Optimum General Records Sixth Successive Quarter of Profit

Montreal-based Optimum General Inc. (TSX: OGI.SV.A) is reporting its sixth consecutive quarter of profit for the third quarter ending September 30, 2004.

The insurer produced net income of $742,000 ($0.06 per share) for the quarter, up from income of $411,000 ($0.04 per share) in the same quarter a year ago.

Over the same comparative period, the company’s combined ratio rose only slightly to 102.9% from 102.7%, but the underwriting loss grew to $704,000 from $630,000. The claims ratio was stable at 59.2%.

Gross written premiums dropped to $36.1 million from $39.4 million, but net earned premiums rose to $24.8 million from $23.5 million as rate increases and withdrawal from unprofitable markets earned through.

Investment income rose to $1.6 million in third quarter of 2004 versus $1.3 million a year earlier.

For the first nine months of 2004, the company produced net income of $3.2 million, a vast improvement over the income of $903,000 produced during the same period in 2003.

The company produced underwriting income of $900,000 on a combined ratio of 98.8% for the nine-month period, versus an underwriting loss of $2.1 million on a combined ratio of 103.0% a year earlier. The claims ratio dropped to 55.2% year-to-date in 2004, versus 59.4% the year prior.

Gross written premiums were down to $104.7 million from $107.0 million over the same comparative period, while net earned premiums rose to $74.8 million from $71.4 million year-on-year.

2004 year-to-date investment income was $3.5 million, just up from the $3.4 million produced in the first nine months of 2003.