Optimum Général Inc.
TSX : OGI.SV.A

Optimum Général Inc.

November 14, 2005 09:44 ET

Third Quarter of Fiscal 2005: Optimum General Inc. Continues to Realize a Net Income and Declares a Dividend

MONTREAL, QUEBEC--(CCNMatthews - Nov. 14, 2005) - Optimum General Inc. (TSX:OGI.SV.A) - All amounts are expressed in Canadian dollars.

Optimum General Inc. (TSX:OGI.SV.A) reported today that its net income for the third quarter ended September 30, 2005, was $1.351 million or $0.12 per share, compared to a net income of $742,000 or $0.06 per share for the same period last year. For the first nine months of the fiscal year, net income was $3.724 million or $0.32 per share, compared to a net income of $3.213 million or $0.27 per share for the same period last year. The Company posted a profit for a tenth consecutive quarter and declared a dividend.

"Owing to the steady improvement of our results, we are pleased to declare a dividend to our shareholders," explained Mr. Jean-Claude Page, President and Chief Executive Officer of Optimum General Inc.

In the third quarter of 2005, direct written premiums were $31.7 million, compared to $36.1 million for the same period last year. Net earned premiums for the third quarter rose to $25.1 million versus $24.8 million for the same period a year earlier. For the first nine months of 2005, direct earned premiums reached $94.8 million, compared to $104.7 for the same period in 2004. Finally, net earned premiums for the first nine months of 2005 were $74.5 million, compared to $74.8 million during the same nine-month period last year.

The Company's claims ratio for the third quarter of 2005 was 52.5%, compared to 59.2% for the corresponding quarter of 2004. For the first nine months of the year, the loss ratio considerably decreased, to reach 52.9%, compared to 55.2% for the corresponding period of 2004.

The combined ratio (claims and expenses) improved to 97.6% for the third quarter of 2005, compared to 102.9% for the same period last year. For the first nine months of 2005, the combined ratio was 98.2%, compared to 98.8% for the corresponding period of 2004.

Optimum General reported an underwriting profit of $586,000 for the third quarter, compared to an underwriting loss of $704,000 for the same period in 2004. For the first nine months of 2005, the Company realized an underwriting profit of $1.325 million, compared to an underwriting profit of $913,000 for the same period last year.

Investment income for the third quarter was $1.3 million, compared to $1.6 million for the same period last year. For the first nine months of 2005, investment income was $3.9 million, compared to $3.5 million for the same period in 2004.

Due to the good results of the current fiscal year, the Board of Directors has declared a dividend of $0.10 per share payable on November 30, 2005, to shareholders of record as at November 23, 2005. This dividend applies to the Company's Class A subordinate voting shares and Class B multiple voting shares.



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

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PERIOD ENDING SEPTEMBER 30
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Three months Nine months
2005 2004 2005 2004
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Direct written premiums $31,705 $36,132 $94,807 $104,693
Net earned premiums $25,050 $24,822 $74,527 $74,816
Net income $1,351 $742 $3,724 $3,213
Net income per share $0.12 $0.06 $0.32 $0.27
Claims ratio 52.5% 59.2% 52.9% 55.2%
Combined ratio 97.6% 102.9% 98.2% 98.8%
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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.

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 four subsidiaries: Optimum West Insurance Company in British Columbia, Alberta and the Yukon; Optimum Frontier Insurance Company in Ontario, Manitoba, Saskatchewan, the Northwest Territories and the Territory of Nunavut; Optimum Insurance Company Inc. and Optimum Farm Insurance Inc. in 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
    or
    Optimum General Inc.
    Louis P. Pontbriand, CA
    Senior Vice-President and CFO
    (514) 288-8725