Unico American Corporation Reports First Quarter 2019 Financial Results
Stockholders’ equity was
About Unico
Headquartered in
Forward-Looking Statements
This press release may contain “forward-looking statements” within the meaning of the federal securities laws. Forward-looking statements are not historical facts and include statements about the Company 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.
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 that may cause the Company’s actual results to be materially different from those expressed or implied by any forward-looking statement. Such risks include, but are not limited to, failure to meet capital and surplus requirements; vulnerability to catastrophic property loss; changes in accounting standards; accuracy of claims adjustments; sufficiency of expense reserves; changes in tax laws; realization of deferred tax assets; accuracy of underwritten risks and adequacy of premiums; availability and cost of reinsurance; regulation and legislative changes; reliance on subsidiaries; downgrades in financial strength ratings; changes in interest rates; credit and prepayment risks; geographic concentration; reliance on independent insurance agents and brokers; sufficiency of reserves for doubtful accounts; litigation; enforceability of policy terms; reliance on information technology systems; single operating location; prevention or detection of fraud; changes in economic conditions; dependence on key personnel; ability to attract, develop and retain employees; insolvency, financial difficulties, or default by contractual counterparties; competition; maximization of long-term value; control by a small number of shareholders; limited trading of stock; maintenance of effective systems 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 2018 Annual Report on Form 10-K as filed with the
AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ($ in thousands) |
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2019 | 2018 | |||||||
(Unaudited) | ||||||||
ASSETS |
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Investments | ||||||||
Available-for-sale: | ||||||||
Fixed maturities, at fair value (amortized cost: |
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2019 |
$ | 80,690 | $ | 76,910 | ||||
Held-to-maturity: | ||||||||
Fixed maturities, at amortized cost (fair value: |
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2019 |
5,878 | 7,126 | ||||||
Short-term investments, at fair value | 697 | 4,691 | ||||||
Total Investments | 87,265 | 88,727 | ||||||
Cash and cash equivalents | 3,646 | 4,918 | ||||||
Accrued investment income | 511 | 394 | ||||||
Receivables, net | 4,270 | 3,933 | ||||||
Reinsurance recoverable: | ||||||||
Paid losses and loss adjustment expenses | 987 | (1 | ) | |||||
Unpaid losses and loss adjustment expenses | 11,679 | 9,532 | ||||||
Deferred policy acquisition costs | 3,571 | 3,490 | ||||||
Property and equipment, net | 9,789 | 9,692 | ||||||
Deferred income taxes | 4,266 | 4,375 | ||||||
Other assets | 206 | 557 | ||||||
Total Assets | $ | 126,190 | $ | 125,617 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY |
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LIABILITIES |
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Unpaid losses and loss adjustment expenses | $ | 51,333 | $ | 51,657 | ||||
Unearned premiums | 16,526 | 15,965 | ||||||
Advance premium and premium deposits | 343 | 234 | ||||||
Accrued expenses and other liabilities | 1,767 | 1,845 | ||||||
Total Liabilities | $ | 69,969 | $ | 69,701 | ||||
Commitments and contingencies | ||||||||
STOCKHOLDERS' EQUITY |
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Common stock, no par – authorized 10,000,000 shares; 5,307,103 | ||||||||
shares issued and outstanding at |
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$ | 3,773 | $ | 3,773 | ||||
Accumulated other comprehensive loss | (124 | ) | (1,100 | ) | ||||
Retained earnings | 52,572 | 53,243 | ||||||
Total Stockholders’ Equity | $ | 56,221 | $ | 55,916 | ||||
Total Liabilities and Stockholders' Equity | $ | 126,190 | $ | 125,617 | ||||
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) ($ in thousands, except per share) |
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Three Months Ended | ||||||||
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2019 | 2018 | |||||||
REVENUES |
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Insurance company operation: |
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Net premium earned | $ | 6,264 | $ | 7,682 | ||||
Investment income | 533 | 445 | ||||||
Net realized investment losses | (8 | ) | - | |||||
Other income (loss) | (261 | ) | 55 | |||||
Total Insurance Company Operation | 6,528 | 8,182 | ||||||
Other insurance operations: | ||||||||
Gross commissions and fees | 547 | 607 | ||||||
Finance charges and fees earned | 49 | 18 | ||||||
Other income | 11 | - | ||||||
Total Revenues | 7,135 | 8,807 | ||||||
EXPENSES |
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Losses and loss adjustment expenses | 5,154 | 7,802 | ||||||
Policy acquisition costs | 1,087 | 1,622 | ||||||
Salaries and employee benefits | 1,028 | 1,288 | ||||||
Commissions to agents/brokers | 50 | 40 | ||||||
Other operating expenses | 628 | 867 | ||||||
Total Expenses | 7,947 | 11,619 | ||||||
Loss before taxes | (812 | ) | (2,812 | ) | ||||
Income tax benefit | 141 | 605 | ||||||
Net Loss | $ | (671 | ) | $ | (2,207 | ) | ||
PER SHARE DATA: |
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Basic | ||||||||
Loss Per Share | $ | (0.13 | ) | $ | (0.42 | ) | ||
Weighted Average Shares | 5,307,103 | 5,307,133 | ||||||
Diluted | ||||||||
Loss Per Share | $ | (0.13 | ) | $ | (0.42 | ) | ||
Weighted Average Shares | 5,307,103 | 5,307,133 | ||||||
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) ($ in thousands) |
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Three Months Ended | ||||||||
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2019 | 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net Loss | $ | (671 | ) | $ | (2,207 | ) | ||
Adjustments to reconcile net loss to net cash from operations: | ||||||||
Depreciation and amortization | 135 | 140 | ||||||
Bond amortization, net | 7 | 99 | ||||||
Bad debt expense | 3 | - | ||||||
Net realized investment losses | 8 | - | ||||||
Changes in assets and liabilities: | ||||||||
Net receivables and accrued investment income | (457 | ) | 535 | |||||
Reinsurance recoverable | (3,135 | ) | (3,589 | ) | ||||
Deferred policy acquisition costs | (81 | ) | 224 | |||||
Other assets | 349 | 35 | ||||||
Unpaid losses and loss adjustment expenses | (324 | ) | 4,837 | |||||
Unearned premiums | 561 | (714 | ) | |||||
Advance premium and premium deposits | 109 | 101 | ||||||
Accrued expenses and other liabilities | (78 | ) | (431 | ) | ||||
Income taxes current/deferred | (149 | ) | (607 | ) | ||||
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(3,723 | ) | (1,578 | ) | ||||
Cash flows from investing activities: | ||||||||
Purchase of fixed maturity investments | (3,574 | ) | (8,161 | ) | ||||
Proceeds from maturity of fixed maturity investments | 1,780 | 4,837 | ||||||
Proceeds from sale of call of fixed maturity investments | 483 | - | ||||||
Net decrease in short-term investments | 3,994 | 1,647 | ||||||
Additions to property and equipment | (232 | ) | (37 | ) | ||||
Net Cash Provided (Used) by Investing Activities | 2,451 | (1,714 | ) | |||||
Cash flows from financing activities: | ||||||||
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- | - | ||||||
Net decrease in cash and cash equivalents | (1,272 | ) | (3,292 | ) | ||||
Cash and cash equivalents at beginning of period | 4,918 | 9,367 | ||||||
Cash and Cash Equivalents at End of Period | $ | 3,646 | $ | 6,075 | ||||
Supplemental cash flow information | ||||||||
Cash paid during the period for: | ||||||||
Interest | - | - | ||||||
Income taxes | $ | 9 | - |
View source version on businesswire.com: https://www.businesswire.com/news/home/20190515005959/en/
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