Optimum Général Inc.
TSX : OGI.SV.A

Optimum Général Inc.

May 11, 2006 16:25 ET

First Quarter of Fiscal 2006: An Income for a Twelfth Consecutive Quarter at Optimum General Inc.

MONTREAL, QUEBEC--(CCNMatthews - May 11, 2006) -

(all amounts are in CDN$)

Optimum General Inc. (TSX:OGI.SV.A) reported today that its net income for the first quarter ended March 31, 2006, was $651,000 or $0.06 per share, compared to a net income of $1.1 million or $0.09 per share for the same period last year.

"Once again, the efforts of the past few years have born fruit. Indeed, the Company reported an income for a twelfth consecutive quarter. We are in a better position to address the already prevailing market slowdown in the industry as well as the increased competitiveness," declared Mr. Jean-Claude Page, President and Chief Executive Officer of Optimum General Inc.

In the first quarter of 2006, the volume of direct written premiums was $25.1 million, compared to $28.6 million for the same period last year. Net earned premiums for the first quarter reached $23.6 million versus $24.3 million for the same period a year earlier.

The Company's claims ratio for the first quarter of 2006 was 56.9%, compared to 54.8% for the corresponding quarter of 2005.

The combined ratio (claims and expenses) was 101.8% for the first quarter of 2006, compared to 99% for the same period last year.

Optimum General reported an underwriting loss of $418,000 for the first quarter of 2006, compared to an underwriting profit of $254,000 for the corresponding period of 2005.

Investment income for the first quarter of 2006 was maintained at $1.2 million, a similar result to that of the same period last year.



Financial Highlights
In thousands of Canadian dollars (except per-share data)

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PERIOD ENDED MARCH 31
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Three months
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2006 2005
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Direct written premiums $25,085 $28,622
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Net earned premiums $23,625 $24,340
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Net income $651 $1,061
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Net income per share $0.06 $0.09
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Claims ratio 56.9% 54.8%
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Combined ratio 101.8% 99.0%
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The Class "A" subordinate voting shares of Optimum General Inc. are listed on the Toronto Stock Exchange (TSX) under the ticker symbol OGI.SV.A. As of May 17, 2006, this symbol will be OGI.A.

About Optimum General Inc.

Optimum General Inc. (TSX:OGI.SV.A) is a Canadian company that underwrites mainly in Canada property and casualty insurance through three subsidiaries: Optimum West Insurance Company (British Columbia, Alberta, Yukon), Optimum Insurance Company Inc. (Quebec, Ontario, Manitoba, Saskatchewan, Northwest Territories, Territory of Nunavut) and Optimum Farm Insurance Inc. (Quebec). The products of these subsidiaries are distributed through a wide network of independent insurance brokers.

Optimum General Inc. is a member company of Optimum Group, a Canadian-owned international financial group also active in life insurance, life reinsurance, consulting and financial services.

Contact Information

  • Optimum General Inc.
    Jean-Claude Page, FSA, FCIA
    President and CEO
    (514) 288-8725
    (514) 288-0760 (FAX)
    or
    Optimum General Inc.
    Louis P. Pontbriand, CA
    Senior Vice-President and CFO
    (514) 288-8725
    (514) 288-0760 (FAX)
    www.optimum-general.com