Unico American Corporation (NASDAQ:UNAM), announced today its consolidated financial results for the three and nine months ended September 30, 2016. For the three months ended September 30, 2016, revenues were $9.0 million and net loss was $2.0 million ($0.37 diluted loss per share) compared with revenues of $8.5 million and net loss of $0.7 million ($0.12 diluted loss per share) for the three months ended September 30, 2015. For the nine months ended September 30, 2016, revenues were $26.3 million and net loss was $2.0 million ($0.38 diluted loss per share) compared with revenues of $24.6 million and net loss of $0.9 million ($0.17 diluted loss per share) for the nine months ended September 30, 2015.
Stockholders’ equity was $68.3 million as of September 30, 2016, or $12.87 per common share including unrealized gains, net of tax, of $0.03 million, compared to stockholders’ equity of $70.3 million as of December 31, 2015, or $13.23 per common share including unrealized investment losses, net of tax, of $0.03 million.
“We are disappointed with our third quarter results,” said Cary L. Cheldin, Unico’s President and Chief Executive Officer. “Nonetheless, Unico’s operations have always been managed conservatively and we are optimistic about the company’s future. Our management team remains diligent and committed to delivering better results.”
“Although most of the third quarter loss can be attributed to statistical aberration, it gave us new information specifically related to first-party property claims and to certain liability claims. Our management team reacts immediately whenever presented with new information, as we did in this case. Of the amount of losses and loss adjustment expenses that was higher than expected, about 49% came from prior accident year development in only one particular sector of liability claims, a sector where we are significantly raising rates and changing rules; and, approximately 37% came from current year first-party property claims, which management considers being a statistical aberration because our overall year-to-date loss ratio from that sector, including those losses, remains good.”
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.
