Optimum General Inc. (TSX:OGI.SV.A) recently merged two of its property and casualty insurance subsidiaries Optimum Frontier Insurance Company (Ontario) and Optimum Insurance Company Inc. (Qubec). The company that will represent the merging of these two subsidiaries Optimum Insurance Company Inc., and its French version Optimum Societe d’Assurance inc. will be governed by the laws of Qubec.Jean-Claude Page, president and ceo of Optimum, explains that by streamlining the Company’s corporate structure, as well as its accounting and regulatory reporting, it stands to realize enough capacity to improve its efficiency and achieve economies of scale that will strengthen the product and service competitiveness.The merger, according to Page, will enable the Company to complete an important phase of the administrative structure rationalizing plan of the Company’s subsidiaries that began three years ago. After becoming effective on October 1st, 2005, the merger meant that all policies in force at Optimum Frontier Insurance Company and Optimum Insurance Company Inc. belonged to and were entirely assumed by the company. However, the merger will not have any incidence on policyholders nor the distribution of products. The merged company operates from the same offices located in Qubec City, Montral, Toronto, North Bay and Winnipeg. The Company’s other subsidiaries will continue to operate as before.
Optimum merges two subsidiaries