EXHIBIT 99.1
NEWS RELEASE
CONTACT: Lester A. Aaron
Chief Financial Officer
(818) 591-9800
UNICO AMERICAN CORPORATION REPORTS RESULTS
FOR ITS SECOND QUARTER ENDED JUNE 30, 2007
Woodland Hills, California, August 10, 2007 - Unico American Corporation (NASDAQ
- - "UNAM") announced today that for its quarter ended June 30, 2007, revenues
were $12,638,966 and net income was $1,626,324 ($0.29 diluted income per share)
compared with revenues of $13,667,146 and net income of $1,956,720 ($0.35
diluted income per share) for the quarter ended June 30, 2006. Revenues for the
six months ended June 30, 2007, were $25,484,941 and net income was $3,314,912
($0.58 diluted income per share) compared with revenues of $27,740,821 and net
income was $3,844,270 ($0.68 diluted income per share) for the six months ended
June 30, 2006.
Stockholders' equity was $64,323,798 at June 30, 2007, or $11.45 per common
share including unrealized after-tax investment losses of $274,404 compared to
stockholders' equity of $60,871,022 or $10.89 per common share including
unrealized after-tax investment losses of $216,074 at December 31, 2006.
Unico American Corporation is an insurance holding company that provides
property, casualty, health and life insurance, and related premium financing
through its wholly owned subsidiaries.
(Table Follows)
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED FINANCIAL DATA
(UNAUDITED)
($ in thousands, except per share)
Three Months Ended Six Months Ended
June 30 June 30
------- -------
2007 2006 2007 2006
---- ---- ---- ----
Revenues
- --------
Insurance Company Revenues
Premium earned $12,392 $14,294 $25,133 $29,139
Premium ceded 2,909 3,489 5,940 7,119
----- ------ ------ ------
Net premium earned 9,483 10,805 19,193 22,020
Investment income 1,661 1,421 3,283 2,754
Other income 20 20 30 47
------ ------ ------ ------
Total Insurance Company Revenues 11,164 12,246 22,506 24,821
Other Revenues from Insurance Operations
Gross commissions and fees 1,289 1,225 2,604 2,525
Investment income 40 24 78 45
Finance charges and fees earned 143 172 291 345
Other income 3 - 6 5
------ ------ ------ ------
Total Revenues 12,639 13,667 25,485 27,741
------ ------ ------ ------
Expenses
- --------
Losses and loss adjustment expenses 5,484 6,053 11,418 12,572
Policy acquisition costs 2,305 2,315 4,301 4,766
Salaries and employee benefits 1,463 1,398 2,885 2,683
Commissions to agents/brokers 236 153 440 311
Other operating expenses 699 735 1,464 1,482
------ ------ ------ ------
Total Expenses 10,187 10,654 20,508 21,814
------ ------ ------ ------
Income Before Income Taxes 2,452 3,013 4,977 5,927
Income Tax Provision 826 1,056 1,662 2,083
------ ----- ----- -----
Net Income $1,626 $1,957 $3,315 $3,844
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PER SHARE DATA
- --------------
Basic
Earnings Per Share $0.29 $0.35 $0.59 $0.69
Weighted Average Shares (000) 5,611 5,583 5,603 5,545
Diluted
Earnings Per Share $0.29 $0.35 $0.58 $0.68
Weighted Average Shares (000) 5,683 5,658 5,681 5,642
INSURANCE COMPANY STATUTORY OPERATING RATIOS
- --------------------------------------------
Losses and Loss Adjustment Expenses 57.5% 55.7% 59.2% 56.8%
Underwriting Expenses 30.1% 29.4% 30.4% 30.0%
---- ---- ---- ----
Combined Ratio 87.6% 85.1% 89.6% 86.8%
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