EXHIBIT 99.1

NEWS RELEASE

CONTACT:     :	Lester A. Aaron
	Chief Financial Officer
	(818) 591-9800

UNICO AMERICAN CORPORATION REPORTS RESULTS

 FOR THE FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2007

Book value Per Share Increased 14% for the Year

Return on Average Equity for the Year was 10.1%

Woodland Hills, California, March 27, 2008 - Unico American Corporation (NASDAQ - “UNAM”) announced today that for its quarter ended December 31, 2007, revenues were $12,258,103 and net income was $1,764,544 ($0.31 diluted income per share) compared with revenues of $13,317,228 and net income of $5,735,825 ($1.01 diluted income per share) for the quarter ended December 31, 2006.  Revenues for the twelve months ended December 31, 2007, were $50,223,293 and the net income was $6,613,707 ($1.16 diluted income per share) compared with revenues of $54,717,381 and a net income of $11,794,241 ($2.09 diluted income per share) for the twelve months ended December 31, 2006.

Stockholders’ equity was $69,863,818 at December 31, 2007, or $12.42 per common share including unrealized after-tax investment gains of $1,916,154 compared to stockholders’ equity of $60,871,022 or $10.89 per common share including unrealized after-tax investment losses of $216,074 at December 31, 2006.

“During 2007, Unico continued to improve shareholder value in the midst of a soft insurance environment,” said Mr. Erwin Cheldin, Chairman and Chief Executive Officer of Unico.  “We increased book value per share, maintained an excellent loss ratio, and produced a solid return on equity.”

Unico American Corporation is an insurance holding company that provides property, casualty, and health insurance, and related premium financing through its wholly owned subsidiaries.

(Table Follows)

UNICO AMERICAN CORPORATION AND SUBSIDIARIES

SUMMARY OF CONSOLIDATED FINANCIAL DATA

 ($ in thousands, except per share)

	Three Months Ended						Twelve Months Ended
	December 31						December 31
	2007			2006			2007			2006
Revenues
Insurance Company Revenues
Premium earned	$	11,476		$	13,547		$	48,662		$	56,692
Premium (ceded)		(2,739	)		(3,310	)		(11,532	)		(13,758	)
Net premium earned		8,737			10,237			37,130			42,934
Investment income		1,695			1,627			6,695			5,903
Realized investment gains		-			3			-			3
Other income		255			33			312			103
Total Insurance Company Revenues		10,687			11,900			44,137			48,943
Other Revenues from Insurance Operations
Gross commissions and fees		1,400			1,221			5,366			4,987
Investment income		37			30			152			101
Finance charges and fees earned		130			165			554			678
Other income		4			1			14			8
Total Revenues		12,258			13,317			50,223			54,717
Expenses
Losses and loss adjustment expenses		5,079			(463	)		22,182			17,827
Policy acquisition costs		2,068			2,232			8,465			9,251
Salaries and employee benefits		1,393			1,744			5,709			5,861
Commissions to agents/brokers		296			164			1,003			611
Other operating expenses		648			818			2,940			3,013
Total Expenses		9,484			4,495			40,299			36,563
Income Before Taxes		2,774			8,822			9,924			18,154
Income Tax Expense		1,009			3,086			3,310			6,360
Net Income	$	1,765		$	5,736		$	6,614		$	11,794
PER SHARE DATA
Basic
Earning Per Share	$	0.31		$	1.03		$	1.18		$	2.12
Weighted Average Shares (000)		5,625			5,592			5,614			5,568
Diluted
Earning Per Share	$	0.31		$	1.01		$	1.16		$	2.09
Weighted Average Shares (000)		5,679			5,667			5,682			5,653

INSURANCE COMPANY STATUTORY OPERATING RATIOS
Losses and Loss Adjustment Expenses	57.8	%	(4.8	)%	59.4	%	41.2	%
Underwriting Expenses	30.7	%	30.0	%	30.4	%	29.9	%
Combined Ratio	88.5	%	25.2	%	89.8	%	71.1	%