Optimum Général Inc.
TSX : OGI.A

Optimum Général Inc.

August 09, 2007 14:00 ET

Second Quarter of Fiscal 2007: Optimum General Inc. Continues to Generate Net Income

All Amounts are in CDN$

MONTREAL, QUEBEC--(Marketwire - Aug. 9, 2007) - Optimum General Inc. (TSX:OGI.A) reported today that its net income for the second quarter ended June 30, 2007, was $702,000 or $0.06 per share, compared to a net income of $2.2 million or $0.19 per share for the same period last year. For the first six months of fiscal 2007, net income was $1.7 million or $0.14 per share, compared to a net income of $2.9 million or $0.25 per share for the same six-month period of 2006.

"The Company continues to generate net income despite the strong competitiveness that prevails within the industry. This uninterrupted profitability over the past few years results from our rigorous underwriting process and risk aligned pricing", said Mr. Jean-Claude Page, President and Chief Executive Officer of Optimum General Inc.

In the second quarter of 2007, the volume of direct written premiums was $26.6 million, compared to $30.3 million for the same period last year. The volume of net earned premiums for the second quarter of 2007 was $20.7 million, compared to $22.9 million for the same period of 2006. For the first six months of 2007, the volume of direct earned premiums was $48.2 million, compared to $55.4 million for the same period of 2006. Lastly, the volume of net earned premiums for the first six months of 2007 was $42 million, compared to $46.5 million during the same six-month period last year.

The Company's claims ratio for the second quarter of 2007 was 46.5%, compared to 44.7% for the corresponding quarter of 2006. For the first six months of the year, the loss ratio was 49.6%, compared to 50.9% for the same period of 2006.

The combined ratio (claims and expenses) was 95.3% for the second quarter of 2007, compared to 89.7% for the same period last year. For the first six months of 2007, the combined ratio was 98.1%, compared to 95.8% for the same six-month period of 2006.

Optimum General Inc. reported an underwriting profit of $964,000 for the second quarter of 2007, compared to $2.4 million for the same period of 2006. For the first six months of 2007, the Company realized an underwriting profit of $795,000, compared to $2 million for the same six-month period last year.

Investment income for the second quarter of 2007 was $237,000, compared to $907,000 for the same period last year. For the first six months of 2007, investment income was $1.6 million, compared to $2.1 million for the same six-month period of 2006. This decrease results from the implementation of the new accounting principles which ensure that investments are evaluated to their fair value and that related unrealized gains and losses are recorded in the income of the period.

Moreover, following health problems, Mr Louis P. Pontbriand, Senior Vice-President and Chief Financial Officer, has decided to leave the company. This decision takes effect as soon as today. Mr Paul Tremblay will continue to act as Interim Chief Financial Officer, while maintaining his function as Vice-President, Actuarial Services.



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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2007 2006 2007 2006
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Direct written premiums $26,561 $30,331 $48,192 $55,416
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Net earned premiums $20,746 $22,921 $42,003 $46,546
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Net income $702 $2,217 $1,669 $2,868
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Net income per share $0.06 $0.19 $0.14 $0.25
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Claims ratio 46.5% 44.7% 49.6% 50.9%
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Combined ratio 95.3% 89.7% 98.1% 95.8%
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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, 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.
    Paul Tremblay, B. Act. Sc.
    Interim Chief Financial Officer
    514-288-8725