EX-99.1 3 news1203.txt NEWS RELEASE DATED 3-25-04 NEWS RELEASE CONTACT: Lester A. Aaron Chief Financial Officer (818) 591-9800 UNICO AMERICAN CORPORATION REPORTS RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2003 Woodland Hills, California, March 25, 2004 - Unico American Corporation (NASDAQ - "UNAM") announced today that for its quarter ended December 31, 2003, revenues were $14,193,026 and the net income was $1,007,853 ($0.18 diluted income per share) compared with revenues of $11,967,880 and net income of $185,786 ($0.03 diluted income per share) for the quarter ended December 31, 2002. Revenues for the twelve months ended December 31, 2003, were $51,130,439 and the net income was $1,068,650 ($0.19 diluted income per share) compared with revenues of $46,028,642 and a net loss of $3,224,689 ($0.59 diluted loss per share) for the twelve months ended December 31, 2002. Stockholders' equity was $38,470,857 at December 31, 2003, or $7.01 per common share including unrealized after-tax investment gains of $2,110,979 compared to stockholders' equity of $38,408,990 or $7.00 per common share including unrealized after-tax investment gains of $3,117,762 at December 31, 2002. Unico American Corporation is an insurance holding company that provides property, casualty, health and life insurance, and related premium financing through its wholly owned subsidiaries. (Table Follows) UNICO AMERICAN CORPORATION AND SUBSIDIARIES SUMMARY OF CONSOLIDATED FINANCIAL DATA (UNAUDITED) ($ in thousands, except per share)
Three Months Ended Ended Twelve Months Ended Ended December 31 December 31 ----------- ----------- 2003 2002 2003 2002 ---- ---- ---- ---- Revenues -------- Insurance Company Revenues Premium earned $15,506 $11,142 $53,754 $40,569 Premium ceded 4,809 2,542 16,648 7,210 ------ ----- ------ ------ Net premium earned 10,697 8,600 37,106 33,359 Investment income 1,152 1,320 4,801 5,402 Net realized investment gains - 4 - 4 Other income 28 22 98 49 ------ ----- ------ ------ Total Insurance Company Revenues 11,877 9,946 42,005 38,814 Other Revenues from Insurance Operations Gross commissions and fees 2,048 1,788 8,110 6,261 Investment income 9 13 47 56 Finance charges and fees earned 255 220 953 879 Other income 4 1 16 19 ------ ------ ------ ------ Total Revenues 14,193 11,968 51,131 46,029 ------ ------ ------ ------ Expenses -------- Losses and loss adjustment expenses 8,334 6,693 31,720 32,727 Policy acquisition costs 2,155 2,480 7,941 9,274 Salaries and employee benefits 1,192 1,137 4,961 4,374 Commissions to agents/brokers 301 314 1,461 1,219 Other operating expenses 269 1,036 2,898 3,249 ------ ------ ------ ------ Total Expenses 12,251 11,660 48,981 50,843 ------ ------ ------ ------ Income (Loss) Before Income Taxes 1,942 308 2,150 (4,814) Income Tax Provision (Benefit) 934 122 1,081 (1,589) ----- --- ----- ----- Net Income (Loss) $1,008 $ 186 $1,069 $(3,225) ===== === ===== ===== PER SHARE DATA Basic Earning (Loss) Per Share $0.18 $0.03 $0.19 $(0.59) Weighted Average Shares (000) 5,490 5,490 5,490 5,487 Diluted Earning (Loss) Per Share $0.18 $0.03 $0.19 $(0.59) Weighted Average Shares (000) 5,562 5,490 5,533 5,487 INSURANCE COMPANY STATUTORY OPERATING RATIOS Losses and Loss Adjustment Expenses 77.6% 77.4% 85.2% 97.8% Underwriting Expenses 29.1% 35.9% 29.2% 34.9% ----- ----- ----- ----- Combined Ratio 106.7% 113.3% 114.4% 132.7% ===== ===== ===== =====