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, 2005
Woodland Hills, California, March 24, 2006 - Unico American Corporation (NASDAQ
- - "UNAM") announced today that for its quarter ended December 31, 2005, revenues
were $14,834,650 and the net income was $1,855,053 ($0.33 diluted income per
share) compared with revenues of $15,501,751 and net income of $1,763,900 ($0.32
diluted income per share) for the quarter ended December 31, 2004. Revenues for
the twelve months ended December 31, 2005, were $61,182,522 and the net income
was $6,715,004 ($1.20 diluted income per share) compared with revenues of
$61,903,310 and a net income of $5,681,500 ($1.02 diluted income per share) for
the twelve months ended December 31, 2004.
Stockholders' equity was $48,394,373 at December 31, 2005, or $8.80 per common
share including unrealized after-tax investment losses of $382,224 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 Twelve Months Ended Ended
December 31 December 31
----------- -----------
2005 2004 2005 2004
---- ---- ---- ----
Revenues
- --------
Insurance Company Revenues
Premium earned $15,457 $17,279 $64,713 $67,891
Premium ceded 3,334 4,586 14,235 17,784
------ ------ ------ ------
Net premium earned 12,123 12,693 50,478 50,107
Investment income 1,111 1,036 4,249 4,204
Other income 31 31 107 104
------ ------ ------ ------
Total Insurance Company Revenues 13,265 13,760 54,834 54,415
Other Revenues from Insurance Operations
Gross commissions and fees 1,366 1,508 5,508 6,504
Investment income 25 10 69 38
Finance charges and fees earned 178 219 758 933
Other income 1 4 14 13
------ ------ ------ ------
Total Revenues 14,835 15,501 61,183 61,903
------ ------ ------ ------
Expenses
- --------
Losses and loss adjustment expenses 7,058 8,122 31,514 34,451
Policy acquisition costs 2,566 2,580 10,513 10,319
Salaries and employee benefits 1,272 1,299 5,141 4,869
Commissions to agents/brokers 157 206 675 935
Other operating expenses 901 655 2,874 2,657
------ ------ ------ ------
Total Expenses 11,954 12,862 50,717 53,231
------ ------ ------ ------
Income Before Income Taxes 2,881 2,639 10,466 8,672
Income Tax Provision 1,026 875 3,751 2,991
----- ----- ----- -----
Net Income $1,855 $1,764 $6,715 $5,681
===== ===== ===== =====
PER SHARE DATA
- --------------
Basic
Earning Per Share $0.34 $0.32 $1.22 $1.03
Weighted Average Shares (000) 5,496 5,492 5,496 5,490
Diluted
Earning Per Share $0.33 $0.32 $1.20 $1.02
Weighted Average Shares (000) 5,610 5,597 5,612 5,581
INSURANCE COMPANY STATUTORY OPERATING RATIOS
- --------------------------------------------
Losses and Loss Adjustment Expenses 57.9% 63.7% 62.2% 68.5%
Underwriting Expenses 30.7% 29.0% 29.8% 28.9%
---- ---- ---- ----
Combined Ratio 88.6% 92.7% 92.0% 97.4%
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