Optimum Général Inc.
TSX : OGI.A

Optimum Général Inc.

November 09, 2007 11:18 ET

Third Quarter of fiscal 2007: Optimum General Inc. Declares a Dividend

All Amounts are in CDN$

MONTREAL, QUEBEC--(Marketwire - Nov. 9, 2007) - Optimum General Inc. (TSX:OGI.A) reported today that its net income for the third quarter ended September 30, 2007, reached $2.9 million or $0.25 per share, compared to a net income of $1.45 million or $0.12 per share for the same period last year. For the first nine months of the fiscal year net income was $4.6 million or $0.39 per share, compared to a net income of $4.3 million or $0.37 per share for the same period in 2006.

Optimum General Inc. (TSX: OGI.A) also reported that its Board of Directors has declared an eligible dividend of $0.115 per share payable on November 30, 2007, to shareholders of records as at November 22, 2007. This dividend applies to the Company's Class A subordinate voting shares and Class B multiple voting shares.

"Declaring a dividend is always a major event, since it confirms the efficiency with which we manage our financial resources, and that, despite this period of intense competitiveness," said Mr. Jean-Claude Page, President and Chief Executive Officer of Optimum General Inc.

In the third quarter of 2007, the volume of direct written premiums was $25 million, compared to $27.6 million for the same period last year. The volume of net earned premiums for the third quarter of 2007 was $20.1 million versus $21.9 million for the same period in 2006. For the first nine months of 2007, the volume of direct earned premiums reached $73.2 million, compared to $83 million for the same period in 2006. Lastly, the volume of net earned premiums for the first nine months of 2007 was $62.1 million, compared to $68.5 million during the same period last year.

The Company's claims ratio for the third quarter of 2007 was 40.0%, compared to 46.4% for the corresponding quarter in 2006. For the first nine months of the year, the loss ratio was 46.5%, compared to 49.4% for the same period in 2006.

The combined ratio (claims and expenses) was 90.1% for the third quarter of 2007, compared to 95.6% for the same period last year. For the first nine months of 2007, the combined ratio was 95.5%, compared to 95.7% for the corresponding period of 2006.

Optimum General Inc. reported an underwriting profit of $2 million for the third quarter of 2007, compared to $963,000 for the same period in 2006. For the first nine months of 2007, the Company realized an underwriting profit of $2.8 million, compared to $2.9 million for the same period last year.

Investment income for the third quarter of 2007 was $2.1 million, compared to $1.2 million for the same period last year. For the first nine months of 2007, this income was $3.7 million, compared to $3.4 million for the same period in 2006. The Company does not hold any asset backed commercial paper (ABCP) in its investment portfolio.



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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2007 2006 2007 2006
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Direct written premiums $24,999 $27,615 $73,191 $83,031
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Net earned premiums $20,085 $21,934 $62,088 $68,480
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Net income $2,897 $1,449 $4,566 $4,317
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Net income per share $0.25 $0.12 $0.39 $0.37
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Claims ratio 40.0% 46.4% 46.5% 49.4%
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Combined ratio 90.1% 95.6% 95.5% 95.7%
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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 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