Loyalist Insurance Group announces 2006 year-end results



    ANCASTER, ON, April 27 /CNW/ - The Loyalist Insurance Group Limited (TSX
Venture Exchange symbol: LOY) today announced results for the year ended
December 31, 2006.
    Revenues for the year ending 2006 increased to $2,115,690 from $2,011,417
in 2005. Expenses for the year were $2,409,111 compared to $2,310,217 in 2005.
Loss from operations was $50,399 versus a loss of $266,040 in the prior year.
Cash balances decreased to $4,834 from $22,482 for the same period as the
prior year. Cash and short term investments in trust decreased to $563,777
from $1,025,984 for the same period in 2005. The decrease was primarily due to
the timing of collection of accounts receivable and accounts payable of one
significant commercial brokerage account.
    In July 2006, Loyalist Insurance Brokers Limited, ("LIB") a subsidiary of
the Company, negotiated the sale of a minor portion of its book of business to
a former employee for cash consideration of approximately $174,000. This
resulted in a gain on sale of approximately $174,000.
    In August 2006, LIB received full payment for a note receivable from the
sale of its St. Catharines' division. Payment consisted of a note receivable
for $100,000. LIB made a reserve provision for the entire amount of the note
prior to the end of 2005.
    During the year, LIB successfully renewed two significant brokerage
accounts in excess of $1,500,000 in insurance premiums.
    Proceeds from previous asset sales and investments in the past two years
have been used to reduce debt obligations of the Company. This has improved
its liquidity.
    The Company divested its investments in various subsidiary companies in
2005 and prior years. The Company no longer owns any interest in insurance
underwriting or the mutual fund asset management business. This allowed the
Company to re-focus completely on its profitable core operations. The Company
has eliminated operations that had negative cash flow and/or that were capital
intensive with a historic low return on equity. The Company's management
resources are now better utilized pursuing profitable businesses in which it
has experience and expertise.
    Loyalist Insurance Brokers Limited continues to pursue revenue growth
through internal sales and its recruitment of new key personnel. The plan is
to enhance this strategy over the next year.

    
    Consolidated
    Financial Highlights
        ---------------------------------------------------------------------
        As at                                      December 31,  December 31,
                                                          2006          2005
        ---------------------------------------------------------------------

        Assets                                       2,741,584     3,356,910
        Cash, trust cash and short term
         investments                                   529,583     1,035,696
        Shareholders' equity                          (590,819)     (540,420)
        ---------------------------------------------------------------------
        Year ended                                 December 31,  December 31,
                                                          2006          2005
        ---------------------------------------------------------------------
        Revenue                                      2,115,690     2,011,417
        Net earnings (Loss)                            (50,399)     (266,040)
        Net earnings (Loss) per share                    (0.00)        (0.01)
        ---------------------------------------------------------------------

    

    The Loyalist Insurance Group Limited is a financial services holding
company, involved through its subsidiary, in the retail insurance brokerage
business.

    The TSX Venture Exchange has neither approved nor disapproved of the
    information contained herein.

    %SEDAR: 00009147E




For further information:

For further information: Mr. Donald Coons, President & CEO, The Loyalist
Insurance Group Limited, Tel: (905) 648-6767 OR SEDAR at www.sedar.com

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Loyalist Group Limited

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