Exhibit 99.1

 

 

NEWS RELEASE

 

 

CONTACT: Lester A. Aaron

Chief Financial Officer

818-591-9800

 

 

UNICO AMERICAN CORPORATION REPORTS

FOURTH QUARTER AND FULL YEAR 2011 FINANCIAL RESULTS

 

Woodland Hills, CA, March 23, 2012

– Unico American Corporation (NASDAQ – “UNAM”) (“Unico,” the “Company”), announced today its consolidated financial results for the three and twelve months ended December 31, 2011. For the three months ended December 31, 2011, revenues were $8.3 million and net income was $0.6 million ($0.12 diluted income per share) compared with revenues of $8.7 million and net income of $0.8 million ($0.14 diluted income per share) for the three months ended December 31, 2010. For the twelve months ended December 31, 2011, revenues were $34.6 million and net income was $3.7 million ($0.70 diluted income per share) compared with revenue of $37.1 million and net income of $2.3 million ($0.44 diluted income per share) for the twelve months ended December 31, 2010.

 

As of December 31, 2011, the Company had cash and investments (at amortized cost) of $128.5 million.  $89.9 million, or 70% of these investments were fixed maturity investments, and 82% of those fixed maturity investments were U.S. treasury securities.

 

Stockholders’ equity was $75.8 million as of December 31, 2011, or $14.20 per common share including unrealized after-tax investment gains of $1 million, compared to Stockholders’ equity of $73.4 million as of December 31, 2010, or $13.75 per common share including unrealized after-tax investment gains of $2.3 million.

 

Headquartered in Woodland Hills, California, Unico is an insurance holding company that underwrites property and casualty insurance through its insurance company subsidiary; provides property, casualty, and health insurance through its agency subsidiaries; and through its other subsidiaries provides insurance premium financing and membership association services. Unico has conducted the majority of its operations through its subsidiary Crusader Insurance Company since 1985. For more information concerning Crusader Insurance Company, please visit the Crusader’s Web site at www.crusaderinsurance.com.

 

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained herein that are not historical facts are forward-looking. These statements, which may be identified by forward-looking words or phrases such as “anticipate,” “believe,” ”expect,” “intend,” “may,” “should,” and “would,” involve risks and uncertainties, many of which are beyond the control of the Company. Such risks and uncertainties could cause actual results to differ materially from these forward-looking statements. Factors which could cause actual results to differ materially include underwriting actions not being effective, rate increases for coverages not being sufficient, premium rate adequacy relating to competition or regulation, actual versus estimated claim experience, regulatory changes or developments, unforeseen calamities, general market conditions, and the Company’s ability to introduce new profitable products.

 

Financial Tables Follow –

 

 
 

 

  UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($ in thousands)

 

  December 31 December 31
  2011 2010
  (Unaudited)  
ASSETS    
Investments    
  Available for sale:    
     Fixed maturities, at fair value (amortized cost:  December 31,    
        2011 $89,903; December 31, 2010 $123,301) $  91,357 $126,712
  Short-term investments, at cost 38,139 6,466
        Total Investments 129,496 133,178
Cash 467 45
Accrued investment income 681 691
Premium and notes receivable, net 5,304 4,364
Reinsurance recoverable:    
  Paid losses and loss adjustment expenses 60 49
  Unpaid losses and loss adjustment expenses 7,975 11,816
Deferred policy acquisition costs 4,158 4,301
Property and equipment (net of accumulated depreciation) 231 1,631
Deferred income taxes 1,394 1,060
Other assets 609 540
        Total Assets $150,375 $157,675
     
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES    
Unpaid losses and loss adjustment expenses $  54,487 $  61,560
Unearned premium 15,912 15,930
Advance premium and premium deposits 818 830
Income taxes payable - 1
Accrued expenses and other liabilities 3,310 6,000
        Total Liabilities $  74,527 $  84,321
     
     
STOCKHOLDERS'  EQUITY    
Common stock, no par – authorized 10,000,000 shares; issued and    
  Outstanding shares 5,341,992 at December 31, 2011, and 5,333,081 at    
  December 31, 2010 $    3,611 $    3,555
Accumulated other comprehensive income 960 2,251
Retained earnings 71,277 67,548
        Total Stockholders’ Equity $  75,848 $  73,354
     
        Total Liabilities and Stockholders' Equity $150,375 $157,675

 

 
 

 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except per share)

 

 

  Three Months Ended Twelve Months Ended
  December 31 December 31
  2011 2010 2011 2010
  (Unaudited) (Unaudited) (Unaudited)  
REVENUES        
Insurance Company Revenues        
 Premium earned $8,051 $8,444 $32,072 $35,579
 Premium ceded 1,374 1,770 5,348 7,427
    Net premium earned 6,677 6,674 26,724 28,152
 Investment income 624 805 2,897 3,490
 Other income 86 187 1,171 692
    Total Insurance Company Revenues 7,387 7,666 30,792 32,334
         
Other Revenues from Insurance Operations        
 Gross commissions and fees 907 1,035 3,698 4,492
 Investment income - - 2 3
 Finance charges and fees earned 16 40 71 277
 Other income 2 6 14 15
    Total Revenues 8,312 8,747 34,577 37,121
         
EXPENSES        
Losses and loss adjustment expenses 3,771 4,086 14,387 18,470
Policy acquisition costs 1,758 1,747 7,081 7,283
Salaries and employee benefits 1,064 1,036 4,335 4,317
Commissions to agents/brokers 58 121 225 638
Other operating expenses 671 623 2,799 3,193
    Total Expenses 7,322 7,613 28,827 33,901
         
Income Before Taxes 990 1,134 5,750 3,220
Income tax provision 346 376 2,010 891

Net Income

 

$644 $758 $3,740 $2,329
         
         
         
PER SHARE DATA:        
Basic        
   Earnings Per Share $0.12 $0.14 $0.70 $0.44
   Weighted Average Shares 5,339 5,319 5,336 5,313
Diluted        
   Earnings Per Share $0.12 $0.14 $0.70 $0.44
   Weighted Average Shares 5,361 5,353 5,359 5,352

 

 
 

 

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ in thousands)

 

  For the Twelve Months Ended
  December 31
  2011  2010 
  (Unaudited)  
Cash Flows from Operating Activities:    
Net Income $  3,740  $  2,329 
  Adjustments to reconcile net income to net cash from operations    
     Depreciation 59  127 
     Bond amortization, net 154  115 
     Non cash stock based compensation expense 31 
     Tax benefit from disqualified incentive stock options (3) (40)
  Changes in assets and liabilities    
     Premium, notes and investment income receivable (929) 73 
     Reinsurance recoverable 3,830  4,764 
     Deferred policy acquisition costs 142  655 
     Other assets 161  (62)
     Unpaid losses and loss adjustment expenses (7,073) (10,025)
     Unearned premium (17) (2,882)
     Advance premium and premium deposits (12) (204)
     Accrued expenses and other liabilities (1,259) (794)
     Income taxes current/deferred 103  58 
        Net Cash Used by Operating Activities (1,073) (5,886)
     
Cash Flows from investing Activities    
  Purchase of fixed maturity investments (14,794) (33,025)
  Proceeds from maturity of fixed maturity investments 48,039  38,049 
  Net (increase) decrease in short-term investments (31,674) 2,692 
  Additions to property and equipment (91) (105)
        Net Cash Provided by Investing Activities 1,480  7,611 
     
Cash Flows from financing Activities    
  Repurchase of common stock (11)
  Dividends paid to shareholders (1,917)
  Proceeds from exercise of stock options 23  78 
  Tax benefit from disqualified incentive stock options 40 
        Net Cash Provided (Used) by Financing Activities 15  (1,799)
     
Net increase (decrease) in cash 422  (74)
  Cash at beginning of period 45  119 
        Cash at End of Period $     467  $       45 
     
Supplemental Cash Flow Information    
  Cash paid during the period for:    
    Interest
    Income taxes $  1,909  $     834 
     
Supplemental Schedule of Non-Cash Investing Activities    
     (Write-offs) acquisition of fixed assets $  (1,602) $  1,432 

 


The following information was filed by Unico American Corp (UNAM) on Friday, March 23, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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