SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act of 1934
For the quarterly period from April 1, 1997 to June 30, 1997
Commission File No. 0-3978
UNICO AMERICAN CORPORATION
(Exact name of registrant as specified in its charter)
Nevada 95-2583928
(State or other jurisdiction of (I.R.S. Employee
incorporation or organization) Identification No.)
23251 Mulholland Drive, Woodland Hills, California 91364
(Address of Principal Executive Offices) (Zip Code)
(818) 591-9800
Registrant's telephone number
Securities registered pursuant to Section 12(b) of the Act:
None
(Title of each class)
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, No Par Value
(Title of Class)
No Change
(Former name,former address and former fiscal year,if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
6,153,203
Number of shares of common stock outstanding as of August 8, 1997
1 of 12
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<TABLE>
<CAPTION>
June 30, December 31,
1997 1996
---------- -----------
<S> <C> <C>
ASSETS
Investments
Available for sale:
Fixed maturities, at market value (amortized cost: June 30,
1997 $81,312,638; December 31, 1996 $75,984,966 $82,130,702 $77,109,214
Equity securities at market (cost: June 30, 1997
$999,460; December 31, 1996 $0) 921,950 -
Short-term investments, at cost 4,209,055 4,861,745
---------- ----------
Total Investments 87,261,707 81,970,959
Cash 493,477 82,637
Accrued investment income 1,535,452 1,443,551
Accounts and notes receivable, net 8,129,373 8,898,839
Reinsurance recoverable:
Paid losses and loss adjustment expenses 585,148 452,943
Unpaid losses and loss adjustment expenses 1,861,444 2,629,019
Prepaid reinsurance premiums 1,333,153 1,647,806
Deferred policy acquisition costs 5,092,867 4,953,085
Property and equipment (net of accumulated depreciation) 222,337 229,972
Deferred income taxes 1,659,189 1,503,655
Other assets 614,726 638,856
----------- -----------
Total Assets $108,788,873 $104,451,322
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Unpaid losses and loss adjustment expenses $40,816,390 $39,740,865
Unearned premiums 22,495,105 22,120,241
Advance premiums 1,340,098 1,358,671
Funds held as security for performance 751,652 730,426
Accrued expenses and other liabilities 2,030,236 2,395,699
Income taxes payable 103,113 -
Note payable-bank 500,001 750,001
Dividends payable 430,724 -
---------- ----------
Total Liabilities $68,467,319 $67,095,903
---------- ----------
STOCKHOLDERS' EQUITY
Common stock, no par - authorized 10,000,000 shares issued
and outstanding shares 6,153,203 at June 30, 1997
and 6,028,781 at December 31, 1996 2,836,781 2,836,422
Net unrealized investment gains 488,766 742,004
Retained earnings 36,996,007 33,776,993
----------- -----------
Total Stockholders' Equity 40,321,554 37,355,419
----------- -----------
Total Liabilities and Stockholders' Equity $108,788,873 $104,451,322
=========== ===========
</TABLE>
See notes to consolidated financial statements.
2 of 12
<PAGE>
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1997 1996 1997 1996
---------- --------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUES
Insurance Company Revenues
Premium earned $10,689,663 $9,382,132 $20,786,826 $18,676,324
Premium ceded 1,598,378 1,015,932 2,554,001 2,096,297
---------- --------- ---------- ----------
Net premium earned 9,091,285 8,366,200 18,232,825 16,580,027
Investment income 1,190,632 978,179 2,345,148 1,936,135
Net realized investment gains - 191,174 919 210,716
Other income 45 60 160 90
---------- --------- ---------- ----------
Total Insurance Company Revenues 10,281,962 9,535,613 20,579,052 18,726,968
Other Revenues from Insurance Operations
Gross commissions and fees 1,478,723 1,473,105 2,897,459 2,941,445
Investment income 34,759 33,316 69,713 75,846
Finance charges and late fees earned 301,857 293,172 591,925 586,797
Other income 3,553 3,491 6,354 3,256
---------- ---------- ---------- ----------
Total Revenues 12,100,854 11,338,697 24,144,503 22,334,312
---------- ---------- ---------- ----------
EXPENSES
Losses and loss adjustment expenses 4,921,938 4,715,902 9,896,411 9,115,263
Policy acquisition costs 2,599,119 2,249,451 5,239,049 4,464,580
Salaries and employee benefits 935,663 920,857 1,860,076 1,833,538
Commissions to agents/brokers 294,485 331,490 569,461 638,074
Other operating expenses 619,809 726,901 1,353,436 1,491,671
--------- --------- ---------- ----------
Total Expenses 9,371,014 8,944,601 18,918,433 17,543,126
--------- --------- ---------- ----------
Income Before Taxes 2,729,840 2,394,096 5,226,070 4,791,186
Income Tax Provision 845,256 720,002 1,576,332 1,442,275
------- ------- --------- ---------
Net Income $1,884,584 $1,674,094 3,649,738 3,348,911
========= =========
Retained earnings January 1, 33,776,993 27,345,753
Dividend declared to stockholders (430,724) (418,087)
---------- ----------
Retained Earnings June 30, $36,996,007 $30,276,577
========== ==========
PER SHARE DATA
Weighted Average Shares Outstanding 6,328,350 6,224,843 6,329,570 6,217,738
Earnings Per Share $0.30 $0.27 $0.58 $0.54
</TABLE>
See notes to consolidated financial statements
3 of 12
<PAGE>
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
FOR THE SIX MONTHS ENDED JUNE 30,
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C>
Net Income $3,649,738 $3,348,911
Adjustments to reconcile net income to net cash from operations
Depreciation and amortization 41,343 81,614
Bond amortization, net 243,559 306,070
Net realized (gain) on sale of securities (919) (210,716)
Changes in assets and liabilities
Premium, notes and investment income receivable 677,565 317,876
Reinsurance recoverable 635,370 949,451
Prepaid reinsurance premiums 314,653 47,486
Deferred policy acquisitions costs (139,782) (210,547)
Other assets 24,130 (532,375)
Reserve for unpaid losses and loss adjustment expenses 1,075,525 1,780,164
Unearned premium reserve 374,864 774,084
Funds held as security and advanced premiums 2,653 (65,720)
Accrued expenses and other liabilities (365,461) (322,529)
Income taxes current/deferred 78,035 546,821
--------- ---------
Net Cash Provided from Operations 6,611,273 6,810,590
--------- ---------
Investing Activities
Purchase of fixed maturity investments (8,688,530) (8,920,105)
Proceeds from maturity of fixed maturity investments 3,098,000 3,713,514
Purchase of equity securities - cost (1,019,500) (2,882,723)
Proceeds from sale of equity securities 20,959 2,767,938
Net decrease in short-term investments 671,987 311,685
Additions to property and equipment (33,708) (40,821)
--------- ---------
Net Cash (Used) by Financing Activities (5,950,792) (5,050,512)
--------- ---------
Financing Activities
Proceeds from issuance of common stock 359 525
Repayment of note payable - bank (250,000) (1,395,000)
------- ---------
Net Cash (Used) by Financing Activities (249,641) (1,394,475)
------- ---------
Net increase in cash 410,840 365,603
Cash at beginning of period 82,637 951
------- -------
Cash at End of Period $493,477 $366,554
======= =======
Supplemental cash flow information
Cash paid during the period for:
Interest $21,697 $83,416
Income taxes $1,380,000 $905,000
</TABLE>
See notes to consolidated financial statements.
4 of 12
<PAGE>
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
- ---------------------------------------------------
Nature of Business
- ------------------
Unico American Corporation is an insurance holding company. Unico American and
its subsidiaries, all of which are wholly owned (the "Company"), provide,
primarily in California, property, casualty, health and life insurance, and
related premium financing.
Principles of Consolidation
- ---------------------------
The consolidated financial statements include the accounts of Unico American
Corporation and its subsidiaries. All significant inter-company accounts and
transactions have been eliminated in consolidation.
Basis of Presentation
- ---------------------
The consolidated financial statements have been prepared in conformity with
generally accepted accounting principles (GAAP) which differ in some respects
from those followed in reports to insurance regulatory authorities.
Use of Estimates
- ----------------
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosure of certain assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. While every effort is made to ensure the
integrity of such estimates, actual results could differ from those estimates.
Investments
- -----------
Although all of the Company's fixed maturity investments are classified as
available-for-sale and are stated at market value, the Company's investment
guidelines place primary emphasis on buying and holding high-quality
investments. Investments in equity securities are carried at market value. The
unrealized gains or losses from fixed maturities and equity securities are
reported as a separate component of stockholders' equity, net of any deferred
tax effect. Short-term investments are carried at cost which approximates market
value. When a decline in the value of a fixed maturity or equity security is
considered other than temporary, a loss is recognized in the consolidated
statement of operations. Realized gains and losses are included in the
consolidated statements of operations based upon the specific identification
method.
Property and Equipment
- ----------------------
Property and equipment are stated at cost less accumulated depreciation.
Depreciation is computed using accelerated depreciation methods over the
estimated useful lives of the related assets.
Income Taxes
- ------------
The provision for income taxes is computed on the basis of income as reported
for financial reporting purposes under generally accepted accounting principles.
Deferred income taxes arise principally from certain assets and liabilities
which are recognized for income tax purposes in different periods than for
financial statements.
5 of 12
<PAGE>
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
NOTE 2 - RESTRICTED FUNDS
- -------------------------
As required by law, the Company segregates from its operating accounts premiums
collected from insureds into separate trust accounts. As of a June 30, 1997,
these trust funds represent $2,356,409 of the Company's cash and short-term
investments. In addition, $2,725,000 of the Company's investments represent
statutory deposits of Crusader which are assigned to and held by the California
State Treasurer and the Insurance Commissioner of the State of Nevada. These
deposits are required for Crusader to write certain lines of business in
California and for its admission in states other than California.
NOTE 3 - FUNDS HELD AS SECURITY
- -------------------------------
Funds held as security for performance represent funds received in order to
guarantee the contractual obligations entered into with customers.
NOTE 4 - STATUTORY CAPITAL AND SURPLUS
- --------------------------------------
As of June 30, 1997, Crusader's statutory capital and surplus were deemed
sufficient to support its present insurance premium writings.
NOTE 5 - INCENTIVE STOCK OPTION PLAN
- ------------------------------------
The Company's 1985 stock option plan provided for the grant of "incentive stock
options" to officers and key employees. The plan covers an aggregate of
1,500,000 shares of the Company's common stock (subject to adjustment in the
case of stock splits, reverse stock splits, stock dividends, etc.). As of June
30, 1997, 374,313 options were outstanding of which 275,411 were currently
exercisable. During the quarter ended June 30, 1997, options on 50,286 of common
stock were exercised. There are no additional options available for future grant
under the 1985 plan.
NOTE 6 - CLAIMS AND LITIGATION
- ------------------------------
The Company, by virtue of the nature of the business conducted by it, becomes
involved in numerous legal proceedings in which it may be named as either
plaintiff or defendant. The Company is required to resort to legal proceedings
from time-to-time in order to enforce collection of premiums and other
commissions or fees for the services rendered to customers or to their agents.
These routine items of litigation do not materially affect the Company and are
handled on a routine basis by the Company through its general counsel.
Likewise, the Company is sometimes named as a cross-defendant in litigation
which is principally directed against that insurer who has issued a policy of
insurance directly or indirectly through the Company. Incidental actions are
sometimes brought by customers or other agents which relate to disputes
concerning the issuance or non-issuance of individual policies. These items are
also handled on a routine basis by the Company's general counsel, and they do
not materially affect the operations of the Company. Management is confident
that the ultimate outcome of pending litigation should not have an adverse
effect on the Company's consolidated operation or financial position.
6 of 12
<PAGE>
UNICO AMERICAN CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 1997
NOTE 7 - LEASE COMMITMENTS AND CONTINGENCIES
- --------------------------------------------
The Company presently occupies a 46,000 square foot building located at 23251
Mulholland Drive, Woodland Hills, California, under a master lease expiring
March 31, 2007. The lease provides for an annual gross rental of $1,025,952.
Erwin Cheldin, the Company's president, chairman and principal stockholder, is
the owner of the building. The terms of the lease were at least as favorable to
the Company as could have been obtained from unaffiliated third parties. The
Company utilizes for its own operation 100% of the space it leases.
NOTE 8
- ------
In the opinion of the Company, the accompanying unaudited consolidated financial
statements contain all necessary adjustments, which consist of normal recurring
adjustments, to present fairly the results of operations for the three and six
months ended June 30, 1997, and June 30, 1996.
NOTE 9
- ------
The results of operations for the three and six months ended June 30, 1997,
should not be considered as necessarily indicative of the results to be expected
for the full year.
7 of 12
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- --------------------------------------------------------------------
AND RESULTS OF OPERATIONS
-------------------------
(a) Liquidity and Capital Resources:
- -------------------------------------
Due to the nature of the Company's business (insurance and insurance services)
and whereas Company growth does not normally require material reinvestment of
profits into property or equipment, the cash flow generated from operations
usually results in improved liquidity for the Company.
Crusader's losses and loss adjustment expense payments are the most significant
cash flow requirement of the Company. These payments are continually monitored
and projected to ensure that the Company has the liquidity to cover these
payments without the need to liquidate its investments. As of June 30, 1997, the
Company had cash and cash investments of $87,014,630 (at amortized cost) of
which $83,878,368 (96%) were investments of Crusader.
As of the quarter ended June 30, 1997, the Company had invested $81,312,638 (at
amortized cost) or 94% of its invested assets in fixed maturity obligations.
Although all of the Company's fixed maturity investments are classified as
available-for-sale, the Company's investment guidelines place primary emphasis
on buying and holding high-quality investments. The balance of the Company's
investments were in equity securities of regional utility companies and
high-quality, short-term investments that include a U.S. treasury bill, bank
money market accounts, certificates of deposit, commercial paper and a
short-term treasury money market fund.
The Company's investments in fixed maturity obligations of $81,312,638 (at
amortized cost) include $39,317,305 (48%) of tax exempt, pre-refunded state and
municipal bonds, $19,462,644 (24%) of U.S. treasury securities, $22,532,689
(28%) in high-quality industrial bonds and certificates of deposit. The tax
exempt interest income earned for the three and six months ended June 30, 1997,
was $449,546 and $904,162, respectively. The tax exempt interest income earned
for the three and six months ended June 30, 1996, was $443,257 and $853,745,
respectively.
The Company's investment policy limits investments in any one company to no more
than $1,000,000. This limitation excludes bond premiums paid in excess of par
value and U.S. Government or U.S. Government guaranteed issues. The Company's
fixed maturity obligations have maturities no greater than eight years. All of
the Company's investments are high-grade investment quality.
On March 4, 1997, the Board of Directors declared a $0.07 (seven cents) per
common share cash dividend payable on August 15, 1997, to shareholders of record
at the close of business on August 1, 1997.
The Company's premium finance subsidiary, American Acceptance Corporation
("AAC"), has a bank credit line of $4,000,000 with a variable rate of interest
based on the London Inter Bank Offered Rate ("LIBOR"). This credit line is only
used to provide AAC with the additional funds it requires to finance insurance
premiums. AAC has been paying down its bank note payable from its internal cash
flow as well as from intercompany loans from its parent, Unico. The bank note
payable has been reduced from $750,001 as of December 31, 1996 to $500,001 as of
June 30, 1997.
8 of 12
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- --------------------------------------------------------------------
AND RESULTS OF OPERATIONS (continued)
-------------------------------------
(a) Liquidity and Capital Resources (continued)
- ------------------------------------------------
Although material capital expenditures may also be funded through borrowings,
the Company believes that cash generated from operations, plus cash and
short-term investments at the quarter end, net of trust restriction of
$2,356,409 and statutory deposits of $2,725,000, should be sufficient to meet
its operating requirements during the next twelve months without the necessity
of borrowing additional funds. Crusader is restricted in the amount of dividends
it may pay to its parent, Unico, without prior regulatory approval by the
California Department of Insurance. Crusader anticipates that it will not be
required to obtain prior regulatory approval for any dividend which it may pay
to Unico in the next twelve months.
There are no material commitments for capital expenditures as of the date of
this report.
(b) Results of Operations:
- ---------------------------
All comparisons made in this discussion are comparing the three and six months
ended June 30, 1997, to the three and six months ended June 30, 1996, unless
otherwise indicated.
The Company's net income increased $210,490 (13%) to $1,884,584 for the three
months and $300,827 (9%) to $3,649,738 for the six months ended June 30, 1997,
compared to net income of $1,674,094 for the three months and $3,348,911 for the
six months ended June 30, 1996. Total revenues increased $762,157 (7%) for the
three months and $1,810,191 (8%) for the six months ended June 30, 1997, when
compared to the three and six months ended June 30, 1996.
Premium earned before reinsurance increased $1,307,531 (14%) for the three
months and $2,110,502 (11%) for the six months ending June 30, 1997. Crusader's
primary line of business is its Commercial Package business representing 96% of
all premiums earned in both the three months and the six months ended June 30,
1997. The Commercial Package business continued to grow with earned premium
increasing $1,044,960 (11%) to $10,243,319 for the three months and $1,601,706
(9%) to $19,899,996 for the six months ended June 30, 1997, as compared to the
corresponding period of the prior year. Crusader's other lines of business,
which include Commercial Property and Other Liability increased $262,571 (143%)
for the three months and $508,796 (135%) for the six months ended June 30, 1997
as compared to the corresponding period of the prior year. The growth in earned
premium in California represented 69% of the total increase in earned premium
for the three months and 58% for the six months ended June 30, 1997.
Due to additional reinsurance cost, ceded premium increased from 11% of premium
earned to 15% of premium earned for the three months and increased from 11% of
premium earned to 12% of premium earned for the six months ending June 30, 1997.
Although reinsurance cost has increased as a percentage of earned premium for
the three and six months ended June 30, 1997, the percentage of premium ceded to
premium earned is still lower than the 16% incurred in the fiscal year ended
March 31, 1996.
Losses and loss adjustment expenses were 54% of net premium earned for both the
three and six months ended June 30, 1997, compared to 56% of net premium earned
for the three months and 55% of net premium earned for the six months ended June
30, 1996.
9 of 12
<PAGE>
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
- --------------------------------------------------------------------
AND RESULTS OF OPERATIONS (continued)
-------------------------------------
(b) Results of Operations (continued)
- --------------------------------------
Policy acquisition costs consist of commissions, premium taxes, inspection fees,
and certain other underwriting costs which are directly or indirectly related to
the production of Crusader insurance policies. These costs include both Crusader
expenses and allocated expenses of other Unico subsidiaries. Crusader's
reinsurer pays Crusader a ceding commission which is primarily a reimbursement
of the acquisition cost related to the ceded premium.
Policy acquisition costs, net of ceding commission, are deferred and amortized
as the related premiums are earned. These costs were 29% of net premium earned
for the three and six months ended June 30, 1997, compared to 27% of net premium
earned for the three and six months ended June 30, 1996.
Investment income, excluding realized investment gains, increased $213,896 (21%)
to $1,225,391 for the three months and increased $402,880 (20%) to $2,414,861
for the six months ended June 30, 1997, compared to the three and six months
ended June 30, 1996. This increase was primarily due to a 15% increase (at
amortized cost) in invested assets.
Commissions to agents/brokers decreased $37,005 (11%) for the three months and
$68,613 (11%) for the six months ended June 30, 1997, compared to the three and
six months ended June 30, 1996. The decrease was primarily due to decreased
sales in the health, life and automobile programs.
Other operating expenses decreased $107,092 (15%) for the three months and
$138,235 (9%) for the six months ended June 30, 1997, compared to the three and
six months ended June 30, 1996. The decrease in expenses for the three months
was primarily due to the cost of the Company's annual certified audits being
incurred in different periods due to the change in the Company's fiscal year
end. The cost of the certified audit for the fiscal year ended March 31, 1996,
was incurred in the quarter ended June 30, 1996, while the cost of the certified
audit for the fiscal year ended December 31, 1996, was incurred in the quarter
ended March 31, 1997. The decrease in expenses for the six months was primarily
due to a $61,719 decrease in interest expense due to decreased borrowings.
There were no significant changes in other revenue or expense items.
The effect of inflation on net income of the Company during the three and six
months ended June 30, 1997, and 1996 was not significant.
ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
- -------------------------------------------------------------------
Not Applicable
10 of 12
<PAGE>
PART II - OTHER INFORMATION
ITEM 2 - CHANGES IN SECURITIES
- ------------------------------
(c) During the quarter ended June 30, 1997, the Company issued an aggregate of
50,286 shares of its common stock upon exercise of employee stock options
granted under the Unico American Corporation Employee Incentive Stock
Option Plan. These shares were issued to an aggregate of two employees of
the Company. Of these shares, 6,344 shares were issued in exchange for
2,248 shares of common stock and $5.00 in cash and 43,942 shares were
issued in exchange for 14,916 shares of common stock and $3.31 in cash.
These shares were acquired for investment and without a view to the public
distribution or resale thereof, and the issuance thereof was exempt from
the registration requirements under the Securities Act of 1933, as amended,
under Section 4 (2) thereof as transactions not involving a public
offering.
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF STOCKHOLDERS
- --------------------------------------------------------
(a) On June 5, 1997, the Company held its Annual Meeting of Stockholders.
(b) Proxies for the meeting were solicited pursuant to Regulation 14 under the
Securities Exchange Act of 1934; there was no solicitation in opposition to
nominees of the Board of Directors as listed in the Proxy Statement and all
such nominees were elected.
(c) At the meeting, the following persons were elected by the vote indicated
(there were no abstentions or broker non-votes) as directors to serve until
the next annual meeting of shareholders and until their successors are duly
elected and qualified:
Against or
Name For Withheld
---- --------- ----------
Erwin Cheldin 5,427,966 1,678
Lester A. Aaron 5,427,966 1,678
Cary L. Cheldin 5,427,966 1,678
George C. Gilpatrick 5,427,966 1,678
Roger H. Platten 5,427,966 1,678
David A. Lewis 5,427,966 1,678
Bernard R. Gans 5,427,966 1,678
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
- ------------------------------------------
(a) Exhibits:
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K:
None
11 of 12
<PAGE>
SIGNATURES
----------
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned there unto authorized.
UNICO AMERICAN CORPORATION
Date: August 11, 1997 By: /s/ Erwin Cheldin
---------------------
Erwin Cheldin
Chairman of the Board, President and Chief
Executive Officer,(Principal Executive Officer)
Date: August 11, 1997 By: /s/ Lester A. Aaron
---------------------
Lester A. Aaron
Treasurer, Chief Financial Officer, (Principal
Accounting and Principal Financial Officer)
12 of 12
<TABLE> <S> <C>
<ARTICLE> 7
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> JUN-30-1997
<DEBT-HELD-FOR-SALE> 86,339,757
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 921,950
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 87,261,707
<CASH> 493,477
<RECOVER-REINSURE> 585,148
<DEFERRED-ACQUISITION> 5,092,867
<TOTAL-ASSETS> 108,788,873
<POLICY-LOSSES> 40,816,390
<UNEARNED-PREMIUMS> 22,495,105
<POLICY-OTHER> 2,091,750
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 500,001
0
0
<COMMON> 2,836,781
<OTHER-SE> 37,484,773
<TOTAL-LIABILITY-AND-EQUITY> 108,788,873
18,232,825
<INVESTMENT-INCOME> 2,414,861
<INVESTMENT-GAINS> 919
<OTHER-INCOME> 3,495,898
<BENEFITS> 9,896,411
<UNDERWRITING-AMORTIZATION> 5,239,049
<UNDERWRITING-OTHER> 3,782,973
<INCOME-PRETAX> 5,226,070
<INCOME-TAX> 1,576,332
<INCOME-CONTINUING> 3,649,738
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,649,738
<EPS-PRIMARY> 0.58
<EPS-DILUTED> 0.58
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
