Optimum General reports stellar 2006 Q3 claims ratio

Optimum General Inc. (TSX: OGI.A) has reported a 2006 Q3 profit of Cdn$1.45 million, compared to a net income of Cdn$1.35 million for the same period last year.
Optimum General is a Canadian company that underwrites 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). The subsidiaries sell products through a network of independent insurance brokers.
“Optimum General maintained its profitability, thanks notably to one of the best claims ratio of the industry,” the company’s president and CEO, Jean-Claude Page, said in a press release. “And this, despite the strong competitiveness prevailing in the property and casualty insurance market in Canada.”
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.
During 2006 Q3, the volume of Optimum General’s direct written premiums was Cdn$27.6 million, compared to Cdn$31.7 million for the same period last year.
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.
Optimum General Inc. reported an underwriting profit of Cdn$963,000 for 2006 Q3, compared to Cdn$613,000 for the same period in 2005.