EX-99.1 2 news_0906.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, 2006 Woodland Hills, California, November 7, 2006 - Unico American Corporation (NASDAQ - "UNAM") announced today that for its quarter ended September 30, 2006, revenues were $13,659,332 and net income was $2,214,146 ($0.39 diluted income per share) compared with revenues of $15,204,435 and net income of $1,661,458 ($0.30 diluted income per share) for the quarter ended September 30, 2005. Revenues for the nine months ended September 30, 2006, were $41,400,153 and net income was $6,058,416 ($1.07 diluted income per share) compared with revenues of $46,347,872 and net income was $4,859,951 ($0.87 diluted income per share) for the nine months ended September 30, 2005. Stockholders' equity was $55,170,325 at September 30, 2006, or $9.87 per common share including unrealized after-tax investment losses of $174,284 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 Nine Months Ended September 30 September 30 ------------ ------------ 2006 2005 2006 2005 ---- ---- ---- ---- Revenues -------- Insurance Company Revenues Premium earned $14,007 $16,047 $43,145 $49,256 Premium ceded 3,330 3,508 10,449 10,901 ------ ------ ------ ------ Net premium earned 10,677 12,539 32,696 38,355 Investment income 1,522 1,047 4,277 3,138 Other income 22 31 70 76 ------ ------ ------ ------ Total Insurance Company Revenues 12,221 13,617 37,043 41,569 Other Revenues from Insurance Operations Gross commissions and fees 1,242 1,378 3,767 4,142 Investment income 26 15 71 44 Finance charges and fees earned 168 188 513 580 Other income 2 6 6 13 ------ ------ ------ ------ Total Revenues 13,659 15,204 41,400 46,348 ------ ------ ------ ------ Expenses -------- Losses and loss adjustment expenses 5,718 7,900 18,290 24,456 Policy acquisition costs 2,252 2,620 7,018 7,947 Salaries and employee benefits 1,435 1,310 4,118 3,869 Commissions to agents/brokers 137 160 447 518 Other operating expenses 712 629 2,195 1,973 ------ ------ ------ ------ Total Expenses 10,254 12,619 32,068 38,763 ------ ------ ------ ------ Income Before Income Taxes 3,405 2,585 9,332 7,585 Income Tax Provision 1,191 924 3,274 2,725 ----- ------ ----- ----- Net Income $2,214 $1,661 $6,058 $4,860 ===== ===== ===== ===== PER SHARE DATA -------------- Basic Earnings Per Share $0.40 $0.30 $1.09 $0.88 Weighted Average Shares (000) 5,590 5,496 5,560 5,496 Diluted Earnings Per Share $0.39 $0.30 $1.07 $0.87 Weighted Average Shares (000) 5,661 5,611 5,648 5,613 INSURANCE COMPANY STATUTORY OPERATING RATIOS -------------------------------------------- Losses and Loss Adjustment Expenses 53.3% 62.8% 55.7% 63.5% Underwriting Expenses 29.4% 29.5% 29.8% 29.5% ---- ---- ---- ---- Combined Ratio 82.7% 92.3% 85.5% 93.0% ==== ==== ==== ====