EX-99.1 2 unam0306.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 FIRST QUARTER ENDED MARCH 31, 2006 Woodland Hills, California, May 10, 2006 - Unico American Corporation (NASDAQ - "UNAM") announced today that for its quarter ended March 31, 2006, revenues were $14,073,675 and net income was $1,887,550 ($0.34 diluted income per share) compared with revenues of $15,481,114 and net income of $1,505,180 ($0.27 diluted income per share) for the quarter ended March 31, 2005. Stockholders' equity was $50,123,304 at March 31, 2006, or $9.08 per common share including unrealized after-tax investment losses of $620,926 compared to stockholders' equity of $48,394,373 or $8.80 per common share including unrealized after-tax investment losses of $382,224 at December 31, 2005. Unico American Corporation is an insurance holding company that provides property, casualty, health and life insurance, and related premium financing through its wholly owned subsidiaries. (Table Follows) UNICO AMERICAN CORPORATION AND SUBSIDIARIES SUMMARY OF CONSOLIDATED FINANCIAL DATA (UNAUDITED) ($ in thousands, except per share) Three Months Ended March 31 -------- 2006 2005 ---- ---- Revenues -------- Insurance Company Revenues Premium earned $14,845 $16,676 Premium ceded 3,631 3,850 ------ ------ Net premium earned 11,214 12,826 Investment income 1,334 1,036 Other income 28 26 ------ ------- Total Insurance Company Revenues 12,576 13,888 Other Revenues from Insurance Operations Gross commissions and fees 1,300 1,373 Investment income 21 13 Finance charges and fees earned 173 203 Other income 4 4 ------ ------ Total Revenues 14,074 15,481 ------ ------ Expenses -------- Losses and loss adjustment expenses 6,518 8,372 Policy acquisition costs 2,451 2,606 Salaries and employee benefits 1,285 1,287 Commissions to agents/brokers 158 185 Other operating expenses 748 675 ------ ------ Total Expenses 11,160 13,125 ------ ------ Income Before Income Taxes 2,914 2,356 Income Tax Provision 1,026 851 ----- ----- Net Income $1,888 $1,505 ===== ===== PER SHARE DATA -------------- Basic Earnings Per Share $0.34 $0.27 Weighted Average Shares (000) 5,506 5,495 Diluted Earnings Per Share $0.34 $0.27 Weighted Average Shares (000) 5,626 5,616 INSURANCE COMPANY STATUTORY OPERATING RATIOS -------------------------------------------- Losses and Loss Adjustment Expenses 57.9% 65.0% Underwriting Expenses 30.6% 30.1% ---- ---- Combined Ratio 88.5% 95.1% ==== ====