Optimum Général Inc.
TSX : OGI.A

Optimum Général Inc.

November 10, 2006 13:50 ET

Third Quarter of Fiscal 2006: Optimum General Inc. Reported a Net Income

All Amounts are in CDN$

MONTREAL, QUEBEC--(CCNMatthews - Nov. 10, 2006) - Optimum General Inc. (TSX:OGI.A) reported today that its net income for the third quarter ended September 30, 2006, reached $1.45 million or $0.12 per share, compared to a net income of $1.35 million or $0.12 per share for the same period last year. For the first nine months of the fiscal year net income was $4.3 million or $0.37 per share, compared to a net income of $3.7 million or $0.32 per share for the same period in 2005. Therefore, the Company posted a profit for a fourteenth consecutive quarter.

"Optimum General maintained its profitability, thanks notably to one of the best claims ratio of the industry, and this, despite the strong competitiveness prevailing in the property and casualty insurance market in Canada", said Mr. Jean-Claude Page, President and Chief Executive Officer of Optimum General Inc.

In the third quarter of 2006, the volume of direct written premiums was $27.6 million, compared to $31.7 million for the same period last year. The volume of net earned premiums for the third quarter of 2006 was $21.9 million versus $25.1 million for the same period in 2005. For the first nine months of 2006, the volume of direct earned premiums reached $83.0 million, compared to $94.8 million for the same period in 2005. Lastly, the volume of net earned premiums for the first nine months of 2006 was $68.5 million, compared to $74.5 million during the same period last year.

The Company's claims ratio for the third quarter of 2006 was 46.4%, compared to 52.5% for the corresponding quarter in 2005. For the first nine months of the year, the loss ratio was 49.4%, compared to 53.0% for the same period in 2005.

The combined ratio (claims and expenses) was 95.6% for the third quarter of 2006, compared to 97.5% for the same period last year. For the first nine months of 2006, the combined ratio was 95.7%, compared to 98.1% for the corresponding period of 2005.

Optimum General Inc. reported an underwriting profit of $963,000 for the third quarter of 2006, compared to $613,000 for the same period in 2005. For the first nine months of 2006, the Company realized an underwriting profit of $2.9 million, compared to $1.4 million for the same period last year.

Investment income for the third quarter of 2006 was $1.2 million, compared to $1.3 million for the same period last year. For the first nine months of 2006, this income was $3.4 million, compared to $3.8 million for the same period in 2005.



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

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PERIOD ENDED SEPTEMBER 30
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Three months Nine months
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2006 2005 2006 2005
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Direct written premiums $27,615 $31,705 $83,031 $94,807
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Net earned premiums $21,934 $25,050 $68,480 $74,527
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Net income $1,449 $1,351 $4,317 $3,724
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Net income per share $0.12 $0.12 $0.37 $0.32
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Claims ratio 46.4% 52.5% 49.4% 53.0%
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Combined ratio 95.6% 97.5% 95.7% 98.1%
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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 in financial products and services sectors.

Contact Information

  • Optimum General Inc.
    Jean-Claude Pagé, 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
    514-288-0760 (FAX)
    www.optimum-general.com