EXHIBIT 99.1

NEWS RELEASE

CONTACT: Lester A. Aaron

Chief Financial Officer

818-591-9800

UNICO AMERICAN CORPORATION REPORTS

THIRD QUARTER 2010 FINANCIAL RESULTS

Woodland Hills, CA, November 10, 2010 – Unico American Corporation.  (NASDAQ – “UNAM”) (“Unico,” the “Company”), announced today its consolidated financial results for the three and nine months ended September 30, 2010. For the three months ended September 30, 2010, revenues were $9.1 million and net income was $0.6 million ($0.12 diluted income per share) compared with revenues of $10.3 million and net income of $0.6 million ($0.11 diluted income per share) for the three months ended September 30, 2009.  For the nine months ended September 30, 2010, revenues were $28.4 million and net income of $1.6 million ($0.29 diluted income per share) compared with revenues of $31.5 million and net income of $2.3 million ($0.42 diluted income per share) for the nine months ended September 30, 2009.

As of September 30, 2010, the Company had cash and investments (at amortized cost) of $133.4 million.  $119.2 million, or 89% of these investments were fixed maturity investments, and 74% of those fixed maturity investments were U.S. treasury securities.

Stockholders’ equity was $74.9 million as of September 30, 2010, or $14.09 per common share including unrealized after-tax investment gains of $2.7 million, compared to stockholders’ equity of $73.3 million as of December 31, 2009, or $13.82 per common share including unrealized after-tax investment gains of $2.7 million.  

Headquartered in Woodland Hills, 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.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements contained herein that are not historical facts are forward-looking. These statements, which may be identified by forward-looking words or phrases such as “anticipate,” “believe,” ”expect,” “intend,” “may,” “should,” and “would,” involve risks and uncertainties, many of which are beyond the control of the Company. Such risks and uncertainties could cause actual results to differ materially from these forward-looking statements. Factors which could cause actual results to differ materially include underwriting actions not being effective, rate increases for coverages not being sufficient, premium rate adequacy relating to competition or regulation, actual versus estimated claim experience, regulatory changes or developments, unforeseen calamities, general market conditions, and the Company’s ability to introduce new profitable products.

Financial Tables Follow –

UNICO AMERICAN CORPORATION

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

($ in thousands)

	September 30		December 31
	2010		2009
	(Unaudited)
ASSETS
Investments
Available for sale:
Fixed maturities, at fair value (amortized cost:  September 30,
2010 $119,152; December 31, 2009 $128,441)	$	123,269	$	132,595
Short-term investments, at cost		13,951		9,158
Total Investments		137,220		141,753
Cash		301		119
Accrued investment income		670		764
Premiums and notes receivable, net		4,191		4,365
Reinsurance recoverable:
Paid losses and loss adjustment expenses		69		453
Unpaid losses and loss adjustment expenses		13,537		16,176
Deferred policy acquisition costs		4,530		4,956
Property and equipment (net of accumulated depreciation)		1,319		221
Deferred income taxes		861		633
Other assets		509		669
Total Assets	$	163,207	$	170,109
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Unpaid losses and loss adjustment expenses	$	64,150	$	71,585
Unearned premiums		16,805		18,812
Advance premium and premium deposits		1,148		1,034
Accrued expenses and other liabilities		6,208		5,363
Total Liabilities	$	88,311	$	96,794
STOCKHOLDERS'  EQUITY
Common stock, no par – authorized 10,000,000 shares; issued and
outstanding shares 5,317,054 at September 30, 2010, and 5,306,204 at
December 31, 2009	$	3,471	$	3,437
Accumulated other comprehensive income		2,718		2,742
Retained earnings		68,707		67,136
Total Stockholders’ Equity	$	74,896	$	73,315
Total Liabilities and Stockholders' Equity	$	163,207	$	170,109

UNICO AMERICAN CORPORATION

 AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

($ in thousands, except per share)

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2010		2009		2010		2009
REVENUES
Insurance Company Revenues
Premium earned	$	8,784	$	10,089	$	27,136	$	30,185
Premium ceded		1,837		2,337		5,658		6,950
Net premium earned		6,947		7,752		21,478		23,235
Investment income		839		1,012		2,685		3,379
Other income		150		175		505		575
Total Insurance Company Revenues		7,936		8,939		24,668		27,189
Other Revenues from Insurance Operations
Gross commissions and fees		1,078		1,278		3,456		4,072
Investment income		1		-		3		1
Finance charges and fees		70		86		237		279
Other income		4		1		10		5
Total Revenues		9,089		10,304		28,374		31,546
EXPENSES
Losses and loss adjustment expenses		4,501		4,931		14,384		14,353
Policy acquisition costs		1,806		1,846		5,536		5,771
Salaries and employee benefits		1,112		1,305		3,281		4,016
Commissions to agents/brokers		154		252		517		860
Other operating expenses		829		1,071		2,570		3,103
Total Expenses		8,402		9,405		26,288		28,103
Income Before Taxes		687		899		2,086		3,443
Income tax provision		63		281		515		1,112
Net Income	$	624	$	618	$	1,571	$	2,331
PER SHARE DATA:
Basic
Earnings Per Share	$	0.12	$	0.11	$	0.30	$	0.42
Weighted Average Shares		5,317		5,500		5,311		5,545
Diluted
Earnings Per Share	$	0.12	$	0.11	$	0.29	$	0.42
Weighted Average Shares		5,353		5,542		5,351		5,585

UNICO AMERICAN CORPORATION

 AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

($ in thousands)

	For the Nine Months Ended
	September 30
	2010			2009
Cash Flows from Operating Activities:
Net Income	$	1,571		$	2,331
Adjustments to reconcile net income to net cash from operations
Depreciation		96			147
Bond amortization, net		75			212
Changes in assets and liabilities
Premium, notes and investment income receivable		268			376
Reinsurance recoverable		3,023			2,305
Deferred policy acquisitions costs		426			107
Other assets		15			106
Unpaid losses and loss adjustment expenses		(7,435	)		(5,167	)
Unearned premium		(2,006	)		(310	)
Advance premium and premium deposits		114			70
Accrued expenses and other liabilities		(272	)		(457	)
Income taxes current/deferred		(70	)		(1,198	)
Net Cash Used by Operating Activities		(4,195	)		(1,478	)
Investing Activities
Purchase of fixed maturity investments		(24,586	)		(22,652	)
Proceeds from maturity of fixed maturity investments		33,799			42,700
Net (increase) in short-term investments		(4,793	)		(16,169	)
(Additions) to property and equipment		(76	)		(56	)
Net Cash Provided by Investing Activities		4,344			3,823
Financing Activities
Dividends paid to shareholders		-			(1,002	)
Proceeds from issuance of common stock		34			-
Repurchase of common stock		-			(1,303	)
Net Cash Provided (Used) by Financing Activities		34			(2,305	)
Net Increase in Cash		183			40
Cash at beginning of period		118			28
Cash at End of Period	$	301		$	68
Supplemental Cash Flow Information
Cash paid during the period for:
Interest		-			-
Income taxes	$	584		$	2,309
Supplemental Schedule of Non-Cash Investing Activities
Acquisition of fixed assets	$	1,118			-