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 THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2004
Woodland Hills, California, March 24, 2005 - Unico American Corporation (NASDAQ
- - "UNAM") announced today that for its quarter ended December 31, 2004, revenues
were $15,501,751 and the net income was $1,763,900 ($0.32 diluted income per
share) compared with revenues of $14,193,026 and net income of $1,007,853 ($0.18
diluted income per share) for the quarter ended December 31, 2003. Revenues for
the twelve months ended December 31, 2004, were $61,903,310 and the net income
was $5,681,500 ($1.02 diluted income per share) compared with revenues of
$51,130,439 and a net income of $1,068,650 ($0.19 diluted income per share) for
the twelve months ended December 31, 2003.
Stockholders' equity was $42,425,325 at December 31, 2004, or $7.72 per common
share including unrealized after-tax investment gains of $376,172 compared to
stockholders' equity of $38,470,857 or $7.01 per common share including
unrealized after-tax investment gains of $2,110,979 at December 31, 2003.
Unico American Corporation is an insurance holding company that underwrites
property and casualty insurance through its insurance company subsidiary;
provides property, casualty, health and life insurance through its agency
subsidiaries; and through its other subsidiaries provides insurance premium
financing and membership association services
(Table Follows)
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
($ in thousands, except per share)
Three Months Ended Twelve Months Ended
December 31 December 31
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2004 2003 2004 2003
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Revenues
- --------
Insurance Company Revenues
Premium earned $17,279 $15,506 $67,891 $53,754
Premium ceded 4,586 4,809 17,784 16,648
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Net premium earned 12,693 10,697 50,107 37,106
Investment income 1,036 1,152 4,204 4,801
Other income 31 28 104 98
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Total Insurance Company Revenues 13,760 11,877 54,415 42,005
Other Revenues from Insurance Operations
Gross commissions and fees 1,508 2,048 6,504 8,110
Investment income 10 9 38 47
Finance charges and fees earned 219 255 933 953
Other income 4 4 13 16
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Total Revenues 15,501 14,193 61,903 51,131
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Expenses
- --------
Losses and loss adjustment expenses 8,122 8,334 34,451 31,720
Policy acquisition costs 2,580 2,155 10,319 7,941
Salaries and employee benefits 1,299 1,192 4,869 4,961
Commissions to agents/brokers 206 301 935 1,461
Other operating expenses 655 269 2,657 2,898
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Total Expenses 12,862 12,251 53,231 48,981
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Income Before Income Taxes 2,639 1,942 8,672 2,150
Income Tax Provision 875 934 2,991 1,081
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Net Income $1,764 $1,008 $5,681 $1,069
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PER SHARE DATA
Basic
Earning Per Share $0.32 $0.18 $1.03 $0.19
Weighted Average Shares (000) 5,492 5,490 5,490 5,490
Diluted
Earning Per Share $0.32 $0.18 $1.02 $0.19
Weighted Average Shares (000) 5,597 5,562 5,581 5,533
INSURANCE COMPANY STATUTORY
OPERATING RATIOS
Losses and Loss Adjustment Expenses 63.7% 77.6% 68.5% 85.2%
Underwriting Expenses 29.0% 29.1% 28.9% 29.2%
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Combined Ratio 92.7% 106.7% 97.4% 114.4%
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