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 FIRST QUARTER ENDED MARCH 31, 2006
Woodland Hills, California, May 10, 2006 - Unico American Corporation (NASDAQ -
"UNAM") announced today that for its quarter ended March 31, 2006, revenues were
$14,073,675 and net income was $1,887,550 ($0.34 diluted income per share)
compared with revenues of $15,481,114 and net income of $1,505,180 ($0.27
diluted income per share) for the quarter ended March 31, 2005.
Stockholders' equity was $50,123,304 at March 31, 2006, or $9.08 per common
share including unrealized after-tax investment losses of $620,926 compared to
stockholders' equity of $48,394,373 or $8.80 per common share including
unrealized after-tax investment losses of $382,224 at December 31, 2005.
Unico American Corporation is an insurance holding company that provides
property, casualty, health and life insurance, and related premium financing
through its wholly owned subsidiaries.
(Table Follows)
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
($ in thousands, except per share)
Three Months Ended
March 31
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2006 2005
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Revenues
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Insurance Company Revenues
Premium earned $14,845 $16,676
Premium ceded 3,631 3,850
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Net premium earned 11,214 12,826
Investment income 1,334 1,036
Other income 28 26
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Total Insurance Company Revenues 12,576 13,888
Other Revenues from Insurance Operations
Gross commissions and fees 1,300 1,373
Investment income 21 13
Finance charges and fees earned 173 203
Other income 4 4
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Total Revenues 14,074 15,481
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Expenses
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Losses and loss adjustment expenses 6,518 8,372
Policy acquisition costs 2,451 2,606
Salaries and employee benefits 1,285 1,287
Commissions to agents/brokers 158 185
Other operating expenses 748 675
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Total Expenses 11,160 13,125
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Income Before Income Taxes 2,914 2,356
Income Tax Provision 1,026 851
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Net Income $1,888 $1,505
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PER SHARE DATA
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Basic
Earnings Per Share $0.34 $0.27
Weighted Average Shares (000) 5,506 5,495
Diluted
Earnings Per Share $0.34 $0.27
Weighted Average Shares (000) 5,626 5,616
INSURANCE COMPANY STATUTORY OPERATING RATIOS
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Losses and Loss Adjustment Expenses 57.9% 65.0%
Underwriting Expenses 30.6% 30.1%
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Combined Ratio 88.5% 95.1%
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