UTG INC 10-Q

Investments (Tables)

6 Months Ended

Jun. 30, 2025

Investments in fixed maturity securities are summarized by type as follows:

June 30, 2025	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government and govt. agencies and authorities	$	22,346,479	$	35,217	$	(274,018	)	$	22,107,678
U.S. special revenue and assessments		7,519,578		0		(116,053	)		7,403,525
All other corporate bonds		45,694,332		126,339		(2,208,010	)		43,612,661
Total fixed maturities, at fair value	$	75,560,389	$	161,556	$	(2,598,081	)	$	73,123,864

Held to maturity redeemable preferred stock, at amortized cost	$	2,500,000	$	0	$	0		$	2,500,000

December 31, 2024	Original or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Government and govt. agencies and authorities	$	21,354,053	$	1,484	$	(473,243	)	$	20,882,294
U.S. special revenue and assessments		7,522,751		0		(288,560	)		7,234,191
All other corporate bonds		51,327,728		47,632		(3,011,759	)		48,363,601
Total fixed maturities, at fair value	$	80,204,532	$	49,116	$	(3,773,562	)	$	76,480,086

Held to maturity redeemable preferred stock, at amortized cost	$	2,500,000	$	0	$	0		$	2,500,000

Fixed Maturity Securities by Contractual Maturity

The amortized cost and estimated market value of fixed maturity securities at June 30, 2025, by contractual maturity, is shown below.

Fixed Maturity Securities June 30, 2025	Amortized Cost		Fair Value
Due in one year or less	$	6,699,260	$	6,669,778
Due after one year through five years		44,430,326		43,965,491
Due after five years through ten years		6,359,292		6,158,735
Due after ten years		18,071,511		16,329,860
Total	$	75,560,389	$	73,123,864

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:

June 30, 2025	Less than 12 months					12 months or longer					Total
	Fair value		Unrealized losses			Fair value		Unrealized losses			Fair value		Unrealized losses
U.S. Government and govt. agencies and authorities	$	1,499,670		(509	)		10,537,535	$	(273,509	)		12,037,205	$	(274,018	)
U.S. Special Revenue and Assessments		0		0			7,403,525		(116,053	)		7,403,525		(116,053	)
All other corporate bonds		0		0			37,433,800		(2,208,010	)		37,433,800		(2,208,010	)
Total fixed maturities	$	1,499,670		(509	)		55,374,860		(2,597,572	)		56,874,530	$	(2,598,081	)

December 31, 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	$	10,022,087		(19,341	)		10,360,047		(453,902	)		20,382,134	$	(473,243	)
U.S. special revenue and assessments		0		0			7,234,191		(288,560	)		7,234,191		(288,560	)
All other corporate bonds		6,457,282		(38,492	)		38,176,295		(2,973,267	)		44,633,577		(3,011,759	)
Total fixed maturities	$	16,479,369		(57,833	)		55,770,533		(3,715,729	)		72,249,902	$	(3,773,562	)

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, 2025 and December 31, 2024:

	June 30, 2025			December 31, 2024
Unrealized appreciation (depreciation) on available-for-sale securities	$	(2,436,525	)	$	(3,724,446	)
Deferred income taxes		511,670			782,133
Net unrealized appreciation (depreciation) on available-for-sale securities	$	(1,924,855	)	$	(2,942,313	)

Maximum and Minimum Lending Rates for Mortgage Loan

During 2025 and 2024, the maximum and minimum lending rates for mortgage loans were:

	2025						2024
	Maximum rate			Minimum rate			Maximum rate			Minimum rate
Farm Loans		8.00	%		8.00	%		8.00	%		8.00	%
Commercial Loans		10.00	%		4.00	%		10.00	%		4.00	%
Residential Loans		5.00	%		4.15	%		5.00	%		4.15	%

Summary of Mortgage Loans Holdings

The following table summarizes the mortgage loan holdings of the Company:

	June 30, 2025		December 31, 2024
In good standing	$	15,277,962	$	16,277,981
Total mortgage loans	$	15,277,962	$	16,277,981

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:

	June 30, 2025			December 31, 2024
Farm	$	316,808		$	321,774
Commercial		13,767,017			14,749,509
Residential		1,414,137			1,441,698
Total mortgage loans		15,497,962			16,512,981
Less allowance for credit losses		(220,000	)		(235,000	)
Total mortgage loans, net	$	15,277,962		$	16,277,981

Notes Receivables

The following is a summary of the notes receivable outstanding and the related allowance for credit losses:

	June 30, 2025			December 31, 2024
Notes receivable	$	13,781,824		$	12,867,175
Less allowance for credit losses		(195,000	)		(195,000	)
Total notes receivable, net	$	13,586,824		$	12,672,175

Allowance for Credit Loss

The following is a summary of activity related to the allowance for credit loss:

		Allowance For Credit Losses
		Mortgage	Notes	Unfunded
		Loans	Receivable	Commitments		Total
January 1, 2024	$	274,000	250,000	51,000	$	575,000
2024 Change in allowance		(39,000)	(55,000)	(1,000)		(95,000)
December 31, 2024		235,000	195,000	50,000		480,000
2025 Change in allowance		(15,000)	0	5,000		(10,000)
June 30, 2025	$	220,000	195,000	55,000	$	470,000

Investment Real Estate by Type

The following table provides an allocation of the Company’s investment real estate by type:

	June 30, 2025		December 31, 2024
Raw land	$	16,704,842	$	16,446,147
Commercial		4,641,843		6,269,217
Residential		1,915,064		1,932,390
Land, minerals and royalty interests		5,022,064		3,967,848
Total investment real estate	$	28,283,813	$	28,615,602

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.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2025			2024			2025		2024
Realized gains:
Sales of fixed maturities	$	412		$	-		$	412	$	-
Sales of equity securities		3,735			285,578			979,504		285,578
Sales of real estate		46,846			128,559			46,846		166,020
Sales of short-term investments		6			0			6		0
Total realized gains		50,999			414,137			1,026,768		451,598
Realized losses:
Sales of equity securities		0			0			0		0
Sales of short-term investments		0			(17	)		0		(8	)
Total realized losses		0			(17	)		0		(8	)
Net realized investment gains		50,999			414,120			1,026,768		451,590
Change in fair value of equity securities:
Change in fair value of equity securities held at the end of the period		(1,256,918	)		5,362,125			15,033,564		17,738,388
Change in fair value of equity securities		(1,256,918	)		5,362,125			15,033,564		17,738,388
Net investment gains	$	(1,205,919	)	$	5,776,245		$	16,060,332	$	18,189,978
Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income:
Fixed maturities	$	365,715		$	(224,344	)	$	1,287,922	$	(1,009,232	)
Net increase (decrease)	$	365,715		$	(224,344	)	$	1,287,922	$	(1,009,232	)

Less than 12 months

12 months or longer

As of June 30, 2025

Fixed maturities

As of December 31, 2024

Fixed maturities