Optimum Général Inc.
TSX : OGI.A

Optimum Général Inc.

August 10, 2006 14:07 ET

Second Quarter of Fiscal 2006: Optimum General Inc. Reported Increase in Net Income

All Amounts are in CDN$

MONTREAL, QUEBEC--(CCNMatthews - Aug. 10, 2006) - Optimum General Inc. (TSX:OGI.A) reported today that its net income for the second quarter ended June 30, 2006, is $2.2 million or $0.19 per share, compared to a net income of $1.3 million or $0.11 per share for the same period last year. For the first six months of fiscal 2006, net income is $2.9 million or $0.25 per share, compared to a net income of $2.4 million or $0.20 per share for the same period in 2005. Therefore, the Company posted a profit for a thirteenth consecutive quarter.

"We achieved a 20% increase in the net income for the first six-month period compared to the previous fiscal year, and, once more, we brought down our claims ratio, making it an enviable ratio within the industry, and that, despite the market slowdown and strengthened competitiveness", said Mr. Jean-Claude Page, President and Chief Executive Officer of Optimum General Inc.

In the second quarter of 2006, the volume of direct written premiums was $30.3 million, compared to $34.5 million for the same period last year. The volume of net earned premiums for the second quarter of 2006 was $22.9 million versus $25.1 million for the same period in 2005. For the first six months of 2006, the volume of direct earned premiums was $55.4 million, compared to $63.1 million for the same period in 2005. Lastly, the volume of net earned premiums for the first six months of 2006 was $46.5 million, compared to $49.5 million during the same six-month period last year.

The Company's claims ratio for the second quarter of 2006 was 44.7%, compared to 51.7% for the corresponding quarter in 2005. For the first six months of the year, the loss ratio was 50.9%, compared to 53,2% for the same period in 2005.

The combined ratio (claims and expenses) was 89.7% for the second quarter of 2006, compared to 97.9% for the same period last year. For the first six months of 2006, the combined ratio was 95.8%, compared to 98.4% for the same six-month period in 2005.

Optimum General Inc. reported an underwriting profit of $2.4 million for the second quarter, compared to $546,000 for the same period in 2005. For the first six months of 2006, the Company realized an underwriting profit of $2 million, compared to $800,000 for the same period last year.

Investment income for the second quarter of 2006 was $907,000, compared to $1.4 million for the same period last year. For the first six months of 2006, investment income was $2.1 million, compared to $2.6 million for the same period in 2005.



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

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PERIOD ENDED JUNE 30
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Three months Six months
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2006 2005 2006 2005
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Direct written premiums $30,331 $34,480 $55,416 $63,102
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Net earned premiums $22,921 $25,137 $46,546 $49,477
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Net income $2,217 $1,312 $2,868 $2,373
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Net income per share $0.19 $0.11 $0.25 $0.20
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Claims ratio 44.7% 51.7% 50.9% 53.2%
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Combined ration 89.7% 97.9% 95.8% 98.4%
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Optimum General Inc.'s Class "A" subordinate voting shares are listed on the Toronto Stock Exchange (TSX) under the ticker symbol OGI.A.

About Optimum General Inc.

Optimum General Inc. (TSX: OGI.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). These subsidiaries sell their products 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 as well as financial products and services sectors.

Contact Information

  • Optimum General Inc.
    Jean-Claude Page, FSA, FCIA
    President and Chief Executive Officer
    (514) 288-8725
    or
    Optimum General Inc.
    Louis P. Pontbriand, CA
    Senior Vice-President and Chief Financial Officer
    (514) 288-8725
    www.optimum-general.com