Optimum General increases net income in 2005

Optimum General Inc. (TSX: OGI.SV.A) is reporting a net income of CDN$5.5 million for the fiscal year ended Dec. 31, 2005, compared to a net income of CDN$3.6 million for the previous year.
For the fourth quarter, net income was CDN$1.7 million, compared to a net income of CDN$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 said.
“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 CDN$123.7 million in 2005, compared to CDN$138 million for the previous year, the company reported. For the fourth quarter, direct written premiums reached CDN$28.9 million, compared to CDN$33.3 million for the same period in 2004.
Net earned premiums rose to CDN$99.1 million in 2005, versus CDN$100.2 million for the previous year. Finally, for the fourth quarter, net earned premiums were CDN$24.6 million, compared to CDN$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.