EXHIBIT 99.1

NEWS RELEASE

CONTACT: Lester A. Aaron

Chief Financial Officer

818-591-9800

UNICO AMERICAN CORPORATION REPORTS

SECOND QUARTER 2010 FINANCIAL RESULTS

Woodland Hills, CA, August 12, 2010 – Unico American Corporation.  (NASDAQ – “UNAM”) (“Unico,” the “Company”), announced today its consolidated financial results for the three and six months ended June 30, 2010. For the three months ended June 30, 2010, revenues were $9.4 million and net income was $0.4 million ($0.08 diluted income per share) compared with revenues of $10.7 million and net income of $0.7 million ($0.12 diluted income per share) for the three months ended June 30, 2009.  For the six months ended June 30, 2010, revenues were $19.3 million and net income of $0.9 million ($0.18 diluted income per share) compared with revenues of $21.2 million and net income of $1.7 million ($0.31 diluted income per share) for the six months ended June 30, 2009.

As of June 30, 2010, the Company had cash and investments (at amortized cost) of $135.0 million.  $122.0 million, or 90% of these investments were fixed maturity investments, and 77% of those fixed maturity investments were U.S. treasury securities.

Stockholders’ equity was $74.4 million as of June 30, 2010, or $14.00 per common share including unrealized after-tax investment gains of $2.9 million, compared to stockholders’ equity of $73.3 million as of December 31, 2009, or $13.82 per common share including unrealized after-tax investment gains of $2.7 million.  

Headquartered in Woodland Hills, California, Unico is an insurance holding company that underwrites property and casualty insurance through its insurance company subsidiary; provides property, casualty, and health insurance through its agency subsidiaries; and through its other subsidiaries provides insurance premium financing and membership association services. Unico has conducted the majority of its operations through its subsidiary Crusader Insurance Company since 1985. For more information concerning Crusader Insurance Company, please visit the Crusader’s Web site at www.crusaderinsurance.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained herein that are not historical facts are forward-looking. These statements, which may be identified by forward-looking words or phrases such as “anticipate,” “believe,” ”expect,” “intend,” “may,” “should,” and “would,” involve risks and uncertainties, many of which are beyond the control of the Company. Such risks and uncertainties could cause actual results to differ materially from these forward-looking statements. Factors which could cause actual results to differ materially include underwriting actions not being effective, rate increases for coverages not being sufficient, premium rate adequacy relating to competition or regulation, actual versus estimated claim experience, regulatory changes or developments, unforeseen calamities, general market conditions, and the Company’s ability to introduce new profitable products.

Financial Tables Follow –

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($ in thousands)

	June 30		December 31
	2010		2009
	(Unaudited)
ASSETS
Investments
Available for sale:
Fixed maturities, at fair value (amortized cost:  June 30,
2010 $122,014; December 31, 2009 $128,441)	$	126,340	$	132,595
Short-term investments, at cost		12,954		9,158
Total Investments		139,294		141,753
Cash		33		119
Accrued investment income		734		764
Premiums and notes receivable, net		4,379		4,365
Reinsurance recoverable:
Paid losses and loss adjustment expenses		151		453
Unpaid losses and loss adjustment expenses		14,143		16,176
Deferred policy acquisition costs		4,681		4,956
Property and equipment (net of accumulated depreciation)		382		221
Deferred income taxes		606		633
Other assets		702		669
Total Assets	$	165,105	$	170,109
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Unpaid losses and loss adjustment expenses	$	66,921	$	71,585
Unearned premiums		17,474		18,812
Advance premium and premium deposits		1,089		1,034
Accrued expenses and other liabilities		5,213		5,363
Total Liabilities	$	90,697	$	96,794
STOCKHOLDERS'  EQUITY
Common stock, no par – authorized 10,000,000 shares; issued and outstanding
shares 5,316,454 at June 30, 2010, and 5,306,204 at December 31, 2009	$	3,469	$	3,437
Accumulated other comprehensive income		2,855		2,742
Retained earnings		68,084		67,136
Total Stockholders’ Equity	$	74,408	$	73,315
Total Liabilities and Stockholders' Equity	$	165,105	$	170,109

UNICO AMERICAN CORPORATION

 AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

($ in thousands, except per share)

	Three Months Ended				Six Months Ended
	June 30				June 30
	2010		2009		2010		2009
REVENUES
Insurance Company Revenues
Premium earned	$	8,962	$	10,222	$	18,352	$	20,096
Premium ceded		1,873		2,359		3,821		4,614
Net premium earned		7,089		7,863		14,531		15,482
Investment income		907		1,144		1,846		2,367
Other income		175		196		355		401
Total Insurance Company Revenues		8,171		9,203		16,732		18,250
Other Revenues from Insurance Operations
Gross commissions and fees		1,129		1,354		2,378		2,794
Investment income		1		1		2		1
Finance charges and fees		82		94		167		193
Other income		4		1		6		4
Total Revenues		9,387		10,653		19,285		21,242
EXPENSES
Losses and loss adjustment expenses		4,575		4,787		9,883		9,422
Policy acquisition costs		1,843		1,971		3,730		3,925
Salaries and employee benefits		1,280		1,281		2,169		2,710
Commissions to agents/brokers		171		295		363		609
Other operating expenses		883		1,323		1,741		2,032
Total Expenses		8,752		9,657		17,886		18,698
Income Before Taxes		635		996		1,399		2,544
Income tax provision		187		312		452		831
Net Income	$	448	$	684	$	947	$	1,713
PER SHARE DATA:
Basic
Earnings Per Share	$	0.08	$	0.12	$	0.18	$	0.31
Weighted Average Shares		5,309		5,567		5,307		5,568
Diluted
Earnings Per Share	$	0.08	$	0.12	$	0.18	$	0.31
Weighted Average Shares		5,350		5,605		5,350		5,606

UNICO AMERICAN CORPORATION

 AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

($ in thousands)

	For the Six Months Ended
	June 30
	2010			2009
Cash Flows from Operating Activities:
Net Income	$	947		$	1,713
Adjustments to reconcile net income to net cash from operations
Depreciation		64			98
Bond amortization, net		39			172
Changes in assets and liabilities
Premium, notes and investment income receivable		15			(343	)
Reinsurance recoverable		2,336			1,895
Deferred policy acquisitions costs		274			(12	)
Other assets		(59	)		35
Reserve for unpaid losses and loss adjustment expenses		(4,664	)		(4,073	)
Unearned premium reserve		(1,338	)		428
Funds held as security and advanced premiums		55			155
Accrued expenses and other liabilities		(322	)		(12	)
Income taxes current/deferred	(­3)				(1,224	)
Net Cash (Used in) Operations		(2,656	)		(1,168	)
Investing Activities
Purchase of fixed maturity investments		(15,962	)		(12,409	)
Proceeds from maturity of fixed maturity investments		22,350			20,500
Net (increase) in short-term investments		(3,796	)		(5,790	)
(Additions) to property and equipment		(53	)		(57	)
Net Cash Provided by Investing Activities		2,539			2,244
Financing Activities
Dividends paid to shareholders		-			(1,002	)
Proceeds from issuance of common stock		32			-
Repurchase of common stock		-			(76	)
Net Cash Used in Financing Activities		32			(1,078	)
Net decrease in cash		(85	)		(2	)
Cash at beginning of period		118			28
Cash at End of Period	$	33		$	26
Supplemental Cash Flow Information
Cash paid during the period for:
Interest		-			-
Income taxes	$	459		$	2,059