Optimum General Inc. says it will cease writing new insurance business immediately in the Atlantic region and will stop renewing policies as of July 1, 2002.

The company will continue to service in-force policies locally for both claims and endorsements. As a consequence, Optimum will close its office in Halifax and will keep minimum staff in Moncton to handle claims.

A recent analysis of the financial performance of Canada’s property and casualty insurance industry pointed out that “insurers lost money in Atlantic Canada during nine of the last 12 years, including the last six consecutive years.” Under these conditions, Optimum General’s performance in the Atlantic region has not progressed as expected.

“We very much regret having to take this measure,” said Jean-Claude Page, president and COO of Optimum General. “We sincerely appreciated the quality of our working relationship with our brokers and clients in this region. To our 20 employees, I want to offer my sincere thanks for their services over the past years,” he added.