Unico American Corporation Reports Fourth Quarter and Full Year 2016 Financial Results

CALABASAS, Calif.--(BUSINESS WIRE)-- Unico American Corporation (NASDAQ – “UNAM”) (“Unico,” the “Company”), announced today its consolidated financial results for the three and twelve months ended December 31, 2016. For the three months ended December 31, 2016, revenues were $9.0 million and net income was $0.6 million ($0.11 diluted earnings per share) compared with revenues of $8.7 million and net loss of $0.2 million ($0.05 diluted loss per share) for the three months ended December 31, 2015. For the twelve months ended December 31, 2016, revenues were $35.3 million and net loss was $1.4 million ($0.26 diluted loss per share) compared with revenue of $33.3 million and net loss of $1.2 million ($0.22 diluted loss per share) for the twelve months ended December 31, 2015.

Stockholders’ equity was $68.9 million as of December 31, 2016, or $12.98 per common share including unrealized after-tax investment gains of $0.008 million, compared to stockholders’ equity of $70.3 million as of December 31, 2015, or $13.23 per common share including unrealized after-tax investment losses of $0.03 million.

“Our fourth quarter had no surprises; it was better than the third quarter but not good enough to satisfy our growth and profit objectives,” said Cary L. Cheldin, Unico’s President and Chief Executive Officer. “Although the 2016 year’s financial results were disappointing, the work we did in 2016 serves as a solid foundation for our long term future success. In addition to continuing our work with independent strategic advisors, we also engaged investment advisors, IT advisors, marketing firms, and a product development firm. We are working towards improved growth and profitability moving forward.”

Headquartered in Calabasas, 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.

UNICO AMERICAN CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
($ in thousands)
		December 31			December 31
		2016			2015
		(Unaudited)
ASSETS
Investments
Available for sale:
Fixed maturities, at fair value (amortized cost: December 31, 2016 $80,372; December 31, 2015 $82,203)		$	80,384		$	82,161
Short-term investments, at fair value			10,205			15,641
Total Investments			90,589			97,802
Cash and restricted cash			13,496			8,259
Accrued investment income			186			86
Receivables, net			6,008			5,505
Reinsurance recoverable:
Paid losses and loss adjustment expenses			261			751
Unpaid losses and loss adjustment expenses			9,521			9,637
Deferred policy acquisition costs			4,432			4,233
Property and equipment, net			10,283			10,221
Deferred income taxes			1,177			1,334
Other assets			2,269			2,343
Total Assets		$	138,222		$	140,171
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Unpaid losses and loss adjustment expenses		$	47,056		$	49,094
Unearned premiums			19,375			18,079
Advance premium and premium deposits			224			212
Accrued expenses and other liabilities			2,661			2,443
Total Liabilities		$	69,316		$	69,828
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, no par – authorized 10,000,000 shares; issued and outstanding shares 5,307,133 at December 31, 2016, and 5,315,945 at December 31, 2015		$	3,761		$	3,743
Accumulated other comprehensive income (loss)			8			(27	)
Retained earnings			65,137			66,627
Total Stockholders’ Equity		$	68,906		$	70,343
Total Liabilities and Stockholders' Equity		$	138,222		$	140,171

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Unico American Corporation

Michael Budnitsky
Chief Financial Officer

818-591-9800

Source: Unico American Corporation