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, 2003
Woodland Hills, California, March 25, 2004 - Unico American Corporation (NASDAQ
- - "UNAM") announced today that for its quarter ended December 31, 2003, revenues
were $14,193,026 and the net income was $1,007,853 ($0.18 diluted income per
share) compared with revenues of $11,967,880 and net income of $185,786 ($0.03
diluted income per share) for the quarter ended December 31, 2002. Revenues for
the twelve months ended December 31, 2003, were $51,130,439 and the net income
was $1,068,650 ($0.19 diluted income per share) compared with revenues of
$46,028,642 and a net loss of $3,224,689 ($0.59 diluted loss per share) for the
twelve months ended December 31, 2002.
Stockholders' equity was $38,470,857 at December 31, 2003, or $7.01 per common
share including unrealized after-tax investment gains of $2,110,979 compared to
stockholders' equity of $38,408,990 or $7.00 per common share including
unrealized after-tax investment gains of $3,117,762 at December 31, 2002.
Unico American Corporation is an insurance holding company that provides
property, casualty, health and life insurance, and related premium financing
through its wholly owned subsidiaries.
(Table Follows)
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
($ in thousands, except per share)
Three Months Ended Ended Twelve Months Ended Ended
December 31 December 31
----------- -----------
2003 2002 2003 2002
---- ---- ---- ----
Revenues
- --------
Insurance Company Revenues
Premium earned $15,506 $11,142 $53,754 $40,569
Premium ceded 4,809 2,542 16,648 7,210
------ ----- ------ ------
Net premium earned 10,697 8,600 37,106 33,359
Investment income 1,152 1,320 4,801 5,402
Net realized investment gains - 4 - 4
Other income 28 22 98 49
------ ----- ------ ------
Total Insurance Company Revenues 11,877 9,946 42,005 38,814
Other Revenues from Insurance Operations
Gross commissions and fees 2,048 1,788 8,110 6,261
Investment income 9 13 47 56
Finance charges and fees earned 255 220 953 879
Other income 4 1 16 19
------ ------ ------ ------
Total Revenues 14,193 11,968 51,131 46,029
------ ------ ------ ------
Expenses
- --------
Losses and loss adjustment expenses 8,334 6,693 31,720 32,727
Policy acquisition costs 2,155 2,480 7,941 9,274
Salaries and employee benefits 1,192 1,137 4,961 4,374
Commissions to agents/brokers 301 314 1,461 1,219
Other operating expenses 269 1,036 2,898 3,249
------ ------ ------ ------
Total Expenses 12,251 11,660 48,981 50,843
------ ------ ------ ------
Income (Loss) Before Income Taxes 1,942 308 2,150 (4,814)
Income Tax Provision (Benefit) 934 122 1,081 (1,589)
----- --- ----- -----
Net Income (Loss) $1,008 $ 186 $1,069 $(3,225)
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PER SHARE DATA
Basic
Earning (Loss) Per Share $0.18 $0.03 $0.19 $(0.59)
Weighted Average Shares (000) 5,490 5,490 5,490 5,487
Diluted
Earning (Loss) Per Share $0.18 $0.03 $0.19 $(0.59)
Weighted Average Shares (000) 5,562 5,490 5,533 5,487
INSURANCE COMPANY STATUTORY
OPERATING RATIOS
Losses and Loss Adjustment Expenses 77.6% 77.4% 85.2% 97.8%
Underwriting Expenses 29.1% 35.9% 29.2% 34.9%
----- ----- ----- -----
Combined Ratio 106.7% 113.3% 114.4% 132.7%
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