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EXHIBIT 99.1
NEWS RELEASE
CONTACT: Michael Budnitsky
Chief Executive Officer
818-591-9800
UNICO AMERICAN CORPORATION REPORTS
FOURTH QUARTER AND FULL YEAR 2020 FINANCIAL RESULTS
Calabasas, CA, March 1, 2021 – Unico American Corporation (NASDAQ – “UNAM”) (“Unico” or the “Company”), announced today its consolidated financial results for the three and twelve months ended December 31, 2020. For the three months ended December 31, 2020, net loss was $2,071,985 ($0.39 diluted loss per share) compared to net loss of $2,380,419 ($0.45 diluted loss per share) for the three months ended December 31, 2019. For the twelve months ended December 31, 2020, net loss was $21,491,113 ($4.05 diluted loss per share) compared to net loss of $3,115,703 ($0.59 diluted loss per share) for the twelve months ended December 31, 2019. Book value per share was $6.60 and $10.38 at December 31, 2020, and December 31, 2019, respectively.
Results of Operations
Three Months Ended December 31 | ||||||||||||||||
Increase (Decrease) | ||||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Gross written premium | $ | 8,998,056 | $ | 8,375,614 | $ | 622,442 | 7 | % | ||||||||
Net investment income | $ | 500,908 | $ | 516,460 | $ | (15,552 | ) | (3 | )% | |||||||
Gross commissions and fees | $ | 438,769 | $ | 520,287 | $ | (81,518 | ) | (16 | )% | |||||||
Losses and loss adjustment expenses | $ | 6,556,578 | $ | 7,224,759 | $ | (668,181 | ) | (9 | )% | |||||||
Policy acquisition costs | $ | 1,272,653 | $ | 1,389,781 | $ | (117,128 | ) | (8 | )% | |||||||
Salaries and employee benefits | $ | 1,405,270 | $ | 1,005,601 | $ | 399,669 | 40 | % | ||||||||
Other operating expenses | $ | 1,129,931 | $ | 947,697 | $ | 182,234 | 19 | % | ||||||||
Income tax expense (benefit) | $ | 4,445 | $ | (45,796 | ) | $ | 50,241 | 110 | % |
The increase in gross written premium during the three months ended December 31, 2020, was due primarily to growth in the Company’s Transportation vertical, transacted by wholly owned subsidiary Crusader Insurance Company (“Crusader”). The Transportation vertical transacts insurance primarily for long-haul trucking operations that are domiciled in California. The growth in the Company’s Transportation vertical was partially offset by coronavirus-related contraction in the Food, Beverage & Entertainment underwriting vertical for Crusader.
The decrease in net investment income during the three months ended December 31, 2020, was due primarily to a decrease in average invested assets and lower market yields.
The decrease in gross commission and fees during the three months ended December 31, 2020, was due primarily to decreases in property and casualty insurance policy fee income and health insurance program commission income as a result of decrease in the number of issued policies.
The decrease in loss and loss adjustment expenses during the three months ended December 31, 2020, was due primarily to lower contributions to incurred but not reported (“IBNR”) reserves associated with the Apartments & Commercial Buildings and Transportation verticals during the three months ended December 31, 2020, compared to the three months ended December 31, 2019.
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The decrease in policy acquisition costs during the three months ended December 31, 2020, was due primarily to higher ceding commission Crusader received on premium ceded to its reinsurers.
The increase in salaries and employee benefits during the three months ended December 31, 2020, was due primarily to increases in executive compensation, increases in employee benefits due to higher medical insurance rates, and vacation accruals due to less vacation taken by the employees as a result of the ongoing coronavirus pandemic.
The increase in other operating expenses during the three months ended December 31, 2020, was due primarily to increases in legal and communication expenses, partially offset by decreases in consulting and advertising expenses.
Income tax expense was $4,445 (0% of pre-tax loss) for the three months ended December 31, 2020, and income tax benefit was $45,796 (2% of pre-tax loss) for the three months ended December 31, 2019. The fluctuation in the income tax rate as a percentage of pre-tax loss for the three months ended December 31, 2020, when compared to the three months ended December 31, 2019, is primarily due to an increase in the valuation allowance related to deferred tax assets on federal net operating losses.
Twelve Months Ended December 31 | ||||||||||||||||
Increase (Decrease) | ||||||||||||||||
2020 | 2019 | $ | % | |||||||||||||
Gross written premium | $ | 36,642,830 | $ | 35,803,950 | $ | 838,880 | 2 | % | ||||||||
Net investment income | $ | 1,988,243 | $ | 2,097,942 | $ | (109,699 | ) | (5 | )% | |||||||
Gross commissions and fees | $ | 1,827,263 | $ | 2,176,658 | $ | (349,395 | ) | (16 | )% | |||||||
Losses and loss adjustment expenses | $ | 34,642,920 | $ | 22,576,127 | $ | 12,066,793 | 53 | % | ||||||||
Policy acquisition costs | $ | 4,898,807 | $ | 4,960,846 | $ | (62,039 | ) | (1 | )% | |||||||
Salaries and employee benefits | $ | 6,364,170 | $ | 4,067,852 | $ | 2,296,318 | 56 | % | ||||||||
Other operating expenses | $ | 4,502,414 | $ | 2,844,083 | $ | 1,658,331 | 58 | % | ||||||||
Income tax expense (benefit) | $ | 3,547,598 | $ | (134,187 | ) | $ | 3,681,785 | 2,744 | % |
The increase in gross written premium during the twelve months ended December 31, 2020, was due primarily to growth in the Company’s Transportation vertical, transacted by Crusader. The Transportation vertical transacts insurance primarily for long-haul trucking operations that are domiciled in California. The growth in the Company’s Transportation vertical was partially offset by coronavirus-related contraction in the Food, Beverage & Entertainment underwriting vertical for Crusader.
The decrease in net investment income during the twelve months ended December 31, 2020, was due primarily to a decrease in average invested assets and lower market yields.
The decrease in gross commission and fees during the twelve months ended December 31, 2020, was due primarily to decreases in property and casualty insurance policy fee income and health insurance program commission income as a result of decrease in the number of issued policies.
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The increase in loss and loss adjustment expenses during the twelve months ended December 31, 2020, was due primarily to increases in IBNR reserves associated with the Apartments & Commercial Buildings and Transportation verticals resulting from significantly more conservative estimates for expected claims frequency, claims severity and ultimate incurred losses and loss adjustment expenses during the quarterly re-evaluation of the loss and loss adjustment expense reserves as of September 30, 2020.
The decrease in policy acquisition costs during the twelve months ended December 31, 2020, was due primarily to increase of ceding commission that Crusader received as a result of increase in premium ceded to its reinsurers.
The increase in salaries and employee benefits during the twelve months ended December 31, 2020, was due primarily to costs associated with a termination of an employment agreement with an executive, increases in executive compensation, increases in employee benefits due to higher medical insurance rates, and vacation accruals due to less vacation taken by the employees as a result of the ongoing coronavirus pandemic.
The increase in other operating expenses during the twelve months ended December 31, 2020, was due primarily to increases in legal, depreciation and communication expenses, fees associated with the reinsurance arrangement with United Specialty Insurance Company, and higher board of director fees.
Income tax expense was $3,547,598 (-20% of pre-tax loss) for the twelve months ended December 31, 2020 and income tax benefit was $134,187 (4% of pre-tax loss) for the twelve months ended December 31, 2019. The fluctuation in the income tax rate as a percentage of pre-tax loss for the twelve months ended December 31, 2020, when compared to the twelve months ended December 31, 2019, is primarily due to an increase in the valuation allowance related to deferred tax assets on federal net operating losses.
As of December 31, 2020, the Company had deferred tax assets of $7,769,603 generated from $36,998,110 of federal net operating loss carryforwards that will begin to expire in 2035 and deferred tax assets of $2,402,438 generated from state net operating loss carryforwards which expire between 2028 and 2040. In connection with preparation of its consolidated financial statements, the Company periodically performs an analysis of future income projections to determine the adequacy of the valuation allowance. In light of the net losses that were generated in recent years, for the twelve months ended December 31, 2020, the Company has established a valuation allowance for the aggregate amount of the federal and state net operating losses and other deferred tax assets in the amount of $10,557,800 that, in management’s judgment, are not more-likely-than-not to be realized. For the year ended December 31, 2019, the Company carried a valuation allowance on deferred tax assets generated from federal and state net operating losses in the amount of $600,000 and $1,931,665, respectively.
Management Commentary
“Unico has experienced a lot of turbulence in the past 12 months,” said Michael Budnitsky, Interim President and CEO. “Our management team of seasoned insurance professionals is stronger due to the recent personnel additions, and it is working hard to finish addressing issues of the past and to build a stronger company for the future. We are developing more meaningful relationships with our producers, utilizing rate and form flexibility provided by the United Specialty Insurance Company facility, and considering new geographic markets and niche products with better expected underwriting results. It is a pleasure to work with this team.”
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Definitions and Non-GAAP Financial Measures
Written premium is a non-GAAP financial measure that is defined, under the statutory accounting practices prescribed or permitted by the California Department of Insurance, as the contractually determined amount charged by the insurance company to the policyholder for the effective period of the contract based on the expectation of risk, policy benefits, and expenses associated with the coverage provided by the terms of the policies. Written premium is a required statutory measure. Written premium is defined under U.S. generally accepted accounting principles (“GAAP”) in Accounting Standards Codification Topic 405, “Liabilities,” as “premiums on all policies an entity has issued in a period.” Earned premium, the most directly comparable GAAP measure to written premium, represents the portion of written premium that is recognized as income in the financial statements for the period presented and earned on a pro-rata basis over the terms of the policies. Written premium is intended to reflect production levels and is meant as supplemental information and not intended to replace earned premium. Such information should be read in conjunction with the GAAP financial results.
The following is a reconciliation of gross written premium (before premium ceded to reinsurers) to net earned premium (after premium ceded to reinsurers):
Three Months Ended December 31 | Twelve Months Ended December 31 | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Gross written premium | $ | 8,998,056 | $ | 8,375,614 | $ | 36,642,830 | $ | 35,803,950 | ||||||||
Less: written premium ceded to reinsurers | (2,075,050 | ) | (1,947,920 | ) | (8,078,748 | ) | (7,153,130 | ) | ||||||||
Net written premium | 6,923,006 | 6,427,694 | 28,564,082 | 28,650,820 | ||||||||||||
Change in gross unearned premium | 444,132 | 576,277 | (377,961 | ) | (1,845,748 | ) | ||||||||||
Change in ceded unearned premium | (4,487 | ) | (27,464 | ) | (17,953 | ) | (67,604 | ) | ||||||||
Net earned premium | $ | 7,362,651 | $ | 6,976,507 | $ | 28,168,168 | $ | 26,737,468 |
About Unico
Headquartered in Calabasas, California, Unico is an insurance holding company whose subsidiaries underwrite and market property and casualty insurance, and transact health insurance, insurance premium financing and membership association services. Since 1985, the majority of Unico’s financial activity has been related to the operations of its subsidiary, Crusader. For more information concerning Crusader, please visit Crusader’s website at www.crusaderinsurance.com.
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended (or “the Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (or “the Exchange Act”). In this context, forward-looking statements are not historical facts and include statements about the Company’s plans, objectives, beliefs and expectations. Forward-looking statements include statements preceded by, followed by, or that include the words “believes,” “expects,” “anticipates,” “seeks,” “plans,” “estimates,” “intends,” “projects,” “targets,” “should,” “could,” “may,” “will,” “can,” “can have,” “likely,” the negatives thereof or similar words and expressions.
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Forward-looking statements are only predictions and are not guarantees of future performance. These statements are based on current expectations and assumptions involving judgments about, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company’s control. These predictions are also affected by known and unknown risks, uncertainties and other factors that may cause the Company’s actual results to be materially different from those expressed or implied by any forward-looking statement. Many of these factors are beyond the Company’s ability to control or predict. The Company’s actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors. Such factors include, but are not limited to, the ongoing impact of the coronavirus (COVID-19) pandemic; failure to meet minimum capital and surplus requirements; vulnerability to significant catastrophic property loss; a change in accounting standards issued by the Financial Accounting Standards Board; ability to adjust claims accurately; insufficiency of loss and loss adjustment expense reserves to cover future losses; changes in federal or state tax laws; ability to realize deferred tax assets; ability to accurately underwrite risks and charge adequate premium; ability to obtain reinsurance or collect from reinsurers and or losses in excess of reinsurance limits; extensive regulation and legislative changes; reliance on subsidiaries to satisfy obligations; downgrade in financial strength rating by A.M. Best; changes in interest rates; investments subject to credit, prepayment and other risks; geographic concentration; reliance on independent insurance agents and brokers; insufficient reserve for doubtful accounts; litigation; enforceability of exclusions and limitations in policies; reliance on information technology systems; ability to prevent or detect acts of fraud with disclosure controls and procedures; change in general economic conditions; dependence on key personnel; ability to attract, develop and retain employees and maintain appropriate staffing levels; insolvency, financial difficulties, or default in performance of obligations by parties with significant contracts or relationships; ability to effectively compete; maximization of long-term value and no focus on short-term earnings expectations; control by a small number of shareholders; failure to maintain effective system of internal controls; and difficulty in effecting a change of control or sale of any subsidiaries.
Please see Part I - Item 1A – “Risk Factors” in the Company’s 2019 Annual Report on Form 10-K as filed with the U.S. Securities and Exchange Commission (“SEC”), as well as other documents the Company files or furnishes with the SEC from time-to-time, for other important risks and uncertainties that could cause the Company’s actual results to differ materially from its current expectations and from the forward-looking statements discussed herein. Because of these and other risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. In addition, these statements speak only as of the date of this press release and, except as may be required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements, whether as a result of changed circumstances, new information, future events or otherwise, for any reason.
Financial Tables Follow –
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UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands)
December 31 | December 31 | |||||||
2020 | 2019 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Investments | ||||||||
Available-for-sale: | ||||||||
Fixed maturities, at fair value (amortized cost: $80,071 at December 31, 2020, and $82,002 at December 31, 2019) | $ | 83,409 | $ | 83,500 | ||||
Held-to-maturity: | ||||||||
Fixed maturities, at amortized cost (fair value: $798 at December 31, 2020, and $798 at December 31, 2019) | 798 | 798 | ||||||
Equity securities, at fair value (cost: $2,548 at December 31, 2020, and $0 at December 31, 2019) | 2,747 | — | ||||||
Short-term investments, at fair value | 200 | 2,197 | ||||||
Total Investments | 87,154 | 86,495 | ||||||
Cash and cash equivalents | 3,958 | 5,782 | ||||||
Accrued investment income | 402 | 397 | ||||||
Receivables, net | 3,321 | 4,019 | ||||||
Reinsurance recoverable: | ||||||||
Paid losses and loss adjustment expenses | 621 | 686 | ||||||
Unpaid losses and loss adjustment expenses | 22,254 | 14,726 | ||||||
Deferred policy acquisition costs | 3,503 | 3,620 | ||||||
Property and equipment, net | 10,374 | 10,227 | ||||||
Deferred income taxes | — | 3,925 | ||||||
Other assets | 314 | 430 | ||||||
Total Assets | $ | 131,901 | $ | 130,307 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
LIABILITIES | ||||||||
Unpaid losses and loss adjustment expenses | $ | 74,894 | $ | 55,067 | ||||
Unearned premiums | 18,188 | 17,810 | ||||||
Advance premium and premium deposits | 209 | 219 | ||||||
Accrued expenses and other liabilities | 3,577 | 2,130 | ||||||
Total Liabilities | 96,868 | 75,226 | ||||||
Commitments and contingencies | ||||||||
STOCKHOLDERS’ EQUITY | ||||||||
Common stock, no par value – authorized 10,000,000 shares; 5,304,885 and 5,306,720 shares issued and outstanding at December 31, 2020, and December 31, 2019, respectively | 3,772 | 3,773 | ||||||
Accumulated other comprehensive income | 2,637 | 1,183 | ||||||
Retained earnings | 28,624 | 50,125 | ||||||
Total Stockholders’ Equity | 35,033 | 55,081 | ||||||
Total Liabilities and Stockholders' Equity | $ | 131,901 | $ | 130,307 |
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UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
($ in thousands, except per share)
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31 | December 31 | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
REVENUES | ||||||||||||||||
Insurance company operation: | ||||||||||||||||
Net earned premium | $ | 7,363 | $ | 6,976 | $ | 28,168 | $ | 26,737 | ||||||||
Investment income | 501 | 517 | 1,988 | 2,098 | ||||||||||||
Net realized investments gains (losses) | 58 | — | 98 | (13 | ) | |||||||||||
Net unrealized investments gains on equity securities | 155 | — | 198 | — | ||||||||||||
Other income (loss) | (246 | ) | 100 | 33 | 123 | |||||||||||
Total Insurance Company Operation | 7,831 | 7,593 | 30,485 | 28,945 | ||||||||||||
Other insurance operations: | ||||||||||||||||
Gross commissions and fees | 439 | 521 | 1,827 | 2,177 | ||||||||||||
Finance fees earned | 49 | 70 | 241 | 240 | ||||||||||||
Other income | — | — | 7 | 11 | ||||||||||||
Total Revenues | 8,319 | 8,184 | 32,560 | 31,373 | ||||||||||||
EXPENSES | ||||||||||||||||
Losses and loss adjustment expenses | 6,557 | 7,225 | 34,643 | 22,576 | ||||||||||||
Policy acquisition costs | 1,273 | 1,390 | 4,899 | 4,961 | ||||||||||||
Salaries and employee benefits | 1,405 | 1,006 | 6,364 | 4,068 | ||||||||||||
Commissions to agents/brokers | 22 | 42 | 95 | 174 | ||||||||||||
Other operating expenses | 1,130 | 947 | 4,503 | 2,844 | ||||||||||||
Total Expenses | 10,387 | 10,610 | 50,504 | 34,623 | ||||||||||||
Loss before taxes | (2,068 | ) | (2,426 | ) | (17,944 | ) | (3,250 | ) | ||||||||
Income tax expense (benefit) | 4 | (46 | ) | 3,547 | (134 | ) | ||||||||||
Net Loss | $ | (2,072 | ) | $ | (2,380 | ) | $ | (21,491 | ) | $ | (3,116 | ) | ||||
PER SHARE DATA: | ||||||||||||||||
Basic | ||||||||||||||||
Loss per share | $ | (0.39 | ) | $ | (0.45 | ) | $ | (4.05 | ) | $ | (0.59 | ) | ||||
Weighted average shares | 5,305,112 | 5,306,729 | 5,305,829 | 5,306,879 | ||||||||||||
Diluted | ||||||||||||||||
Loss per share | $ | (0.39 | ) | $ | (0.45 | ) | $ | (4.05 | ) | $ | (0.59 | ) | ||||
Weighted average shares | 5,305,112 | 5,306,729 | 5,305,829 | 5,306,879 |
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UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
($ in thousands)
Twelve Months Ended | ||||||||
December 31 | ||||||||
2020 | 2019 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (21,491 | ) | $ | (3,116 | ) | ||
Adjustments to reconcile net loss to net cash from operations: | ||||||||
Depreciation and amortization | 674 | 565 | ||||||
Bond amortization, net | 33 | (19 | ) | |||||
Bad debt expense | 6 | 9 | ||||||
Net realized investment losses (gains) | (98 | ) | 13 | |||||
Net unrealized investment gains on equity securities | (198 | ) | — | |||||
Changes in assets and liabilities: | ||||||||
Net receivables and accrued investment income | 687 | (98 | ) | |||||
Reinsurance recoverable | (7,463 | ) | (5,881 | ) | ||||
Deferred policy acquisition costs | 117 | (130 | ) | |||||
Other assets | 116 | 127 | ||||||
Unpaid losses and loss adjustment expenses | 19,827 | 3,410 | ||||||
Unearned premium | 378 | 1,845 | ||||||
Advance premium and premium deposits | (10 | ) | (15 | ) | ||||
Accrued expenses and other liabilities | 1,447 | 285 | ||||||
Income taxes current/deferred | 3,539 | (158 | ) | |||||
Net Cash Used by Operating Activities | (2,436 | ) | (3,163 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchase of fixed maturity investments | (20,581 | ) | (10,975 | ) | ||||
Purchase of equity securities | (2,548 | ) | — | |||||
Proceeds from maturity of fixed maturity investments | 16,051 | 10,138 | ||||||
Proceeds from sale or call of investments | 6,525 | 3,472 | ||||||
Net decrease in short-term investments | 1,997 | 2,494 | ||||||
Additions to property and equipment | (821 | ) | (1,100 | ) | ||||
Net Cash Provided by Investing Activities | 623 | 4,029 | ||||||
Cash flows from financing activities: | ||||||||
Repurchase of common stock | (11 | ) | (2 | ) | ||||
Net Cash Used by Financing Activities | (11 | ) | (2 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (1,824 | ) | 864 | |||||
Cash and cash equivalents at beginning of period | 5,782 | 4,918 | ||||||
Cash and Cash Equivalents at End of Period | $ | 3,958 | $ | 5,782 | ||||
Supplemental cash flow information | ||||||||
Cash paid during the period for: | ||||||||
Interest | — | — | ||||||
Income taxes | $ | 9 | $ | 9 |
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Unico American Corp's Definitive Proxy Statement (Form DEF 14A) filed after their 2021 10-K Annual Report includes:
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The changes in estimates of prior accident year incurred losses and loss adjustment expenses was due primarily to increases in IBNR reserves associated with the Apartments & Commercial Buildings and Transportation verticals resulting from higher estimates for expected claims frequency, claims severity and ultimate incurred losses and loss adjustment expenses during the re-evaluation of the loss and loss adjustment expense reserves.
The liability for unpaid losses and loss adjustment expenses is based upon the accumulation of individual case estimates for losses reported prior to the close of the accounting period plus estimates based on experience and industry data for development of case estimates and for unreported losses and loss adjustment expenses.
This reevaluation and the use of updated assumptions led to higher estimates for expected claims frequency, claims severity and ultimate incurred losses and loss adjustment expenses during the quarterly reevaluation of the loss and loss adjustment expense reserves as of September 30, 2020.
Management believes the Company's current critical accounting policies comprise the following: Losses and Loss Adjustment Expenses The preparation of the Company's consolidated financial statements requires estimation of certain liabilities, most significantly the liability for unpaid losses and loss adjustment expenses.
In this context, social inflation is generally described by the rising costs of insurance claims due to societal trends which results in increased litigation, broader definitions of liability and contractual interpretations, plaintiff friendly legal decisions, larger compensatory jury awards, and larger awards for non-economic damages Crusader has experienced increased costs due to social inflation in all three of its largest market sector niches, Long-haul Transportation, Residential Apartment Buildings, and Bars/Taverns, resulting in higher-than-expected frequency and severity of third-party liability claims.
Another significant contributor to the...Read more
The Company repurchased its shares...Read more
The increases in IBNR reserves...Read more
Estimates are based on a...Read more
On August 10, 2020, the...Read more
The 2020 Program is effective...Read more
The increase in the ultimate...Read more
Salaries and employee benefits incurred...Read more
30 of 95 Although the...Read more
Although the ongoing coronavirus pandemic...Read more
A tabular presentation of Crusader's...Read more
The following table sets forth...Read more
Gross earned premium Gross earned...Read more
The increase in income tax...Read more
The increase in other operating...Read more
38 of 95 The increase...Read more
The $7,959,048 adverse development of...Read more
The $26,683,872 provision for insured...Read more
If the claims costs that...Read more
If the claims costs that...Read more
Ceded earned premium Ceded earned...Read more
Management believes that the aggregate...Read more
The increase in other operating...Read more
Under the Company's investment guidelines,...Read more
Estimates are based on a...Read more
The increase in gross earned...Read more
The differences between actual and...Read more
The decrease during the year...Read more
These estimates are based upon...Read more
52 of 95 The following...Read more
In 2020, approximately 30% and...Read more
In 2019, approximately 39% and...Read more
The increase in the ceded...Read more
The variability of Crusader's losses...Read more
Currently, the Company's subsidiary Crusader...Read more
Crusader's loss and loss adjustment...Read more
This fluctuation in commissions to...Read more
The preparation of the Company's...Read more
These reinsurance treaties help protect...Read more
As a result of the...Read more
The increases in IBNR were...Read more
AAQHC is a third party...Read more
Other Operating Expenses Other operating...Read more
In light of the net...Read more
In light of the net...Read more
The increase in net loss...Read more
The Company believes the losses...Read more
The ultimate cost of claims...Read more
As of December 31, 2020,...Read more
Crusader's total gross written premium...Read more
Crusader sets loss and loss...Read more
However, if the claims costs...Read more
Brokerage fee income for the...Read more
This decrease in net investment...Read more
(2) Expense ratio is defined...Read more
The Company annually reevaluates its...Read more
Since Crusader's net earned premium...Read more
In addition, the recent decline...Read more
In addition, the recent decline...Read more
While the coronavirus pandemic is...Read more
U.S. Risk will establish an...Read more
However, if the claims costs...Read more
Losses and loss adjustment expenses...Read more
Management believes that its recorded...Read more
Policy acquisition costs consist of...Read more
Many other factors, including changes...Read more
Many other factors, including changes...Read more
The Company applies judgment in...Read more
This decrease in brokerage fee...Read more
Policy Acquisition Costs Policy acquisition...Read more
Such changes might result from...Read more
Management believes that the aggregate...Read more
In light of the significant...Read more
Insurance claims costs are inherently...Read more
Repeated and sustained underwriting losses...Read more
Further, there may be impacts...Read more
Further, there may be impacts...Read more
The changes in estimates of...Read more
This decrease in net investment...Read more
A ten percentage point difference...Read more
A twenty percentage point difference...Read more
Due to the current interest...Read more
The financial impact of these...Read more
For the year ended December...Read more
For the year ended December...Read more
These charges and fees earned...Read more
Crusader has sufficient excess of...Read more
Fluctuations in cash flows from...Read more
Management believes disclosure of underwriting...Read more
Commission income for the year...Read more
The fluctuation in the income...Read more
Total revenues for the year...Read more
General Total revenues for the...Read more
Repeated and sustained underwriting losses...Read more
There is not a precise...Read more
The insurance company operation generated...Read more
On September 2, 2020, the...Read more
Crusader's actuarially based loss and...Read more
Amortized costs of the short-term...Read more
On November 24, 2020, USIC...Read more
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Inside this 10-K Annual Report
Material Contracts, Statements, Certifications & more
Unico American Corp provided additional information to their SEC Filing as exhibits
Ticker: UNAM
CIK: 100716
Form Type: 10-K Annual Report
Accession Number: 0000100716-21-000020
Submitted to the SEC: Wed Mar 31 2021 4:47:58 PM EST
Accepted by the SEC: Wed Mar 31 2021
Period: Thursday, December 31, 2020
Industry: Fire Marine And Casualty Insurance