EX-99.1 2 news_0606.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 SECOND QUARTER ENDED JUNE 30, 2006 Woodland Hills, California, August 9, 2006 - Unico American Corporation (NASDAQ - "UNAM") announced today that for its quarter ended June 30, 2006, revenues were $13,667,146 and net income was $1,956,720 ($0.35 diluted income per share) compared with revenues of $15,662,323 and net income of $1,693,313 ($0.30 diluted income per share) for the quarter ended June 30, 2005. Revenues for the six months ended June 30, 2006, were $27,740,821 and net income was $3,844,270 ($0.68 diluted income per share) compared with revenues of $31,143,437 and net income was $3,198,493 ($0.57 diluted income per share) for the six months ended June 30, 2005. Stockholders' equity was $52,347,854 at June 30, 2006, or $9.37 per common share including unrealized after-tax investment losses of $759,484 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 Ended Six Months Ended June 30 June 30 ------- ------- 2006 2005 2006 2005 ---- ---- ---- ---- Revenues -------- Insurance Company Revenues Premium earned $14,294 $16,534 $29,139 $33,210 Premium ceded 3,489 3,543 7,119 7,393 ------ ------ ------ ------ Net premium earned 10,805 12,991 22,020 25,817 Investment income 1,421 1,054 2,754 2,090 Other income 20 19 47 44 ------ ------ ------ ------ Total Insurance Company Revenues 12,246 14,064 24,821 27,951 Other Revenues from Insurance Operations Gross commissions and fees 1,225 1,391 2,525 2,765 Investment income 24 15 45 28 Finance charges and fees earned 172 189 345 392 Other income - 3 5 7 ------ ------ ------ ------ Total Revenues 13,667 15,662 27,741 31,143 ------ ------ ------ ------ Expenses -------- Losses and loss adjustment expenses 6,053 8,183 12,572 16,556 Policy acquisition costs 2,315 2,722 4,766 5,327 Salaries and employee benefits 1,398 1,272 2,683 2,559 Commissions to agents/brokers 153 172 311 357 Other operating expenses 735 669 1,482 1,344 ------ ------ ------ ------ Total Expenses 10,654 13,018 21,814 26,143 ------ ------ ------ ------ Income Before Income Taxes 3,013 2,644 5,927 5,000 Income Tax Provision 1,056 951 2,083 1,802 ----- ----- ----- ----- Net Income $1,957 $1,693 $3,844 $3,198 ===== ===== ===== ===== PER SHARE DATA -------------- Basic Earnings Per Share $0.35 $0.31 $0.69 $0.58 Weighted Average Shares (000) 5,583 5,496 5,545 5,496 Diluted Earnings Per Share $0.35 $0.30 $0.68 $0.57 Weighted Average Shares (000) 5,658 5,615 5,642 5,614 INSURANCE COMPANY STATUTORY OPERATING RATIOS -------------------------------------------- Losses and Loss Adjustment Expenses 55.7% 62.8% 56.8% 63.9% Underwriting Expenses 29.4% 29.1% 30.0% 29.5% ---- ---- ---- ---- Combined Ratio 85.1% 91.9% 86.8% 93.4% ==== ==== ==== ====