A configuration of the fiber-optic parametric amplifier (FOPA) using an optical loop mirror is presented and evaluated. Previously presented setups usually suffer a 10-dB loss on the input for the signal wavelength. The setup presented in this letter allows, in principle, virtually lossless combination and separation of pump and signal. In addition, over 30-dB suppression of the pump was achieved in this configuration. Bit-error-rate measurements using the FOPA as preamplifier were compared to a thermal limited receiver. The receiver sensitivity for the FOPA was -30 dBm, which was 10 dB better than the thermally limited receiver.