The insurer reported a net loss of $7.4 million or 0.68¢ per share for fiscal 2002 compared to a net loss of $2.7 million or 25¢ per share the year before. For the fourth quarter, the net loss was $4.7 million or 43¢ per share compared to a net loss of $2.6 million or 24¢ per share for the same period last year.

Gross written premiums amounted to $145.2 million in 2002 compared to $176.4 million a year earlier. This drop in volume reflects the company’s decision to cease writing business in the Atlantic Provinces, to reduce its exposure to unprofitable lines of business and programs and to suspend its operations in Texas. For the fourth quarter, gross written premiums totalled $34.3 million compared to $39.3 million for the same period last year.

Net earned premiums for the fiscal year 2002 decreased to $96.7 million compared to $104.5 million for 2001. For the fourth quarter net earned premiums amounted to $24.7 million compared to $24.5 million a year earlier.

The company’s claims ratio for fiscal 2002 was 76.3% compared to 75.9% for the previous year. For the fourth quarter, the claims ratio was 88.8% compared to 93.3% for the same period last year.

The net expense ratio, consisting of commissions, taxes on premiums and operating expenses, rose to 44.2% for fiscal 2002 from 39.2% the previous year reflecting the decrease in premiums, lower reinsurance commissions, an increase in operating costs and non-recurring restructuring costs. During the fourth quarter the expense ratio dropped to 41.3% compared to 42.8% for the same period last year.

The combined ratio (claims and expenses) for fiscal 2002 was 120.5% compared to 115.1% for the previous fiscal year. For the fourth quarter, the combined ratio was 130.1% compared to 136.1% a year earlier.

Optimum General reported for fiscal 2002 an underwriting loss of $18.6 million compared to a loss of $15.9 million for the previous fiscal year. For the fourth quarter, the underwriting loss was $7.4 million compared to $8.9 million for the same quarter a year earlier.

Investment income for the year declined to $7.5 million compared to $10.4 million in fiscal 2001 as a result of lower invested assets, lower interest rates and less capital gains. For the fourth quarter, investment income was $1.4 million compared to $4.4 million for the same period last year.

Optimum General underwrites property and casualty insurance through four subsidiaries: Optimum West Insurance Co. in British Columbia, Alberta and the Yukon; Optimum Frontier Insurance Co. in Ontario, Manitoba, Saskatchewan, the Northwest Territories and the Territory of Nunavut; Optimum Insurance Co. Inc. and Optimum Farm Insurance Inc. in Quebec.