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 THIRD QUARTER ENDED SEPTEMBER 30, 2005
Woodland Hills, California, November 8, 2005 - Unico American Corporation
(NASDAQ - "UNAM") announced today that for its quarter ended September 30, 2005,
revenues were $15,204,435 and net income was $1,661,458 ($0.30 diluted income
per share) compared with revenues of $15,477,954 and net income of $1,426,213
($0.26 diluted income per share) for the quarter ended September 30, 2004.
Revenues for the nine months ended September 30, 2005, were $46,347,872 and net
income was $4,859,951 ($0.87 diluted income per share) compared with revenues of
$46,401,559 and net income was $3,917,600 ($0.70 diluted income per share) for
the nine months ended September 30, 2004.
Stockholders' equity was $46,588,295 at September 30, 2005, or $8.48 per common
share including unrealized after-tax investment losses of $333,249 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 Nine Months Ended
September 30 September 30
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2005 2004 2005 2004
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Revenues
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Insurance Company Revenues
Premium earned $16,047 $17,298 $49,256 $50,612
Premium ceded 3,508 4,798 10,901 13,198
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Net premium earned 12,539 12,500 38,355 37,414
Investment income 1,047 1,053 3,138 3,168
Other income 31 24 76 73
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Total Insurance Company Revenues 13,617 13,577 41,569 40,655
Other Revenues from Insurance Operations
Gross commissions and fees 1,378 1,656 4,142 4,996
Investment income 15 10 44 28
Finance charges and fees earned 188 232 580 714
Other income 6 3 13 9
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Total Revenues 15,204 15,478 46,348 46,402
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Expenses
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Losses and loss adjustment expenses 7,900 8,720 24,456 26,329
Policy acquisition costs 2,620 2,616 7,947 7,739
Salaries and employee benefits 1,310 1,256 3,869 3,570
Commissions to agents/brokers 160 227 518 729
Other operating expenses 629 540 1,973 2,002
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Total Expenses 12,619 13,359 38,763 40,369
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Income Before Income Taxes 2,585 2,119 7,585 6,033
Income Tax Provision 924 693 2,725 2,115
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Net Income $1,661 $1,426 $4,860 $3,918
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PER SHARE DATA
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Basic
Earnings Per Share $0.30 $0.26 $0.88 $0.71
Weighted Average Shares (000) 5,496 5,490 5,496 5,490
Diluted
Earnings Per Share $0.30 $0.26 $0.87 $0.70
Weighted Average Shares (000) 5,611 5,581 5,613 5,577
INSURANCE COMPANY STATUTORY OPERATING RATIOS
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Losses and Loss Adjustment Expenses 62.8% 69.5% 63.5% 70.1%
Underwriting Expenses 29.5% 29.6% 29.5% 28.9%
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Combined Ratio 92.3% 99.1% 93.0% 99.0%
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