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 THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2006
Woodland Hills, California, March 26, 2007 - Unico American Corporation (NASDAQ
- - "UNAM") announced today that for its quarter ended December 31, 2006, revenues
were $13,317,228 and the net income was $5,735,825 ($1.01 diluted income per
share) compared with revenues of $14,834,650 and net income of $1,855,053 ($0.33
diluted income per share) for the quarter ended December 31, 2005. Revenues for
the twelve months ended December 31, 2006, were $54,717,381 and the net income
was $11,794,241 ($2.09 diluted income per share) compared with revenues of
$61,182,522 and a net income of $6,715,004 ($1.20 diluted income per share) for
the twelve months ended December 31, 2005.
Stockholders' equity was $60,871,022 at December 31, 2006, or $10.89 per common
share including unrealized after-tax investment losses of $216,074 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.
As previously reported, due to favorable loss experience, the company reduced
its provision for losses and related loss adjustment expenses for prior accident
years by $7,699,017 and $12,170,683 for the three and twelve months ended
December 31, 2006, respectively, as compared to a reduction of $1,439,190 and
$3,824,464 for the three and twelve months ended December 31, 2005,
respectively.
Unico American Corporation is an insurance holding company that provides
property, casualty, health and life insurance, and related premium financing
through its wholly owned subsidiaries.
(Table Follows)
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
($ in thousands, except per share)
Three Months Ended Ended Twelve Months Ended Ended
December 31 December 31
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2006 2005 2006 2005
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Revenues
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Insurance Company Revenues
Premium earned $13,547 $15,457 $56,692 $64,713
Premium ceded 3,310 3,334 13,758 14,235
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Net premium earned 10,237 12,123 42,934 50,478
Investment income 1,627 1,111 5,903 4,249
Realized investment gains 3 - 3 -
Other income 33 31 103 107
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Total Insurance Company Revenues 11,900 13,265 48,943 54,834
Other Revenues from Insurance Operations
Gross commissions and fees 1,221 1,366 4,987 5,508
Investment income 30 25 101 69
Finance charges and fees earned 165 178 678 758
Other income 1 1 8 14
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Total Revenues 13,317 14,835 54,717 61,183
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Expenses
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Losses and loss adjustment expenses (463) 7,058 17,827 31,514
Policy acquisition costs 2,232 2,566 9,251 10,513
Salaries and employee benefits 1,744 1,272 5,861 5,141
Commissions to agents/brokers 164 157 611 675
Other operating expenses 818 901 3,013 2,874
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Total Expenses 4,495 11,954 36,563 50,717
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Income Before Taxes 8,822 2,881 18,154 10,466
Income Tax Expense 3,086 1,026 6,360 3,751
----- ----- ------ -----
Net Income $5,736 $1,855 $11,794 $6,715
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PER SHARE DATA
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Basic
Earning Per Share $1.03 $0.34 $2.12 $1.22
Weighted Average Shares (000) 5,592 5,496 5,568 5,496
Diluted
Earning Per Share $1.01 $0.33 $2.09 $1.20
Weighted Average Shares (000) 5,667 5,610 5,653 5,612
INSURANCE COMPANY STATUTORY OPERATING RATIOS
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Losses and Loss Adjustment Expenses (4.8)% 57.9% 41.2% 62.2%
Underwriting Expenses 30.0% 30.7% 29.9% 29.8%
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Combined Ratio 25.2% 88.6% 71.1% 92.0%
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