NEWS RELEASE
CONTACT: Lester A. Aaron
Chief Financial Officer
(818) 591-9800
UNICO AMERICAN CORPORATION REPORTS RESULTS
FOR ITS SECOND QUARTER ENDED JUNE 30, 2005
Woodland Hills, California, August 11, 2005 - Unico American Corporation (NASDAQ
- - "UNAM") announced today that for its quarter ended June 30, 2005, revenues
were $15,662,323 and net income was $1,693,313 ($0.30 diluted income per share)
compared with revenues of $15,243,414 and net income of $1,233,390 ($0.22
diluted income per share) for the quarter ended June 30, 2004. Revenues for the
six months ended June 30, 2005, were $31,143,437 and net income was $3,198,493
($0.57 diluted income per share) compared with revenues of $30,923,605 and net
income was $2,491,387 ($0.45 diluted income per share) for the six months ended
June 30, 2004.
Stockholders' equity was $45,219,036 at June 30, 2005, or $8.23 per common share
including unrealized after-tax investment losses of $41,050 compared to
stockholders' equity of $42,425,325 or $7.72 per common share including
unrealized after-tax investment gains of $376,172 at December 31, 2004.
Unico American Corporation is an insurance holding company that provides
property, casualty, health and life insurance, and related premium financing
through its wholly owned subsidiaries.
(Table Follows)
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
($ in thousands, except per share)
Three Months Ended Ended Six Months Ended
June 30 June 30
------- -------
2005 2004 2005 2004
---- ---- ---- ----
Revenues
- --------
Insurance Company Revenues
Premium earned $16,534 $16,839 $33,210 $33,314
Premium ceded 3,543 4,511 7,393 8,400
------ ------ ------ ------
Net premium earned 12,991 12,328 25,817 24,914
Investment income 1,054 1,023 2,090 2,115
Other income 19 19 44 49
------ ------ ------ ------
Total Insurance Company Revenues 14,064 13,370 27,951 27,078
Other Revenues from Insurance Operations
Gross commissions and fees 1,391 1,629 2,765 3,340
Investment income 15 8 28 18
Finance charges and fees 189 235 392 482
Other income 3 1 7 6
------ ------ ------ ------
Total Revenues 15,662 15,243 31,143 30,924
------ ------ ------ ------
Expenses
- --------
Losses and loss adjustment expenses 8,183 8,652 16,556 17,609
Policy acquisition costs 2,722 2,645 5,327 5,123
Salaries and employee benefits 1,272 1,097 2,559 2,314
Commissions to agents/brokers 172 231 357 502
Other operating expenses 669 673 1,344 1,462
------ ------ ------ ------
Total Expenses 13,018 13,298 26,143 27,010
------ ------ ------ ------
Income Before Income Taxes 2,644 1,945 5,000 3,914
Income tax provision 951 712 1,802 1,423
----- ----- ----- -----
Net Income $1,693 $1,233 $3,198 $2,491
===== ===== ===== =====
PER SHARE DATA
- --------------
Basic
Earnings Per Share $0.31 $0.22 $0.58 $0.45
Weighted Average Shares (000) 5,496 5,490 5,496 5,490
Diluted
Earnings Per Share $0.30 $0.22 $0.57 $0.45
Weighted Average Shares (000) 5,615 5,573 5,614 5,575
INSURANCE COMPANY STATUTORY OPERATING RATIOS
- --------------------------------------------
Losses and Loss Adjustment Expenses 62.8% 69.9% 63.9% 70.4%
Underwriting Expenses 29.1% 29.0% 29.5% 28.5%
---- ---- ---- ----
Combined Ratio 91.9% 98.9% 93.4% 98.9%
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