EX-99.1 2 news0305.txt NEWS RELEASE NEWS RELEASE CONTACT: Lester A. Aaron Chief Financial Officer (818) 591-9800 UNICO AMERICAN CORPORATION REPORTS RESULTS FOR THE FIRST QUARTER ENDED MARCH 31, 2005 Woodland Hills, California, May 12, 2005 - Unico American Corporation (NASDAQ - "UNAM") announced today that for its quarter ended March 31, 2005, revenues were $15,481,114 and the net income was $1,505,180 ($0.27 diluted income per share) compared with revenues of $15,680,191 and net income of $1,257,997 ($0.23 diluted income per share) for the quarter ended March 31, 2004. Stockholders' equity was $43,310,111 at March 31, 2005, or $7.88 per common share including unrealized after-tax investment loss of $256,662 compared to stockholders' equity of $42,425,325 or $7.72 per common share including unrealized after-tax investment gain of $376,172 at December 31, 2004. Unico American Corporation is an insurance holding company that underwrites property and casualty insurance through its insurance company subsidiary; provides property, casualty, health and life insurance through its agency subsidiaries; and provides insurance premium financing and membership association services through its other subsidiaries. (Table Follows) UNICO AMERICAN CORPORATION AND SUBSIDIARIES SUMMARY OF CONSOLIDATED FINANCIAL DATA (UNAUDITED) ($ in thousands, except per share) Three Months Ended Ended March 31 2005 2004 ---- ---- Revenues -------- Insurance Company Revenues Premium earned $16,676 $16,475 Premium ceded 3,850 3,889 ------ ------ Net premium earned 12,826 12,586 Investment income 1,036 1,092 Other income 26 30 ------ ------ Total Insurance Company Revenues 13,888 13,708 Other Revenues from Insurance Operations Gross commissions and fees 1,373 1,711 Investment income 13 10 Finance charges and fees earned 203 247 Other income 4 4 ------ ------ Total Revenues 15,481 15,680 ------ ------ Expenses -------- Losses and loss adjustment expenses 8,372 8,957 Policy acquisition costs 2,606 2,479 Salaries and employee benefits 1,287 1,216 Commissions to agents/brokers 185 271 Other operating expenses 675 789 ------ ------ Total Expenses 13,125 13,712 ------ ------ Income Before Income Taxes 2,356 1,968 Income Tax Provision 851 710 ----- ----- Net Income $1,505 $1,258 ===== ===== PER SHARE DATA -------------- Basic Earning Per Share $0.27 $0.23 Weighted Average Shares (000) 5,495 5,490 Diluted Earning Per Share $0.27 $0.23 Weighted Average Shares (000) 5,616 5,578 INSURANCE COMPANY STATUTORY OPERATING RATIOS -------------------------------------------- Losses and Loss Adjustment Expenses 65.0% 71.0% Underwriting Expenses 30.1% 28.0% ---- ---- Combined Ratio 95.1% 99.0% ==== ====