Correcting...A 46.6 Percent Increase in Net Earnings for Optimum General Inc. in 1996.

MONTREAL--(BUSINESS WIRE)--Feb. 27, 1997--OPTIMUM GENERAL (TSE;ME OGI.A) In its first fiscal year as a public company, Optimum General Inc. has announced that its net earnings reached a new high of $9.4 million, compared to $6.4 million in 1995, an increase of 46.6 percent. The earnings per share were $0.93, compared to $0.72 in 1995. Return on shareholders' equity was at 29.5 percent in 1996.

"Despite sluggish economic growth and a higher than average number of weather-related natural disasters in Canada, 1996 was the best year in our history," said Yvon Trepanier, president and chief operating officer, adding that the Company's good performance is attributable in good part to its strategy of favouring market niches that offer a high level of profitability and potential for expansion.

Investment income for 1996 stands at $9.7 million, compared to $4.6 million the previous year. On December 31, 1996, the Company's investment portfolio showed a book value of $108.8 million, an increase of $32.9 million over December 31, 1995. In addition, on December 31, 1996, the market value of the investment portfolio was $113.6 million, or $4.8 million more than its book value, which represents a potential gain of the same amount.

Net earned premiums, which represent the Company's underwriting income, increased by 19.7 percent, from $96.5 million to $115.5 million. However, this growth remains below forecast, since the increase in rates was lower than anticipated and the effect of 1995 acquisitions was less than expected. Gross written premiums rose to $165.7 million in 1996.

The claims ratio was 58.5 percent in 1996, compared to 59.2 percent the year before. This improvement was achieved despite an unusually high number of natural disasters in Canada in 1996.

The Company's combined ratio rose to 95.8 percent, an increase of 2 percent over 1995. The Company is therefore showing underwriting profit from its insurance operations for the third year in a row.

Optimum General Inc. is a Canadian company that underwrites property and casualty insurance in Canada through its four subsidiaries: The British Columbia Insurance Company in British Columbia and Alberta; National Frontier Insurance Company in Ontario, Manitoba and Saskatchewan; National Insurance Company Inc. in Quebec, New Brunswick and Nova Scotia and Optimum Farm Insurance Inc. in Quebec. Optimum General's shares trade on the Toronto and Montreal stock exchanges, under the ticker symbol OGI.A. -0-

Financial Highlights
in thousands of dollars, except for per-share data

                                 Year ended December 31
                                       12 months
                                1996     1996     1995
                              Forecast  Actual   Actual
                             ________   ______   ______

Net earned premiums          132,300   115,500   96,500
Net earnings                  10,900     9,400    6,400
Net earnings per share          1.08      0.93     0.72

Claims ratio (percent)          55.8      58.5     59.2
Expense ratio (percent)         36.0      37.3     34.6
Combined ratio (percent)        91.8      95.8     93.8
                             ________   _______  _______

CONTACT: Optimum General Inc.

Yvon Trepanier, 514/288-8725

or

Optimum General Inc.

Andre Nadon, 514/288-8725 REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or