Optimum General’s 2005 net income increases

Optimum General Inc. (TSX: OGI.SV.A) achieved a net income of CD$5.5 million for the fiscal year ended Dec. 31, 2005, compared to a net income of CD$3.6 million for the previous year.

For the fourth quarter (Q4), net income was CD$1.7 million, compared to a net income of CD $383,000 for the same period in 2004.

The company says it has posted a profit for the eleventh consecutive quarter. “We are very proud of the good results that we obtained during fiscal 2005,” Optimum General president and CEO Jean-Claude Pag says.

“Despite a highly competitive environment, we were able to reach the set targets, which confirms the pertinence of our strategy as well as our keen understanding of our markets. The expertise, commitment and creativity of our team enhance its ability to undertake the future challenges.”

Direct written premiums were CD$123.7 million in 2005, compared to CD$138 million for the previous year, the company reported. For the fourth quarter, direct written premiums reached CD$28.9 million, compared to CD$33.3 million for the same period in 2004.

Net earned premiums rose to CD$99.1 million in 2005, versus CD$100.2 million for the previous year. Finally, for the Q4, net earned premiums were CD$24.6 million, compared to CD$25.4 million a year earlier.

“The decrease in premium volumes is mainly due to the strengthening of the market competitiveness,” the company announced.

The company’s combined ratio (claims and expenses) improved to 97.3% for the year 2005, compared to 100.2% for fiscal 2004. For the fourth quarter, the combined ratio was 94.6%, compared to 104.5% for the corresponding period of 2004.