UNAM Unico American Corp

Unico American Corporation (NASDAQ: UNAM) (“Unico,” the “Company”), announced today its consolidated financial results for the three and twelve months ended December 31, 2018. For the three months ended December 31, 2018, revenues were $8.0 million and net loss was $0.5 million ($0.09 diluted loss per share) compared with revenues of $9.3 million and net loss of $2.8 million ($0.52 diluted loss per share) for the three months ended December 31, 2017. For the twelve months ended December 31, 2018, revenues were $33.6 million and net loss was $3.2 million ($0.60 diluted loss per share) compared with revenue of $36.8 million and net loss of $8.7 million ($1.64 diluted loss per share) for the twelve months ended December 31, 2017.

Stockholders’ equity was $55.9 million as of December 31, 2018, or $10.54 per common share including net unrealized after-tax investment losses of $1.1 million, compared to stockholders’ equity of $59.9 million as of December 31, 2017, or $11.30 per common share including net unrealized after-tax investment losses of $0.2 million.

About Unico

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.

Forward-Looking Statements

This press release may contain “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended (or “the Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (or “the Exchange Act”). In this context, forward-looking statements are not historical facts and include statements about the Company plans, objectives, beliefs and expectations. Forward-looking statements include statements preceded by, followed by, or that include the words “believes,” “expects,” “anticipates,” “seeks,” “plans,” “estimates,” “intends,” “projects,” “targets,” “should,” “could,” “may,” “will,” “can,” “can have,” “likely,” the negatives thereof or similar words and expressions.

Forward-looking statements are only predictions and are not guarantees of future performance. These statements are based on current expectations and assumptions involving judgments about, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company’s control. These predictions are also affected by known and unknown risks, uncertainties and other factors that may cause the Company’s actual results to be materially different from those expressed or implied by any forward-looking statement. Many of these factors are beyond the Company’s ability to control or predict. The Company’s actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors. Such factors include, but are not limited to, failure to meet minimum capital and surplus requirements; vulnerability to significant catastrophic property loss; a change in accounting standards issued by the Financial Accounting Standards Board; ability to adjust claims accurately; insufficiency of loss and loss adjustment expense reserves to cover future losses; changes in federal or state tax laws; ability to realize deferred tax assets; ability to accurately underwrite risks and charge adequate premium; ability to obtain reinsurance or collect from reinsurers and or losses in excess of reinsurance limits; extensive regulation and legislative changes; reliance on subsidiaries to satisfy obligations; downgrade in financial strength rating by A.M. Best; changes in interest rates; investments subject to credit, prepayment and other risks; geographic concentration; reliance on independent insurance agents and brokers; insufficient reserve for doubtful accounts; litigation; enforceability of exclusions and limitations in policies; reliance on information technology systems; single operating location; ability to prevent or detect acts of fraud with disclosure controls and procedures; change in general economic conditions; dependence on key personnel; ability to attract, develop and retain employees and maintain appropriate staffing levels; insolvency, financial difficulties, or default in performance of obligations by parties with significant contracts or relationships; ability to effectively compete; maximization of long-term value and no focus on short-term earnings expectations; control by a small number of shareholders; limited trading of stock; failure to maintain effective system of internal controls; and difficulty in effecting a change of control or sale of any subsidiaries.

Please see Part I - Item 1A – “Risk Factors” in the Company’s 2017 Annual Report on Form 10-K as filed with the U.S. Securities and Exchange Commission (“SEC”), as well as other documents the Company files with the SEC from time-to-time, for other important factors that could cause the Company’s actual results to differ materially from its current expectations and from the forward-looking statements discussed herein. Because of these and other risks, uncertainties and assumptions, you should not place undue reliance on these forward-looking statements. In addition, these statements speak only as of the date of this press release and, except as may be required by law, the Company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

  UNICO AMERICAN CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ($ in thousands)   December 31 December 31   2018     2017   (Unaudited)

ASSETS

Investments Available-for-sale: Fixed maturities, at fair value (amortized cost: December 31, 2018 $78,303; December 31, 2017 $58,153) $ 76,910 $ 57,849 Held-to-maturity: Fixed maturities, at amortized cost (fair value: December 31,

2018 $7,126; December 31, 2017 $28,098)

7,126 28,098 Short-term investments, at fair value   4,691     1,848   Total Investments 88,727 87,795 Cash, cash equivalents, and restricted cash 4,918 9,366 Accrued investment income 394 491 Receivables, net 3,933 6,006 Reinsurance recoverable: Paid losses and loss adjustment expenses (1 ) 127 Unpaid losses and loss adjustment expenses 9,532 8,394 Deferred policy acquisition costs 3,490 4,163 Property and equipment, net 9,561 10,015 Deferred income taxes 4,375 3,381 Other assets   688     561   Total Assets $ 125,617   $ 130,299    

LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES

Unpaid losses and loss adjustment expenses $ 51,657 $ 49,077 Unearned premiums 15,965 18,768 Advance premium and premium deposits 234 208 Accrued expenses and other liabilities   1,845     2,301   Total Liabilities $ 69,701   $ 70,354     Commitments and contingencies   STOCKHOLDERS' EQUITY Common stock, no par – authorized 10,000,000 shares; 5,307,103 and 5,307,133 shares issued and outstanding at December 31, 2018, and at December 31, 2017, respectively $ 3,773 $ 3,773 Accumulated other comprehensive loss (1,100 ) (240 ) Retained earnings   53,243     56,412   Total Stockholders’ Equity $ 55,916   $ 59,945     Total Liabilities and Stockholders' Equity $ 125,617   $ 130,299         UNICO AMERICAN CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands, except per share)   Three Months Ended Twelve Months Ended December 31 December 31   2018       2017     2018       2017   (Unaudited) (Unaudited) (Unaudited)

REVENUES

Insurance company operation: Net premium earned $ 6,786 $ 8,034 $ 28,755 $ 32,343 Investment income 523 505 1,908 1,290 Net realized investment gains - - - 1 Other income   72     94     366     338   Total Insurance Company Revenues 7,381 8,633 31,029 33,972   Other insurance operations: Gross commissions and fees 573 646 2,429 2,744 Investment income - 1 - 1 Finance fees earned 47 17 145 75 Other income   -     -     10     -   Total Revenues   8,001     9,297     33,613     36,792    

EXPENSES

Losses and loss adjustment expenses 5,188 6,139 23,558 30,491 Policy acquisition costs 1,397 1,521 5,909 6,464 Salaries and employee benefits 1,035 1,309 4,593 5,844 Commissions to agents/brokers 51 39 176 166 Other operating expenses   920     1,115     3,303     3,707   Total Expenses   8,591     10,123     37,539     46,672     Loss before taxes (590 ) (826 ) (3,926 ) (9,880 ) Income tax expense (benefit)   (121 )   1,950     (757 )   (1,155 ) Net Loss $ (469 ) $ (2,776 ) $ (3,169 ) $ (8,725 )      

PER SHARE DATA:

Basic Loss per share $ (0.09 ) $ (0.52 ) $ (0.60 ) $ (1.64 ) Weighted average shares 5,307,103 5,307,133 5,307,121 5,307,133 Diluted Loss per share $ (0.09 ) $ (0.52 ) $ (0.60 ) $ (1.64 ) Weighted average shares 5,307,103 5,307,133 5,307,121 5,307,133     UNICO AMERICAN CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in thousands)   Twelve Months Ended December 31   2018       2017   (Unaudited) Cash flows from operating activities: Net loss $ (3,169 ) $ (8,725 ) Adjustments to reconcile net loss to net cash from operations: Depreciation and amortization (153 ) 518 Bond amortization, net 201 (664 ) Non-cash stock based compensation - 12 Net realized investment gains - (1 ) Bad debt expense 24 16 Changes in assets and liabilities: Net receivables and accrued investment income 2,146 (319 ) Reinsurance recoverable (1,010 ) 1,261 Deferred policy acquisition costs 673 269 Other assets (123 ) 400 Unpaid losses and loss adjustment expenses 2,580 2,021 Unearned premiums (2,803 ) (607 ) Advance premium and premium deposits 26 (16 ) Accrued expenses and other liabilities (456 ) (360 ) Income taxes current/deferred   (769 )   (828 ) Net Cash Used by Operating Activities   (2,833 )   (7,023 )   Cash flows from investing activities: Purchase of fixed maturity investments (25,633 ) (60,292 ) Proceeds from maturity of fixed maturity investments 24,984 53,936 Proceeds from sale or call of fixed maturity investments 1,270 1,142 Net increase in short-term investments (2,843 ) (750 ) Changes in property and equipment   607     (250 ) Net Cash Used by Investing Activities   (1,615 )   (6,214 )   Cash flows from financing activities: Repurchase of common stock   -     -   Net Cash Used by Financing Activities   -     -     Net decrease in cash, cash equivalents, and restricted cash (4,448 ) (13,237 ) Cash, cash equivalents, and restricted cash at beginning of period   9,366     22,603   Cash, Cash Equivalents, and Restricted Cash at End of Period $ 4,918   $ 9,366     Supplemental Cash Flow Information Cash paid during the period for: Interest - - Income taxes $ 9 $ 9

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Michael BudnitskyChief Financial Officer818-591-9800