Riot Claims Lead to Drop in Unico American Profits

Unico American Corp., a Woodland Hills-based insurer, said its fiscal second-quarter profit tumbled 61% from a year earlier on a 5% decline in revenue.

In the quarter ended Sept. 30, Unico American’s net income dropped to $335,000 from $861,000 a year earlier, and its revenue fell to $6.46 million from $6.79 million.

The earnings decline reflected “somewhat higher than anticipated claims due to the Los Angeles riot” last spring, the company said. The firm provides property and casualty coverage through its Crusader Insurance unit.

For the first half of its fiscal year, Unico American lost $8.23 million--most of which was incurred in the company’s fiscal first quarter ended June 30, and also because of the riot--compared with year-earlier profit of $2.01 million. Its six-month revenue slipped 4%, to $13 million from $13.6 million.