EX-99.1 2 news0605.txt NEWS RELEASE NEWS RELEASE CONTACT: Lester A. Aaron Chief Financial Officer (818) 591-9800 UNICO AMERICAN CORPORATION REPORTS RESULTS FOR ITS SECOND QUARTER ENDED JUNE 30, 2005 Woodland Hills, California, August 11, 2005 - Unico American Corporation (NASDAQ - "UNAM") announced today that for its quarter ended June 30, 2005, revenues were $15,662,323 and net income was $1,693,313 ($0.30 diluted income per share) compared with revenues of $15,243,414 and net income of $1,233,390 ($0.22 diluted income per share) for the quarter ended June 30, 2004. Revenues for the six months ended June 30, 2005, were $31,143,437 and net income was $3,198,493 ($0.57 diluted income per share) compared with revenues of $30,923,605 and net income was $2,491,387 ($0.45 diluted income per share) for the six months ended June 30, 2004. Stockholders' equity was $45,219,036 at June 30, 2005, or $8.23 per common share including unrealized after-tax investment losses of $41,050 compared to stockholders' equity of $42,425,325 or $7.72 per common share including unrealized after-tax investment gains of $376,172 at December 31, 2004. Unico American Corporation is an insurance holding company that provides property, casualty, health and life insurance, and related premium financing through its wholly owned subsidiaries. (Table Follows) UNICO AMERICAN CORPORATION AND SUBSIDIARIES SUMMARY OF CONSOLIDATED FINANCIAL DATA (UNAUDITED) ($ in thousands, except per share)
Three Months Ended Ended Six Months Ended June 30 June 30 ------- ------- 2005 2004 2005 2004 ---- ---- ---- ---- Revenues -------- Insurance Company Revenues Premium earned $16,534 $16,839 $33,210 $33,314 Premium ceded 3,543 4,511 7,393 8,400 ------ ------ ------ ------ Net premium earned 12,991 12,328 25,817 24,914 Investment income 1,054 1,023 2,090 2,115 Other income 19 19 44 49 ------ ------ ------ ------ Total Insurance Company Revenues 14,064 13,370 27,951 27,078 Other Revenues from Insurance Operations Gross commissions and fees 1,391 1,629 2,765 3,340 Investment income 15 8 28 18 Finance charges and fees 189 235 392 482 Other income 3 1 7 6 ------ ------ ------ ------ Total Revenues 15,662 15,243 31,143 30,924 ------ ------ ------ ------ Expenses -------- Losses and loss adjustment expenses 8,183 8,652 16,556 17,609 Policy acquisition costs 2,722 2,645 5,327 5,123 Salaries and employee benefits 1,272 1,097 2,559 2,314 Commissions to agents/brokers 172 231 357 502 Other operating expenses 669 673 1,344 1,462 ------ ------ ------ ------ Total Expenses 13,018 13,298 26,143 27,010 ------ ------ ------ ------ Income Before Income Taxes 2,644 1,945 5,000 3,914 Income tax provision 951 712 1,802 1,423 ----- ----- ----- ----- Net Income $1,693 $1,233 $3,198 $2,491 ===== ===== ===== ===== PER SHARE DATA -------------- Basic Earnings Per Share $0.31 $0.22 $0.58 $0.45 Weighted Average Shares (000) 5,496 5,490 5,496 5,490 Diluted Earnings Per Share $0.30 $0.22 $0.57 $0.45 Weighted Average Shares (000) 5,615 5,573 5,614 5,575 INSURANCE COMPANY STATUTORY OPERATING RATIOS -------------------------------------------- Losses and Loss Adjustment Expenses 62.8% 69.9% 63.9% 70.4% Underwriting Expenses 29.1% 29.0% 29.5% 28.5% ---- ---- ---- ---- Combined Ratio 91.9% 98.9% 93.4% 98.9% ==== ==== ==== ====