UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

 Washington, D.C. 20549

 FORM 10-K

 (Mark One)

 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the fiscal year ended December 31, 2024

 or

 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For the transition period from _____________ to ______________

 Commission File Number 000-16867

 UTG, INC.

 (Exact name of registrant as specified in its charter)

 Delaware

 20-2907892

 (State or other jurisdiction of

 (I.R.S. Employer

 incorporation or organization)

 Identification No.)

 205 North Depot Street, Stanford, KY

 40484

 (Address of principal executive offices)

 (Zip code)

 Registrant's telephone number, including area code: ( 217) 241-6300

 Securities registered pursuant to Section 12(b) of the Act:

 Title of each class

 Name of each exchange on which registered

 None

 None

 Securities registered pursuant to Section 12(g) of the Act:

 Title of class

 Common Stock, stated value $.001 per share

 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

 Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes No

 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No

 Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulations S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No

 Indicate by check mark whether the registrant is large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 Large accelerated filer Accelerated filer

 Non-accelerated filer Smaller reporting company

 Emerging growth company

 If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

 If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

 Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to 240.10D-1(b).

 Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act). Yes No

 As of June 30, 2024, shares of the Registrant's common stock held by non-affiliates (based upon the price of the last sale of $29.00 per share), had an aggregate market value of approximately $ 26,130,885.

 At January 31, 2025 the Registrant had 3,157,376 outstanding shares of common stock, stated value $.001 per share.

 Documents incorporated by reference: None

 Form 10-K

 Year Ended December 31, 2024

 Item 1. Business

 Item 1A. Risk Factors

 Item 1B. Unresolved Staff Comment

 Item 1C. Cybersecurity

 Item 2. Properties

 Item 3. Legal Proceedings

 Item 4. Mine Safety Disclosures

 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 Item 6. Reserved

 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

 Item 7A. Quantitative and Qualitative Disclosures About Market Risk

 Item 8. Financial Statements and Supplementary Data

 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosures

 Item 9A. Controls and Procedures

 Item 9B. Other Information

 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Item 10. Directors, Executive Officers and Corporate Governance

 Item 11. Executive Compensation

 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item 13. Certain Relationships and Related Transactions, and Director Independence

 Item 14. Principal Accountant Fees and Services

 Item 15. Exhibits and Financial Statement Schedules

 Item 16. Form 10-K Summary

 Forward-Looking Statements

 This report on Form 10-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. We have based our forward-looking statements on our current expectations and projections about future events. Our forward-looking statements include information about possible or assumed future results of operations. All statements, other than statements of historical facts, included or incorporated by reference in this report that address activities, events or developments that we expect or anticipate may occur in the future, including such things as the growth of our business and operations, our business strategy, competitive strengths, goals, plans, future capital expenditures and references to future successes may be considered forward-looking statements. Also, when we use words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "probably," or similar expressions, we are making forward-looking statements.

 Numerous risks and uncertainties may impact the matters addressed by our forward-looking statements, any of which could negatively and materially affect our future financial results and performance.

 Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and, therefore, the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements that are included in this report, our inclusion of this information is not a representation by us or any other person that our objectives and plans will be achieved. In light of these risks, uncertainties and assumptions, any forward-looking event discussed in this report may not occur. Our forward-looking statements speak only as of the date made, and we undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments, unless the securities laws require us to do so.

 Item 1. Business

 General

 The Holding Company - UTG, Inc. (the "Registrant", "Company" or "UTG") is an insurance holding company incorporated in the state of Delaware in 2005 and headquartered in Stanford, KY. The Company's principal subsidiary is Universal Guaranty Life Insurance Company ("UG"). The Registrant and its primary subsidiary have only one significant segment, insurance.

 The holding company has no significant business operations of its own and relies on fees, dividends and other distributions from its operating subsidiary as the principal source of cash flows to meet its obligations. The Company may explore supplemental sources of income in the future. The cash outlays of the Company mainly consist of operational costs and the costs of repurchasing Company common stock.

 UTG has a strong philanthropic program. The Company generally allocates a portion of its earnings to be used for its philanthropic efforts primarily targeted to Christ-centered organizations or organizations that help the weak or poor. The Company also encourages its staff to be involved on a personal level through monetary giving, volunteerism and use of their talents to assist those less fortunate than themselves. Through these efforts, the Company hopes to make a positive difference in the local community, state, nation and world.

 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, a Kentucky corporation, ("FSF") and First Southern Bancorp, Inc. ("FSBI"), a financial services holding company. FSBI operates through its 100% owned subsidiary bank, First Southern National Bank ("FSNB"). Banking activities are conducted through multiple locations within south-central and western Kentucky. Mr. Correll is Chief Executive Officer and Chairman of the Board of Directors of UTG and is currently UTG's largest shareholder through his ownership control of FSF, FSBI and affiliates. At December 31, 2024, Mr. Correll owns or controls directly and indirectly approximately 66% of UTG's outstanding stock.

 At December 31, 2024, the Company had consolidated assets of $477 million, consolidated liabilities of $266 million and total shareholders' equity of $211 million. The Company's consolidated liabilities include policyholder liabilities and accruals of $237 million.

 The Company's principal executive office is located at 205 North Depot Street, Stanford, Kentucky 40484. The Company's telephone number is 217-241-6300.

 The Insurance Company - Universal Guaranty Life Insurance Company is an Ohio domiciled life insurance company and is licensed in 37 states. The Company's dominant business is individual life insurance, which includes the servicing of existing insurance business in-force, the acquisition of other companies in the insurance business, and the administration processing of life insurance business for other entities. The Insurance Company's operations are conducted through its administrative office located in Stanford, Kentucky.

 UG has several wholly-owned and majority-owned subsidiaries. The subsidiaries were formed to hold certain real estate and other investments. The investments were placed into the limited liability companies and partnerships to provide additional protection to the policyholders and to UG.

 Reinsurance - As is customary in the insurance industry, the insurance subsidiary cedes insurance to, and assumes insurance from, other insurance companies under reinsurance agreements. Reinsurance agreements are intended to limit a life insurer's maximum loss on a large or unusually hazardous risk or to obtain a greater diversification of risk. The ceding insurance company remains primarily liable with respect to ceded insurance should any reinsurer be unable to meet the obligations assumed by it. However, it is the practice of insurers to reduce their exposure to loss to the extent that they have been reinsured with other insurance companies. The Company sets a limit on the amount of insurance retained on the life of any one person. The Company will not retain more than $125,000, including accidental death benefits, on any one life.

 The Company's reinsured business is ceded to numerous reinsurers. The Company monitors the solvency of its reinsurers in seeking to minimize the risk of loss in the event of a failure by one of the parties. The Company is primarily liable to the insureds even if the reinsurers are unable to meet their obligations. The primary reinsurers of the Company are large, well-capitalized entities. See Note 4 - Reinsurance in the Notes to the Consolidated Financial Statements for additional information regarding the Company's reinsurance activities.

 Reserves - The applicable insurance laws under which the insurance subsidiary operates require that the insurance company report policy reserves as liabilities to meet future obligations on the policies in-force. These reserves are the amounts which, with the additional premiums to be received and interest thereon compounded annually at certain assumed rates, are calculated in accordance with applicable laws to be sufficient to meet the various policy and contract obligations as they mature. These laws specify that the reserves shall not be less than reserves calculated using certain mortality tables and interest rates.

 The liabilities for traditional life insurance and accident and health insurance policy benefits are computed using a net level method. These liabilities include assumptions as to investment yields, mortality, withdrawals, and other assumptions based on the life insurance subsidiary's experience adjusted to reflect anticipated trends and to include provisions for possible unfavorable deviations. The Company makes these assumptions at the time the contract is issued or, in the case of contracts acquired by purchase, at the purchase date. Future policy benefits for individual life insurance and annuity policies are computed using interest rates ranging from 2% to 6% for life insurance and 2.5% to 7.5% for annuities. Benefit reserves for traditional life insurance policies include certain deferred profits on limited-payment policies that are being recognized in income over the policy term. Policy benefit claims are charged to expense in the period that the claims are incurred. The mortality rate assumptions for policies currently issued by the Company are based on 2017 CSO Ultimate tables. Withdrawal rate assumptions are based upon Linton B or Linton C, which are industry standard actuarial tables for forecasting assumed policy lapse rates.

 Benefit reserves for universal life insurance and interest sensitive life insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. Policy benefits and claims that are charged to expense include benefit claims in excess of related policy account balances.

 Business Strategy

 UG's product portfolio consists of a limited number of life insurance product offerings. All of the products are individual life insurance products, with design variations from each other to provide choices to the customer. These variations generally center around the length of the premium paying period, length of the coverage period and whether the product accumulates cash value or not.

 While the Company does not actively sell any new policies today, it has the following products available for issue:

 Tradition – The Tradition policy is a fixed premium whole life insurance policy. Premiums are level and payable for life. Issue ages are 0-75. The minimum face amount is the greater of $10,000 or the amount of coverage provided by a $100 annual premium.

 Annuity - The annuity product is a 5-year, single premium product. The product offers a guaranteed minimum rate of 1% and the rate can be adjusted at any time. The maximum surrender charge is 5% and subject to waiver for certain qualifying events. The annuity product offers a 10% free withdrawal each year beginning in year 2.

 Business 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 T. 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 UG serves primarily individuals located in three states, the ability of our customers to pay their insurance premiums is impacted by the economic conditions in these areas. As of December 31, 2024 and 2023, respectively, approximately 52% and 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 majority of the investments included in the Consolidated Balance Sheets are owned by UTG's subsidiary, UG. As an insurance company, UG is subject to applicable state insurance laws and regulations, which limit the concentration of investments in any one category or class and further limit the investment in any one issuer. Generally, these limitations are imposed as a percentage of statutory assets or percentage of statutory capital and surplus of each company.

 The Company owns a variety of investments associated with the oil and gas industry. These investments represented approximately 34% and 28% of the Company's total invested assets at December 31, 2024 and 2023, respectively.

 The Company's investment real estate portfolio includes ownership in oil and gas royalties. As of December 31, 2024 and 2023, investments in oil and gas royalties represented 20% and 34%, respectively, of the total investment real estate portfolio.

 See Note 13 - Concentrations of the Consolidated Financial Statements for additional disclosures regarding concentrations that have been identified by the Company.

 Competition

 The insurance business is a highly competitive industry and there are a number of other companies, both stock and mutual, doing business in areas where the Company operates. Many of these competing insurers are larger, have more diversified and established lines of insurance coverage, have substantially greater financial resources and brand recognition, as well as a greater number of agents. Other significant competitive factors in the insurance industry include policyholder benefits, service to policyholders, and premium rates.

 In recent years, the Company has not placed an emphasis on new business production. Costs associated with supporting new business can be significant. Current sales primarily represent sales to existing customers through additional insurance needs or conservation efforts. The Company currently encourages policy retention as opposed to new sales in an attempt to maintain or improve current persistency levels.

 The Company performs administrative work as a third-party administrator ("TPA") for unaffiliated life insurance companies. The Company provides TPA services to insurance companies seeking business process outsourcing solutions. Revenue generated from TPA services is considered insignificant to the overall financial statements.

 Human Capital

 As of December 31, 2024, UTG and its subsidiaries had 40 full-time employees located in Kentucky and Illinois. These individuals are further supported by certain employees of First Southern National Bank (an affiliated entity) through a shared services arrangement. Under this arrangement, the two entities utilize the services of the other's staff in certain instances for the betterment of both entities. Personnel within departments such as accounting, human resources and information technology are shared between the entities. UTG's operations are headquartered in Stanford, Kentucky. The Company respects, values and invites diversity in our team members, customers, suppliers, and community. We seek to recognize the unique contribution each individual brings to our Company, and we are fully committed to supporting a rich culture of diversity as a cornerstone to our success. The Company strives to attract, develop, and retain talented individuals. To attract such individuals, we provide professional and personal development opportunities to team members. In addition, we seek to improve retention, development, and job satisfaction of team members from diverse groups by providing career skills training, peer mentoring and opportunities to interact with senior leaders. We encourage our team members to take initiative, accept challenges and achieve goals, all of which enables our team to work efficiently while providing excellent customer service which supports the Company's strong performance.

 UTG offers competitive compensation and benefits. Our pay for performance compensation philosophy is designed to reward employees for achievement and to align employee interests with the Company's long-term growth. The Company's benefits program includes health care, wellness initiatives, retirement offerings and paid time off.

 Workplace health and safety is a vital aspect of running our business. We believe that safety must always be an integral part of any function or service performed, and the protection of our employees and visitors is our utmost priority. We have a business continuity plan in place that allows us to respond to threats to our health and safety, while ensuring that we can continue to provide quality service to our clients and shareholders at all times.

 Code of Ethics

 The Board of Directors has adopted a code of ethics for directors, officers, and financial personnel.

 Regulation

 Holding Company - States have enacted legislation requiring registration and periodic reporting by insurance companies domiciled within their respective jurisdictions that control or are controlled by other corporations so as to constitute a holding company system. Insurance holding company system statutes and regulations impose various limitations on investments in subsidiaries and may require prior regulatory approval for material transactions between insurers and affiliates and for the payment of certain dividends and other distributions.

 Insurance - Insurance companies are subject to regulation and supervision in the states in which they do business. Generally the state supervisory agencies have broad administrative powers relating to granting and revoking licenses to transact business, licensing agents, approving policy forms, regulating trade practices, approving certain premium rates, setting minimum reserve and loss ratio requirements, determining the form and content of required financial statements, and prescribing the type and amount of investments permitted. Insurance companies are also required to file detailed annual reports with supervisory agencies, and records of their business are subject to examination at any time. Under the rules of the National Association of Insurance Commissioners ("NAIC"), insurance companies are examined periodically by one or more of the supervisory agencies.

 Statutory Restrictions – Restrictions exist on the flow of funds to UTG from its insurance subsidiary. Statutory regulations require life insurance subsidiaries to maintain certain minimum amounts of capital and surplus. UG is required to maintain minimum statutory surplus of $2,500,000. At December 31, 2024, substantially all of the consolidated shareholders' equity represents net assets of UTG's subsidiaries.

 Risk-Based Capital - The NAIC requires a risk-based capital formula be applied to all life and health insurers. The risk-based capital formula is a threshold formula rather than a target capital formula. It is designed only to identify companies that require regulatory attention and is not to be used to rate or rank companies that are adequately capitalized. UTG's insurance subsidiary, UG, is more than adequately capitalized under the risk-based capital formula.

 Guaranty Assessments – State guaranty laws provide for assessments from insurance companies to be placed into a fund which is used, in the event of failure or insolvency of an insurance company, to fulfill the obligations of that company to its policyholders. The amount which a company is assessed is determined according to the extent of these unsatisfied obligations in each state. Assessments are recoverable to a great extent as offsets against state premium taxes.

 Stock Repurchase Program

 The Board of Directors of UTG has authorized the repurchase in the open market or in privately negotiated transactions of UTG's common stock. At a meeting of the Board of Directors in December of 2024, the Board of Directors of UTG authorized the repurchase of up to an additional $2 million of UTG's common stock, for a total repurchase of $24 million of UTG's common stock in the open market or in privately negotiated transactions since inception of the program. 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 2024, the Company repurchased 23,961 shares through the stock repurchase program for $648,152. Through December 31, 2024, UTG has spent $20,839,555 in the acquisition of 1,380,820 shares under this program.

 Transactions with Affiliates

 The articles of incorporation of UG contain the following language under item 12 relative to related party transactions:

 A director shall not be disqualified from-dealing with or contracting with the corporation as vendor, purchaser; employee, agent or otherwise; nor, in the absence of fraud, shall any transaction or contract or act of this corporation be void or in any way affected or invalidated by the fact that any director or any firm of which any director is a member or any corporation of which any director is a shareholder, director or officer is in any way interested in such transaction or contract or act, provided the fact that such director or such firm or such corporation so interested shall be disclosed or shall be known to the Board of Directors or such members thereof as shall be present at any meeting of the Board of Directors at which action upon any such contract or transaction or act shall be taken: nor shall any such director be accountable or responsible to the company for or in respect to such transaction or contract or act of. this corporation or for any gains or profits realized by him by reason of the fact that he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer is interested in such action or contract; and any such director may be counted in determining the existence of a quorum of any meeting of the Board of Directors of the company which shall authorize or take action in respect to any such contract or transaction or act and may vote thereat to authorize, ratify, or approve any such contract or transaction or act, with like force and effect as if he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer were not interested in such transaction or contract or act.

 Note 11 – Related Party Transactions of the Consolidated Financial Statements provides disclosures regarding transactions with related parties.

 Anti-Money Laundering Laws

 A series of laws and regulations beginning with the Bank Secrecy Act of 1970 require financial institutions to prevent, detect, and report illicit or illegal financial activities to the federal government to prevent money laundering, international drug trafficking, and terrorism. Under the US PATRIOT Act of 2001, financial institutions are subject to prohibitions against specified financial transactions and account relationships, requirements regarding the Customer Identification Program, as well as enhanced due diligence and "know your customer" standards in their dealings with high-risk customers, foreign financial institutions, and foreign individuals and entities. These rules also mandate a variety of record keeping, reporting and employee training requirements.

 Data Security

 Increased global IT security threats and more sophisticated and targeted computer crime pose a risk to the security of systems and networks and the confidentiality, availability and integrity of data. Although the Company makes efforts to maintain the security and integrity of the networks and systems, there can be no assurance that the security efforts will be effective or that attempted security breaches or disruptions would not be successful or damaging. In the event a security breach or failure results in the disclosure of sensitive third-party data or the transmission of harmful/malicious code to third parties, the Company could be subject to liability claims. Depending on their nature and scope, such threats also could potentially lead to improper use of our systems and networks, manipulation and destruction of data, loss of trade secrets, system downtimes and operational disruptions, which in turn, could adversely affect our reputation, competitiveness and results of operations.

 Available Information

 The Company files annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports with the Securities and Exchange Commission ("SEC") pursuant to section 13(a) or 15(d) of the Securities and Exchange Act of 1934.

 The SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC on its website at www.sec.gov. The Company's website is www.utgins.com.

 Item 1A. Risk Factors

 As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and Item 10(f)(1) of Regulation S-K, the Company has elected to comply with certain scaled disclosure reporting obligations, and therefore does not have to provide the information required by this item.

 Item 1B. Unresolved Staff Comments

 Not applicable.

 Item 1C. Cybersecurity

 Overall Process

 Cybersecurity risk management is an important and continuously evolving focus for the Company. The Company monitors its information systems to proactively assess, identify, and manage risks from vulnerabilities and assess cybersecurity threats. The Company's process for identifying and assessing material risks from cybersecurity threats operates alongside the Company's broader overall risk assessment process. The policies and procedures are managed by internal and external resources and are believed to be reasonably designed to prevent, detect, and respond to cybersecurity risks and incidents.

 The Company's processes and procedures include regular network, endpoint, and cloud monitoring, vulnerability assessments, and penetration testing. Periodically, the Company engages external partners to conduct periodic audits of our systems, test our systems infrastructure, and suggest improvements. Through these channels and others, we work to proactively identify potential vulnerabilities in our information security system. The assessments, external penetration testing and internal vulnerability analysis follow the standards of the National Institute of Standards and Technology ("NIST") – Guidelines on Network Security Testing.

 The Company provides mandatory initial and annual training thereafter for personnel regarding security awareness as a means to equip the Company's personnel with the understanding of how to properly use and protect the computing resources entrusted to them, and to communicate the Company's information security policies, standards, processes and practices. Training is supplemented by various testing initiatives, including social engineering testing.

 Third-Party Access

 The Company continues to make investments and partner with qualified third parties to enhance its cyber defense capabilities to monitor the evolving spectrum of cybersecurity risks in the operating environment, enhance defenses and improve resiliency against cybersecurity threats. The Company recognizes that we are exposed to cybersecurity threats associated with our use of third-party service providers. To minimize the risk and vulnerabilities to our own systems stemming from such use, we contract with a third-party consulting firm to assist us in identifying known cybersecurity threats and incidents of third-party service providers on a regular basis. In addition, we strive to minimize cybersecurity risks when we first select or renew a vendor by including cybersecurity risk as part of our overall vendor evaluation and due diligence process. A vendor management policy is in place. The vendor management policy calls for the evaluation of risk for each vendor based upon an assessment of the degree to which their relationship could expose the Company to risk in relation to the Company's reliance on the vendor's promise to perform and to protect customer privacy and based on the vendor's fiscal strength.

 Third parties that have access to our systems or customer data must have appropriate technical and organizational security measures and security control principles based on commercially acceptable security standards, and we require third parties in this class to agree by contract to manage their cybersecurity risks.

 Enterprise Risk Management Process Integration

 The Company leverages the expertise of independent consultants and audit firms to evaluate the effectiveness of our risk management systems and address potential cybersecurity incidents efficiently.

 The Company utilizes a combination of third-party information security assessments, key technologies, and ongoing internal and external evaluations to provide a level of protection of non-public personal information, to continually monitor and attempt to safeguard information on its operating systems, in cloud-based solutions, and those of third-party service providers, and to prevent, quickly detect and respond to attacks. The Company also utilizes firewall technology, multi-factor authentication, complex password construction, and a combination of software and third-party monitoring to detect and prevent intrusion, and cybersecurity threats, guard against unauthorized access, and continuously identify and prevent computer viruses on the Company's information solutions.

 Material Incidents

 We are not aware of any risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, that have materially affected or are reasonably likely to materially affect the Company, including our business strategy, results of operations or financial condition. Although we have a robust cybersecurity program that is designed to assess, identify, and manage material risks from cybersecurity threats, we cannot provide absolute surety that we have properly identified or mitigated all vulnerabilities or risks of incidents. We, and the third parties that we engage, are subject to constant and evolving threats of attack and cybersecurity incidents may be more difficult to detect for periods of time. A cybersecurity incident could harm our business strategy, results of operations, financial condition, reputation, and/or subject us to regulatory actions or litigation which may result in fines, judgments or indictments.

 Cybersecurity Governance

 Cybersecurity risk management processes are an integral part of the Company's enterprise risk management. The Company's management team, with assistance from a third-party advisor, is responsible for the day-to-day management of cybersecurity risks faced by the Company. The Board of Directors oversees the risk management policies of the Company and is responsible for the periodic review and approval of the risk management policies.

 As part of its oversight of cybersecurity and informational security risk, the Board of Directors periodically receives updates on the results of third-party testing of the systems, processes, and procedures. The Board of Directors also receives periodic updates on cybersecurity and information security risks, industry trends, and best practices. The Company has established written policies and procedures to ensure that significant cybersecurity incidents are immediately investigated, addressed through the coordination of various internal departments, and publicly reported (to the extent required by applicable rules and regulations).

 Item 2. Properties

 The Company rents a portion of the first floor and second floor of an 8,000 square foot, two-story office building, located in Stanford, KY. The first floor of the building is occupied by UTG and FSNB employees that are included in the shared services agreement between the two entities. The second floor is occupied by the customer service call centers for both UTG and FSNB employees. The building is owned by FSNB and UTG pays $2,000 per month in rent to FSNB for the portion of the building occupied by UTG employees. The Company paid rent of $24,000 to FSNB in 2024 and 2023.

 Item 3. Legal Proceedings

 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 these matters will not have a material adverse effect on the Company's results of operations or financial position.

 Item 4. Mine Safety Disclosures

 Not applicable.

 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

 The Registrant is a public company whose common stock is traded in the over-the-counter market. Over-the-counter quotations can be obtained using the UTGN stock symbol.

 The following table shows the high and low closing prices for each quarterly period during the past two years, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions. The quotations below were acquired from the Yahoo Finance web site, which also provides quotes for over-the-counter traded securities such as UTG.

 2024

 2023

 Period

 High

 Low

 High

 Low

 First quarter

 32.00

 30.01

 26.75

 24.18

 Second quarter

 30.54

 29.00

 38.63

 26.00

 Third quarter

 29.08

 25.75

 38.63

 29.60

 Fourth quarter

 29.50

 24.81

 34.00

 30.01

 UTG has not declared or paid any dividends on its common stock in the past two fiscal years, and has no current plans to pay dividends on its common stock as it intends to retain all earnings for investment in and growth of the Company's business. See Note 9 – Shareholders' Equity in the Notes to the Consolidated Financial Statements for information regarding dividend restrictions, including applicable restrictions on the ability of the Company's life insurance subsidiary to pay dividends.

 As of January 31, 2025 there were 3,988 record holders of UTG common stock.

 Purchases of Equity Securities

 The following table provides information with respect to purchases we made of our common stock during the three months ended December 31, 2024 and total repurchases:

 Total Number of Shares Purchased

 Average Price Paid Per Share

 Total Number of Shares Purchased as Part of Publicly Announced Program

 Maximum Number of Shares That May Yet Be Purchased Under the Program

 Approximate Dollar Value That May Yet Be Purchased Under the Program

 Oct. 1 through Oct. 31, 2024

 12,786

 $

 25.09

 12,786

 N/A

 $

 1,161,029

 Nov. 1 through Nov. 30, 2024

 $

 N/A

 $

 1,161,029

 Dec. 1 through Dec. 31, 2024

 $

 27.82

 N/A

 $

 3,160,445

 Total

 12,807

 12,807

 The Board of Directors of UTG has authorized the repurchase in the open market or in privately negotiated transactions of UTG's common stock. At a meeting of the Board of Directors in December of 2024, the Board of Directors of UTG authorized the repurchase of up to an additional $2 million of UTG's common stock, for a total repurchase of $24 million of UTG's common stock in the open market or in privately negotiated transactions since inception of the program. 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 2024, the Company repurchased 23,961 shares through the stock repurchase program for $648,152. Through December 31, 2024, UTG has spent $20,839,555 in the acquisition of 1,380,820 shares under this program.

 Stock Performance Graph

 As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and Item 10(f)(1) of Regulation S-K, the Company has elected to comply with certain scaled disclosure reporting obligations, and therefore does not have to provide the information required by this item.

 Item 6. Reserved

 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

 The following is Management's discussion and analysis of the financial condition and results of operations of UTG, Inc. and its subsidiaries (collectively with the Parent, the "Company") for the years ended December 31, 2024 and 2023. This discussion should be read in conjunction with the consolidated financial statements and notes thereto included elsewhere in this report.

 Cautionary Statement Regarding Forward-Looking Statements

 This report on Form 10-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are intended to be covered by the safe harbors created by those laws. We have based our forward-looking statements on our current expectations and projections about future events. Our forward-looking statements include information about possible or assumed future results of operations. All statements, other than statements of historical facts, included or incorporated by reference in this report that address activities, events or developments that we expect or anticipate may occur in the future, including such things as the growth of our business and operations, our business strategy, competitive strengths, goals, plans, future capital expenditures and references to future successes may be considered forward-looking statements. Also, when we use words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "probably," or similar expressions, we are making forward-looking statements.

 Numerous risks and uncertainties may impact the matters addressed by our forward-looking statements, any of which could negatively and materially affect our future financial results and performance.

 Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and, therefore, the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements that are included in this report, our inclusion of this information is not a representation by us or any other person that our objectives and plans will be achieved. In light of these risks, uncertainties and assumptions, any forward-looking event discussed in this report may not occur. Our forward-looking statements speak only as of the date made, and we undertake no obligation to update or review any forward-looking statement, whether as a result of new information, future events or other developments, unless the securities laws require us to do so.

 Overview

 UTG, Inc., a Delaware corporation, is a life insurance holding company. The Company's dominant business is individual life insurance, which includes the servicing of existing insurance policies in-force, the acquisition of other companies in the life insurance business, the acquisition of blocks of business and the administration and processing of life insurance business for other entities.

 UTG has a strong philanthropic program. The Company generally allocates a portion of its earnings to be used for its philanthropic efforts primarily targeted to Christ-centered organizations or organizations that help the weak or poor. The Company also encourages its staff to be involved on a personal level through monetary giving, volunteerism and use of their talents to assist those less fortunate than themselves. Through these efforts, the Company hopes to make a positive difference in the local community, state, nation, and world.

 Critical Accounting Policies

 We have identified the accounting policies below as critical to the understanding of our results of operations and our financial condition. The application of these critical accounting policies in preparing our consolidated financial statements requires Management to use significant judgments and estimates concerning future results or other developments including the likelihood, timing or amount of one or more future transactions or amounts. Actual results may differ from these estimates under different assumptions or conditions. On an on-going basis, we evaluate our estimates, assumptions and judgments based upon historical experience and various other information that we believe to be reasonable under the circumstances. For a detailed discussion of other significant accounting policies, see Note 1 – Summary of Significant Accounting Policies in the Notes to the Consolidated Financial Statements.

 Future Policy Benefits – Because of the long-term nature of insurance contracts, the insurance company is liable for policy benefit payments that will be made in the future. The liability for future policy benefits is determined by standard actuarial procedures common to the life insurance industry. The accounting policies for determining this liability are disclosed in Note 1 – Summary of Significant Accounting Policies in the Notes to the Consolidated Financial Statements.

 Valuation of Securities – The Company's investment portfolio consists of fixed maturities, equity securities, mortgage loans, notes receivable and real estate to provide funding of future policy contractual obligations.

 Fixed Maturity Investments – The Company classifies its fixed maturity investments, which include bonds, as available for sale. Investments classified as available for sale are carried at fair value with unrealized gains and losses, net of deferred taxes, reflected directly in accumulated other comprehensive income. Premiums and discounts on debt securities purchased at other than par value are amortized and accreted, respectively, to interest income in the Consolidated Statements of Operations, using the constant yield method over the period to maturity. While the available-for-sale fixed maturity securities are generally expected to be held to maturity, they are classified as available-for-sale and are sold periodically to manage risk. Although all of the fixed maturity securities are classified as available-for-sale, the Company has the ability and intent to hold the securities until maturity. The Company has an evaluation process in place to monitor fixed maturity securities available for sale for credit loss. See Note 2 - Investments for further disclosure of the allowance for credit loss ("ACL").

 Equity Securities at Fair Value – Investments in equity securities, which include common and preferred stocks, are reported at fair value with unrealized gains and losses reported as a component of net income (loss).

 Equity Securities at Cost – These investments 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.

 Mortgage Loans on Real Estate – Mortgage loans on real estate are reported at their unpaid principal balances, adjusted for amortization of premium or discount and valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. The Company recognizes an ACL in earnings at time of purchase or origination based on expected lifetime credit loss on mortgage loans carried at amortized cost, in an amount that represents the portion of the amortized cost basis of such financing receivables, that the Company does not expect to collect, resulting in mortgage loans being presented at the net amount expected to be collected. See Note 2 - Investments for further discussion of the ACL.

 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. Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition, for a reasonable price, in comparison to its estimated fair value, is classified as held-for-sale. Real estate held-for-sale is stated at lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated.

 Notes Receivable – Notes receivable are reported at their unpaid principal balances, adjusted for valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. 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. The Company recognizes an ACL in earnings at time of purchase or origination based on expected lifetime credit loss on notes receivable carried at amortized cost, in an amount that represents the portion of the amortized cost basis of such financing receivables, that the Company does not expect to collect, resulting in notes receivable being presented at the net amount expected to be collected. See Note 2 - Investments for further discussion of the ACL.

 Deferred Income Taxes – The provision for deferred income taxes is based on the asset and liability method of accounting for income taxes. Under this method, deferred income taxes are recognized by applying enacted statutory tax rates to temporary differences between amounts reported in the Consolidated Financial Statements and the tax basis of existing assets and liabilities. A valuation allowance is recognized for the portion of deferred tax assets that, in Management's judgment, is not likely to be realized.

 Results of Operations

 On a consolidated basis, the Company had net income attributable to common shareholders of approximately $49.3 million and $2.7 million in 2024 and 2023, respectively. In 2024, income before income taxes was approximately $62.2 million compared to $2.8 million in 2023. Total revenues were approximately $84.9 million in 2024 and $26.3 million in 2023.

 One-time events, primarily reflected in realized gains, comprise a substantial portion of the net income and revenue reported by the Company during 2024 and 2023. The magnitude of realized investment gains and losses in a given year is a function of the timing of trades of investments relative to the markets themselves as well as the recognition of any impairments on investments. Future earnings will be significantly negatively impacted should earnings from these one-time items not be realizable in a future period. While Management believes there remain additional investments with such one-time earnings, when or if realized remains uncertain.

 The Company reported a change in fair value of equity securities of approximately $56.8 million and $(2.9) million for the years ended December 31, 2024 and 2023, respectively. This line item is material to the results reported in the Consolidated Statements of Operations. This line item can also be extremely volatile, reflecting changes in the stock market. These results can be material and volatile, most of the equity holdings of the Company were acquired with a long-term view, thus making these intermediate changes in value of less concern to Management. Management monitors its equity holdings looking more at the specific entity and market it is in relative to performance and less to changes due to general market swings that occur over the holding period of the investment.

 Total benefits and other expenses paid in 2024 were approximately $22.7 million compared to $23.5 million in 2023.

 In summary, the Company's basis for future revenue is expected to come from the following primary sources: Conservation of business currently in-force, the maximization of investment earnings and the acquisition of other companies or policy blocks in the life insurance business. Management has placed a significant emphasis on the development of these revenue sources to enhance these opportunities.

 Revenues

 Premiums and policy fee revenues, net of reinsurance premiums and policy fees, declined approximately 1% when comparing 2024 to 2023. The Company writes very little new business. Unless the Company acquires a new company or a block of in-force business, Management expects premium revenue to continue to decline on the existing block of business at a rate consistent with prior experience. The Company's average persistency rate for all policies in-force for 2024 and 2023 was approximately 96.6% and 96.7%, respectively. Persistency is a measure of insurance in-force retained in relation to the previous year. A positive impact on premium income is the consistency of the lapse percentage. Persistency of the business has been consistent over the last several years. The lapse percentages were 3.4% and 3.3% for 2024 and 2023, respectively.

 The following table summarizes the Company's investment performance for the years ended December 31:

 2024

 2023

 Net investment income

 $

 16,093,592

 $

 Net realized investment gains

 7,356,275

 9,463,843

 (2,856,543

)

 The following table reflects net investment income of the Company for the years ended December 31:

 2024

 2023

 Fixed maturities, available for sale

 $

 2,652,249

 $

 2,932,220

 Fixed maturities, held to maturity

 167,536

 165,137

 4,233,674

 3,708,633

 952,084

 1,115,145

 8,958,452

 8,318,201

 1,341,095

 1,371,973

 412,701

 433,556

 Cash and cash equivalents

 1,668,712

 1,007,840

 661,962

 529,125

 Total consolidated investment income

 21,048,465

 19,581,830

 Investment expenses

 (4,954,873

)

 (5,528,302

)

 Consolidated net investment income

 $

 16,093,592

 $

 Net investment income represented 74% and 71% of the Company's revenue before net investment gains (losses) as of December 31, 2024 and 2023, respectively. Income from the fixed maturities, equity securities, and real estate portfolios represented 76% and 77%, respectively, of the gross investment income reported by the Company for 2024 and 2023.

 Beginning in March 2022 and ending in July 2023, the Federal Open Market Committee ("FOMC") aggressively raised interest rates to fight inflation. During this time period, the interest rate environment experienced eleven rate increases totaling 5.50%, including four increases during the first part of 2023. While these actions had a negative impact on some of our investments currently owned, this has also allowed for better yields on cash balances and recent investments acquired as investments mature. In the second half of 2024, the FOMC cut the interest rate 3 times for a total of 1% making the current rate 4.50%. The Company anticipates a similar decline in earnings on cash balances and any new investments that are acquired as investments mature.

 Earnings from the fixed maturities investment portfolio represented 17% and 22% of the total consolidated net investment income for the years ended December 31, 2024 and 2023, respectively. When comparing earnings from the fixed maturities portfolio for the years ended December 31, 2024 and 2023 income was down approximately 9%. The decrease is due to the maturity of certain fixed maturity investments during 2024. The Company's investment in fixed maturities continues to decline as we have, for the most part, chosen not to reinvest in fixed maturities. As of December 31, 2024 and 2023, fixed maturities represented 19% and 22%, respectively, of the total investments owned by the Company.

 Earnings from the equity securities portfolio represented 26% of the total consolidated net investment income for the years ended December 31, 2024 and 2023, respectively. Earnings were up approximately $525,000 when comparing current year and prior year results. The 2024 increase in investment income from equity securities was mainly the result of increased dividends from oil and gas equity securities.

 Earnings from the real estate portfolio represented 56% and 59% of the total consolidated net investment income for the years ended December 31, 2024 and 2023, respectively. Earnings were up about $640,000 when comparing current year and prior year results.

 During 2024, the Company received $1.3 million of income from timber sales as compared to $550,000 in the prior year. Included in the 2024 and 2023 real estate income is approximately $3.6 million and $4.2 million of income from oil and gas royalty distributions, respectively. Income from oil and gas royalties represented approximately 41% and 50% of the real estate income for 2024 and 2023, respectively.

 The earnings reported by the cash and short term investments represented 14% and 11% of the total consolidated net investment income reported by the Company during 2024 and 2023. The increase in earnings in this category is the result of a combination of higher cash and short term holdings in 2024 and from increased interest rates received from banks and other deposit institutions due to FOMC rate changes. With the three rate declines in 2024 moving it down 1.00%, the Company anticipates experiencing a similar decline in earnings on cash balances going forward.

 The following table reflects net realized investment gains (losses) for the years ended December 31:

 2024

 2023

 Fixed maturities available for sale

 $

 $

 58,333

 7,190,262

 812,035

 166,020

 8,577,155

 Short term investments

 (7

)

 16,320

 Equity securities - OTTI

 (900,149

)

 Consolidated net realized investment gains

 6,456,126

 9,463,843

 Change in fair value of equity securities - held

 52,025,699

 (4,900,829

)

 Change in fair value of equity securities - sold

 4,814,052

 2,044,286

 Total change in fair value of equity securities

 (2,856,543

)

 Net investment gains

 $

 63,295,877

 $

 6,607,300

 Realized investment gains are the result of one-time events and are expected to vary from year to year.

 Realized gains and losses from equity securities represent the difference between the fair value at the beginning of the reporting period and the fair value at the time of sale. The total gains from equity securities sold in 2024 were approximately $12.0 million, of which $7.2 million is being reported as gains from equity securities and $4.8 million is reported as a component of the change in the fair value of equity securities. The gains were the result of selling several equity securities holdings.

 The total gains from equity securities sold in 2023 were approximately $2.9 million, of which $812,035 is being reported as gains from equity securities and $2.0 million is reported as a component of the change in the fair value of equity securities. The gains were the result of selling one large equity securities holding and several other small holdings.

 The Company reported a change in fair value of equity securities of approximately $56.8 million and $(2.9) million for the years ended December 31, 2024 and 2023, respectively. This line item is material to the results reported in the Consolidated Statements of Operations, and this line item can also be extremely volatile. While these results can be material and volatile, most of the equity holdings of the Company were acquired with a long-term view, thus making these intermediate changes in value less of a concern to Management. Management monitors its equity holdings looking more at the specific entity and market it is in relative to performance and less to changes due to general market swings that occur over the holding period of the investment.

 Equity investments, primarily in the oil and gas industry, represent almost all the unrealized gains reported in 2024 and unrealized losses reported in 2023. Periodic pull backs and rallies are expected by management. Management believes its current equity investments continue to be solid investments for the Company and have further growth potential; however, changes in market conditions could cause volatility in market prices. In 2023, the Company saw negative results in its equity investments. However, most all the negative results occurred in the first quarter of 2023.

 In 2024, the Company recognized an other-than-temporary impairment of $900,149 on an equity security. The other-than-temporary impairment recognized during 2024 was taken as a result of Management's assessment and determination of value of the investment. The investment was written down to better reflect its current expected value.

 During 2024, the Company sold several real estate land parcels in Kentucky and one small parcel in Illinois which makes up all of the realized gains in Real Estate. During 2023, the Company sold several smaller real estate land parcels located in Kentucky producing realized gains of approximately $940,000. Additionally, during third quarter 2023, the Company sold a large land parcel in West Virginia realizing a gain of approximately $7.6 million.

 In summary, the Company's basis for future revenue is expected to come from the following primary sources: Conservation of business currently in-force, the maximization of investment earnings and the acquisition of other companies or policy blocks in the life insurance business. Management has placed a significant emphasis on the development of these revenue sources to enhance these opportunities.

 Expenses

 The Company reported total benefits and other expenses of approximately $22.7 million and $23.5 million for the years ended December 31, 2024 and 2023, respectively. Benefits, claims and settlement expenses represented approximately 56% and 62% of the Company's total expenses for 2024 and 2023, respectively. The other major expense category of the Company is operating expenses, which represented 42% and 36% of the Company's total expenses for 2024 and 2023, respectively.

 Life benefits, claims and settlement expenses, net of reinsurance benefits, were down approximately 12% when comparing 2024 and 2023. Policy claims vary from year to year and therefore, fluctuations in mortality are to be expected and are not considered unusual by Management.

 Changes in policyholder reserves, or future policy benefits, also impact this line item. Reserves are calculated on an individual policy basis and generally increase over the life of the policy as a result of additional premium payments and acknowledgment of increased risk as the insured continues to age.

 The short-term impact of policy surrenders is negligible since a reserve for future policy benefits payable is held which is, at a minimum, equal to and generally greater than the cash surrender value of a policy. The benefit of fewer policy surrenders is primarily received over a longer time period through the retention of the Company's asset base.

 Overall, the Company's persistency for business in-force remained relatively steady at 96.6% in 2024 compared to 96.7% in 2023. The Company's actual experience for earned interest, persistency, and mortality varies from the assumptions applied to pricing and for determining premiums. Accordingly, differences between the Company's actual experience and those assumptions applied may affect the profitability of the Company. Interest crediting rates on adjustable rate policies have been reduced to their guaranteed minimum rates, and as such, cannot be lowered any further.

 Operating expenses increased approximately 13% or $1.1 million in 2024 as compared to that of the same period in 2023. When comparing 2024 and 2023 expenses, there is one expense item that comprises the majority of the increase, charitable contributions. Charitable expense was approximately $690,000 more when comparing 2024 and 2023. Charitable expense fluctuates based on reported taxable income of the Company. Expenses in the remaining categories were comparable between years.

 As mentioned above in the Overview section of the Management Discussion and Analysis, UTG has a strong philanthropic program. The Company generally allocates a portion of its earnings to be used for its philanthropic efforts primarily targeted to Christ-centered organizations or organizations that help the weak or poor. Charitable contributions made by the Company are expected to vary from year to year depending on the earnings of the Company. In 2024, the Company paid approximately $1.3 million in charitable donations as compared to $582,000 in 2023.

 Net amortization of cost of insurance acquired decreased approximately 4% when comparing current and prior year activity. Cost of insurance acquired is established when an insurance company is acquired or when the Company acquires a block of in-force business. The Company assigns a portion of its cost to the right to receive future profits from insurance contracts existing at the date of the acquisition. Cost of insurance acquired is amortized with interest in relation to expected future profits, including direct charge-offs for any excess of the unamortized asset over the projected future profits. The interest rates may vary due to risk analysis performed at the time of acquisition on the business acquired. The Company utilizes a 12% discount rate on the remaining unamortized business. The amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised. Amortization of cost of insurance acquired is particularly sensitive to changes in interest rate spreads and persistency of certain blocks of insurance in-force. This expense is expected to decrease unless the Company acquires a new block of business.

 Management continues to place significant emphasis on expense monitoring and cost containment. Maintaining administrative efficiencies directly impacts net income.

 Financial Condition

 Investment Information

 Investments are the largest asset group of the Company. 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.

 The following table reflects, by investment category, the investments held by the Company as of December 31:

 2024

 As a % of Total Investments

 As a % of Total Assets

 Fixed maturities, available for sale

 $

 %

 %

 Fixed maturities, held to maturity

 %

 %

 234,506,227

 %

 %

 %

 %

 %

 %

 28,615,602

 %

 %

 12,672,175

 %

 %

 %

 %

 1,954,687

 %

 %

 Total investments

 $

 399,902,716

 %

 %

 2023

 As a % of Total Investments

 As a % of Total Assets

 Fixed maturities, available for sale

 $

 %

 %

 Fixed maturities, held to maturity

 %

 %

 178,625,485

 %

 %

 %

 %

 %

 %

 21,975,120

 %

 %

 14,009,225

 %

 %

 %

 %

 29,132,236

 %

 %

 Total investments

 $

 364,891,021

 %

 %

 The Company's investments are generally managed to match related insurance and policyholder liabilities. The comparison of investment return with insurance or investment product crediting rates establishes an interest spread. Interest crediting rates on adjustable rate policies have been reduced to their guaranteed minimum rates, and as such, cannot be lowered any further. Policy interest crediting rate changes and expense load changes become effective on an individual policy basis on the next policy anniversary. Therefore, it takes a full year from the time the change was determined for the full impact of such change to be realized. If interest rates decline in the future, the Company will not be able to lower rates and both net investment income and net income will be impacted negatively.

 The Company's total investments represented 84% and 83% of the Company's total assets as of December 31, 2024 and 2023, respectively. Fixed maturities and equity securities, at fair value, consistently represented a substantial portion, 79% and 73%, of the total investments during 2024 and 2023, respectively. The overall investment mix, as a percentage of total investments, remained fairly consistent when comparing the respective investments held as of December 31, 2024 and 2023.

 As of December 31, 2024, the carrying value of fixed maturity securities in default as to principal or interest was immaterial in the context of consolidated assets, shareholders' equity or results from operations. To provide additional flexibility and liquidity, the Company has identified all fixed maturity securities as "investments available-for-sale". Investments available-for-sale are carried at market value, with changes in market value charged directly to the other comprehensive income component of shareholders' equity. Changes in the market value of available for sale securities resulted in net unrealized gains (losses) of approximately $(222,000) and $1.6 million as of December 31, 2024 and 2023, respectively. The variance in the net unrealized gains and losses is the result of normal market fluctuations mainly related to changes in interest rates in the marketplace.

 Management continues to view the Company's investment portfolio with utmost priority. Significant time has been spent internally researching the Company's risk and communicating with outside investment advisors about the current investment environment and ways to ensure preservation of capital and mitigate losses. Management has put extensive efforts into evaluating the investment holdings. Additionally, members of the Company's Board of Directors and investment committee have been solicited for advice and provided with information. Management reviews the Company's entire portfolio on a security level basis to be sure all understand our holdings, potential risks and underlying credit supporting the investments. Management intends to continue its close monitoring of its bond holdings and other investments for possible deterioration or market condition changes. Future events may result in Management's determination that certain current investment holdings may need to be sold which could result in gains or losses in future periods.

 Liquidity

 Liquidity provides the Company with the ability to meet on demand the cash commitments required by its business operations and financial obligations. The Company's liquidity is primarily derived from cash balances, a portfolio of marketable securities and line of credit facilities. The Company has two principal needs for cash – the insurance company's contractual obligations to policyholders and the payment of operating expenses.

 Parent Company Liquidity

 UTG is a holding company that has no day-to-day operations of its own. Cash flows from UTG's insurance subsidiary, UG, are used to pay costs associated with maintaining the Company in good standing with states in which it does business and purchasing outstanding shares of UTG stock. UTG's cash flow is dependent on management fees received from its insurance subsidiary, stockholder dividends from its subsidiary and earnings received on cash balances. As of December 31, 2024 and 2023, substantially all of the consolidated shareholders' equity represents net assets of its subsidiaries. In 2024, the Parent company received no dividends from its insurance subsidiary and received $2 million in 2023. Certain restrictions exist on the payment of dividends from the insurance subsidiary to the Parent company. For further information regarding the restrictions on the payment of dividends by the insurance subsidiary, see Note 9 – Shareholders' Equity in the Notes to the Consolidated Financial Statements. Although these restrictions exist, dividend availability from the insurance subsidiary has historically been sufficient to meet the cash flow needs of the Parent company.

 Insurance Subsidiary Liquidity

 Sources of cash flows for the insurance subsidiary primarily consist of premium and investment income. Cash outflows from operations include policy benefit payments, administrative expenses, taxes and dividends to the Parent company.

 Short-Term Borrowings

 During October of 2024, the Federal Home Loan Bank approved the renewal of UG's Cash Management Advance Application ("CMA"). The CMA is a source of overnight liquidity utilized to address the day-to-day cash needs of a Company. 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 $21.4 million as of December 31, 2024. During the fourth quarter of 2023, the Company borrowed $19 million and planned to utilize the funds for investing activities. During the first quarter of 2024, the Company repaid the entire outstanding principal balance.

 Consolidated Liquidity

 Cash used in operating activities was approximately $1.6 million and $9.8 million in 2024 and 2023, respectively. Sources of operating cash flows of the Company, as with most insurance entities, is comprised primarily of premiums received on life insurance products and income earned on investments. Uses of operating cash flows consist primarily of payments of benefits to policyholders and beneficiaries and operating expenses. The Company has not marketed any significant new products for several years. As such, premium revenues continue to decline with the exception of fluctuations in reinsurance premiums. Management anticipates future cash flows from operations to remain similar to historic trends.

 During 2024 and 2023, the Company's investing activities provided net cash of approximately $26.5 million and $6.9 million, respectively. The Company recognized proceeds of approximately $71.8 million and $79.6 million from investments sold and matured in 2024 and 2023, respectively. The Company used approximately $(45.3) million and $(72.7) million to acquire investments during 2024 and 2023, respectively. The net cash provided by investing activities is expected to vary from year to year depending on market conditions and management's ability to find and negotiate favorable investment contracts.

 Net cash used in financing activities was approximately $(20.9) million and $(1.2) million during 2024 and 2023, respectively. As of December 31, 2024 and 2023, the Company had $0 and $19 million, respectively, in debt outstanding with third parties.

 The Company had cash and cash equivalents of approximately $45.3 million and $41.2 million as of December 31, 2024 and 2023, respectively. The Company has a portfolio of marketable fixed maturity securities that could be sold, if an unexpected event were to occur. These securities had a fair value of approximately $76.5 million and $79.1 million at December 31, 2024 and 2023, respectively. However, the strong cash flows from investing activities, investment maturities and the availability of the line of credit facilities make it unlikely that the Company would need to sell securities for liquidity purposes. See Note 2 – Investments in the Notes to the Consolidated Financial Statements for detailed disclosures regarding the Company's investment portfolio.

 Management believes the overall sources of liquidity available will be sufficient to satisfy its financial obligations.

 Capital Resources

 The Company's capital structure consists of available short-term debt, long-term debt and shareholders' equity. A complete analysis and description of the short-term and long-term debt issues available as of December 31, 2024 and 2023 are presented in Note 7 – Credit Arrangements in the Notes to the Consolidated Financial Statements.

 The Company had $0 and $19 million of debt outstanding as of December 31, 2024 and 2023, respectively.

 The NAIC's risk-based capital requirements require insurance companies to calculate and report information under a risk-based capital formula. The risk-based capital (RBC) formula measures the adequacy of statutory capital and surplus in relation to investment and insurance risks such as asset quality, mortality and morbidity, asset and liability matching and other business factors. The RBC formula is used by state insurance regulators as an early warning tool to identify, for the purpose of initiating regulatory action, insurance companies that potentially are inadequately capitalized.

 At December 31, 20244, UG has a ratio of approximately 4.90, which is 490% of the authorized control level. Accordingly, the Company meets the RBC requirements.

 The Board of Directors of UTG has authorized the repurchase in the open market or in privately negotiated transactions of UTG's common stock. At a meeting of the Board of Directors in December of 2024, the Board of Directors of UTG authorized the repurchase of up to an additional $2 million of UTG's common stock, for a total repurchase of $24 million of UTG's common stock in the open market or in privately negotiated transactions since inception of the program. 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 20244, the Company repurchased 23,961 shares through the stock repurchase program for $648,152. Through December 31, 20244, UTG has spent $20,839,555 in the acquisition of 1,380,820 shares under this program.

 Total shareholders' equity was approximately $210.6 million and $161.7 million as of December 31, 2024 and 2023, respectively. Total shareholders' equity increased approximately 30% in 2024 as compared to 2023. The increase is primarily attributable to net income from operations. As of December 31, 2024 and 2023, the Company reported accumulated other comprehensive loss of approximately $(2.9) million and $(2.7) million, respectively.

 New Accounting Pronouncements

 See Note 1 – Summary of Significant Account Policies in the Notes to the Consolidated Financial Statements for information regarding new accounting pronouncements.

 Off-Balance Sheet Arrangements

 The Company does not have any off-balance sheet arrangements, financing activities or other relationships with unconsolidated entities or other persons.

 Contractual Obligations

 As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and Item 10(f)(1) of Regulation S-K, the Company has elected to comply with certain scaled disclosure reporting obligations, and therefore does not have to provide the information required by this item.

 Item 7A. Quantitative and Qualitative Disclosures About Market Risk

 As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and Item 10(f)(1) of Regulation S-K, the Company has elected to comply with certain scaled disclosure reporting obligations, and therefore does not have to provide the information required by this item.

 Item 8. Financial Statements and Supplementary Data

 Index to Financial Statements

 Page No.

 UTG, Inc. and Consolidated Subsidiaries

 Report of Independent Registered Public Accounting Firm (PCAOB ID # 718)

 Consolidated Balance Sheets

 Consolidated Statements of Operations

 Consolidated Statements of Comprehensive Income (Loss)

 Consolidated Statements of Shareholders' Equity

 Consolidated Statements of Cash Flows

 Notes to Consolidated Financial Statements

 Report of Independent Registered Public Accounting Firm

 To the Board of Directors and

 Shareholders of UTG, Inc. and Subsidiaries

 Opinion on the Consolidated Financial Statements

 We have audited the accompanying consolidated balance sheets of UTG, Inc. and Subsidiaries (the Company) as of and 2023, and the related consolidated statements of operations, comprehensive income (loss),, shareholders' equity, and cash flows for the years then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

 Basis for Opinion

 These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

 Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 Critical Audit Matters

 The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

 Classification, Valuation and Disclosure of Investments in Equity Securities – Refer to Notes 1 and 3

 Critical Audit Matter Description

 The Company invests in numerous equity securities including common stocks, limited partnerships and limited liability companies that are not publicly traded and may not have readily determinable fair values. These investments require a detailed analysis of the type of investment on an investment by investment basis to determine the appropriate classification of the investment as to whether the investment should be reported using the cost basis, the equity method or whether the investment should be reported at fair value based on the accounting literature. Since these investments are not publicly traded, the Company employs various methods in determining the appropriate valuation of the investments reported at fair value. These methods at times include utilizing industry specialists in assisting them in determining the fair value method and at other times, management is able to utilize the practical expedient of net asset value when the investment is an investment company. These methods at times depend on key inputs and assumptions crucial to determining fair value that may not be observable requiring managerial judgment and estimation. Last, the disclosure of this information in the Company's financial statements can be challenging to management due to the volume of data and information needed to appropriately provide the necessary and generally accepted information for a reader to understand the classification and valuation decisions made by management.

 The audit of these equity investments requires a substantial amount of time and effort in order to obtain the necessary audit evidence and opine on management's classification, valuation and disclosure of the investments.

 How the Critical Audit Matter was Addressed in the Audit

 Our audit procedures related to the equity investments that are not publicly traded included the following procedures, among others:

 •

 We gained an understanding of the processes and procedures utilized by management to classify these investments and determine their values

 •

 We obtained documentation supporting the investments including purchase agreements, partnership agreements and limited liability company operating agreements as appropriate for each investment

 •

 We discussed and documented management's determination of the classification of each investment as to cost method, equity method or fair value, including whether management asserted significant influence over operations of the investment

 •

 We obtained confirmation of the investment from investment entity personnel, and if appropriate, audited financial statements of the investment entity

 •

 We obtained and discussed valuation information from industry specialists when appropriate and when utilized by management in determining the fair value of an equity investment and considered and evaluated the valuation information provided by the specialist in concluding on the fair value estimated by management for financial reporting

 •

 For a selection of equity investments, we recalculated the Company's valuation based on information obtained via confirmation, agreements and/or valuation specialists

 •

 We obtained and accumulated detailed information on the investments provided by management for disclosure of these investments in the financial statements and agreed this information to the documents obtained as a part of our audit procedures for purposes of classification and valuation

 Future Policy Benefits – Refer to Note 1

 Critical Audit Matter Description

 Liabilities for amounts payable under the Company's life insurance products are recorded as future policy benefits liabilities. Such liabilities are established based on actuarial assumptions at the time policies are issued, or in the case of contracts acquired by purchase, at the purchase date. The liabilities for traditional life insurance and accident and health insurance policy benefits are computed using a net level method. These liabilities include assumptions as to investment yields, mortality, withdrawals, and other assumptions based on the life insurance subsidiary's experience adjusted to reflect anticipated trends and to include provisions for possible unfavorable deviations. The Company's future policy benefits liability was $ 218.3 million as of December 31, 2024.

 The audit of future policy benefits requires the utilization of an actuarial specialist when considering the complex methods, assumptions and models management utilizes in determining the value of these liabilities.

 How the Critical Audit Matter was Addressed in the Audit

 Our audit procedures related to the liability for future policy benefits included the following procedures, among others:

 •

 We gained an understanding of the processes utilized and controls implemented in determining the valuation of future policy benefits

 •

 We tested the underlying data used by management in developing the valuation and the completeness and accuracy of the data

 •

 We performed various analytical procedures

 •

 We obtained an opinion from management's actuarial specialist confirming that the actuarial assumptions and methodologies used were reasonable and in accordance with presently accepted actuarial standards

 •

 We confirmed the independence of management's consulting actuarial specialist and reviewed her qualifications as appointed consulting actuary

 We have served as the Company's auditor since 2023.

 /s/ Kerber, Eck & Braeckel LLP

 Springfield, Illinois

 March 25, 2025

 Consolidated Balance Sheets

 As of December 31, 2024 and 2023

 ASSETS

 2024

 2023

 Investments:

 Investments available for sale:

 Fixed maturities, at fair value (amortized cost $ 80,204,532 and $ 82,493,075)

 $

 $

 Held to maturity redeemable preferred stock, at amortized cost

 Equity securities, at fair value (cost $ 117,599,471 and $ 113,744,429)

 234,506,227

 178,625,485

 Mortgage loans on real estate at amortized cost
 (net of credit loss reserve of $ 235,000 and $ 274,000)

 Investment real estate, net

 28,615,602

 21,975,120

 Notes receivable (net of credit loss reserve of $ 195,000 and $ 250,000)

 12,672,175

 14,009,225

 1,954,687

 29,132,236

 Total investments

 399,902,716

 364,891,021

 Cash and cash equivalents

 45,263,967

 41,185,196

 Accrued investment income

 1,264,416

 2,001,064

 Reinsurance receivables:

 Future policy benefits

 23,525,945

 23,847,623

 Policy claims and other benefits

 4,480,091

 4,734,575

 Cost of insurance acquired

 1,401,081

 2,036,896

 Income taxes receivable

 790,608

 2,128,027

 Other assets

 317,981

 884,531

 Total assets

 $

 476,946,805

 $

 441,708,933

 LIABILITIES AND SHAREHOLDERS' EQUITY

 Policy liabilities and accruals:

 Future policy benefits

 $

 218,284,203

 $

 223,757,860

 Policy claims and benefits payable

 3,847,214

 4,188,917

 Other policyholder funds

 181,541

 260,892

 Dividend and endowment accumulations

 14,628,119

 14,749,258

 Deferred income taxes

 23,072,061

 12,426,840

 Notes payable

 Other liabilities

 6,339,303

 5,635,373

 Total liabilities

 266,352,441

 280,019,140

 Shareholders' equity:

 Common stock - no par value, stated value $ 0.001 per share. Authorized 7,000,000 shares - 3,157,765 and 3,165,320 shares issued and outstanding

 3,159

 3,167

 Additional paid-in capital

 32,442,486

 32,613,817

 Retained earnings

 180,631,577

 131,330,062

 Accumulated other comprehensive loss

 ( 2,942,313

)

)

 Total UTG shareholders' equity

 210,134,909

 161,226,464

 Noncontrolling interest

 459,455

 463,329

 Total shareholders' equity

 210,594,364

 161,689,793

 Total liabilities and shareholders' equity

 $

 476,946,805

 $

 441,708,933

 Consolidated Statements of Operations

 For the Years Ended December 31, 2024 and 2023

 2024

 2023

 Revenue:

 Premiums and policy fees

 $

 7,567,703

 $

 7,918,235

 Ceded reinsurance premiums and policy fees

 ( 2,280,397

)

 ( 2,553,010

)

 Net investment income

 16,093,592

 Other income

 236,846

 280,303

 Revenues before net investment gains (losses)

 21,617,744

 19,699,056

 Net investment gains (losses):

 Other-than-temporary impairments

 ( 900,149

)

 Other realized investment gains, net

 7,356,275

 9,463,843

 ( 2,856,543

)

 Total net investment gains

 63,295,877

 6,607,300

 Total revenues

 84,913,621

 26,306,356

 Benefits and other expenses:

 Benefits, claims and settlement expenses:

 Life

 13,740,517

 16,089,474

 Ceded reinsurance benefits and claims

 ( 2,323,619

)

 ( 2,882,312

)

 Annuity

 1,021,454

 1,029,885

 Dividends to policyholders

 287,779

 302,685

 Commissions

 ( 109,946

)

 ( 102,971

)

 Amortization of cost of insurance acquired

 635,815

 661,257

 Operating expenses

 9,429,857

 8,368,135

 Interest expense

 11,600

 28,389

 Total benefits and other expenses

 22,693,457

 23,494,542

 Income before income taxes

 62,220,164

 2,811,814

 Income tax expense

 12,818,983

 41,807

 49,401,181

 Net income attributable to noncontrolling interest

 ( 99,666

)

 ( 113,397

)

 Net income attributable to common shareholders

 $

 49,301,515

 $

 2,656,610

 Amounts attributable to common shareholders:

 Basic income per share

 $

 15.57

 $

 0.84

 Diluted income per share

 $

 15.57

 $

 0.84

 Basic weighted average shares outstanding

 3,165,541

 3,176,757

 Diluted weighted average shares outstanding

 3,165,541

 3,176,757

 Consolidated Statements of Comprehensive Income (Loss)

 For the Years Ended December 31, 2024 and 2023

 2024

 2023

 $

 49,401,181

 $

 Other comprehensive income (loss):

 Unrealized holding gains (losses) arising during period, pre-tax

 ( 288,074

)

 1,981,974

 Tax (expense) benefit on unrealized holding gains (losses) arising during the period

 66,343

 ( 406,537

)

 Unrealized holding gains (losses) arising during period, net of tax

 ( 221,731

)

 1,575,437

 Less reclassification adjustment for gains included in net income

 ( 58,333

)

 Tax expense for gains included in net income

 12,250

 Reclassification adjustment for gains included in net income, net of tax

 ( 46,083

)

 Subtotal: Other comprehensive income (loss), net of tax

 ( 221,731

)

 1,529,354

 Comprehensive income

 49,179,450

 4,299,361

 Less comprehensive income attributable to noncontrolling interests

 ( 99,666

)

 ( 113,397

)

 Comprehensive income attributable to UTG, Inc.

 $

 49,079,784

 $

 4,185,964

 Consolidated Statements of Shareholders' Equity

 Year ended December 31, 2024

 Common Stock

 Additional Paid-In Capital

 Retained Earnings

 Accumulated Other Comprehensive Income (Loss)

 Noncontrolling Interest

 Total Shareholders' Equity

 Balance at January 1, 2024

 $

 3,167

 32,613,817

 131,330,062

)

 463,329

 161,689,793

 Common stock issued during year

 476,797

 476,813

 Treasury shares acquired and retired

 ( 24

)

 ( 648,128

)

 ( 648,152

)

 Net income attributable to common shareholders

 49,301,515

 49,301,515

 Unrealized holding loss on securities net of noncontrolling interest and reclassification adjustment and taxes

 ( 221,731

)

 ( 221,731

)

 Distributions

)

)

 Gain attributable to noncontrolling interest

 99,666

 99,666

 Balance at December 31, 2024

 $

 3,159

 32,442,486

 180,631,577

 ( 2,942,313

)

 459,455

 210,594,364

 Year ended December 31, 2023

 Common Stock

 Additional Paid-In Capital

 Retained Earnings

 Accumulated Other Comprehensive Income (Loss)

 Noncontrolling Interest

 Total Shareholders' Equity

 Balance at January 1, 2023

 $

 3,166

 32,693,972

 131,989,352

 ( 7,111,586

)

 453,472

 158,028,376

 Prior period adjustment

 ( 2,861,650

)

 2,861,650

 Adoption of new accounting standard

 ( 454,250

)

 ( 454,250

)

 3,166

 32,693,972

 128,673,452

 ( 4,249,936

)

 453,472

 157,574,126

 Common stock issued during year

 801,781

 801,812

 Treasury shares acquired and retired

 ( 30

)

 ( 881,936

)

 ( 881,966

)

 Net income attributable to common shareholders

 2,656,610

 2,656,610

 Unrealized holding gain on securities net of noncontrolling interest and reclassification adjustment and taxes

 1,529,354

 1,529,354

 Distributions

)

)

 Gain attributable to noncontrolling interest

 113,397

 113,397

 Balance at December 31, 2023

 $

 3,167

 32,613,817

 131,330,062

)

 463,329

 161,689,793

 Consolidated Statements of Cash Flows

 For the Years Ended December 31, 2024 and 2023

 2024

 2023

 Cash flows from operating activities:

 $

 49,401,181

 $

 Adjustments to reconcile net income to net cash used in operating activities:

 Accretion of investments

 ( 344,267

)

 ( 225,762

)

 Other-than-temporary impairments

 900,149

 Realized investment gains, net

 ( 7,356,275

)

 ( 9,463,843

)

 ( 56,839,751

)

 2,856,543

 Amortization of cost of insurance acquired

 635,815

 661,257

 Provision for deferred income tax expense

 10,711,564

 558,916

 Depreciation and depletion

 1,905,768

 728,887

 Stock-based compensation

 476,813

 801,812

 Charges for mortality and administration of universal life and annuity products

 ( 5,472,812

)

 ( 5,692,118

)

 Interest credited to account balances

 3,564,187

 3,646,515

 Change in accrued investment income

 736,648

 ( 629,387

)

 Change in reinsurance receivables

 576,162

 374,689

 Change in policy liabilities and accruals

 ( 3,005,006

)

 ( 3,535,674

)

 Change in income taxes receivable (payable)

 1,337,419

 ( 6,317,108

)

 Change in other assets and liabilities, net

 1,204,314

 3,679,893

 Net cash used in operating activities

 ( 1,568,091

)

 ( 9,785,373

)

 Cash flows from investing activities:

 Proceeds from investments sold and matured:

 Fixed maturities available for sale

 11,000,000

 7,558,333

 19,742,295

 7,838,385

 Trading securities

 102,699

 4,512,139

 17,770,810

 3,223,290

 16,531,219

 2,197,052

 4,944,143

 1,283,752

 1,453,634

 29,750,000

 23,490,815

 Total proceeds from investments sold and matured

 71,811,227

 79,587,339

 Cost of investments acquired:

 Fixed maturities available for sale

 ( 9,040,152

)

 ( 15,468,580

)

 ( 12,454,268

)

 Trading securities

 ( 102,699

)

 ( 5,421,945

)

 ( 2,654,293

)

 ( 11,603,519

)

 ( 3,417,744

)

 ( 805,000

)

 ( 4,779,241

)

 ( 958,071

)

 ( 904,446

)

 ( 1,910,488

)

 ( 48,473,476

)

 Total cost of investments acquired

 ( 45,310,454

)

 ( 72,683,468

)

 Net cash provided by investing activities

 26,500,773

 6,903,871

 Cash flows from financing activities:

 Policyholder contract deposits

 3,931,531

 4,056,116

 Policyholder contract withdrawals

 ( 5,033,750

)

 ( 4,294,297

)

 Proceeds from notes payable/line of credit

 21,500,000

 Payments of principal on notes payable/line of credit

 ( 19,000,000

)

 ( 21,500,000

)

 Purchase of treasury stock

 ( 648,152

)

 ( 881,966

)

 Noncontrolling contributions/(distributions) of consolidated subsidiary

)

)

 Net cash used in financing activities

 ( 20,853,911

)

 ( 1,223,687

)

 Net increase (decrease) in cash and cash equivalents

 4,078,771

 ( 4,105,189

)

 Cash and cash equivalents at beginning of year

 41,185,196

 45,290,385

 Cash and cash equivalents at end of year

 $

 45,263,967

 $

 41,185,196

 Notes to Consolidated Financial Statements

 Note 1 – Summary of Significant Accounting Policies

 Business – UTG, Inc. is an insurance holding company. The Company's dominant business is individual life insurance, which includes the servicing of existing insurance in-force and the acquisition of other companies in the life insurance business. UTG and its subsidiaries are collectively referred to as the "Company".

 This document at times will refer to the Registrant's largest shareholder, Mr. Jesse T. Correll and certain companies controlled by Mr. Correll. Mr. Correll holds a majority ownership of First Southern Funding, LLC ("FSF"), a Kentucky corporation, and First Southern Bancorp, Inc. ("FSBI"), a financial services holding company. FSBI operates through its 100 % owned subsidiary bank, First Southern National Bank ("FSNB"). Banking activities are conducted through multiple locations within south-central and western Kentucky. Mr. Correll is Chief Executive Officer, President, and Chairman of the Board of Directors of UTG and is currently UTG's largest shareholder through his ownership control of FSF, FSBI and affiliates. At December 31, 2024, Mr. Correll owns or controls directly and indirectly approximately 66 % of UTG's outstanding stock.

 UTG's life insurance subsidiary has several wholly-owned and majority-owned subsidiaries. The subsidiaries were formed to hold certain real estate and other investments. The investments were placed into the limited liability companies and partnerships to provide additional protection to the policyholders and to UG.

 Basis of Presentation – The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), under guidance issued by the Financial Accounting Standards Board ("FASB"). The preparation of financial statements in accordance with GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 Principles of Consolidation – The accompanying consolidated financial statements include the accounts of the Registrant and its wholly and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated during consolidation.

 Financial Information about Segments - The Financial Accounting Standards Board ("FASB") guidance requires a "management approach" in the presentation of business segments based on how management internally evaluates the operating performance of business units. The Company has evaluated our operations and has determined there is not definitive segregation between corporate and insurance operations or between life and annuity operations. Therefore, the Company reports only consolidated operations.

 Investments – The Company reports its investments as follows:

 Investments in Fixed Maturity Securities – The Company classifies its investments in fixed maturity securities on the acquisition date and at each balance sheet date. Securities classified as held-to-maturity consist of redeemable preferred stock, and are carried at amortized cost, reflecting the ability and intent to hold the securities to maturity. Securities classified as available-for-sale consist of bonds and are carried at fair value with unrealized gains and losses, net of deferred taxes, reflected directly in accumulated other comprehensive income. Premiums and discounts on debt securities purchased at other than par value are amortized and accreted, respectively, to interest income in the Consolidated Statements of Operations, using the constant yield method over the period to maturity. The Company has an evaluation process in place to monitor fixed maturity securities available for sale for credit loss. See Note 2 - Investments for further disclosure of the allowance for credit loss ("ACL").

 Equity Securities at Fair Value – Investments in equity securities, which include common and perpetual preferred stocks, are reported at fair value with unrealized gains and losses reported as a component of net income (loss).

 Equity Securities at Cost – These investments 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.

 Mortgage Loans on Real Estate – Mortgage loans on real estate are reported at their unpaid principal balances, adjusted for amortization of premium or discount and valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. The Company recognizes an ACL in earnings at time of purchase or origination based on expected lifetime credit loss on mortgage loans carried at amortized cost, in an amount that represents the portion of the amortized cost basis of such financing receivables, that the Company does not expect to collect, resulting in mortgage loans being presented at the net amount expected to be collected. See Note 2 - Investments for further discussion of the ACL.

 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. Real estate for which the Company commits to a plan to sell within one year and actively markets in its current condition, for a reasonable price, in comparison to its estimated fair value, is classified as held-for-sale. Real estate held-for-sale is stated at lower of depreciated cost or estimated fair value less expected disposition costs and is not depreciated. At December 31, 2024 and 2023, the Company did not hold any investment real estate held-for-sale.

 Notes Receivable – Notes receivable are reported at their unpaid principal balances, adjusted for valuation allowances. Valuation allowances are established for impaired loans when it is probable that contractual principal and interest will not be collected. 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. The Company recognizes an ACL in earnings at time of purchase or origination based on expected lifetime credit loss on notes receivable carried at amortized cost, in an amount that represents the portion of the amortized cost basis of such financing receivables, that the Company does not expect to collect, resulting in notes receivable being presented at the net amount expected to be collected. See Note 2 - Investments for further discussion of the ACL.

 Policy Loans – Policy loans are reported at their unpaid balances, including accumulated interest, but not in excess of the cash surrender value of the related policy.

 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.

 Gains and Losses – Realized gains and losses include sales of investments and investment impairments. If any, other-than-temporary impairments in fair value are recognized in net income on the specific identification basis.

 Fair Value – Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Subsequent to initial recognition, fair values are based on unadjusted quoted prices for identical assets or liabilities in active markets that are readily and regularly obtainable. When such unadjusted quoted prices are not available, estimated fair values are based on quoted prices in markets that are not active, quoted prices for similar but not identical assets or liabilities, or other observable inputs. If these inputs are not available, or observable inputs are not determinable, unobservable inputs and/or adjustments to observable inputs requiring significant management judgment are used to determine the estimated fair value of assets and liabilities. These unobservable inputs can be based on Management's judgment, assumptions or estimation and may not be observable in market activity. Unobservable inputs are based on Management's assumptions about the inputs market participants would use in pricing the assets. For more specific information regarding the Company's measurements and procedures in valuing financial instruments, see Note 3 – Fair Value Measurements.

 Cash Equivalents – Cash equivalents consist of money market accounts and investments with maturities of three months or less when purchased.

 Cash – Cash consists of balances on hand and on deposit in banks and financial institutions.

 Reinsurance - In the normal course of business, the Company seeks to limit its exposure to loss on any single insured and to recover a portion of benefits paid by ceding reinsurance to other insurance enterprises or reinsurers under excess coverage and coinsurance contracts. The Company retains a maximum of $ 125,000 of coverage per individual life.

 Reinsurance receivables are recognized in a manner consistent with the liabilities relating to the underlying reinsurance contracts. The cost of reinsurance related to long-duration contracts is accounted for over the life of the underlying reinsured policies using assumptions consistent with those used to account for the underlying policies. In the event that reinsurers do not meet their obligations to the Company under the terms of the reinsurance agreements, or when events or changes in circumstances indicate that its carrying amount may not be recoverable, reinsurance recoverable balances could become uncollectible. In such instances, reinsurance recoverable balances are stated net of allowances for uncollectible reinsurance, consistent with the credit loss guidance which requires recording an allowance for credit loss ("ACL"). See Note 4 - Reinsurance for additional information.

 Cost of Insurance Acquired - When an insurance company is acquired, the Company assigns a portion of its cost to the right to receive future cash flows from insurance contracts existing at the date of the acquisition. The cost of policies purchased represents the actuarially determined present value of the projected future profits from the acquired policies. Cost of insurance acquired is amortized with interest in relation to expected future profits, including direct charge-offs for any excess of the unamortized asset over the projected future profits. The amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised.

 Future Policy Benefits and Expenses - The liabilities for traditional life insurance and accident and health insurance policy benefits are computed using a net level method. These liabilities include assumptions as to investment yields, mortality, withdrawals, and other assumptions based on the life insurance subsidiary's experience adjusted to reflect anticipated trends and to include provisions for possible unfavorable deviations. The Company makes these assumptions at the time the contract is issued or, in the case of contracts acquired by purchase, at the purchase date. Future policy benefits for individual life insurance and annuity policies are computed using interest rates ranging from 2.0 % to 6.0 % for life insurance and 2.5 % to 7.5 % for annuities. Benefit reserves for traditional life insurance policies include certain deferred profits on limited-payment policies that are being recognized in income over the policy term. Policy benefit claims are charged to expense in the period that the claims are incurred. The mortality rate assumptions for policies currently issued by the Company are based on 2017 CSO Ultimate tables. Withdrawal rate assumptions are based upon Linton B or C, which are industry standard actuarial tables for forecasting assumed policy lapse rates.

 Benefit reserves for universal life insurance and interest sensitive life insurance products are computed under a retrospective deposit method and represent policy account balances before applicable surrender charges. Policy benefits and claims that are charged to expense include benefit claims in excess of related policy account balances. Interest crediting rates for universal life and interest sensitive products range from 3.0 % to 6.0 % as of December 31, 2024 and 2023.

 Policy Claims and Benefits Payable - Policy and contract claims include provisions for reported claims in process of settlement, valued in accordance with the terms of the policies and contracts, as well as provisions for claims incurred and unreported. The estimate of incurred and unreported claims is based on prior experience. The Company makes an estimate after careful evaluation of all information available to the Company. There is no certainty the stated liability for policy claims and benefits payable, including the estimate for incurred but unreported claims, will be the Company's ultimate obligation.

 Income Taxes – Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax impact attributable to differences between the financial statement book values and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. More information concerning income taxes is provided in Note 6 – Income Taxes.

 Earnings Per Share – The objective of both basic earnings per share ("EPS") and diluted EPS is to measure the performance of an entity over the reporting period. The Company presents basic and diluted EPS on the face of the Consolidated Statements of Operations. Basic EPS is computed by dividing income available to common shareholders by the weighted average common shares outstanding for the period. Diluted EPS is calculated by adding to shares outstanding the additional net effect of potentially dilutive securities or contracts, such as stock options, which could be exercised or converted into common shares.

 Recognition of Revenues and Related Expenses - Premiums for traditional life insurance products, which include those products with fixed and guaranteed premiums and benefits, consist principally of whole life insurance policies, and certain annuities with life contingencies are recognized as revenues when due. Limited payment life insurance policies defer gross premiums received in excess of net premiums, which is then recognized in income in a constant relationship with insurance in-force. Accident and health insurance premiums are recognized as revenue pro rata over the terms of the policies. Benefits and related expenses associated with the premiums earned are charged to expense proportionately over the lives of the policies through a provision for future policy benefit liabilities and through deferral and amortization of deferred policy acquisition costs. For universal life and investment products, generally there is no requirement for payment of premium other than to maintain account values at a level sufficient to pay mortality and expense charges. Consequently, premiums for universal life policies and investment products are not reported as revenue, but as deposits. Policy fee revenue for universal life policies and investment products consists of charges for the cost of insurance and policy administration fees assessed during the period. Expenses include interest credited to policy account balances and benefit claims incurred in excess of policy account balances.

 Recently Issued Accounting Standards

 ASUs not listed below were assessed and either determined to be not applicable or are not expected to have a material impact on the Company's consolidated financial statements or disclosures. ASUs issued but not yet adopted as of December 31, 2024 that are currently being assessed and may or may not have a material impact on the Company's consolidated financial statements or disclosures are disclosed below:

 The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ' This ASU requires public companies to disclose, in the notes to financial statements, specified information about certain costs and expenses at each interim and annual reporting period. Specifically, they will be required to: Disclose the amounts of (a) purchases of inventory; (b) employee compensation; (c) depreciation; (d) intangible asset amortization; and (e) depreciation, depletion, and amortization recognized as part of oil- and gas-producing activities (or other amounts of depletion expense) included in each relevant expense caption. Include certain amounts that are already required to be disclosed under current generally accepted accounting principles (GAAP) in the same disclosure as the other disaggregation requirements. Disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. Disclose the total amount of selling expenses and, in annual reporting periods, an entity's definition of selling expenses. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026. Accounting Standards Update No. 2025-01 amended the effective date of ASU No. 2024-03 to clarify that all public entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods after December 15, 2027. The Company is evaluating the impact of the guidance on its consolidated financial statements.

 The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Amendments in this update require that public business entities, on an annual basis: (1) disclose specific categories in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold. In addition, the amendments in this update require that all entities disclose on an annual basis the following information about income taxes: (1) the amounts of income taxes paid (net of refunds received) disaggregated by federal, state, and foreign taxes and (2) the amount of income taxes paid (net of refunds received) disaggregated by individual jurisdictions in which income taxes paid (net of refunds received) is equal to or greater than 5% of total income taxes paid (net of refunds received). ASU 2023-09 is effective for public business entities for annual periods beginning after December 15, 2024. The Company is evaluating the impact of the guidance on its consolidated financial statements.

 The FASB issued Accounting Standards Update No. 2022-05, Financial Services-Insurance (Topic 944): Transition for Sold Contracts. ASU 2022-05 amends transition guidance in ASU No. 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts (LDTI), for contracts that have been derecognized because of a sale or disposal of individual or a group of contracts or legal entities before the LDTI effective date. This ASU amends the LDTI transition guidance to allow an insurance entity to make an accounting policy election to exclude certain contracts or legal entities from applying the LDTI guidance when, as of the LDTI effective date, (a) the insurance contracts have been derecognized because of a sale or disposal and (b) the insurance entity has no significant continuing involvement with the derecognized contracts. See below for further analysis regarding ASU No. 2018-12.

 The FASB issued Accounting Standards Update No. 2018-12, Financial Services-Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts or ASU 2018-12. ASU 2018-12 significantly changes how insurers account for long-duration insurance contracts. The new guidance will require insurers to review and update, if necessary, the assumptions used to measure insurance liabilities periodically, rather than retain assumptions used at contract inception. The updated guidance also changes the recognition and measurement of deferred acquisition costs (DAC) and created a new category of benefit features called market risk benefits (MRB) that will be measured at fair value. The guidance also significantly expands the disclosure requirements for long-duration contracts. The ASU was originally effective for fiscal years, and interim periods within those years, for years beginning after December 15, 2020, and early adoption is permitted. The guidance on measuring the liabilities for future policy benefits and DAC will be adopted on a modified retrospective basis as of the earliest period presented in the year of adoption. The guidance on MRB will be adopted on a retrospective basis as of the earliest period presented in the year of adoption. In November of 2019, the FASB issued ASU 2019-09, which delayed the effective date of ASU 2018-12 to fiscal years beginning after December 15, 2024, for smaller reporting companies. The Company is evaluating the impact on the consolidated financial statements.

 Reclassifications - Certain reclassifications have been made to the 2023 Consolidated Financial Statements to make them comparable to the current year Consolidated Financial Statements. The Company has elected to reclassify certain investments on the Consolidated Balance Sheets and related footnotes for prior periods to conform with the presentation in the fiscal year ended December 31, 2024 Consolidated Financial Statements.

 Revision of previously issued financial statements – The Company identified an error in its previously issued Consolidated Financial Statements related to the classification of certain investment types on the Consolidated Balance Sheets. The impact of the error to the prior period's Consolidated Financial Statements was not considered to be material. See Note 16 - Revision of Previously Issued Consolidated Financial Statements for details of the revision.

 Subsequent Events - Management has evaluated subsequent events for recognition and disclosure in the consolidated financial statements through the date the consolidated financial statements were available to be issued. The Company did not identify any subsequent events requiring recognition or disclosure.

 Note 2 – Investments

 Investment Risks and Uncertainties

 Investments are exposed to the following primary sources of risk: credit, interest rate, liquidity, market valuation, currency and real estate risk. The financial statement risks, stemming from such investment risks, are those associated with the determination of estimated fair values, the diminished ability to sell certain investments in times of strained market conditions, the recognition of ACL and impairments, and the recognition of income on certain investments. The use of different methodologies, assumptions and inputs relating to these financial statement risks may have a material effect on the amounts presented within the Consolidated Financial Statements.

 The determination of ACL and impairments is highly subjective and is based upon quarterly evaluations and assessments of known and inherent risks associated with the respective asset class. Such evaluations and assessments are revised as conditions change and new information becomes available.

 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 for the years ended 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

 7,522,751

 ( 288,560

)

 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

)

 $

 Held to maturity redeemable preferred stock, at amortized cost

 $

 $

 $

 $

 2023

 Original or Amortized
 Cost

 Gross
 Unrealized
 Gains

 Gross
 Unrealized
 Losses

 Fair
 Value

 U.S. Government and govt. agencies and authorities

 $

 14,316,976

 $

 $

 ( 729,197

)

 $

 7,528,985

 ( 220,527

)

 All other corporate bonds

 60,647,114

 89,002

 ( 2,547,808

)

 58,188,308

 Total fixed maturities, at fair value

 $

 82,493,075

 $

 89,002

 $

 ( 3,497,532

)

 $

 Held to maturity redeemable preferred stock, at amortized cost

 $

 $

 $

 $

 The amortized cost and estimated fair value of fixed maturity securities at December 31, 2024, by contractual maturity date, is shown below.

 Fixed Maturity Securities

 Amortized
 Cost

 Fair Value

 Due in one year or less

 $

 10,019,145

 $

 9,957,350

 Due after one year through five years

 45,640,691

 44,544,266

 Due after five years through ten years

 4,371,713

 4,227,940

 Due after ten years

 20,172,983

 17,750,530

 Total

 $

 80,204,532

 $

 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 December 31, 2024 and 2023.

 The following table presents the estimated fair value and gross unrealized losses of fixed maturity securities in an unrealized loss position as of December 31:

 2024

 Less than 12 months

 12 months or longer

 Total

 U.S. Government and govt. agencies and authorities

 $

 10,022,087

 ( 19,341

)

 $

 10,360,047

 ( 453,902

)

 $

 20,382,134

 ( 473,243

)

 ( 288,560

)

 ( 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

)

 2023

 Less than 12 months

 12 months or longer

 Total

 U.S. Government and govt. agencies and authorities

 $

 1,497,390

 ( 3,696

)

 $

 12,090,389

 ( 725,501

)

 $

 ( 729,197

)

 ( 220,527

)

 ( 220,527

)

 All other corporate bonds

 544,610

 ( 2,319

)

 49,353,275

 ( 2,545,489

)

 49,897,885

 ( 2,547,808

)

 Total fixed maturities

 $

 2,042,000

 ( 6,015

)

 $

 68,752,122

 ( 3,491,517

)

 $

 70,794,122

 ( 3,497,532

)

 The following table provides additional information regarding the number of securities that were in an unrealized loss position for greater than or less than twelve months:

 Less than 12 months

 12 months or longer

 Total

 As of December 31, 2024

 Fixed maturities

 As of December 31, 2023

 Fixed maturities

 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 December 31, 2024 and 2023 are attributable to changes in market interest rates and general disruptions in the credit market subsequent to purchase. At December 31, 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 December 31, 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 December 31, 2024 and December 31, 2023:

 Unrealized appreciation (depreciation) on available-for-sale securities

 $

 ( 3,724,446

)

 $

 ( 3,443,775

)

 Deferred income taxes

 782,133

 723,193

 Net unrealized appreciation (depreciation) on available-for-sale securities

 $

 ( 2,942,313

)

 $

)

 Cost Method Investments

 The Company held equity investments with an aggregate cost of $ 21,203,393 and $ 18,227,986 at December 31, 2024 and 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. Based on Management's evaluation of the equity securities reported at cost, the Company reported an other-than-temporary impairment of $ 900,149 on one security during the fourth quarter of 2024. The other-than-temporary impairment was taken as a result of Management's assessment and determination of value of the investment.

 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 2024 and 2023, the Company acquired $ 5,421,945 and $ 2,654,293 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:

 2024

 2023

 Maximum
 rate

 Minimum
 rate

 Maximum
 rate

 Minimum
 rate

 Farm loans

 8.00 %

 8.00 %

 5.00 %

 5.00 %

 Commercial loans

 10.00 %

 4.00 %

 8.75 %

 4.00 %

 Residential loans

 5.00 %

 4.15 %

 5.00 %

 4.15 %

 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 for the periods ended December 31:

 2024

 2023

 In good standing

 $

 $

 Total mortgage loans

 $

 $

 Total foreclosed loans during the year

 $

 $

 The following is a summary of the mortgage loans outstanding and the related allowance for credit losses:

 Farm

 $

 321,774

 $

 332,417

 Commercial

 14,749,509

 13,764,209

 Residential

 1,441,698

 1,495,550

 Total mortgage loans

 16,512,981

 15,592,176

 Less allowance for credit losses

 ( 235,000

)

 ( 274,000

)

 Total mortgage loans, net

 $

 $

 There were no past due loans as of December 31, 2024 and December 31, 2023.

 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 2024 and 2023, no impairments were recognized on the investment real estate.

 Note 3 - Fair Value Measurements of the 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 3 - Fair Value Measurements disclosure.

 The following table provides an allocation of the Company's investment real estate by type for the periods ended December 31:

 2024

 2023

 Raw land

 $

 16,446,147

 $

 6,971,930

 Commercial

 6,269,217

 4,106,938

 Residential

 1,932,390

 3,512,408

 Land, minerals and royalty interests

 3,967,848

 7,383,844

 Total investment real estate

 $

 28,615,602

 $

 21,975,120

 The Company's investment real estate portfolio includes ownership in oil and gas royalties. As of December 31, 2024 and 2023, investments in oil and gas royalties represented 20 % and 34 %, respectively, of the total investment real estate portfolio. See Note 13 - Concentrations of the 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 Consolidated Statements of Operations. During 2024 and 2023, the Company acquired $ 11,603,519 and $ 3,417,744 of investment real estate, respectively.

 Notes Receivable

 Notes receivable represent collateral loans and promissory notes issued by the Company and are reported at their unpaid principal balances, adjusted for valuation allowances. 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 2024 and 2023, the Company acquired $ 805,000 and $ 4,779,241 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 several of the notes receivable. The Company, and the participants in the notes, share in the risk of loss associated with the terms of the note with the borrower, based upon their ownership percentage in the note. The Company has in place a monitoring system to provide Management with information regarding potential troubled loans.

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

 $

 12,867,175

 $

 14,259,225

 Less allowance for credit losses

 ( 195,000

)

 ( 250,000

)

 Total notes receivable, net

 $

 12,672,175

 $

 14,009,225

 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 $ 1,910,488 and $ 48,473,476, respectively, in short-term investments.

 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 as any third-party guarantees. The allowance for unfunded commitments as of December 31, 2024 and 2023 is $ 50,000 and $ 51,000, respectively, and is included in other liabilities on the Company's 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.

 Allowance for Credit Loss - Summary of Activity

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

 Allowance For Credit Losses

 Mortgage

 Notes

 Unfunded

 Loans

 Receivable

 Commitments

 Total

 January 1, 2023

 $

 $

 2023 Allowance

 274,000

 250,000

 51,000

 575,000

 274,000

 250,000

 51,000

 575,000

 2024 Change in Allowance

 ( 39,000

)

 ( 55,000

)

 ( 1,000

)

 ( 95,000

)

 $

 235,000

 195,000

 50,000

 $

 480,000

 Analysis of Investment Operations

 The following table reflects the Company's net investment income for the periods ended December 31:

 2024

 2023

 Fixed maturities, available for sale

 $

 2,652,249

 $

 2,932,220

 Fixed maturities, held to maturity

 167,536

 165,137

 4,233,674

 3,708,633

 952,084

 1,115,145

 8,958,452

 8,318,201

 1,341,095

 1,371,973

 412,701

 433,556

 Cash and cash equivalents

 1,668,712

 1,007,840

 661,962

 529,125

 Total consolidated investment income

 21,048,465

 19,581,830

 Investment expenses

 ( 4,954,873

)

 ( 5,528,302

)

 Consolidated net investment income

 $

 16,093,592

 $

 The following table presents net investment gains (losses) and the change in net unrealized gains on investments for the periods ended December 31:

 2024

 2023

 Realized gains:

 Sales of fixed maturities

 $

 $

 58,333

 Sales of equity securities

 7,190,262

 820,001

 Sales of real estate

 166,020

 8,577,155

 Sales of short-term investments

 23,509

 Total realized gains

 7,356,282

 9,478,998

 Realized losses:

 Sales of equity securities

 ( 7,966

)

 Sales of short-term investments

 ( 7

)

 ( 7,189

)

 Other-than-temporary impairments

 ( 900,149

)

 Total realized losses

 ( 900,156

)

 ( 15,155

)

 Net realized investment gains

 6,456,126

 9,463,843

 Change in fair value of equity securities:

 Change in fair value of equity securities held at the end of the period

 ( 2,856,543

)

 ( 2,856,543

)

 Net investment gains

 $

 63,295,877

 $

 6,607,300

 Change in net unrealized gains (losses) on available-for-sale investments included in other comprehensive income:

 Fixed maturities

 $

 ( 288,074

)

 $

 1,981,974

 Net increase (decrease)

 $

 ( 288,074

)

 $

 1,981,974

 Investments on Deposit

 The Company had investments with a fair value of $ 8,400,396 and $ 7,959,076 on deposit with various state insurance departments as of December 31, 2024 and 2023, respectively.

 Note 3 – Fair Value Measurements

 Assets and liabilities recorded at fair value in the 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 as of December 31:

 2024

 Level 1

 Level 2

 Level 3

 Total

 Fixed maturity securities:

 U.S. Government and government agencies and authorities

 $

 20,882,294

 $

 $

 $

 20,882,294

 Corporate securities

 48,363,601

 48,363,601

 Total fixed maturities

 20,882,294

 55,597,792

 Equity securities:

 Common stocks

 59,125,859

 5,519,600

 3,064,983

 67,710,442

 82,654,596

 82,654,596

 Total equity securities

 59,125,859

 5,519,600

 85,719,579

 150,365,038

 1,954,687

 1,954,687

 Total financial assets

 $

 81,962,840

 $

 61,117,392

 $

 85,719,579

 $

 228,799,811

 2023

 Level 1

 Level 2

 Level 3

 Total

 Fixed maturity securities:

 U.S. Government and government agencies and authorities

 $

 $

 $

 $

 Corporate securities

 58,188,308

 58,188,308

 Total fixed maturities

 65,496,766

 Equity securities:

 Common stocks

 60,145,264

 5,329,080

 2,807,634

 68,281,978

 57,604,806

 57,604,806

 Total equity securities

 60,145,264

 5,329,080

 60,412,440

 125,886,784

 29,132,236

 29,132,236

 Total financial assets

 $

 102,865,279

 $

 70,825,846

 $

 60,412,440

 $

 234,103,565

 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 December 31, 2024 and 2023, the estimated fair value of such investments was $ 84,141,189 and $ 52,738,701, respectively. These investments are generally not readily redeemable by the investee.

 The following is a description of the valuation techniques used by the Company to measure assets reported at fair value on a recurring basis.

 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 Level 3 Recurring Fair Value Measurements

 The following table presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities.

 Investments in

 Investments in Common Stocks

 Limited Liability Companies

 Total

 Balance at December 31, 2023

 $

 2,807,634

 $

 57,604,806

 $

 60,412,440

 Unrealized gains

 257,349

 21,923,259

 22,180,608

 Purchases

 3,741,594

 3,741,594

 Sales

 ( 615,063

)

 ( 615,063

)

 Balance at December 31, 2024

 $

 3,064,983

 $

 82,654,596

 $

 85,719,579

 Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains on instruments held at December 31, 2024 and 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.

 In 2024, there were no transfers in our out of Level 3.

 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.

 Financial Assets

 Fair Value at December 31, 2024

 Fair Value at December 31, 2023

 Valuation Technique

 $

 82,654,596

 $

 57,604,806

 Pricing Model

 Common stocks

 3,064,983

 2,807,634

 Pricing Model

 Total

 $

 85,719,579

 $

 60,412,440

 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.

 Investment Category

 Fair Value at December 31, 2024

 Unfunded Commitments

 Redemption Frequency

 Redemption Notice Period

 Growth equity

 Redeemable

 Limited partnership

 $

 52,518,353

 $

 Quarterly

 Non-redeemable

 4,802,917

 2,100,000

 n/a

 n/a

 Limited partnerships

 26,819,919

 2,025,771

 n/a

 n/a

 Total

 $

 84,141,189

 $

 4,125,771

 Investment Category

 Fair Value at December 31, 2023

 Unfunded Commitments

 Redemption Frequency

 Redemption Notice Period

 Growth equity

 Redeemable

 Limited partnership

 $

 34,081,797

 $

 Quarterly

 Non-redeemable

 9,710,311

 3,550,546

 n/a

 n/a

 Limited partnerships

 8,946,593

 2,410,599

 n/a

 n/a

 Total

 $

 52,738,701

 $

 5,961,145

 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 in 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 in 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 in 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 the Limited Partnership ("LP"), a closed-end fund, formed pursuant to the laws of the state of Delaware under a limited partnership agreement in 2022, and shall dissolve upon the first to occur of either the end of the tenth anniversary of the final closing date or, if extended, upon the end of such extension(s), upon the dissolution or removal of the General Partner or upon other specific circumstances as defined in the LP Agreement.

 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") in 2012 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 2012, the Company entered into a Limited Partnership Agreement to invest in this LP. The Company is currently in the process of winding down operations.

 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") in 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") in 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 in 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 closed-end LP fund that was formed pursuant to the laws of the State of Delaware under a limited partners agreement (the "Agreement") in 2024 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 invest in fire prevention related services. In 2024, the Company entered into a Limited Partnership Agreement to invest in this LP.

 The Company invested in a LP that was formed pursuant to the laws of the state of Delaware under a limited partnership agreement in 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.

 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 during the years ended December 31, 2024 and 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 as of December 31:

 2024

 Carrying
 Amount

 Fair Value

 Level 1

 Level 2

 Level 3

 Assets

 Held to maturity redeemable preferred stock

 $

 $

 $

 $

 $

 Mortgage loans on real estate

 15,532,707

 15,532,707

 12,672,175

 12,750,201

 12,750,201

 Accrued investment income

 1,264,416

 1,264,416

 1,264,416

 Liabilities

 Policy claims and benefits payable

 3,847,214

 3,847,214

 3,847,214

 Dividend and endowment accumulations

 14,628,119

 14,628,119

 14,628,119

 2023

 Carrying
 Amount

 Fair Value

 Level 1

 Level 2

 Level 3

 Assets

 Held to maturity redeemable preferred stock

 $

 $

 $

 $

 $

 Mortgage loans on real estate

 14,447,026

 14,447,026

 14,009,225

 14,189,147

 14,189,147

 Accrued investment income

 2,001,064

 2,001,064

 2,001,064

 Liabilities

 Policy claims and benefits payable

 4,188,917

 4,188,917

 4,188,917

 Dividend and endowment accumulations

 14,749,258

 14,749,258

 14,749,258

 Notes payable

 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.

 Policy loans are carried at the aggregate unpaid principal balances in the 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.

 Note 4 - Reinsurance

 As is customary in the insurance industry, the insurance subsidiary cedes insurance to, and assumes insurance from, other insurance companies under reinsurance agreements. Reinsurance agreements are intended to limit a life insurer's maximum loss on a large or unusually hazardous risk or to obtain a greater diversification of risk. The ceding insurance company remains primarily liable with respect to ceded insurance should any reinsurer be unable to meet the obligations assumed by it. However, it is the practice of insurers to reduce their exposure to loss to the extent that they have been reinsured with other insurance companies. The Company sets a limit on the amount of insurance retained on the life of any one person. The Company will not retain more than $ 125,000, including accidental death benefits, on any one life. As of December 31, 2024, the Company had gross insurance in-force of approximately $ 801 million of which approximately $ 162 million was ceded to reinsurers. As December 31, 2023, the Company had gross insurance in-force of approximately $ 847 million of which approximately $ 172 million was ceded to reinsurers.

 The Company's reinsured business is ceded to numerous reinsurers. The Company monitors the solvency of its reinsurers in seeking to minimize the risk of loss in the event of a failure by one of the parties. The Company is primarily liable to the insureds even if the reinsurers are unable to meet their obligations. The primary reinsurers of the Company are large, well-capitalized entities.

 Most recently, UG utilized reinsurance agreements with Optimum Re Insurance Company ("Optimum"), and Swiss Re Life and Health America Incorporated ("SWISS RE"). Optimum and SWISS RE currently hold an "A" (Excellent) and "A+" (Superior) rating, respectively, from A.M. Best, an industry rating company. The reinsurance agreements were effective December 1, 1993 and covered most new business of UG. Under the terms of the agreements, UG cedes risk amounts above its retention limit of $ 100,000 with a minimum cession of $ 25,000. Ceded amounts are shared equally between the two reinsurers on a yearly renewable term ("YRT") basis, a common industry method. The treaty is self-administered; meaning the Company records the reinsurance results and reports them to the reinsurers.

 Also, Optimum is the reinsurer of 100 % of the accidental death benefits ("ADB") in force of UG. This coverage is renewable annually at the Company's option. Optimum specializes in reinsurance agreements with small to mid-size carriers such as UG.

 UG entered into a coinsurance agreement with Park Avenue Life Insurance Company ("PALIC") effective September 30, 1996. Under the terms of the agreement, UG ceded to PALIC substantially all of its then in-force paid-up life insurance policies. Paid-up life insurance generally refers to non-premium paying life insurance policies. Under the terms of the agreement, UG sold 100 % of the future results of this block of business to PALIC through a coinsurance agreement. UG continues to administer the business for PALIC and receives a servicing fee through a commission allowance based on the remaining in-force policies each month. PALIC has the right to assumption reinsure the business, at its option, and transfer the administration. The Company is not aware of any such plans. PALIC's ultimate parent, The Guardian Life Insurance Company of America ("Guardian"), currently holds an "A++" (Superior) rating from A.M. Best. The PALIC agreement accounts for approximately 64 % of UG's reinsurance reserve credit, as of December 31, 2024 and 2023.

 The Company does not have any short-duration reinsurance contracts. The effect of the Company's long-duration reinsurance contracts on premiums earned in 2024 and 2023 were as follows:

 2024

 2023

 Premiums Earned

 Premiums Earned

 Direct

 $

 7,567,703

 $

 7,918,235

 Assumed

 Ceded

 ( 2,280,397

)

 ( 2,553,010

)

 Net Premiums

 $

 5,287,306

 $

 5,365,225

 Note 5 – Cost of Insurance Acquired

 When an insurance company is acquired, the Company assigns a portion of its cost to the right to receive future cash flows from insurance contracts existing at the date of the acquisition. The cost of policies purchased represents the actuarially determined present value of the projected future profits from the acquired policies. Cost of insurance acquired is amortized with interest in relation to expected future profits, including direct charge-offs for any excess of the unamortized asset over the projected future profits. The interest rates utilized may vary due to differences in the blocks of business. The interest rate utilized in the amortization calculation of the remaining cost of insurance acquired is 12 %. The amortization is adjusted retrospectively when estimates of current or future gross profits to be realized from a group of products are revised.

 2024

 2023

 Cost of insurance acquired, beginning of year

 $

 2,036,896

 $

 2,698,153

 Interest accretion

 339,372

 418,722

 Amortization

 ( 975,187

)

 ( 1,079,979

)

 Net amortization

 ( 635,815

)

 ( 661,257

)

 Cost of insurance acquired, end of year

 $

 1,401,081

 $

 2,036,896

 Estimated net amortization expense of cost of insurance acquired for the next three years is as follows:

 Interest
 Accretion

 Amortization

 Net
 Amortization

 2025

 263,074

 877,240

 614,166

 2026

 189,374

 799,520

 610,146

 2027

 116,157

 292,926

 176,769

 Note 6 – Income Taxes

 UTG and UG file separate federal income tax returns.

 Income tax expense (benefit) consists of the following components:

 2024

 2023

 Current tax expense (benefit)

 $

 2,107,419

 $

 ( 517,109

)

 Deferred tax

 10,711,564

 558,916

 Income tax expense

 $

 12,818,983

 $

 41,807

 The expense for income taxes differed from the amounts computed by applying the applicable United States statutory rate of 21 % as of December 31, 2024 and 2023, before income taxes as a result of the following differences:

 2024

 2023

 Tax computed at statutory rate

 $

 13,066,234

 $

 590,481

 Changes in taxes due to:

 Non-controlling interest

 ( 20,930

)

 ( 23,813

)

 Dividend received deduction

 ( 143,534

)

 ( 109,642

)

 Oil and gas royalty's depletion

 ( 104,115

)

 ( 106,797

)

 Other, including prior year true up

 21,328

 ( 308,422

)

 Income tax expense

 $

 12,818,983

 $

 41,807

 The following table summarizes the major components that comprise the net deferred tax liability as reflected in the balance sheets:

 2024

 2023

 Investments

 $

 23,066,656

 $

 11,862,470

 Cost of insurance acquired

 294,227

 427,748

 Management/consulting fees

 ( 7,596

)

 ( 7,899

)

 Future policy benefits

 ( 600,175

)

 ( 697,024

)

 Deferred gain on sale of subsidiary

 1,387,490

 1,387,490

 Other liabilities

 ( 786,095

)

 ( 284,350

)

 Reserves adjustment

 48,051

 96,105

 Federal tax DAC

 ( 229,697

)

 ( 236,950

)

 Loan loss reserve

 ( 100,800

)

 ( 120,750

)

 Deferred tax liability

 $

 23,072,061

 $

 12,426,840

 At December 31, 2024 and 2023, the Company had gross deferred tax assets of $ 2,175,830 and $ 1,939,816, respectively, and gross deferred tax liabilities of $ 25,247,891 and $ 14,366,656, respectively, resulting from temporary differences primarily related to the life insurance subsidiary. A valuation allowance is to be provided when it is more likely than not that deferred tax assets will not be realized by the Company. No valuation allowance has been recorded relating to the Company's deferred tax assets since, in Management's judgment, the Company will more likely than not have sufficient taxable income in future periods to fully realize its existing deferred tax assets.

 The Company's Federal income tax returns are periodically audited by the Internal Revenue Service ("IRS"). There are currently no examinations in process, nor is Management aware of any pending examination by the IRS. The Company follows the accounting guidance for uncertainty in income taxes using the provisions of Financial Accounting Standards Board ("FASB") ASC 740, Income Taxes. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more-likely-than-not the position will be sustained upon examination by the tax authorities. Such tax positions initially and subsequently need to be measured as the largest amount of tax benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority assuming full knowledge of the position and relevant facts. The Company has evaluated its tax positions, expiring statutes of limitations, changes in tax law and new authoritative rulings and believes that no disclosure relative to a provision of income taxes is necessary, at this time, to cover any uncertain tax positions. Tax years that remain subject to examination are the years ended December 31, 2021, 2022, 2023, 2024.

 The Company classifies interest and penalties on underpayment of income taxes as income tax expense. No interest or penalties were included in the reported income taxes for the years presented. The Company is not aware of any potential or proposed changes to any of its tax filings.

 Note 7 – Credit Arrangements

 At December 31, 2024 and 2023, the Company had the following line of credit available:

 Instrument

 Issue Date

 Maturity Date

 Revolving Credit Limit

 Borrowings

 Repayments

 Line of Credit:

 UG - CMA

 10/21/2021

 10/3/2025

 $

 25,000,000

 $

 UTG had a variable rate revolving line of credit that expired on November 20, 2024. As collateral, UTG had pledged 100 % of the common voting stock of its wholly owned subsidiary, Universal Guaranty Life Insurance Company ("UG"). The Company had not utilized the line of credit in several years. Management determined the line was no longer needed at this time.

 During October of 2024, 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 $ 21,371,910. During the fourth quarter of 2023, the Company borrowed $ 19 million and planned to utilize the funds for investing activities. The variable interest rate on the borrowed funds was 5.47 %. During the first quarter of 2024, the Company repaid the entire outstanding principal balance.

 Note 8 – 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 $ 745,561 and $ 878,132 at December 31, 2024 and 2023, respectively.

 Notes Receivable Commitments - The Company commits to lend funds under notes receivable funding commitments. The amounts of these notes receivable commitments were $ 3,250,000 and $ 2,800,000 at December 31, 2024 and 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 $ 14,316,279 and $ 16,153,903 at December 31, 2024 and 2023, respectively.

 Note 9 – Shareholders' Equity

 Stock Repurchase Program - The Board of Directors of UTG has authorized the repurchase in the open market or in privately negotiated transactions of UTG's common stock. At a meeting of the Board of Directors in December of 2024, the Board of Directors of UTG authorized the repurchase of up to an additional $ 2 million of UTG's common stock, for a total repurchase of $ 24 million of UTG's common stock in the open market or in privately negotiated transactions since inception of the program. 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 2024, the Company repurchased 23,961 shares through the stock repurchase program for $ 648,152. Through December 31, 2024, UTG has spent $ 20,839,555 in the acquisition of 1,380,820 shares under this program.

 Director Compensation - Effective January 1, 2018, a compensation arrangement was approved whereby each outside Director annually received $ 5,000 as a retainer and $ 2,500 per meeting attended. The compensation is be paid in the form of UTG, Inc. common stock. The value is determined annually on the close of business December 20th or the next business day should December 20 th be a weekend or holiday, based on the activity of the year just ending. Reasonable travel expenses are reimbursed in cash as incurred. UTG's Director Compensation policy provides that Directors who are employees of UTG or its affiliates do not receive any compensation for their services as Directors except for reimbursement for reasonable travel expenses for attending each meeting.

 In December of 2024, the Company issued 4,539 shares of its common stock as compensation to the Directors. The shares were valued at $28.09 per share, the market value at the date of issue. During 2024, the Company recorded $127,501 in operating expense related to the stock issuance. In December of 2023, the Company issued 4,246 shares of its common stock as compensation to the Directors. The shares were valued at $30.01 per share, the market value at the date of issue. During 2023, the Company recorded $127,422 in operating expense related to the stock issuance.

 Other Compensation - During 2024, the Company issued 11,867 shares of stock to management and employees as compensation at a cost of $ 349,312. During 2023, The Company issued 26,911 shares of stock to management and employees as compensation at a cost of $ 674,390. These awards are determined at the discretion of the Board of Directors.

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

 2024

 2023

 Basic weighted average shares outstanding

 3,165,541

 3,176,757

 Weighted average dilutive options outstanding

 Diluted weighted average shares outstanding

 3,165,541

 3,176,757

 The computation of diluted earnings per share is the same as basic earnings per share for the years ending December 31, 2024 and 2023, as there were no outstanding securities, options or other offers that give the right to receive or acquire common shares of UTG.

 Statutory Restrictions - Restrictions exist on the flow of funds to UTG from its insurance subsidiary. Statutory regulations require life insurance subsidiaries to maintain certain minimum amounts of capital and surplus. UG is required to maintain minimum statutory surplus of $ 2,500,000. At December 31, 2024, substantially all of the consolidated shareholders' equity represents net assets of UTG's subsidiaries.

 UG is domiciled in the state of Ohio. Ohio requires notification within 5 business days to the insurance commissioner following the declaration of any ordinary dividend and at least ten calendar days prior to payment of such dividend. Ordinary dividends are defined as the greater of: a) prior year statutory net income or b) 10 % of statutory capital and surplus. Extraordinary dividends (amounts in excess of ordinary dividend limitations) require prior approval of the insurance commissioner and are not restricted to a specific calculation. UG paid ordinary dividends of $ 0 million and $ 2 million to UTG in 2024 and 2023, respectively. No extraordinary dividends were paid during the two year period. UTG used the dividends received in 2023 to purchase outstanding shares of UTG stock and for general operations of the Company.

 Note 10 - Statutory Accounting

 The insurance subsidiary prepares its statutory-based financial statements in accordance with accounting practices prescribed or permitted by the Ohio Department of Insurance. These principles differ significantly from accounting principles generally accepted in the United States of America. "Prescribed" statutory accounting practices include state laws, regulations, and general administrative rules, as well as a variety of publications of the National Association of Insurance Commissioners (NAIC). "Permitted" statutory accounting practices encompass all accounting practices that are not prescribed; such practices may differ from state to state, from company to company within a state, and may change in the future.

 The following table reflects UG's statutory basis net income and capital and surplus (shareholders' equity) as of December 31:

 2024

 2023

 $

 7,730,512

 $

 8,320,315

 Capital and surplus

 104,126,189

 91,828,094

 Note 11 – Related Party Transactions

 The articles of incorporation of UG contain the following language under item 12 relative to related party transactions:

 A director shall not be disqualified from-dealing with or contracting with the corporation as vendor, purchaser; employee, agent or otherwise; nor, in the absence of fraud, shall any transaction or contract or act of this corporation be void or in any way affected or invalidated by the fact that any director or any firm of which any director is a member or any corporation of which any director is a shareholder, director or officer is in any way interested in such transaction or contract or act, provided the fact that such director or such firm or such corporation so interested shall be disclosed or shall be known to the Board of Directors or such members thereof as shall be present at any meeting of the Board of Directors at which action upon any such contract or transaction or act shall be taken: nor shall any such director be accountable or responsible to the company for or in respect to such transaction or contract or act of. this corporation or for any gains or profits realized by him by reason of the fact that he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer is interested in such action or contract; and any such director may be counted in determining the existence of a quorum of any meeting of the Board of Directors of the company which shall authorize or take action in respect to any such contract or transaction or act and may vote thereat to authorize, ratify, or approve any such contract or transaction or act, with like force and effect as if he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer were not interested in such transaction or contract or act.

 On February 20, 2003, UG purchased $ 4 million of a trust preferred security offering issued by First Southern Bancorp, Inc. ("FSBI"). The security has a mandatory redemption after 30 years with a call provision after 5 years. The security pays a quarterly dividend at a fixed rate of 6.515 %. The Company received dividends of $ 165,590 and $ 165,137 during 2024 and 2023, respectively.

 On March 30, 2009, UG purchased $ 1 million of FSBI common stock. The sale and transfer of this security is restricted by the provisions of a stock restriction and buy-sell agreement.

 UTG has a 30.10 % ownership interest in an aircraft that is jointly owned with First Southern National Bank and Bandyco, LLC. Bandyco, LLC is affiliated with the Estate of Ward F. Correll. Mr. Correll is the father of Jesse Correll and a former director of the Company. The aircraft is used for business related travel by various officers and employees of the Company. For years 2024 and 2023, UTG paid $ 332,445 and $ 307,442 for costs associated with the aircraft, respectively.

 Effective January 1, 2007, UTG entered into administrative services and cost sharing agreements with its subsidiary. Under this arrangement, the subsidiary pays its proportionate share of expenses, based on an allocation formula. During 2024 and 2023, UG paid $ 7,480,761 and $ 7,910,324, respectively, in expenses. The Ohio Department of Insurance has approved the cost sharing agreement and it is Management's opinion that where applicable, costs have been allocated fairly and such allocations are based upon accounting principles generally accepted in the United States of America.

 The Company from time to time acquires mortgage loans through participation agreements with FSNB. FSNB services the Company's mortgage loans including those covered by the participation agreements. The Company pays 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. The Company paid $ 20,137 and $ 18,694 in servicing fees and $ 26,665 and $ 18,630 in origination fees to FSNB during 2024 and 2023, respectively.

 Effective January 1, 2017, UTG entered into a shared services contract with FSNB. Pursuant to the terms of the agreement, UTG and FSNB will utilize the services of the other's staff in certain instances for the betterment of both entities. Personnel within departments, such as accounting, human resources, and information technology, are shared between the entities. Costs of these resources are then reimbursed between the companies. The shared services arrangement provides benefits to both parties such as access to a greater pool of knowledgeable staff, efficiencies from elimination of redundancies and more streamlined operations.

 The Company reimbursed expenses incurred by employees of FSNB relating to salaries, travel and other costs incurred on behalf of or relating to the Company and received reimbursements from FSNB. The Company paid $ 1,217,395 and $ 1,337,096 in 2024 and 2023, respectively to FSNB in net reimbursement of such costs.

 Effective July 1, 2018, the Company assumed the employees of several smaller entities owned or associated with UTG. The purpose of this was to support the continued efforts to further streamline operations amongst associated entities. The salaries, benefits, and payroll related processing fees are 100 % reimbursed by the associated entities on a monthly basis. During 2024 and 2023, the Company received reimbursements of $ 1,605,028 and $ 1,438,450, respectively. These costs are eliminated for consolidation of these entities, where applicable.

 The Company rents a portion of the first floor and second floor of an 8,000 square foot, two-story office building, located in Stanford, KY. The first floor of the building is occupied by UTG and FSNB employees that are included in the shared services agreement between the two entities. The second floor is occupied by the customer service call centers for both UTG and FSNB employees. The building is owned by FSNB and UTG pays $ 2,000 per month in rent to FSNB for the portion of the building occupied by UTG employees. The Company paid rent of $ 24,000 to FSNB in 2024 and 2023.

 As previously disclosed in the Notes Receivable section of Note 2 - Investments, several of the Company's notes have participation agreements in place with third parties. Certain participation agreements are with FSF, a related party. The participation agreements are sold without recourse and assigned to the participant based on their pro-rata share of the principal, interest and collateral as specified in the participation agreements. The undivided participations in the notes receivable range from 20 % - 50 %. The total amount of loans participated to FSF was $0 and $60,031 as of December 31, 2024 and 2023, respectively.

 During the 4th quarter of 2023, UTG entered into a loan participation agreement with FSNB to fund a commercial mortgage loan issued to a company that is owned/managed by a member of UTG's Board of Directors. UG had a 9 % interest in the participated loan and agreed to fund up to $ 1,482,300. The loan was fully repaid in 2024.

 Note 12 – Other Cash Flow Disclosures

 On a cash basis, the Company paid the following expenses for the periods ended December 31:

 2024

 2023

 Interest

 $

 23,169

 $

 44,814

 Federal income tax

 770,000

 5,800,000

 Note 13 - 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 T. 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 our customers to pay their insurance premiums is impacted by the economic conditions in these areas. As of December 31, 2024 and 2023, approximately 52 % and 51 %, 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 20 % of total life insurance in-force at December 31, 2024 and 2023. Insurance ceded represented 30 % and 40 % of premium income for 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 represented approximately 34 % and 28 % of the Company's total invested assets at December 31, 2024 and 2023, respectively. The following table provides an allocation of the oil and gas investments by type as of December 31:

 2024

 Land, Minerals &
 Royalty Interests

 Exploration

 Total

 $

 $

 1,068,400

 $

 1,068,400

 124,155,007

 124,155,007

 4,863,572

 4,863,572

 Investment real estate

 5,677,061

 5,677,061

 1,875,000

 1,875,000

 Total

 $

 136,570,640

 $

 1,068,400

 $

 137,639,040

 2023

 Land, Minerals &
 Royalty Interests

 Exploration

 Total

 $

 $

 1,075,240

 $

 1,075,240

 84,066,203

 84,066,203

 5,826,381

 5,826,381

 Investment real estate

 7,383,851

 7,383,851

 2,000,000

 2,000,000

 Total

 $

 99,276,435

 $

 1,075,240

 $

 100,351,675

 As of December 31, 2024 and 2023, the Company owned four equity securities that represented approximately 81 % and four securities that represented approximately 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.

 Note 14 – Segment Information

 The Company is organized into a single reportable segment: insurance distribution. The Company derives its revenue entirely from within the United States and manages business activities on a consolidated basis. The Company's chief operating decision maker is its Chief Executive Officer.

 The accounting policies of the insurance distribution segment are the same as those described in the summary of significant accounting policies. The chief operating decision maker uses net income or loss, as reported on the Consolidated Statements of Operations, to assess performance and allocate resources for the insurance distribution segment. The significant segment expense categories regularly provided to the chief operating decision maker are the same as those included on the Consolidated Statements of Operations. The measure of segment assets is total assets as reported on the Consolidated Balance Sheets.

 The chief operating decision maker uses net income or loss to assess performance by examining period-over-period trends and monitoring budget versus actual results.

 Note 15 – Selected Quarterly Financial Data

 As a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and Item 10(f)(1) of Regulation S-K, the Company has elected to comply with certain scaled disclosure reporting obligations, and therefore does not have to provide the information required by this item.

 Note 16 – Revision of Previously Issued Consolidated Financial Statements

 The Company identified an error in its previously issued Consolidated Financial Statements related to the classification of certain investment types on the Consolidated Balance Sheets. The impact of the error to the prior period's Consolidated Financial Statements was not considered to be material. Certain exchange traded funds ("ETFs") were previously classified as fixed maturities, available for sale. To comply with GAAP reporting requirements, the Company has reclassified $24,325,291 of exchange traded funds out of fixed maturities, available for sale, to equity securities, at fair value.

 Management evaluated this error in accordance with SEC Staff Accounting Bulletin Number 99, Materiality, which is since codified in ASC 250 – Accounting Changes and Error Corrections, and concluded it was not material to any previously reported financial statements. However, in order to improve the consistency and comparability of the consolidated financial statements, Management will revise the consolidated financial statements and related disclosures to correct the error in future filings

 As Previously

 Reported

 Adjustments

 As Restated

 Consolidated Balance Sheets

 $

 103,409,836

 $

 ( 24,325,291

)

 $

 156,550,812

 22,074,673

 178,625,485

 15,977,368

 2,250,618

 Retained earnings

 133,491,797

 ( 2,161,735

)

 131,330,062

 Accumulated other comprehensive loss

 ( 4,882,317

)

 2,161,735

)

 Consolidated Statements of Operations

 Net investment income

 $

 14,141,809

 $

 ( 88,281

)

 $

 ( 3,830,793

)

 974,250

 ( 2,856,543

)

 Income tax expense (benefit)

 ( 144,247

)

 186,054

 41,807

 Net income attributable to common shareholders

 1,956,695

 699,915

 2,656,610

 Basic income per share

 0.62

 0.22

 0.84

 Diluted income per share

 0.62

 0.22

 0.84

 Consolidated Statements of Comprehensive Income (Loss)

 $

 2,070,092

 $

 699,915

 $

 Unrealized holding gains (losses) arising during the period, pre-tax

 2,867,943

 ( 885,969

)

 1,981,974

 Tax (expense) benefit on unrealized holding gains (losses) arising during the period

 ( 592,591

)

 186,054

 ( 406,537

)

 Unrealized holding gains (losses) during period, net of tax

 2,275,352

 ( 699,915

)

 1,575,437

 Subtotal: Other comprehensive income (loss), net of tax

 2,229,269

 ( 699,915

)

 1,529,354

 Consolidated Statements of Cash Flows

 $

 2,070,092

 $

 699,915

 $

 Accretion of investments

 ( 314,042

)

 88,280

 ( 225,762

)

 3,830,793

 ( 974,250

)

 2,856,543

 Change in deferred income taxes

 372,861

 186,055

 558,916

 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 None

 Item 9A. Controls and Procedures

 Evaluation of Disclosure Controls and Procedures

 The Company maintains disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act)) that are designed to ensure that the information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. Our disclosure controls and procedures are also designed to ensure that information required to be disclosed in our Exchange Act reports is accumulated and communicated to Management, including our Principal Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and Management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

 Our Management, with the participation of our Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of the Company's disclosure controls and procedures as of December 31, 2024 and, based on this evaluation, our Principal Executive Officer and Principal Financial Officer have concluded that, as of the end of the period covered by this report, the Company's disclosure controls and procedures were effective at a reasonable assurance level.

 Management's Report on Internal Controls Over Financial Reporting

 Our Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The Company's internal control over financial reporting is designed to provide reasonable assurance regarding the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

 The Company's Management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2024. In making the assessment, Management used the criteria issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") in Internal Control-Integrated Framework (2013). Based on Management's assessment, Management concluded that, as of December 31, 2024, the Company's internal control over financial reporting was effective.

 This annual report does not include an attestation report of the Company's independent registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Company's independent registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only Management's report in this Annual Report.

 Changes in Internal Controls

 There have been no changes in the Company's internal control over financial reporting since December 31, 2024, in connection with the evaluation required by paragraph (d) of Exchange Act Rule 13a-15(e) and 15d-15(e), that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. The Company's process for evaluating controls and procedures is continuous and encompasses constant improvement of the design and effectiveness of established controls and procedures and the remediation of any deficiencies, which may be identified during this process.

 Item 9B. Other Information

 None

 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

 Not Applicable

 Item 10. Directors, Executive Officers and Corporate Governance

 The Board of Directors

 In accordance with the laws of Delaware and the Certificate of Incorporation and Bylaws of UTG, as amended, UTG is managed by its executive officers under the direction of the Board of Directors. The Board elects executive officers, evaluates their performance, works with management in establishing business objectives and considers other fundamental corporate matters, such as the issuance of stock or other securities, the purchase or sale of a business and other significant corporate business transactions. In the fiscal year ended December 31, 2024, the Board met five times. During 2024, all Directors attended at least 75% of all meetings of the Board and meetings of committees of the Board. Our Board of Directors does not have a policy requiring directors to attend annual meetings of shareholders. All Board members attended our 2024 annual shareholders' meeting, except for Howard L. Dayton, Jr,, Thomas F. Darden II, April R. Chapman and Peter L. Ochs.

 The Board of Directors has an Audit Committee consisting of Messrs. Molnar, Harmon, and Cortines. Our Board has determined that each of the members of the Audit Committee meets the criteria for independence under the NASDAQ listing standards. The Audit Committee performs such duties as outlined in the Company's Audit Committee Charter. The Audit Committee reviews and acts or reports to the Board with respect to various auditing and accounting matters, the scope of the audit procedures and the results thereof, internal accounting and control systems of UTG, the nature of services performed for UTG and the fees to be paid to the independent auditors, the performance of UTG's independent and internal auditors and the accounting practices of UTG. The Audit Committee also recommends to the full Board of Directors the auditors to be appointed by the Board. The Audit Committee met four times in 2024.

 The Board has reviewed the qualifications of each member of the audit committee and determined one member of the committee, Gabriel Molnar, meets the definition of an "audit committee financial expert" as defined in Item 407 of Regulation S-K.

 The Board of Directors has a Compensation Committee consisting of Messrs. Darden, Cortines, and Ochs. Our Board has determined that each of the members of the Compensation Committee meets the criteria for independence under the NASDAQ listing standards. The Compensation Committee performs such duties as outlined in the Company's Compensation Committee Charter. The Compensation Committee reviews and acts or reports to the Board with respect to various compensation matters relative to the Company's executive officers. The Compensation Committee has the authority to delegate appropriate matters to subcommittees as the Committee may determine in its discretion. The Compensation Committee met one time in 2024.

 Under UTG's By-Laws, the Board of Directors should be comprised of at least six and no more than eleven Directors. At December 31, 2024, the Board consisted of eight Directors. Shareholders elect Directors to serve for a period of one year at UTG's annual shareholders' meeting.

 The Board of Directors does not have a formal nominating committee, or a committee that performs similar functions, and does not have a nominating committee charter. The Board has concluded that the nominating process should not be limited to certain members so that a comprehensive selection of candidates can be considered. Therefore, the nomination process is conducted by the full Board of Directors. The Board of Directors has not adopted a formal policy with regard to the consideration of Director candidates recommended by shareholders. Candidates for nomination have been recommended by an executive officer or director and considered by the Board of Directors. Generally, candidates have been persons who have been known to one or more of our Board members. The Board of Directors will, however, consider nominees recommended by shareholders. Shareholders wishing to recommend candidates for Board membership must submit the recommendations in writing to the Secretary of the Company at least 90 days prior to a date corresponding to the previous year's Annual Meeting, with the submitting shareholder's name and address and pertinent information about the proposed nominee similar to that set forth for directors named herein. The Board does not evaluate potential nominees for director differently based on whether they are recommended by a shareholder.

 The Board of Directors has not adopted specific minimum qualifications that it believes must be met by a person it recommends for nomination as a director. Proposed nominees will be considered in light of their potential contributions to the Board, their backgrounds, their independence and such other factors as the Board considers appropriate. We do not have a specific policy relating to the consideration of diversity in identifying director candidates. However, the Board of Directors does consider the diversity of our Board when identifying director candidates. The amount of consideration given to diversity varies with the Boards' determination of whether we would benefit from expanding the Board's diversity in a particular area. We believe this policy has been effective in identifying candidates with the diverse business experience necessary to lead our Company.

 Our directors have demonstrated significant achievement and generally have significant management experience in one or more fields of business, professional, governmental, community or academic endeavors. Our directors have sound judgement as a result of their management or policy making experience and demonstrate an ability to function effectively in an oversight role. Given the tenure of most of the directors on our Board, they have a general appreciation regarding major issues facing the Company. These experiences make each of our directors well qualified to be a member of the Company's Board of Directors.

 The Board of Directors has provided a process for shareholders to send communications directly to the Board. These communications can be sent to Jesse Correll, Chairman of the Board, CEO, and President of UTG, at the corporate headquarters at 205 North Depot Street, Stanford, Kentucky 40484.

 Our Board of Directors is led by Jesse Correll, our Chairman of the Board, CEO, and President. The decision as to who should serve as Chairman of the Board, and who should serve as Chief Executive Officer, and whether those offices should be combined or separate, is properly the responsibility of our Board of Directors. The Board of Directors believes that the most effective leadership structure for us at this time is for Mr. Correll to serve as both Chairman of the Board and Chief Executive Officer. Our Board does not have a lead independent director and does not believe that designating a lead independent director would be necessary or helpful at this time.

 Our Board of Directors oversees our risk management in cooperation with management. The Board and management regularly assess and communicate regarding risks confronting the Company, including transaction specific risks, macroeconomic trends, industry developments, and risk factors unique to our business. The members of the Audit Committee also discuss various financial reporting and accounting risk factors with our independent audit firm.

 Section 16(a) Beneficial Ownership Reporting Compliance

 Directors and officers of UTG file periodic reports regarding ownership of Company securities with the Securities and Exchange Commission pursuant to Section 16(a) of the Securities Exchange Act of 1934 as amended, and the rules promulgated there under. UTG is not aware of any individuals who filed late with the Securities and Exchange Commission during 2024. SEC filings may be viewed from the Company's Web site www.utgins.com.

 Audit Committee Report to Shareholders

 In connection with the December 31, 2024 financial statements, the audit committee: (1) reviewed and discussed the audited financial statements with Management; (2) discussed with the independent auditors the matters required by Statement on Auditing Standards No. 61, Communications with Audit Committees, as amended, (AICPA, Professional Standards, Vol. 1 AU section 380), as adopted by the Public Company Accounting Oversight Board in Rule 3200T; and (3) received the written disclosures and the letter from its independent auditors required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent registered public accounting firm's communications with the audit committee concerning independence, and has discussed with the independent auditors their independence. Based upon these reviews and discussions, the audit committee recommended to the Board of Directors that the audited financial statements be included in the Annual Report on Form 10-K filed with the SEC for the last fiscal year.

 Members of the Company's Audit Committee:

 Gabriel J. Molnar

 Committee Chairman

 Thomas E. Harmon

 John M. Cortines

 The following information with respect to business experience of the Board of Directors has been furnished by the respective Directors or obtained from the records of UTG.

 Name, Age

 Position with the Company, Business Experience and Other Directorships

 Jesse T. Correll, 68

 Chairman of UTG and Universal Guaranty Life Insurance Company since 2000; Director of UTG since 1999; Chairman of First Southern Bancorp, Inc. since 1988; President and CEO of First Southern Bancorp, Inc. from 1988-2015 and 2023 to present; Manager and President of First Southern Funding, LLC since 1992; President, Director of The River Foundation since 1990; Board member of Crown Financial Ministries from 2004 to 2009; Friends of the Good Samaritans since 2005; Generous Giving from 2006 to 2009; the National Christian Foundation since 2006; Centre Board of Trustees from 2015 to 2022; and Cumberland Lake Shell, Inc. since 2017.

 Preston H. Correll, 44

 Preston, along with his wife Rachel, and three children own and operate St. Asaph Farm in Stanford, Kentucky where they focus on sustainable farming and raising natural meat. He is also co-founder of Marksbury Farm Market based in Bryantsville, Kentucky. He has been involved with The Good Samaritan School in Delhi, India since 2003 and serves on the board of the Friends of the Good Samaritans. Director of UTG, Inc. since December 2018.

 John M. Cortines, 36

 Mr. Cortines serves as the Director of Grantmaking at the Maclellan Foundation. He is the author of multiple books on money, faith, and generosity. Prior to entering the nonprofit sector, he worked in the oil and gas industry as an engineer for Chevron Corporation. Mr. Cortines is a graduate of Harvard Business School (MBA), King Abdullah University of Science and Technology (MS), and Texas A&M University (BS). Director of UTG, Inc. since December 2018.

 Thomas F Darden, II, 70

 Mr. Darden is the Founder and Chief Executive Officer of Cherokee, an investment company that invests in both private equity and venture capital. Beginning in 1984, Mr. Darden served for 16 years as the Chairman of Cherokee Sanford Group, a brick manufacturing and soil remediation company. From 1981 to 1983, he was a consultant with Bain & Company in Boston. From 1977 to 1978, he worked as an environmental planner for the Korea Institute of Science and Technology in Seoul, where he was a Henry Luce Foundation Scholar. Mr. Darden is on the Boards of Shaw University, the Institute for The Environment at the University of North Carolina and the Board of Governors of the Research Triangle Institute. Mr. Darden earned a Masters in Regional Planning from the University of North Carolina, a Juris Doctor from Yale Law School and a Bachelor of Arts from the University of North Carolina, where he was a Morehead Scholar.

 Howard L. Dayton, Jr., 81

 In 1985, Mr. Dayton founded Crown Ministries in Longwood, Florida. Crown Ministries merged with Christian Financial Concepts in September 2000 to form Crown Financial Ministries, the world's largest financial ministry. He served as Chief Executive Officer from 1985 to 2007 and in 2009 founded Compass - Finances God's Way. Mr. Dayton is a graduate of Cornell University. He developed The Caboose, a successful railroad-themed restaurant in Orlando, FL in 1969. In 1972 he began his commercial real estate development career, specializing in office development in the Central Florida area. He has authored five popular small group studies, produced several video series, and was the host for the nationally syndicated radio programs MoneyWise and HeyHoward. Asbury University named their business school the Howard Dayton School of Business. Mr. Dayton became a Director of UTG, Inc. in December 2005.

 Thomas E. Harmon, 70

 Director of UTG and Universal Guaranty Life Insurance Company since March 2016. Mr. Harmon is the previous owner and President of Harmon Foods, Inc., a chain of retail supermarkets, for the past 40 years. Mr. Harmon recently sold the operating parts of Harmon Foods, Inc. now managing the assets of Harmon Foods. Mr. Harmon has been active in many charitable organizations over the years, most recently serving as a Board Member with Amigos En Cristo Ministries, an organization serving one of the most disadvantaged parts of the world – Juarez, Mexico.

 Gabriel J. Molnar, 38

 Mr. Molnar is the Chief Financial Officer at Capstone Realty Inc., a commercial real estate development company in Louisville, Kentucky. Mr. Molnar is a licensed CPA and real estate broker in Kentucky. Prior to Capstone, Mr. Molnar worked as a Financial Analyst with Procter & Gamble and as a public company auditor and healthcare consultant with PricewaterhouseCoopers. Mr. Molnar received a MBA from the Owen Graduate School of Management at Vanderbilt University and is also a graduate of Asbury University in Wilmore, Kentucky.

 Peter L. Ochs, 73

 Mr. Ochs is founder of Capital III, a private equity investment firm located in Wichita, Kansas. Capital III provides impact investment capital and management with investments in manufacturing, real estate, energy, and education with a geographical focus on the US and Latin America. Prior to founding Capital III, Mr. Ochs spent 8 years in the commercial banking industry. Mr. Ochs graduated from the University of Kansas with a degree in business and finance. He currently serves on the boards of UTG, Inc., the American Independence Funds, and Trinity Academy.

 Executive Officers of UTG

 More detailed information on the following executive officers of UTG appears under "Directors":

 Chairman of the Board, Chief Executive Officer, and President

 Other executive officers of UTG are set forth below:

 Name, Age

 Position with UTG and Business Experience

 Theodore C. Miller, 62

 Senior Vice President and Chief Financial Officer of UTG, Inc. and Universal Guaranty Life Insurance Company since 1997; Senior Vice President and Chief Financial Officer of subsidiary companies since 1997; and Chief Financial Officer of First Southern Bancorp, Inc. and First Southern National Bank since 2016.

 Daniel T. Roberts, 42

 Vice President of UTG, Inc and Universal Guaranty Life Insurance Company since February 2023. President of Universal Guaranty Life Insurance Company since September 2023; Vice President of First Southern Bancorp, Inc. and First Southern National Bank since 2023 and served in various capacities since 2016.

 Douglas P. Ditto, 69

 Vice President of UTG, Inc. and Universal Guaranty Life Insurance Company since June 2009; Chief Investment Officer from 2009 to 2012; Assistant Vice President from June 2003 to June 2009; Executive Vice President of First Southern Bancorp, Inc. since March 1985.

 Code of Ethics

 The Company has adopted a Code of Ethics and Business Conduct for our Directors, officers (including our Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer or Controller, and persons performing similar function) and employees. The Code of Business Conduct and Ethics is available to our shareholders by requesting a free copy of the Code of Business Conduct and Ethics by writing to us at UTG, Inc., 205 North Depot Street, Stanford, Kentucky 40484.

 Item 11. Executive Compensation

 Executive Compensation Table

 The following table sets forth certain information regarding compensation paid to or earned by UTG's Chief Executive Officer, and each of UTG's two most highly compensated executive officers whose salary plus bonus exceeded $100,000 during UTG's last fiscal year:

 Name and Principal position

 Year

 Salary

 Bonus

 Stock Awards
 (1)

 All Other Compensation
 (2)

 Total

 Chief Executive Officer

 2024

 $

 217,500

 $

 $

 234,991

 $

 13,050

 $

 465,550

 2023

 217,500

 289,994

 13,050

 520,550

 Douglas P. Ditto
 Vice President

 2024

 187,500

 200,000

 11,250

 398,750

 2023

 187,500

 99,991

 150,009

 11,250

 448,750

 Theodore C. Miller
 Chief Financial Officer

 2024

 117,500

 69,900

 30,100

 7,050

 224,550

 2023

 117,292

 49,880

 50,120

 7,038

 224,330

 Casey Willis (3)
 Vice President

 2024

 200,000

 300,000

 49,998

 12,000

 561,998

 2023

 200,000

 274,800

 50,120

 12,000

 536,920

 (1)

 Stock awards in the form of an annual bonus of 11,726 and 21,958 shares were issued in 2024 and 2023, respectively.

 (2)

 All Other Compensation consists of matching contributions to an Employee Savings Trust 401(k) Plan

 (3)

 Casey Willis is not deemed to be an executive officer.

 Outstanding Equity Awards at Fiscal Year End

 As of December 31, 2024, there were no unexercised options, stock that has not vested or equity incentive plan awards outstanding for any of the above named executive officers.

 Compensation of Directors

 Effective January 1, 2018, a new compensation arrangement was approved whereby each outside Director annually receives $5,000 as a retainer and $2,500 per meeting attended. The compensation, however, is paid in UTG Common Stock. The value is determined annually on the close of business December 20th or the next business day should December 20 th be a weekend or holiday, based on the activity of the year just ending. Reasonable travel expenses are reimbursed in cash as incurred. UTG's Director Compensation policy provides that Directors who are employees of UTG or its affiliates do not receive any compensation for their services as Directors except for reimbursement for reasonable travel expenses for attending each meeting. The following table reflects compensation paid to all Directors who served in 2024.

 Name

 Fees Earned or Paid in Cash

 Stock Awards
 (1)

 All Other Compensation
 (2)

 Total

 Jesse T. Correll, Chief Executive Officer

 $

 $

 $

 $

 April R. Chapman, Director (3)

 5,000

 5,000

 Preston H. Correll, Director

 5,000

 22,500

 John M. Cortines, Director

 Thomas F. Darden, II, Director

 Howard L. Dayton, Director

 Thomas E. Harmon, Director

 Gabriel J. Molnar, Director

 5,000

 22,500

 Peter L. Ochs, Director

 (1) Market value of stock on earned date was $28.09 per share.

 (2) Other Compensation represents payment for consulting services performed relative to management enrichment.

 (3) Resigned from Board effective June 28, 2024

 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Principal Holders of Securities

 The following tabulation sets forth the name and address of the entity known to be the beneficial owners of more than 5% of UTG's Common Stock and shows: (i) the total number of shares of Common Stock beneficially owned by such person as of February 1, 2025 and the nature of such ownership; and (ii) the percent of the issued and outstanding shares of Common Stock so owned as of the same date.

 Title

 Amount

 Percent

 of

 Name and Address

 and Nature of

 Of

 Class

 of Beneficial Owner (2)

 Beneficial Ownership

 Class (1)

 Common

 154,312

 (3)(5)

 4.9%

 Stock, no

 First Southern Bancorp, Inc.

 1,406,785

 (3)(4)(5)

 44.6%

 par value

 First Southern Funding, LLC

 400,000

 (3)(4)(5)

 12.7%

 First Southern Holdings, LLC

 1,201,876

 (3)(4)(5)

 38.1%

 WCorrell, Limited Partnership

 72,750

 (3)(5)

 2.3%

 Cumberland Lake Shell, Inc.

 128,750

 (5)

 4.1%

 (1) The percentage of shares owned is based on 3,157,376 shares of Common Stock outstanding as of February 1, 2025.

 (2) The address for each of Jesse Correll, First Southern Bancorp, Inc. ("FSBI"), First Southern Funding, LLC ("FSF"), First Southern Holdings, LLC ("FSH"), and WCorrell, Limited Partnership ("WCorrell LP"), is 205 North Depot Street, Stanford, Kentucky 40484. The address for Cumberland Lake Shell, Inc. ("CLS") is P.O. Box 430, 150 Railroad Drive, Somerset, Kentucky 42502.

 (3) The share ownership of Jesse Correll listed includes 81,562 shares of Common Stock owned by him individually. The share ownership of Mr. Correll also includes 72,750 shares of Common Stock held by WCorrell, Limited Partnership, a limited partnership in which Jesse Correll serves as managing general partner and as such, has sole voting and dispositive power over the shares held by the entity. In addition, by virtue of his ownership of voting securities of FSF and FSBI, and in turn, their ownership of 100% of the outstanding membership interests of FSH (the holder of 1,201,876 shares of Common Stock), Mr. Correll may be deemed to beneficially own the total number of shares of Common Stock owned by FSH, and may be deemed to share with FSH the right to vote and to dispose of such shares. Mr. Correll owns approximately 78% of the outstanding membership interests of FSF. Additionally, Mr. Correll owns directly approximately 44%, companies he controls own approximately 17%, and he has the power to vote but does not own an additional 2% of the outstanding voting stock of FSBI. FSBI and FSF in turn own 99% and 1%, respectively, of the outstanding membership interests of FSH.

 (4) The share ownership of FSBI consists of 204,909 shares of Common Stock held by FSBI directly and 1,201,876 shares of Common Stock held by FSH of which FSBI is a 99% member and FSF is a 1% member. As a result, FSBI may be deemed to share the voting and dispositive power over the shares held by FSH.

 (5) According to the Schedule 13D, as amended, filed April 17, 2024, Jesse Correll, FSBI, FSF and FSH, have agreed in principle to act together for the purpose of acquiring or holding equity securities of UTG. In addition, because of their relationship with these Reporting Persons, Cumberland Lake Shell, Inc. and WCorrell Limited Partnership may also be deemed to be members of this group. Therefore, each may be deemed to have acquired beneficial ownership of the equity securities of UTG beneficially owned by each of the Reporting Persons.

 Security Ownership of Management of UTG

 The following tabulation shows with respect to each of the Directors of UTG, UTG's Chief Executive Officer and each of UTG's two most highly compensated executive officers whose salary plus bonus exceeded $100,000 for fiscal 2024, and with respect to all executive officers and Directors of UTG as a group: (i) the total number of shares of Common Stock beneficially owned by such person as of February 1, 2025 and the nature of such ownership; and (ii) the percent of the issued and outstanding shares of stock so owned as of the same date.

 Title of

 Name and Address of

 Amount and Nature of

 Percent of

 Class

 Beneficial Owner

 Beneficial Ownership

 Class (1)

 UTG's

 Stanford, KY

 2,089,847

 (2)

 66.2%

 Common

 Preston H. Correll

 Stanford, KY

 3,482

 (3)

 *

 Stock, no

 John M. Cortines

 Georgetown, TN

 4,533

 (4)

 *

 Par value

 Thomas F. Darden, II

 Raleigh, NC

 64,014

 2.0%

 Howard L. Dayton, Jr.

 Sanford, FL

 11,797

 *

 Douglas P. Ditto

 Danville, KY

 50,394

 (6)

 1.5%

 Thomas E. Harmon

 Springfield, IL

 4,643

 *

 Theodore C. Miller

 Stanford, KY

 16,292

 *

 Gabriel J. Molnar

 Louisville, KY

 4,067

 *

 Peter L. Ochs

 Valley Center, KS

 8,534

 (7)

 *

 Daniel Roberts

 Stanford, KY

 1,856

 (8)

 *

 All Directors and executive officers as a group (eleven in number)

 2,260,096

 71.6%

 * Less than 1%

 (1) The percentage of outstanding shares for UTG is based on 3,157,376 shares of Common Stock outstanding as of February 1, 2025.

 (2) The share ownership of Jesse Correll listed includes 81,562 shares of Common Stock owned by him individually. The share ownership of Mr. Correll also includes 72,750 shares of Common Stock held by WCorrell, Limited Partnership, a limited partnership in which Jesse Correll serves as managing general partner and as such, has sole voting and dispositive power over the shares held by the entity. In addition, by virtue of his ownership of voting securities of FSF and FSBI, and in turn, their ownership of 100% of the outstanding membership interests of FSH (the holder of 1,201,876 shares of Common Stock), Mr. Correll may be deemed to beneficially own the total number of shares of Common Stock owned by FSH, and may be deemed to share with FSH the right to vote and to dispose of such shares. Mr. Correll owns approximately 78% of the outstanding membership interests of FSF. Additionally, Mr. Correll owns directly approximately 44%, companies he controls own approximately 17%, and he has the power to vote but does not own an additional 2% of the outstanding voting stock of FSBI. FSBI and FSF in turn own 99% and 1%, respectively, of the outstanding membership interests of FSH

 (3) Includes 3 shares held in street name.

 (4) Includes 848 shares held in spouse's IRA and 1,881 shares held in street name.

 (5) Includes 473 shares held in street name.

 (6) Includes 1,600 shares held in a retirement account, 800 shares in street name, and 2,000 shares held by two of his children, and 1,000 held by a third child.

 (7) Includes 2,000 shares held in a trust for benefit of named individual.

 (8) Includes 460 shares held in a retirement account.

 Except as indicated above, the foregoing persons hold sole voting and investment power.

 Item 13. Certain Relationships and Related Transactions, and Director Independence

 The Board of Directors determined that seven of the eight current Directors are "independent" as defined by Rule 5605 of the NASDAQ listing standards. The independent Directors are, Preston H. Correll, John M. Cortines, Thomas F. Darden, Howard L. Dayton, Jr., Thomas E. Harmon, Gabriel J. Molnar, and Peter L. Ochs.

 The articles of incorporation of UG contain the following language under item 12 relative to related party transactions:

 A director shall not be disqualified from-dealing with or contracting with the corporation as vendor, purchaser; employee, agent or otherwise; nor, in the absence of fraud, shall any transaction or contract or act of this corporation be void or in any way affected or invalidated by the fact that any director or any firm of which any director is a member or any corporation of which any director is a shareholder, director or officer is in any way interested in such transaction or contract or act, provided the fact that such director or such firm or such corporation so interested shall be disclosed or shall be known to the Board of Directors or such members thereof as shall be present at any meeting of the Board of Directors at which action upon any such contract or transaction or act shall be taken: nor shall any such director be accountable or responsible to the company for or in respect to such transaction or contract or act of this corporation or for any gains or profits realized by him by reason of the fact that he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer is interested in such action or contract; and any such director may be counted in determining the existence of a quorum of any meeting of the Board of Directors of the company which shall authorize or take action in respect to any such contract or transaction or act and may vote thereat to authorize, ratify, or approve any such contract or transaction or act, with like force and effect as if he or any firm of which he is a member or any corporation of which he is a shareholder, director or officer were not interested in such transaction or contract or act.

 On February 20, 2003, UG purchased $4 million of a trust preferred security offering issued by First Southern Bancorp, Inc. ("FSBI"). The security has a mandatory redemption after 30 years with a call provision after 5 years. The security pays a quarterly dividend at a fixed rate of 6.515%. The Company received dividends of $165,590 and $165,137 during 2024 and 2023, respectively.

 On March 30, 2009, UG purchased $1 million of FSBI common stock. The sale and transfer of this security is restricted by the provisions of a stock restriction and buy-sell agreement.

 UTG has a 30.10% ownership interest in an aircraft that is jointly owned with First Southern National Bank and Bandyco, LLC. Bandyco, LLC is affiliated with the Estate of Ward F. Correll. Mr. Correll is the father of Jesse Correll and a former director of the Company. The aircraft is used for business related travel by various officers and employees of the Company. For years 2024 and 2023, UTG paid $332,445 and $307,442 for costs associated with the aircraft, respectively.

 Effective January 1, 2007, UTG entered into administrative services and cost sharing agreements with its subsidiary. Under this arrangement, the subsidiary pays its proportionate share of expenses, based on an allocation formula. During 2024 and 2023, UG paid $7,480,761 and $7,910,324, respectively, in expenses. The Ohio Department of Insurance has approved the cost sharing agreement and it is Management's opinion that where applicable, costs have been allocated fairly and such allocations are based upon accounting principles generally accepted in the United States of America.

 The Company from time to time acquires mortgage loans through participation agreements with FSNB. FSNB services the Company's mortgage loans including those covered by the participation agreements. The Company pays 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. The Company paid $20,137 and $18,694 in servicing fees and $26,665 and $18,630 in origination fees to FSNB during 2024 and 2023, respectively.

 Effective January 1, 2017, UTG entered into a shared services contract with FSNB. Pursuant to the terms of the agreement, UTG and FSNB will utilize the services of the other's staff in certain instances for the betterment of both entities. Personnel within departments, such as accounting, human resources, and information technology, are shared between the entities. Costs of these resources are then reimbursed between the companies. The shared services arrangement provides benefits to both parties such as access to a greater pool of knowledgeable staff, efficiencies from elimination of redundancies and more streamlined operations.

 The Company reimbursed expenses incurred by employees of FSNB relating to salaries, travel and other costs incurred on behalf of or relating to the Company and received reimbursements from FSNB. The Company paid $1,217,395 and $1,337,096 in 2024 and 2023, respectively to FSNB in net reimbursement of such costs.

 Effective July 1, 2018, the Company assumed the employees of several smaller entities owned or associated with UTG. The purpose of this was to support the continued efforts to further streamline operations amongst associated entities. The salaries, benefits, and payroll related processing fees are 100% reimbursed by the associated entities on a monthly basis. During 2024 and 2023, the Company received reimbursements of $1,605,028 and $1,438,450, respectively. These costs are eliminated for consolidation of these entities, where applicable.

 The Company rents a portion of the first floor and second floor of an 8,000 square foot, two-story office building, located in Stanford, KY. The first floor of the building is occupied by UTG and FSNB employees that are included in the shared services agreement between the two entities. The second floor is occupied by the customer service call centers for both UTG and FSNB employees. The building is owned by FSNB and UTG pays $2,000 per month in rent to FSNB for the portion of the building occupied by UTG employees. The Company paid rent of $24,000 to FSNB in 2024 and 2023.

 As previously disclosed in the Notes Receivable section of Note 2 - Investments, several of the Company's notes have participation agreements in place with third parties. Certain participation agreements are with FSF, a related party. The participation agreements are sold without recourse and assigned to the participant based on their pro-rata share of the principal, interest and collateral as specified in the participation agreements. The undivided participations in the notes receivable range from 20% - 50%. The total amount of loans participated to FSF was $ 0 and $ 60,031 as of December 31, 2024 and 2023, respectively.

 During the 4th quarter of 2023, UTG entered into a loan participation agreement with FSNB to fund a commercial mortgage loan issued to a company that is owned/managed by a member of UTG's Board of Directors. UG had a 9% interest in the participated loan and agreed to fund up to $1,482,300. The loan was fully repaid in 2024.

 Item 14. Principal Accountant Fees and Services

 The Audit Committee is required to be directly responsible for the appointment, compensation and retention of the Company's independent registered public accounting firm. The Audit Committee appointed Kerber, Eck & Braeckel LLP ("KEB") as the Company's independent registered public accounting firm for the years ended December 31, 2024 and 2023.

 Amounts paid to, or billed by, the Company's principal accountant, during the two most recent fiscal years by category were as follows:

 Audit Fees - Audit fees paid for these audit services in the fiscal years ended 2024 and 2023 totaled $143,000 and $130,000 respectively. Fees billed for the quarterly reviews of the Company's financial statements totaled $39,375 and $37,500 for the years 2024 and 2023, respectively.

 Audit Related Fees - No audit related fees were incurred by the Company from KEB for the years ended 2024 and 2023.

 Tax Fees – For the years ended 2024 and 2023, the Company paid $17,500 and $20,475, respectively, relating to certain tax advice and electronic filing of certain federal and state income tax returns of the Company.

 All Other Fees – For the years ended December 31, 2024 and 2023, the Company paid $12,500 and $20,475, respectively, for the audit of the Company's employee benefit plan. During 2024, the Company paid no other fees to KEB.

 Item 15. Exhibit and Financial Statement Schedules

 (a)

 The following documents are filed as a part of the report:

 (1)

 Financial Statements:

 Included in Part II, Item 8 of this Report.

 (2)

 Financial Statement Schedules

 The financial statement schedules have been omitted as they are deemed inapplicable or not required by Regulation S-X.

 (a)(3) & (b)

 Exhibits
 The following are exhibits to this report, and if incorporated by reference, we have indicated the document previously filed with the SEC in which the exhibit was included:

 Exhibit
 Number

 Description

 3.1

 Certificate of Incorporation of the Registrant and all amendments thereto [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 3.1].

 3.2

 By-Laws for the Registrant and all amendments thereto [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 3.2].

 4.1

 UTG's Agreement pursuant to Item 601(b) (4) (iii) (A) of Regulation S-K with respect to long-term debt instruments [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 4.1].

 10.1

 Amendment to Reinsurance Agreement between Universal Guaranty Life Insurance Company and Optimum Re Insurance Company originally with Business Men's Assurance Company of America. [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2015 originally filed as Exhibit 10.2].

 10.2

 Reinsurance Agreement between Universal Guaranty Life Insurance Company and Swiss RE originally with Life Reassurance Corporation of America. [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2015 originally filed as Exhibit 10.3].

 10.3

 Assumption Reinsurance Agreement between Universal Guaranty Life Insurance Company and Park Avenue Life Insurance Company formerly known as First International Life Insurance Company. [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2015 originally filed as Exhibit 10.4].

 10.5

 Commercial pledge agreement dated November 20, 2012, between UTG, Inc. and Illinois National Bank. [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2012 originally filed as Exhibit 10.20].

 10.6

 Administrative Services and Cost Sharing Agreement dated as of January 1, 2007 between UTG, Inc. and Universal Guaranty Life Insurance Company [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 10.11].

 10.7

 Agreement regarding Mortgage Loans by and between First Southern National Bank and Universal Guaranty Life Insurance Company [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 10.12].

 10.8

 Universal Guaranty Participation Agreement-Purchased Loan [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 10.13].

 10.9

 Universal Guaranty Participation Agreement-Originated Loan [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2013 originally filed as Exhibit 10.14].

 10.10

 Management Data, Inc. Software License Agreement [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 201 4 originally filed as Exhibit 10.16].

 10.12

 Aircraft Joint Ownership Agreement by and among Bandyco, LLC, First Southern National Bank and UTG, Inc. dated August 11, 2014 [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 201 4 originally filed as Exhibit 10.18].

 *10.13

 Promissory Note dated November 20, 2023, between UTG, Inc. and Illinois National Bank.

 10.14

 Shared Services Agreement between UTG, Inc. and FSNB effective January 1, 2017.
 [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2018 originally filed as Exhibit 10.14].

 *10.15

 Amendments to the Shared Services Agreement between UTG, Inc. and FSNB. Amendment #6 to the Shared Services Agreement effective March 1, 2023. [Prior amendments incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2018 originally filed as Exhibits 10.15, 10.16 and 10.17 and for the year ended December 31, 2023 filed as Exhibit 10.15].

 *14.1

 Code of Ethics and Business Conduct [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2023 originally filed as Exhibit 14.1].

 *14.2

 Code of Ethical Conduct for Senior Financial Officers [Incorporated by reference to the Registrant's form 10-K, for the year ended December 31, 2023 originally filed as Exhibit 14.2].

 *21.1

 List of Subsidiaries of the Registrant.

 *31.1

 Certificate of Jesse T. Correll, Chairman of the Board Chief Executive Officer, and President of UTG, as required pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 *31.2

 Certificate 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, Chairman of the Board, Chief Executive Officer, and President 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.

 *99.1

 Audit Committee Charter.

 *99.2

 Whistleblower Policy

 *99.3

 Compensation Committee Charter.

 *99.4

 Investment Committee Charter.

 *101.INS

 *101.SCH

 *101.CAL

 *101.DEF

 *101.LAB

 *101.PRE

 * Filed herewith

 Item 16. Form 10-K Summary

 None

 SIGNATURES

 Pursuant to the requirements of Section 13 or 15(D) of the Securities Exchange Act of 1934, UTG, Inc. has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 By:

 /s/ Jesse T. Correll

 Chairman of the Board, Chief Executive Officer, President and Director

 (Principal Executive Officer)

 Date: March 26, 2025

 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 By: /s/ Jesse T. Correll

 By: /s/ Thomas E. Harmon

 Chairman of the Board, Chief Executive Officer, President and Director
 (Principal Executive Officer)

 Thomas Harmon

 By: /s/ Preston H. Correll

 By: /s/ Cabriel J. Molnar

 Preston H. Correll

 Gabriel J. Molnar

 By: /s/ John M. Cortines

 By: /s/

 John M. Cortines

 Peter L. Ochs

 By: /s/ Thomas F. Darden II

 By: /s/ Theodore C. Miller

 Thomas F. Darden II

 Theodore C. Miller
 Chief Financial Officer and Senior Vice President
 (Principal Financial and Accounting Officer.)

 By: /s/

 Howard L. Dayton