EXHIBIT 99.1
NEWS RELEASE
CONTACT: : | Lester A. Aaron | |
Chief Financial Officer | ||
(818) 591-9800 |
UNICO AMERICAN CORPORATION REPORTS RESULTS
FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2007
Book value Per Share Increased 14% for the Year
Return on Average Equity for the Year was 10.1%
Woodland Hills, California, March 27, 2008 - Unico American Corporation (NASDAQ - “UNAM”) announced today that for its quarter ended December 31, 2007, revenues were $12,258,103 and net income was $1,764,544 ($0.31 diluted income per share) compared with revenues of $13,317,228 and net income of $5,735,825 ($1.01 diluted income per share) for the quarter ended December 31, 2006. Revenues for the twelve months ended December 31, 2007, were $50,223,293 and the net income was $6,613,707 ($1.16 diluted income per share) compared with revenues of $54,717,381 and a net income of $11,794,241 ($2.09 diluted income per share) for the twelve months ended December 31, 2006.
Stockholders’ equity was $69,863,818 at December 31, 2007, or $12.42 per common share including unrealized after-tax investment gains of $1,916,154 compared to stockholders’ equity of $60,871,022 or $10.89 per common share including unrealized after-tax investment losses of $216,074 at December 31, 2006.
“During 2007, Unico continued to improve shareholder value in the midst of a soft insurance environment,” said Mr. Erwin Cheldin, Chairman and Chief Executive Officer of Unico. “We increased book value per share, maintained an excellent loss ratio, and produced a solid return on equity.”
Unico American Corporation is an insurance holding company that provides property, casualty, and health insurance, and related premium financing through its wholly owned subsidiaries.
(Table Follows)
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED FINANCIAL DATA
($ in thousands, except per share)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31 | December 31 | |||||||||||||||
2007 | 2006 | 2007 | 2006 | |||||||||||||
Revenues | ||||||||||||||||
Insurance Company Revenues | ||||||||||||||||
Premium earned | $ | 11,476 | $ | 13,547 | $ | 48,662 | $ | 56,692 | ||||||||
Premium (ceded) | (2,739 | ) | (3,310 | ) | (11,532 | ) | (13,758 | ) | ||||||||
Net premium earned | 8,737 | 10,237 | 37,130 | 42,934 | ||||||||||||
Investment income | 1,695 | 1,627 | 6,695 | 5,903 | ||||||||||||
Realized investment gains | - | 3 | - | 3 | ||||||||||||
Other income | 255 | 33 | 312 | 103 | ||||||||||||
Total Insurance Company Revenues | 10,687 | �� | 11,900 | 44,137 | 48,943 | |||||||||||
Other Revenues from Insurance Operations | ||||||||||||||||
Gross commissions and fees | 1,400 | 1,221 | 5,366 | 4,987 | ||||||||||||
Investment income | 37 | 30 | 152 | 101 | ||||||||||||
Finance charges and fees earned | 130 | 165 | 554 | 678 | ||||||||||||
Other income | 4 | 1 | 14 | 8 | ||||||||||||
Total Revenues | 12,258 | 13,317 | 50,223 | 54,717 | ||||||||||||
Expenses | ||||||||||||||||
Losses and loss adjustment expenses | 5,079 | (463 | ) | 22,182 | 17,827 | |||||||||||
Policy acquisition costs | 2,068 | 2,232 | 8,465 | 9,251 | ||||||||||||
Salaries and employee benefits | 1,393 | 1,744 | 5,709 | 5,861 | ||||||||||||
Commissions to agents/brokers | 296 | 164 | 1,003 | 611 | ||||||||||||
Other operating expenses | 648 | 818 | 2,940 | 3,013 | ||||||||||||
Total Expenses | 9,484 | 4,495 | 40,299 | 36,563 | ||||||||||||
Income Before Taxes | 2,774 | 8,822 | 9,924 | 18,154 | ||||||||||||
Income Tax Expense | 1,009 | 3,086 | 3,310 | 6,360 | ||||||||||||
Net Income | $ | 1,765 | $ | 5,736 | $ | 6,614 | $ | 11,794 | ||||||||
PER SHARE DATA | ||||||||||||||||
Basic | ||||||||||||||||
Earning Per Share | $ | 0.31 | $ | 1.03 | $ | 1.18 | $ | 2.12 | ||||||||
Weighted Average Shares (000) | 5,625 | 5,592 | 5,614 | 5,568 | ||||||||||||
Diluted | ||||||||||||||||
Earning Per Share | $ | 0.31 | $ | 1.01 | $ | 1.16 | $ | 2.09 | ||||||||
Weighted Average Shares (000) | 5,679 | 5,667 | 5,682 | 5,653 |
INSURANCE COMPANY STATUTORY OPERATING RATIOS | ||||||||||||||||
Losses and Loss Adjustment Expenses | 57.8 | % | (4.8 | )% | 59.4 | % | 41.2 | % | ||||||||
Underwriting Expenses | 30.7 | % | 30.0 | % | 30.4 | % | 29.9 | % | ||||||||
Combined Ratio | 88.5 | % | 25.2 | % | 89.8 | % | 71.1 | % |