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 SECOND QUARTER ENDED JUNE 30, 2006
Woodland Hills, California, August 9, 2006 - Unico American Corporation (NASDAQ
- - "UNAM") announced today that for its quarter ended June 30, 2006, revenues
were $13,667,146 and net income was $1,956,720 ($0.35 diluted income per share)
compared with revenues of $15,662,323 and net income of $1,693,313 ($0.30
diluted income per share) for the quarter ended June 30, 2005. Revenues for the
six months ended June 30, 2006, were $27,740,821 and net income was $3,844,270
($0.68 diluted income per share) compared with revenues of $31,143,437 and net
income was $3,198,493 ($0.57 diluted income per share) for the six months ended
June 30, 2005.
Stockholders' equity was $52,347,854 at June 30, 2006, or $9.37 per common share
including unrealized after-tax investment losses of $759,484 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 Ended Six Months Ended
June 30 June 30
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2006 2005 2006 2005
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Revenues
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Insurance Company Revenues
Premium earned $14,294 $16,534 $29,139 $33,210
Premium ceded 3,489 3,543 7,119 7,393
------ ------ ------ ------
Net premium earned 10,805 12,991 22,020 25,817
Investment income 1,421 1,054 2,754 2,090
Other income 20 19 47 44
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Total Insurance Company Revenues 12,246 14,064 24,821 27,951
Other Revenues from Insurance Operations
Gross commissions and fees 1,225 1,391 2,525 2,765
Investment income 24 15 45 28
Finance charges and fees earned 172 189 345 392
Other income - 3 5 7
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Total Revenues 13,667 15,662 27,741 31,143
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Expenses
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Losses and loss adjustment expenses 6,053 8,183 12,572 16,556
Policy acquisition costs 2,315 2,722 4,766 5,327
Salaries and employee benefits 1,398 1,272 2,683 2,559
Commissions to agents/brokers 153 172 311 357
Other operating expenses 735 669 1,482 1,344
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Total Expenses 10,654 13,018 21,814 26,143
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Income Before Income Taxes 3,013 2,644 5,927 5,000
Income Tax Provision 1,056 951 2,083 1,802
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Net Income $1,957 $1,693 $3,844 $3,198
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PER SHARE DATA
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Basic
Earnings Per Share $0.35 $0.31 $0.69 $0.58
Weighted Average Shares (000) 5,583 5,496 5,545 5,496
Diluted
Earnings Per Share $0.35 $0.30 $0.68 $0.57
Weighted Average Shares (000) 5,658 5,615 5,642 5,614
INSURANCE COMPANY STATUTORY OPERATING RATIOS
- --------------------------------------------
Losses and Loss Adjustment Expenses 55.7% 62.8% 56.8% 63.9%
Underwriting Expenses 29.4% 29.1% 30.0% 29.5%
---- ---- ---- ----
Combined Ratio 85.1% 91.9% 86.8% 93.4%
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