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Shareholder Service
April 16, 2010
Dear Shareholder,
Who would have thought five years ago that the Business, Political, and Global worlds would have gone thru the changes that have occurred in the last eighteen months? Banks are being closed every week, Unemployment over 10%, Massive debts at every level of Government and the list could go on and on. And yet UTG has survived and I believe is well positioned to continue and get stronger in this ever changing economy.
Our Management and Board felt that 2009 was a year to focus on keeping our Balance Sheet strong and not worry so much about the earnings, so that we could take advantage of opportunities that may come our way as the fall out from the Financial Crisis continued. It appears this strategy has and will serve us well. During the 4th Quarter of 2009, our insurance companies have been able to purchase Commercial Loans
at significant discounts.
UTG has been amortizing its intangible asset, cost of insurance acquired, relating to Universal Guaranty Life Insurance Company since 1992. In recent years this expense has been around $3 million per year. 2009 was the last year of this expense. This expense going away combined with our money being invested in solid earning assets should help our GAAP earnings.
Our plan for 2010 is one that I fully endorse as a Shareholder, keep our Balance Sheet strong, pay-off our debt, keep expenses low, and continue to build our Capital in the years to come.
It is an Honor and Pleasure for us to serve you.
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