EX-99.1 2 news0905.txt NEWS RELEASE EXHIBIT 99.1 ------------ NEWS RELEASE CONTACT: Lester A. Aaron Chief Financial Officer (818) 591-9800 UNICO AMERICAN CORPORATION REPORTS RESULTS FOR ITS THIRD QUARTER ENDED SEPTEMBER 30, 2005 Woodland Hills, California, November 8, 2005 - Unico American Corporation (NASDAQ - "UNAM") announced today that for its quarter ended September 30, 2005, revenues were $15,204,435 and net income was $1,661,458 ($0.30 diluted income per share) compared with revenues of $15,477,954 and net income of $1,426,213 ($0.26 diluted income per share) for the quarter ended September 30, 2004. Revenues for the nine months ended September 30, 2005, were $46,347,872 and net income was $4,859,951 ($0.87 diluted income per share) compared with revenues of $46,401,559 and net income was $3,917,600 ($0.70 diluted income per share) for the nine months ended September 30, 2004. Stockholders' equity was $46,588,295 at September 30, 2005, or $8.48 per common share including unrealized after-tax investment losses of $333,249 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 Nine Months Ended September 30 September 30 ------------ ------------ 2005 2004 2005 2004 ---- ---- ---- ---- Revenues -------- Insurance Company Revenues Premium earned $16,047 $17,298 $49,256 $50,612 Premium ceded 3,508 4,798 10,901 13,198 ----- ------ ------ ------ Net premium earned 12,539 12,500 38,355 37,414 Investment income 1,047 1,053 3,138 3,168 Other income 31 24 76 73 ------ ------ ------ ------ Total Insurance Company Revenues 13,617 13,577 41,569 40,655 Other Revenues from Insurance Operations Gross commissions and fees 1,378 1,656 4,142 4,996 Investment income 15 10 44 28 Finance charges and fees earned 188 232 580 714 Other income 6 3 13 9 ------ ------ ------ ------ Total Revenues 15,204 15,478 46,348 46,402 ------ ------ ------ ------ Expenses -------- Losses and loss adjustment expenses 7,900 8,720 24,456 26,329 Policy acquisition costs 2,620 2,616 7,947 7,739 Salaries and employee benefits 1,310 1,256 3,869 3,570 Commissions to agents/brokers 160 227 518 729 Other operating expenses 629 540 1,973 2,002 ------ ------ ------ ------ Total Expenses 12,619 13,359 38,763 40,369 ------ ------ ------ ------ Income Before Income Taxes 2,585 2,119 7,585 6,033 Income Tax Provision 924 693 2,725 2,115 ----- ----- ----- ----- Net Income $1,661 $1,426 $4,860 $3,918 ===== ===== ===== ===== PER SHARE DATA -------------- Basic Earnings Per Share $0.30 $0.26 $0.88 $0.71 Weighted Average Shares (000) 5,496 5,490 5,496 5,490 Diluted Earnings Per Share $0.30 $0.26 $0.87 $0.70 Weighted Average Shares (000) 5,611 5,581 5,613 5,577 INSURANCE COMPANY STATUTORY OPERATING RATIOS -------------------------------------------- Losses and Loss Adjustment Expenses 62.8% 69.5% 63.5% 70.1% Underwriting Expenses 29.5% 29.6% 29.5% 28.9% ---- ---- ---- ---- Combined Ratio 92.3% 99.1% 93.0% 99.0% ==== ==== ==== ====