Unico American Corporation (UNAM) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $0.60 million, or $ 0.11 a share in the quarter, against a net loss of $0.25 million, or $0.05 a share in the last year period. Revenue during the quarter grew 4.03 percent to $9.02 million from $8.67 million in the previous year period. Net premium earned for the quarter increased 4.77 percent or $0.37 million to $8.08 million.
Total expenses come downBenefits, losses and expenses for the quarter were at $8.10 million, or 100.22 percent of premium earned from $9.03 million or 116.96 percent of premium earned in the last year period. Operating income for the quarter was $0.91 million, compared with an operating loss of $0.36 million in the previous year period. Property and casualty insurance division has booked premium of $8.08 million on net basis during the quarter, up 4.77 percent or $0.37 million from year-ago period.
Meanwhile, income from fees and commission for the quarter declined 4.66 percent or $0.03 million to $0.68 million.
"Our fourth quarter had no surprises; it was better than the third quarter but not good enough to satisfy our growth and profit objectives," said Cary L. Cheldin, Unicos president and chief executive officer. "Although the 2016 years financial results were disappointing, the work we did in 2016 serves as a solid foundation for our long term future success. In addition to continuing our work with independent strategic advisors, we also engaged investment advisors, IT advisors, marketing firms, and a product development firm. We are working towards improved growth and profitability moving forward."
Operating cash flow remains negativeUnico American Corporation has spent $1.41 million cash to meet operating activities during the year as against cash outgo of $0.05 million in the last year. Cash flow from investing activities was $6.74 million for the year, down 18.25 percent or $1.50 million, when compared with the last year.
The company has spent $0.09 million cash to carry out financing activities during the year as against cash outgo of $0.24 million in the last year period.
Cash and cash equivalents stood at $13.50 million as on Dec. 31, 2016, up 63.42 percent or $5.24 million from $8.26 million on Dec. 31, 2015.
Assets, liabilities fall
Total assets decreased 1.39 percent or $1.95 million to $138.22 million on Dec. 31, 2016. On the other hand, total liabilities were at $69.32 million as on Dec. 31, 2016, down 0.73 percent or $0.51 million from year-ago.
Return on assets was at 0.43 percent in the quarter against a negative 0.18 percent in the last year period. Return on equity was at 0.87 percent in the quarter against a negative 0.35 percent in the last year period.
Investments come downInvestments stood at $90.59 million as on Dec. 31, 2016, down 7.38 percent or $7.21 million from year-ago. Shareholders equity stood at $68.91 million as on Dec. 31, 2016, down 2.04 percent or $1.44 million from year-ago.
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