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Unico American Corporation Reports First Quarter 2010 Financial Results

^{Published on 2010-05-13 12:10:27 - Market Wire}
 

WOODLAND HILLS, Calif.--([ BUSINESS WIRE ])--Unico American Corporation (NASDAQ: UNAM) (aUnico,a the aCompanya), announced today its consolidated financial results for the three months ended March 31, 2010. For the three months ended March 31, 2010, revenues were $9.9 million and net income was $0.5 million ($0.09 diluted income per share) compared with revenues of $10.6 million and net income of $1.0 million ($0.18 diluted income per share) for the three months ended March31, 2009.

As of March 31, 2010, the Company had cash and investments (at amortized cost) of $137.0 million. Of that amount, $121.2 million, or 88%, were in long-term fixed maturity investments, and 78% of those long-term fixed maturity investments were U.S. treasury securities.

Stockholdersa™ equity was $73.7 million as of March 31, 2010, or $13.89 per common share including unrealized after-tax investment gains of $2.6 million, compared to Stockholdersa™ equity of $73.3 million as of December 31, 2009, or $13.82 per common share including unrealized after-tax investment gains of $2.7 million.

The marketplace continued to soften during the first quarter of 2010, causing further decline in the Companya™s sales. Nonetheless, the Company remains optimistic and anticipates that its work to expand the Companya™s products and services will ultimately prove successful. As the Company continues that work, it is also reducing expenses and deploying new procedures in order to maintain maximum efficiency.

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 Crusadera™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 aanticipate,a abelieve,a aexpect,a aintend,a amay,a ashould,a and awould,a 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 Companya™s ability to introduce new profitable products.