Unico American Corporation (UNAM) saw its loss widen to $1.95 million, or $0.37 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.65 million, or $0.12 a share.
Revenue during the quarter grew 6.47 percent to $9 million from $8.45 million in the previous year period. Net premium earned for the quarter increased 5.51 percent or $0.42 million to $7.98 million.
Total expenses increase substantiallyBenefits, losses and expenses for the quarter were at $11.96 million, or 149.92 percent of premium earned from $9.42 million or 124.52 percent of premium earned in the last year period. Operating loss for the quarter was $2.97 million, compared with an operating loss of $0.97 million in the previous year period. Property and casualty insurance division has booked premium of $7.98 million on net basis during the quarter, up 5.51 percent or $0.42 million from year-ago period.
Meanwhile, income from fees and commission for the quarter increased by 3.57 percent or $0.02 million to $0.70 million.
“We are disappointed with our third quarter results," said Cary L. Cheldin, Unico’s president and chief executive officer. "Nonetheless, Unico’s operations have always been managed conservatively and we are optimistic about the company’s future. Our management team remains diligent and committed to delivering better results."
Operating cash flow remains negativeUnico American Corporation has spent $5.57 million cash to meet operating activities during the nine month period as against cash outgo of $0.31 million in the last year period. Cash flow from investing activities was $6.54 million for the nine month period, up 1,159.92 percent or $6.02 million, when compared with the last year period.
The company has spent $0.09 million cash to carry out financing activities during the nine month period as against cash outgo of $0.12 million in the last year period.
Cash and cash equivalents stood at $1.22 million as on Sep. 30, 2016, up 201.56 percent or $0.81 million from $0.40 million on Sep. 30, 2015.
Liabilities outpace assets growth
Total assets increased 2.38 percent or $3.28 million to $140.81 million on Sep. 30, 2016. On the other hand, total liabilities were at $72.49 million as on Sep. 30, 2016, up 8.62 percent or $5.75 million from year-ago.
Return on assets for the quarter stood at negative 1.39 percent as compared to a negative 0.47 percent for the previous year period. Return on equity for the quarter stood at negative 2.86 percent as compared to a negative 0.92 percent for the previous year period.
Investments come downInvestments stood at $90.82 million as on Sep. 30, 2016, down 14.73 percent or $15.69 million from year-ago. Shareholders equity stood at $68.32 million as on Sep. 30, 2016, down 3.50 percent or $2.47 million from year-ago.
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