Loyalist Insurance Group announces 2009 year-end results

ANCASTER, ON, March 29 /CNW/ - The Loyalist Insurance Group Limited (TSX Venture Exchange -NEX symbol: LOY.H) today announced results for the year ended December 31, 2009.

The Company's revenues for the year ending December 31, 2009 were $42,309 from $251,607 in 2008. The reduction was primarily due to the fact that no commission revenues were received in 2009 due to the sale of the brokerage business. The Company has recorded a foreign exchange loss of $6,321 and a gain on investments of $54,710. The Company also received a recovery of legal expenses relating to a dispute in the amount of $99,494.

The Company's expenses for the year were $504,045 compared to $694,300 in 2008. The reduction in expenses was primarily due to the elimination of costs associated with the operations of its former subsidiary, Loyalist Insurance Brokers Limited.

The Company had a loss of $217,238 compared to an income of $2,353,709 in the prior year.

Professional and compliance fees totaled $14,919 in the fourth quarter of 2009 compared to $27,308 in the same period of the prior year. The majority of the fees in 2008 were relating to an arbitration dispute.

The Company repurchased 200,000 common shares for cancellation in the last quarter of 2009 at a price of $0.04 per share pursuant to its Normal Course Issuer Bid effective May 7, 2009 to May 6, 2010.

The Company has primarily invested in high quality, liquid money market instruments, cash and equities. At December 31, 2009 cash and cash equivalents were 50.6 % of invested assets, 18.5 % was invested in common stock with the remaining 30.9 % invested in limited partnership interests.

The Company has a US dollar limited partnership investment of $200,000 which is earning interest at 12.25% per annum, payable monthly. The Company has hedged $110,000 of its currency exposure to the US Dollar through a forward contract with a Schedule A Canadian Bank.

In September 2009, the Company invested in two US limited partnerships in the amount of US $150,000. These LP's are invested in first mortgages on apartment communities maturing in three years or less. The Company has not hedged its exposure to the US Dollar pertaining to this investment at this time.

A lawsuit was filed against the Company by a former shareholder of a subsidiary of the corporation which the company sold in 2004. The lawsuit arose over a dispute of fees to be paid to the former shareholder and the right to charge the fees. On July 8, 2008, mediation took place and all parties to all actions were settled subject to final documentations and releases. The Company's contribution towards the settlement was $40,000. On January 16, 2009 the Company's directors and officers liability insurer agreed to reimburse the Company 50% of all monies paid in relation to this claim including the company's contribution towards settlement. On January 30, 2009, the Company received $99,494.

    
    Financial Highlights

    -------------------------------------------------------------------------
    As at                             December 31, 2009    December 31, 2008
    -------------------------------------------------------------------------
    Assets                                    1,329,030            1,809,785
    Liabilities                                  90,657              346,004
    Shareholders' equity (deficit)            1,238,373            1,463,781

    -------------------------------------------------------------------------
    Year ended                        December 31, 2009    December 31, 2008
    -------------------------------------------------------------------------
    Revenue                                      42,309              251,607
    Net earnings (Loss)                        (217,238)           2,353,709
    Net earnings (Loss) per share                 (0.01)                0.13
    -------------------------------------------------------------------------
    

The Loyalist Insurance Group Limited is an investment holding company.

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

%SEDAR: 00009147E

SOURCE Loyalist Group Limited

For further information: For further information: Mr. Donald Coons, President & CEO, The Loyalist Insurance Group Limited, Tel: (905) 648-8637 x 247

Organization Profile

Loyalist Group Limited

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890