| Total realized gains | $ 414,137 | $ 327,276 | $ 451,598 | $ 1,043,576 |
| Realized losses on available-for-sale investments [Abstract] | ||||
| Total realized losses | (17) | (7,966) | (8) | (7,966) |
| Net realized investment gains | 414,120 | 319,310 | 451,590 | 1,035,610 |
| Change in fair value of equity securities [Abstract] | ||||
| Change in fair value of equity securities held at the end of the period | 6,848,994 | 1,459,478 | 18,869,400 | (7,185,996) |
| Change in fair value of equity securities | 6,848,994 | 1,459,478 | 18,869,400 | (7,185,996) |
| Total net investment gains (losses) | 7,263,114 | 1,778,788 | 19,320,990 | (6,150,386) |
| 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 | (761,765) | (1,725,615) | (2,204,904) | 1,084,884 |
| Fixed Maturities [Member] | ||||
| Realized gains on available-for-sale investments [Abstract] | ||||
| Total realized gains | 0 | 25,000 | 0 | 45,833 |
| 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 | (761,765) | (1,725,615) | (2,204,904) | 1,084,884 |
| Equity Securities [Member] | ||||
| Realized gains on available-for-sale investments [Abstract] | ||||
| Total realized gains | 285,578 | 163,290 | 285,578 | 248,474 |
| Realized losses on available-for-sale investments [Abstract] | ||||
| Total realized losses | 0 | (7,966) | 0 | (7,966) |
| Real Estate [Member] | ||||
| Realized gains on available-for-sale investments [Abstract] | ||||
| Total realized gains | 128,559 | 138,986 | 166,020 | 725,760 |
| Short-Term Investments [Member] | ||||
| Realized gains on available-for-sale investments [Abstract] | ||||
| Total realized gains | $ 0 | $ 0 | $ 0 | $ 23,509 |
Fair Value Measurements, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
|||
|---|---|---|---|---|---|
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | $ 96,080,683 | $ 103,409,836 | [1] | ||
| Equity securities, at fair value | 177,296,271 | 156,550,812 | [1] | ||
| U.S. Government and Government Agencies and Authorities [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | 13,597,795 | 13,587,779 | |||
| Measured on a Recurring Basis [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | 96,080,683 | 103,409,836 | |||
| Equity securities, at fair value | 109,963,104 | 101,561,493 | |||
| Short-term investments | 8,073,676 | 29,132,236 | |||
| Total financial assets | 214,117,463 | 234,103,565 | |||
| Measured on a Recurring Basis [Member] | U.S. Government and Government Agencies and Authorities [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | 13,597,795 | 13,587,779 | |||
| Measured on a Recurring Basis [Member] | U.S. Special Revenue and Assessments [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | 7,180,324 | 7,308,458 | |||
| Measured on a Recurring Basis [Member] | Corporate Securities [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | 75,302,564 | 82,513,599 | |||
| Measured on a Recurring Basis [Member] | Common Stock [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities, at fair value | 48,708,381 | 43,956,687 | |||
| Measured on a Recurring Basis [Member] | Limited Liability Companies [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities, at fair value | 57,604,806 | ||||
| Measured on a Recurring Basis [Member] | Preferred Stock [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities, at fair value | 61,254,723 | ||||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | 13,597,795 | 13,587,779 | |||
| Equity securities, at fair value | 40,569,028 | 35,819,973 | |||
| Short-term investments | 8,073,676 | 29,132,236 | |||
| Total financial assets | 62,240,499 | 78,539,988 | |||
| 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, at fair value | 13,597,795 | 13,587,779 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | U.S. Special Revenue and Assessments [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | 0 | 0 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Corporate Securities [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | 0 | 0 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Common Stock [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities, at fair value | 40,569,028 | 35,819,973 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Limited Liability Companies [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities, at fair value | 0 | ||||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 1 [Member] | Preferred Stock [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities, at fair value | 0 | ||||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | 82,482,888 | 89,822,057 | |||
| Equity securities, at fair value | 5,223,416 | 5,329,080 | |||
| Short-term investments | 0 | 0 | |||
| Total financial assets | 87,706,304 | 95,151,137 | |||
| 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, at fair value | 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, at fair value | 7,180,324 | 7,308,458 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Corporate Securities [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | 75,302,564 | 82,513,599 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Common Stock [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities, at fair value | 5,223,416 | 5,329,080 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Limited Liability Companies [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities, at fair value | 0 | ||||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 2 [Member] | Preferred Stock [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities, at fair value | 0 | ||||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | 0 | 0 | |||
| Equity securities, at fair value | 64,170,660 | 60,412,440 | |||
| Short-term investments | 0 | 0 | |||
| Total financial assets | 64,170,660 | 60,412,440 | |||
| 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, at fair value | 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, at fair value | 0 | 0 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Corporate Securities [Member] | |||||
| Assets [Abstract] | |||||
| Fixed maturities, at fair value | 0 | 0 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Common Stock [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities, at fair value | 2,915,937 | 2,807,634 | |||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Limited Liability Companies [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities, at fair value | 57,604,806 | ||||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Level 3 [Member] | Preferred Stock [Member] | |||||
| Assets [Abstract] | |||||
| Equity securities, at fair value | 61,254,723 | ||||
| Measured on a Recurring Basis [Member] | Estimated Fair Value [Member] | Net Asset Value [Member] | |||||
| Assets [Abstract] | |||||
| Total financial assets | $ 67,333,167 | $ 54,989,319 | |||
| |||||
Fair Value Measurements, Reconciliation for Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2024
USD ($)
| |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Beginning Balance | $ 60,412,440 |
| Purchases | 1,657,503 |
| Sales | 0 |
| Ending Balance | 64,170,660 |
| Other Realized Investment Gains, Net [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Realized and unrealized gains (losses) | $ 0 |
| Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other realized investment gains, net |
| Change in Fair Value of Equity Securities [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Realized and unrealized gains (losses) | $ 2,100,717 |
| Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Equity Securities, FV-NI, Realized Gain (Loss) |
| Equity Securities [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Beginning Balance | $ 60,412,440 |
| Ending Balance | 64,170,660 |
| Equity Securities [Member] | Common Stock [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Beginning Balance | 2,807,634 |
| Purchases | 0 |
| Sales | 0 |
| Ending Balance | 2,915,937 |
| Equity Securities [Member] | Limited Liability Companies [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Beginning Balance | 57,604,806 |
| Purchases | 1,657,503 |
| Sales | 0 |
| Ending Balance | 61,254,723 |
| Equity Securities [Member] | Other Realized Investment Gains, Net [Member] | Common Stock [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Realized and unrealized gains (losses) | 0 |
| Equity Securities [Member] | Other Realized Investment Gains, Net [Member] | Limited Liability Companies [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Realized and unrealized gains (losses) | 0 |
| Equity Securities [Member] | Change in Fair Value of Equity Securities [Member] | Common Stock [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Realized and unrealized gains (losses) | 108,303 |
| Equity Securities [Member] | Change in Fair Value of Equity Securities [Member] | Limited Liability Companies [Member] | |
| Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
| Realized and unrealized gains (losses) | $ 1,992,414 |
Fair Value Measurements, Quantitative Information About Level 3 (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract] | ||
| Financial assets, fair value | $ 64,170,660 | $ 60,412,440 |
| Equity Securities [Member] | ||
| Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract] | ||
| Financial assets, fair value | 64,170,660 | 60,412,440 |
| Equity Securities [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 | 2,915,937 | 2,807,634 |
| Equity Securities [Member] | Limited Liability Companies [Member] | ||
| Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract] | ||
| Financial assets, fair value | 61,254,723 | 57,604,806 |
| Pricing Model [Member] | Equity Securities [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 | 2,915,937 | 2,807,634 |
| Pricing Model [Member] | Equity Securities [Member] | Limited Liability Companies [Member] | ||
| Information about Significant Unobservable Inputs Used for Recurring Fair Value Measurements for Certain Level 3 Instruments [Abstract] | ||
| Financial assets, fair value | $ 61,254,723 | $ 57,604,806 |
Fair Value Measurements, Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share (Details) - Net Asset Value [Member] - Equity Securities [Member] - USD ($) |
6 Months Ended | 12 Months Ended |
|---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
| Growth Equity [Member] | ||
| Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract] | ||
| Fair value | $ 67,333,167 | $ 54,989,319 |
| Unfunded commitments | 10,312,731 | 11,875,207 |
| Growth Equity Redeemable [Member] | ||
| Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract] | ||
| Fair value | 39,546,708 | 34,081,797 |
| Unfunded commitments | $ 0 | $ 0 |
| Redemption frequency | Quarterly | Quarterly |
| Redemption notice period | 45 days | 45 days |
| Growth Equity Non-Redeemable [Member] | Limited Liability Companies [Member] | ||
| Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract] | ||
| Fair value | $ 10,295,247 | $ 11,960,929 |
| Unfunded commitments | 7,948,894 | 9,464,608 |
| Growth Equity Non-Redeemable [Member] | Limited Partnerships [Member] | ||
| Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share [Abstract] | ||
| Fair value | 17,491,212 | 8,946,593 |
| Unfunded commitments | $ 2,363,837 | $ 2,410,599 |
Fair Value Measurements, Carrying Values and Estimated Fair Values of Financial Instruments not Recorded at Fair Value (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
|||
|---|---|---|---|---|---|
| Carrying Amount [Member] | |||||
| Assets [Abstract] | |||||
| Held to maturity redeemable preferred stock | $ 2,500,000 | $ 2,500,000 | |||
| Equity securities, at cost | 16,771,998 | 15,977,368 | |||
| Mortgage loans on real estate | 15,632,978 | 15,318,176 | |||
| Notes receivable | 14,096,559 | 14,009,225 | |||
| Investment real estate | 30,244,425 | 21,975,120 | |||
| Policy loans | 5,826,833 | 6,018,248 | |||
| Accrued investment income | 1,990,782 | 2,001,064 | |||
| Liabilities [Abstract] | |||||
| Policy claims and benefits payable | 3,358,070 | 4,188,917 | |||
| Dividend and endowment accumulations | 14,588,899 | 14,749,258 | |||
| Notes payable | 19,000,000 | ||||
| Estimated Fair Value [Member] | |||||
| Assets [Abstract] | |||||
| Held to maturity redeemable preferred stock | 2,500,000 | 2,500,000 | |||
| Equity securities, at cost | 16,771,998 | 15,977,368 | |||
| Mortgage loans on real estate | 14,873,171 | 14,447,026 | |||
| Notes receivable | 14,283,336 | 14,189,147 | |||
| Investment real estate | 86,016,428 | 62,899,838 | |||
| Policy loans | 5,826,833 | 6,018,248 | |||
| Accrued investment income | 1,990,782 | 2,001,064 | |||
| Liabilities [Abstract] | |||||
| Policy claims and benefits payable | 3,358,070 | 4,188,917 | |||
| Dividend and endowment accumulations | 14,588,899 | 14,749,258 | |||
| Notes payable | 19,000,000 | ||||
| Equity securities, at cost | $ 16,771,998 | 15,977,368 | [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] | |||||
| Held to maturity redeemable preferred stock | $ 0 | 0 | |||
| Equity securities, at cost | 0 | 0 | |||
| Mortgage loans on real estate | 0 | 0 | |||
| Notes receivable | 0 | 0 | |||
| Investment real estate | 0 | 0 | |||
| Policy loans | 0 | 0 | |||
| Accrued investment income | 0 | 0 | |||
| Liabilities [Abstract] | |||||
| Policy claims and benefits payable | 0 | 0 | |||
| Dividend and endowment accumulations | 0 | 0 | |||
| Notes payable | 0 | ||||
| Level 2 [Member] | |||||
| Assets [Abstract] | |||||
| Held to maturity redeemable preferred stock | 0 | 0 | |||
| Equity securities, at cost | 0 | 0 | |||
| Mortgage loans on real estate | 0 | 0 | |||
| Notes receivable | 0 | 0 | |||
| Investment real estate | 0 | 0 | |||
| Policy loans | 0 | 0 | |||
| Accrued investment income | 0 | 0 | |||
| Liabilities [Abstract] | |||||
| Policy claims and benefits payable | 0 | 0 | |||
| Dividend and endowment accumulations | 0 | 0 | |||
| Notes payable | 19,000,000 | ||||
| Level 3 [Member] | |||||
| Assets [Abstract] | |||||
| Held to maturity redeemable preferred stock | 2,500,000 | 2,500,000 | |||
| Equity securities, at cost | 16,771,998 | 15,977,368 | |||
| Mortgage loans on real estate | 14,873,171 | 14,447,026 | |||
| Notes receivable | 14,283,336 | 14,189,147 | |||
| Investment real estate | 86,016,428 | 62,899,838 | |||
| Policy loans | 5,826,833 | 6,018,248 | |||
| Accrued investment income | 1,990,782 | 2,001,064 | |||
| Liabilities [Abstract] | |||||
| Policy claims and benefits payable | 3,358,070 | 4,188,917 | |||
| Dividend and endowment accumulations | $ 14,588,899 | 14,749,258 | |||
| Notes payable | $ 0 | ||||
| |||||
Credit Arrangements (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Jun. 30, 2024 |
Dec. 31, 2023 |
|
| Line of Credit Facility [Abstract] | ||
| Pledged bonds | $ 14,304,559 | $ 14,259,225 |
| Asset Pledged as Collateral [Member] | ||
| Line of Credit Facility [Abstract] | ||
| Pledged bonds | $ 19,780,423 | |
| UTG 2013-11-20 [Member] | ||
| Line of Credit Facility [Abstract] | ||
| Issue Date | Nov. 20, 2013 | |
| Maturity Date | Nov. 20, 2024 | |
| Revolving Credit Limit | $ 8,000,000 | |
| Outstanding Balance | 0 | 0 |
| Borrowings | 0 | |
| Repayments | $ 0 | |
| 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] | ||
| Percentage of common voting stock pledged | 100.00% | |
| Cash Management Advance [Member] | Variable Rate [Member] | Maximum [Member] | ||
| Line of Credit Facility [Abstract] | ||
| Period of interest under CMA | 90 days | |
| Cash Management Advance [Member] | Fixed Rate [Member] | Maximum [Member] | ||
| Line of Credit Facility [Abstract] | ||
| Period of interest under CMA | 30 days | |
| Cash Management Advance [Member] | UG [Member] | ||
| Line of Credit Facility [Abstract] | ||
| Issue Date | Oct. 21, 2021 | |
| Maturity Date | Oct. 04, 2024 | |
| Revolving Credit Limit | $ 25,000,000 | |
| Outstanding Balance | 0 | $ 19,000,000 |
| Borrowings | 0 | |
| Repayments | $ 19,000,000 |
Shareholders' Equity (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Stock Repurchase Program [Abstract] | ||
| Stock repurchase program authorized amount | $ 22,000,000 | |
| Stock repurchased during period (in shares) | 7,178 | |
| Amount paid to repurchase shares during the year | $ 216,745 | $ 231,580 |
| Amount of common stock repurchased | $ 20,408,146 | |
| Number of common stock acquired (in shares) | 1,364,037 | |
| Number of shares issued (in shares) | 9,944 | |
| Cost of shares issued | $ 299,314 | |
| Earnings Per Share Calculations [Abstract] | ||
| Dilutive instruments outstanding (in shares) | 0 | 0 |
Commitments and Contingencies (Details) - USD ($) |
Jun. 30, 2024 |
Dec. 31, 2023 |
|---|---|---|
| Total Funding Commitments and Unfunded Commitment [Abstract] | ||
| Mortgage loan commitments | $ 165,661 | $ 878,132 |
| Notes receivable commitments | 2,000,000 | 2,800,000 |
| Unfunded Commitment | $ 12,802,375 | $ 16,153,903 |
Other Cash Flow Disclosures (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2024 |
Jun. 30, 2023 |
Jun. 30, 2024 |
Jun. 30, 2023 |
|
| Other Cash Flow Disclosures [Abstract] | ||||
| Interest | $ 0 | $ 2,898 | $ 23,169 | $ 44,814 |
| Federal income tax | $ 70,000 | $ 5,060,000 | $ 70,000 | $ 5,060,000 |
Concentrations of Credit Risk (Details) |
6 Months Ended | 12 Months Ended | ||||
|---|---|---|---|---|---|---|
|
Jun. 30, 2024
USD ($)
State
Security
|
Jun. 30, 2023 |
Dec. 31, 2023
USD ($)
Security
|
||||
| Concentrations [Abstract] | ||||||
| Number of states by which entity primarily serves | State | 3 | |||||
| Maximum retention limits per life | $ 125,000 | |||||
| Allocation of Oil and Gas Investments [Abstract] | ||||||
| Fixed maturities, at fair value | 96,080,683 | $ 103,409,836 | [1] | |||
| Equity securities, at fair value | 177,296,271 | 156,550,812 | [1] | |||
| Equity securities, at cost | 16,771,998 | 15,977,368 | [1] | |||
| Notes receivable | 14,096,559 | 14,009,225 | [1] | |||
| Investment real estate | 30,244,425 | 21,975,120 | [1] | |||
| Total investments | $ 366,523,423 | $ 364,891,021 | [1] | |||
| Land, Minerals & Royalty Interests [Member] | Equity Securities [Member] | ||||||
| Concentrations [Abstract] | ||||||
| Number of equity securities owned | Security | 4 | |||||
| Transportation [Member] | Equity Securities [Member] | ||||||
| Concentrations [Abstract] | ||||||
| Number of equity securities owned | Security | 4 | |||||
| Oil and Gas Industry [Member] | ||||||
| Allocation of Oil and Gas Investments [Abstract] | ||||||
| Fixed maturities, at fair value | $ 1,070,090 | $ 1,075,240 | ||||
| Equity securities, at fair value | 97,007,332 | 84,066,203 | ||||
| Equity securities, at cost | 5,502,463 | 5,826,381 | ||||
| Notes receivable | 2,000,000 | 2,000,000 | ||||
| Investment real estate | 6,691,092 | 7,383,851 | ||||
| Total investments | 112,270,977 | 100,351,675 | ||||
| Oil and Gas Industry [Member] | Land, Minerals & Royalty Interests [Member] | ||||||
| Allocation of Oil and Gas Investments [Abstract] | ||||||
| Fixed maturities, at fair value | 0 | 0 | ||||
| Equity securities, at fair value | 97,007,332 | 84,066,203 | ||||
| Equity securities, at cost | 5,502,463 | 5,826,381 | ||||
| Notes receivable | 2,000,000 | 2,000,000 | ||||
| Investment real estate | 6,691,092 | 7,383,851 | ||||
| Total investments | 111,200,887 | 99,276,435 | ||||
| Oil and Gas Industry [Member] | Exploration [Member] | ||||||
| Allocation of Oil and Gas Investments [Abstract] | ||||||
| Fixed maturities, at fair value | 1,070,090 | 1,075,240 | ||||
| Equity securities, at fair value | 0 | 0 | ||||
| Equity securities, at cost | 0 | 0 | ||||
| Notes receivable | 0 | 0 | ||||
| Investment real estate | 0 | 0 | ||||
| Total investments | $ 1,070,090 | $ 1,075,240 | ||||
| Reinsurer Concentration Risk [Member] | Life Insurance Ceded [Member] | ||||||
| Concentrations [Abstract] | ||||||
| Percentage of gross insurance in force | 21.00% | 20.00% | ||||
| Percentage of premium income | 32.00% | 34.00% | ||||
| Direct Premium Collected [Member] | Geographic Concentration Risk [Member] | Illinois, Ohio, Texas and West Virginia [Member] | ||||||
| Concentrations [Abstract] | ||||||
| Concentration risk, percentage | 51.00% | 50.00% | ||||
| Invested Assets [Member] | Customer Concentration Risk [Member] | Oil and Gas Industry [Member] | ||||||
| Concentrations [Abstract] | ||||||
| Concentration risk, percentage | 31.00% | 28.00% | ||||
| Invested Assets [Member] | Customer Concentration Risk [Member] | Oil and Gas Industry [Member] | Equity Securities [Member] | ||||||
| Concentrations [Abstract] | ||||||
| Concentration risk, percentage | 76.00% | |||||
| Invested Assets [Member] | Customer Concentration Risk [Member] | Oil and Gas Industry [Member] | Transportation [Member] | Equity Securities [Member] | ||||||
| Concentrations [Abstract] | ||||||
| Concentration risk, percentage | 73.00% | |||||
| ||||||