(August 10 – 16:40 ET) – Insurance company Optimum General Inc. is reporting flat earnings for the second quarter ended June 30. The company says gross written premiums for the rose to $54.3 million from $47.7 million. Net earned premiums rose to $32.9 million in the quarter, from $32 million a year ago. Net income for the quarter was $595,000 or 5¢ a share, unchanged from a year ago.
In addition, the says that its Texas subsidiary, Optimum Property & Casualty Insurance Company, began operations in July following the close of the quarter.
“We are encouraged by the substantial increase in gross written premiums which will translate into an increase in net earned premiums as the year progresses and will have a positive effect on our expense ratio,” Jean-Claude Page, Optimum General’s president and COO, said in a statement. “The fact that our Texas subsidiary is now writing premiums will also have a beneficial effect on our revenues,” he added.
The company reports that its claims ratio dropped significantly from 62.3 % in the second quarter of 1999 to 59.5 % in 2000. The expense ratio rose from 40.4 % to 42.1 % mainly due to the preparation of start-up activities in Texas. The combined ratio was 101.6% for the second quarter, compared to 102.7 % for the same period in 1999.
Optimum General recently completed the name changes of two of its subsidiaries to maximize the reach of the Optimum brand. The British Columbia Insurance Company was changed to Optimum West Insurance Company, while National Insurance Company Inc., became Optimum Insurance Company Inc.
At its meeting today, the company’s board of directors declared a quarterly dividend of 4¢ a share payable on August 31. The dividend applies to both Class A subordinate voting shares and Class B multiple voting shares.
-IE Staff