Unico American Corporation Reports Second Quarter 2017 Financial Results

CALABASAS, Calif.--(BUSINESS WIRE)-- Unico American Corporation (NASDAQ – “UNAM”) (“Unico,” the “Company”), announced today its consolidated financial results for the three and six months ended June 30, 2017. For the three months ended June 30, 2017, revenues were $9.2 million and net loss was $0.9 million ($0.17 diluted loss per share) compared with revenues of $8.7 million and net income of $0.2 million ($0.03 diluted income per share) for the three months ended June 30, 2016. For the six months ended June 30, 2017, revenues were $18.2 million and net loss was $3.0 million ($0.57 diluted loss per share) compared with revenues of $17.3 million and net loss of $0.05 million ($0.01 diluted loss per share) for the six months ended June 30, 2016.

Stockholders’ equity was $65.9 million as of June 30, 2017, or $12.41 per common share including unrealized losses, net of tax, of $0.003 million, compared to stockholders’ equity of $68.9 million as of December 31, 2016, or $12.98 per common share including unrealized investment gains, net of tax, of $0.008 million.

"We continued making significant changes to infrastructure during the second quarter and the costs of these changes, including employee severance and IT consulting, impacted our results,” said Cary L. Cheldin, Unico’s President and Chief Executive Officer. Cheldin continued: “While we were successful in bringing new leadership to our P&C underwriting and marketing operations and we adopted important rate increases later in the quarter, our claims experience from prior accident years was unfavorable. Nonetheless, I am confident that the numerous initiatives that we implemented during the first half of 2017 will make a positive impact upon our future results.”

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,” “appears,” “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 CONDENSED CONSOLIDATED BALANCE SHEETS ($ in thousands)
			June 30				December 31
			2017				2016
			(Unaudited)
ASSETS
Investments
Available for sale:
Fixed maturities, at fair value (amortized cost: $83,878 at
June 30, 2017, and $80,372 at December 31, 2016)			$	83,874			$	80,384
Short-term investments, at fair value				5,093				10,205
Total Investments				88,967				90,589
Cash and restricted cash				13,586				13,496
Accrued investment income				239				186
Receivables, net				6,258				6,008
Reinsurance recoverable:
Paid losses and loss adjustment expenses				81				261
Unpaid losses and loss adjustment expenses				12,492				9,521
Deferred policy acquisition costs				4,423				4,432
Property and equipment, net				10,113				10,283
Deferred income taxes				1,170				1,177
Other assets			3,449					2,269
Total Assets			$	140,778			$	138,222
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Unpaid losses and loss adjustment expenses			$	51,939			$	47,056
Unearned premiums				19,877				19,375
Advance premium and premium deposits				385				224
Accrued expenses and other liabilities				2,708				2,661
Total Liabilities			$	74,909			$	69,316
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock, no par – authorized 10,000,000 shares; issued and
outstanding shares 5,307,133 at June 30, 2017, and
December 31, 2016			$	3,773			$	3,761
Accumulated other comprehensive income (loss)				(3	)			8
Retained earnings				62,099				65,137
Total Stockholders’ Equity			$	65,869			$	68,906
Total Liabilities and Stockholders' Equity			$	140,778			$	138,222

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Unico American Corporation

Michael Budnitsky, 818-591-9800

Chief Financial Officer

Source: Unico American Corporation