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UNICO AMERICAN REPORTS THIRD QUARTER EARNINGS

 WOODLAND HILLS, Calif., Feb. 11 /PRNewswire/ -- Unico American Corporation (NASDAQ: UNAM) today reported unaudited financial results for its third fiscal quarter and nine months ended Dec. 31, 1992.
 Revenues for the latest quarter were $6,647,150, as compared to revenues of $7,326,822 for the quarter ended Dec. 31, 1991. Net income was $732,882, or 13 cents per share, for the recent quarter, compared with net income of $1,100,130, or 20 cents per share, for the quarter ended Dec. 31, 1991. The decrease in net income for the quarter was primarily due to a lower level of investment income, a decline in commission and fee revenue from its daily automobile rental and health and life programs, and the cost of additional catastrophe reinsurance which the company purchased to help better protect it from possible further events such as the Los Angeles riot. As was previously disclosed, the company earlier in the fiscal year doubled to $10 million its catastrophe reinsurance coverage, which required higher reinsurance costs for the foreseeable future.
 Erwin Cheldin, chairman and chief executive officer, stated, "We have made good progress this quarter. Earnings per share more than doubled to 13 cents per share as compared to 6 cents per share in the second fiscal quarter ended Sept. 30, 1992. We are confident that our earnings turnaround is on track."
 For the nine months ended Dec. 31, 1992, revenues totaled $19,620,868, a six percent decrease from revenues of $20,881,180 for the comparable period last year. Due primarily to the previously reported Los Angeles riot claims, the company reported a net loss for the recent nine-month period of $(7,494,895), or $(1.30) per share, compared with net income for the prior fiscal period of $3,113,655, or 56 cents per share.
 Crusader Insurance, Unico's property and casualty insurance subsidiary, increased its statutory capital and surplus to $16,042,000 at the end of Dec. 31, 1992, versus $15,212,000 at the end of the prior quarter. Crusader had a statutory combined ratio of 90.1 percent for the fiscal third quarter ended Dec. 31, 1992, down from 109 percent in the second quarter of the current fiscal year.
 Cheldin commented, "We are on target with our goal of expanding our insurance marketing efforts through geographic expansion. Crusader commenced operations in the state of Washington in December, 1992. We continue to see increased demand for our insurance products and are optimistic with respect to the outlook for further growth in premiums and earnings during the remainder of the fiscal year."
 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 WHOLLY OWNED SUBSIDIARIES
 Condensed Consolidated Statement of Operations
 (Dollars in thousands, except per share -- Unaudited)
 Periods Three Months Nine Months
 ended 12/31/92 12/30/91 12/31/92 12/31/91
 Insurance Company:
 Gross premiums written $5,580 $5,629 $17,092 $16,284
 Net premiums written 3,896 3,981 12,246 12,279
 Revenues
 Insurance Company Revenues
 Premium earned 5,598 5,292 16,335 15,009
 Net premium earned 3,967 4,238 11,435 11,710
 Investment income 802 920 2,515 2,720
 Other income 388 336 979 902
 Total insurance company
 revenues 5,157 5,494 14,929 15,332
 Non-insurance company
 revenues 1,490 1,833 4,692 5,549
 Total revenues 6,647 7,327 19,621 20,881
 Costs and Expenses
 Loss and loss adjustment
 expenses 1,953 2,202 20,568 6,272
 Policy acquisition costs 1,532 1,438 4,539 4,084
 Salaries and employee
 benefits 1,097 1,172 3,167 3,213
 Commissions to agents/
 brokers 265 330 818 934
 Other operating expenses 791 574 2,182 1,783
 Total costs and expenses 5,638 5,716 31,274 16,286
 Income (loss) before taxes 1,009 1,611 (11,653) 4,595
 Income tax provision
 (benefit) 276 511 (4,158) 1,481
 Net income (loss) 733 1,100 (7,495) 3,114
 Earnings (loss) per share $0.13 $0.20 $(1.30) $0.56
 Weighted average shares
 outstanding 5,838,833 5,575,488 5,754,020 5,572,507
 Total stockholders' equity -- -- $18,516 $23,563
 Book value per share -- -- $3.19 $4.29
 Insurance Company Statutory
 Operating Ratios (In Pcts.)
 Loss ratio 51.2 55.0 182.2 51.2
 Expense ratio 38.9 32.4 38.5 35.4
 Combined ratio 90.1 87.4 220.7 86.6
 -0- 2/11/93
 /CONTACT: Erwin Cheldin, Chairman and CEO of Unico American, 818- 591-9800, or Michele Katz of Joel Herskovits of Morgen-Walke Associates, 212-986-5900, for Unico American/
 (UNAM)


CO: Unico American Corporation ST: California IN: INS SU: ERN

KD-SM -- NY016 -- 5598 02/11/93 10:24 EST
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Date:Feb 11, 1993
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