NEWS RELEASE
CONTACT: Lester A. Aaron
Chief Financial Officer
(818) 591-9800
UNICO AMERICAN CORPORATION REPORTS RESULTS
FOR ITS THIRD QUARTER ENDED SEPTEMBER 30, 2003
Woodland Hills, California, November 6, 2003 - Unico American Corporation
(NASDAQ - "UNAM") announced today that for its quarter ended September 30, 2003,
revenues were $13,228,806 and the net loss was $733,562 ($0.13 diluted loss per
share) compared with revenues of $12,080,314 and net income of $146,345 ($0.03
diluted income per share) for the quarter ended September 30, 2002. Revenues for
the nine months ended September 30, 2003, were $36,937,413 and the net income
was $60,797 ($0.01 diluted income per share) compared with revenues of
$34,060,762 and a net loss of $3,410,475 ($0.62 diluted loss per share) for the
nine months ended September 30, 2002.
Stockholders' equity was $38,051,324 at September 30, 2003, or $6.93 per common
share including unrealized after-tax investment gains of $2,699,299 compared to
stockholders' equity of $38,408,990 or $7.00 per common share including
unrealized after-tax investment gains of $3,117,762 at December 31, 2002.
The quarter ended September 30, 2003, was adversely effected by an August 2003
binding arbitration decision on a 1993 claim that exceeded Crusader's
reinsurance coverage. As a result of this decision, the Company incurred adverse
development on this claim, net of reinsurance, of approximately $2,000,000 or
approximately $1,320,000 net of taxes.
Unico American Corporation is an insurance holding company that provides
property, casualty, health and life insurance, and related premium financing
through its wholly owned subsidiaries.
(Table Follows)
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
($ in thousands, except per share)
Three Months Ended Ended Nine Months Ended
September 30 September 30
------------ ------------
2003 2002 2003 2002
---- ---- ---- ----
Revenues
Insurance Company Revenues
Premium earned $14,174 $10,386 $38,247 $29,427
Premium ceded 4,460 1,474 11,839 4,668
----- ------ ------ ------
Net premium earned 9,714 8,912 26,408 24,759
Investment income 1,168 1,324 3,649 4,082
Other income 28 19 71 27
------ ------ ------ ------
Total Insurance Company Revenues 10,910 10,255 30,128 28,868
Other Revenues from Insurance Operations
Gross commissions and fees 2,055 1,585 6,062 4,473
Investment income 12 15 38 43
Finance charges and late fees earned 247 220 698 659
Other income 5 5 11 18
------ ------ ------ ------
Total Revenues 13,229 12,080 36,937 34,061
------ ------ ------ ------
Expenses
Losses and loss adjustment expenses 9,710 7,208 23,386 26,034
Policy acquisition costs 2,132 2,364 5,786 6,794
Salaries and employee benefits 1,290 1,198 3,769 3,237
Commissions to agents/brokers 375 299 1,160 905
Other operating expenses 747 732 2,629 2,213
------ ------ ------- -------
Total Expenses 14,254 11,801 36,730 39,183
------ ------ ------ ------
Income (Loss) Before Income Taxes (1,025) 279 207 (5,122)
Income Tax Provision (Benefit) (291) 133 146 (1,711)
--- --- --- -----
Net Income (Loss) $(734) $146 $61 $(3,411)
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PER SHARE DATA
Basic
Earnings (Loss) Per Share $(0.13) $0.03 $0.01 $(0.62)
Weighted Average Shares (000) 5,490 5,490 5,490 5,487
Diluted
Earnings (Loss) Per Share $(0.13) $0.03 $0.01 $(0.62)
Weighted Average Shares (000) 5,490 5,490 5,523 5,487
INSURANCE COMPANY STATUTORY
OPERATING RATIOS
Losses and Loss Adjustment Expenses 99.7% 80.5% 88.2% 104.8%
Underwriting Expenses 29.5% 33.4% 29.3% 34.6%
----- ----- ----- -----
Combined Ratio 129.2% 113.9% 117.5% 139.4%
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