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UNICO AMERICAN REPORTS SECOND QUARTER EARNINGS

 UNICO AMERICAN REPORTS SECOND QUARTER EARNINGS
 WOODLAND HILLS, Calif., Nov. 13 /PRNewswire/ -- Unico American


Corporation (NASDAQ: UNAM) today reported unaudited financial results for its second fiscal quarter and six months ended Sept. 30, 1992.
 Revenues for the latest quarter were $6,459,555, or 5 percent less than revenues of $6,786,974 for the quarter ended Sept. 30, 1991. Net income was $335,064, or $0.06 per share, for the recent quarter, compared with net income of $860,616, or $0.15 per share, for the quarter ended Sept. 30, 1991. The decrease in net income was primarily due to development of claims related to the Los Angeles riot which occurred in April 1992 and the cost of additional catastrophe reinsurance which the company purchased to help better protect it from such future events.
 The company said results for the second quarter were below its expectations because of somewhat higher than anticipated claims due to the Los Angeles riot. However, management noted that the riot claims incurred to date were only approximately 4 percent above its first quarter estimate of $20.6 million, and said it does not anticipate further material development of riot claims. Also during the second quarter, the company doubled its catastrophe reinsurance coverage to $10 million, which required higher reinsurance costs in the current quarter and for the foreseeable future.
 For the six months of the current fiscal year, revenues totalled $12,973,718, a 4 percent decrease from revenues of $13,554,358 for the comparable period last year. Due to the previously reported Los Angeles riot claims and the additional catastrophe reinsurance costs discussed above, the company reported a net loss for the recent six-month period of $(8,227,777), or $(1.44) per share, compared with net income for the prior fiscal period of $2,013,525, or $0.36 per share.
 Gross premiums earned from insurance operations in the recent fiscal second quarter were $5,413,960, an increase of 8 percent over last year. Net premium earned (after reinsurance) increased approximately 1 percent due to the additional reinsurance costs discussed above.
 Crusader Insurance, Unico's property and casualty insurance subsidiary, increased its statutory capital and surplus to $15,212,000 at the end of Sept. 30, 1992, versus $15,069,000 at the end of the prior quarter. Crusader had a statutory combined ratio of 109.0 percent for the fiscal second quarter ended Sept. 30, 1992, compared with 98.3 percent in the comparable fiscal quarter a year ago.
 Commenting on the future outlook, Erwin Cheldin, chairman and chief executive officer, said, "We are optimistic about our potential for premium growth and increased profitability over the next 12 months. Demand for our existing insurance products is strong, and we have resumed the development of new products and expansion into new markets, which were side-tracked following the Los Angeles riot. We also are in a stronger position with regard to reinsurance for future catastrophic events."
 Unico American Corporation is an insurance holding company that provides property, casualty, health and life insurance and related premium financing through its wholly owned subsidiaries.
 UNICO AMERICAN CORPORATION AND SUBSIDIARIES
 Condensed Consolidated Statement of Operations
 (Unaudited -- Dollars in thousands, except per share)
 Periods Ended Three Months Six Months
 Sept. 30 1992 1991 1992 1991
 Gross premiums written $5,728 $5,218 $11,512 $10,655
 Net premiums written 3,939 4,097 8,350 8,298
 Revenues
 Insurance company revenues
 Premium earned 5,414 5,007 10,738 9,716
 Net premium earned 3,770 3,715 7,468 7,472
 Investment income 848 916 1,713 1,800
 Other income 257 332 591 566
 Total insurance company revenue 4,875 4,963 9,772 9,838
 Non-insurance company revenues 1,585 1,824 3,202 3,716
 Total revenues 6,460 6,787 12,974 13,554
 Costs & expenses
 Loss & loss adjustment exps. 2,561 2,268 18,615 4,070
 Policy acquisition costs 1,520 1,364 3,008 2,646
 Salaries & employee benefits 1,055 1,035 2,070 2,041
 Commissions to agents/brokers 283 311 553 604
 Other operating expenses 651 532 1,391 1,209
 Total costs & expenses 6,070 5,510 25,637 10,570
 Income (loss) before taxes 390 1,277 (12,663) 2,984
 Income tax provision (benefit) 55 416 (4,435) 970
 Net income (loss) 335 861 (8,228) 2,014
 Earnings (loss) per share $0.06 $0.15 $(1.44) $0.36
 Weighted average shares
 outstanding 5,842,925 5,598,622 5,711,361 5,571,017
 Total stockholders' equity 17,804,150 22,415,929
 Book value per share 3.07 4.09
 Insurance Company Statutory Operating Ratios
 Loss ratio (percent) 70.5 64.1 251.7 54.6
 Expense ratio (percent) 38.5 34.2 38.3 34.8
 Combined ratio (percent) 109.0 98.3 290.0 89.4
 -0- 11/13/92
 /CONTACT: Erwin Cheldin, chairman and chief executive officer of Unico American, 818-591-9800, or Michele Katz or Edward Nebb of Morgen- Walke Associates, 212-986-5900, for Unico American/
 (UNAM) CO: Unico American Corporation ST: California IN: INS SU: ERN


LR-PS -- NY001 -- 0579 11/13/92 09:53 EST
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Date:Nov 13, 1992
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