Unico American announces settlement of litigation
Unico American announced that, on September 12, a settlement agreement was reached on judgments which were finalized in December 2015 and March 2016 on a policy liability claim covered by Crusader Insurance company, a wholly owned subsidiary of Unico. Both judgments had been appealed, and, in connection with the appeal, Crusader placed with the Los Angeles Superior Court cash deposits of $7,924,178 and $5,449,615 in December 2015 and March 2016, respectively, in lieu of appeal bonds. The settlement, amounting to $7M, is required to be paid from the funds deposited by Crusader with the Los Angeles Superior Court. The remaining funds on deposit with the Los Angeles Superior Court are to be returned to Crusader. The Company recognized $797,500 for actual and anticipated losses and loss adjustment expenses, net of reinsurance, since inception of the claim through June 30, 2017. As a result of the settlement, the company expects that it will incur approximately $1.6M in additional losses and loss adjustment expenses for the quarter ended September 30, 2017.