Unico American Corp. reported Wednesday higher fourth quarter net income even as the property and casualty insurer declined to cut its rates to match competitors, leading to a decline in revenue.

The Woodland Hills parent of Crusader Insurance Co. reported net income of $2.1 million (37 cents per share), compared with net income of $1.8 million (31 cents) a year ago. Revenue fell 9.7 percent to $11.1 million.

Unico said the revenue decrease was largely due to the company’s more selective underwriting during the quarter. The company said it had chosen not fall prey to offering rates “inadequate to support any real profit.”

For the full 2008 fiscal year, the company said net income fell 21 percent to $5.3 million, with revenue down 7 percent to $46.8 million.

The company said Crusader should benefit from a recent ratings upgrade to “A-” from “B++” by A.M. Best Company, which will present opportunities to do business with lenders, landlords, risk managers and brokers that have to follow stricter guidelines.

“The year of 2008 has been one of substantial progress for the company,” said Chief Executive Erwin Cheldin in a statement. “To have operated so profitably, while underwriting new business in a conservative fashion reflects very creditably on our people and processes.”

Unico’s board on Monday elected Cheldin’s son, Cary L. Cheldin, to succeed Erwin Cheldin as chairman, chief executive and president. Erwin Cheldin, a company founder, is retiring April 1.

Unico shares closed up 48 cents, or nearly 7 percent, to $7.50 on the Nasdaq.