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| Concentrations |
Note 10 – Concentrations
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, 2026 and 2025,
approximately 51% 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 20% of total life
insurance in force at June 30, 2026 and
December 31, 2025, respectively.
Insurance ceded represented 35% and 34%
of premium income for the six months ended June 30, 2026 and 2025, 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 37%
and 35%
of the Company’s total invested assets as of June 30, 2026
and December 31, 2025,
respectively.
At June
30, 2026 and
December 31, 2025, the Company owned 4 equity securities that represented
approximately 79% and 80%, 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.
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