Optimum General Inc. is reporting improved earnings for the third quarter ended September 30. Net income for the quarter was $475,000 or 4¢ per share compared to a net loss of $211,000 or 2¢ per share for the same period last year.

“The third quarter’s profitability resulted from a higher level of risk control and rate increases on all product lines across Canada” said Jean-Claude Page, Optimum General’s president and COO.

Gross written premiums totalled $45.3 million in the quarter compared to $50.8 million for the same period last year, and $137.2 million for the first nine months compared to $142 million a year earlier. According to the company, the drop is largely due to its more stringent risk evaluation policy in force since January 2001.

Net earned premiums for the quarter were $26 million compared to $34.8 million a year earlier and totalled $80 million for the first nine months compared to $100.3 million for the same period last year.

The company’s claims ratio in the third quarter declined to 65.4% from 70.7% for the same period last year. For the nine months, the claims ratio was 70.6% compared to 64.7% for the same period last year.

The expense ratio was 39.7% in the third quarter compared to 37.5% for the same period last year due to the lower level of net earned premiums in the quarter. However, the expense ratio for the first nine months declined to 38.1% from 40.1% a year earlier

The combined ratio (declined to 105.1% in the third quarter from 108.2% for the same period last year. For the first nine months, the combined ratio was 108.7% compared to 104.8% a year earlier.