EXHIBIT 99.1
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NEWS RELEASE
CONTACT: Lester A. Aaron
Chief Financial Officer
(818) 591-9800
UNICO AMERICAN CORPORATION REPORTS RESULTS
FOR ITS SECOND QUARTER ENDED JUNE 30, 2004
Woodland Hills, California, August 11, 2004 - Unico American Corporation
(NASDAQ- "UNAM") announced today that for its quarter ended June 30, 2004,
revenues were $15,243,414 and net income was $1,233,390 ($0.22 diluted income
per share) compared with revenues of $12,292,016 and net income of $561,276
($0.10 diluted income per share) for the quarter ended June 30, 2003. Revenues
for the six months ended June 30, 2004, were $30,923,605 and net income was
$2,491,387 ($0.45 diluted income per share) compared with revenues of
$23,708,607 and net income of $794,359 ($0.14 diluted income per share) for the
six months ended June 30, 2003.
Stockholders' equity was $39,609,812 at June 30, 2004, or $7.22 per common share
including unrealized after-tax investment gains of $758,547 compared to
stockholders' equity of $38,470,857 or $7.01 per common share including
unrealized after-tax investment gains of $2,110,979 at December 31, 2003.
Unico American Corporation is an insurance holding company that provides
property, casualty, health and life insurance, and related premium financing
through its wholly owned subsidiaries.
(Table Follows)
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
($ in thousands, except per share)
Three Months Ended Ended Six Months Ended
June 30 June 30
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2004 2003 2004 2003
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Revenues
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Insurance Company Revenues
Premium earned $16,839 $12,648 $33,314 $24,073
Premium ceded 4,511 3,915 8,400 7,379
------ ------ ------ ------
Net premium earned 12,328 8,733 24,914 16,694
Investment income 1,023 1,214 2,115 2,481
Other income 19 24 49 43
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Total Insurance Company Revenues 13,370 9,971 27,078 19,218
Other Revenues from Insurance Operations
Gross commissions and fees 1,629 2,070 3,340 4,007
Investment income 8 13 18 26
Finance charges and fees earned 235 231 482 451
Other income 1 7 6 7
------ ------ ------ ------
Total Revenues 15,243 12,292 30,924 23,709
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Expenses
- --------
Losses and loss adjustment expenses 8,652 6,996 17,609 13,676
Policy acquisition costs 2,645 1,870 5,123 3,654
Salaries and employee benefits 1,097 1,286 2,314 2,479
Commissions to agents/brokers 231 382 502 785
Other operating expenses 673 886 1,462 1,883
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Total Expenses 13,298 11,420 27,010 22,477
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Income Before Income Taxes 1,945 872 3,914 1,232
Income Tax Provision 712 311 1,423 438
----- --- ----- ----
Net Income $1,233 $561 $2,491 $794
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PER SHARE DATA
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Basic
Earnings Per Share $0.22 $0.10 $0.45 $0.14
Weighted Average Shares (000) 5,490 5,490 5,490 5,490
Diluted
Earnings Per Share $0.22 $0.10 $0.45 $0.14
Weighted Average Shares (000) 5,573 5,526 5,575 5,517
INSURANCE COMPANY STATUTORY OPERATING RATIOS
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Losses and Loss Adjustment Expenses 69.9% 79.7% 70.4% 81.6%
Underwriting Expenses 29.0% 28.9% 28.5% 29.1%
---- ----- ---- -----
Combined Ratio 98.9% 108.6% 98.9% 110.7%
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