December 2, 2003 by Canadian Underwriter
Loyalist Insurance Group Ltd. (TSX: LOY) has turned its ship around for the third quarter ending September 30, 2003, posting profit of $593,000 versus a loss of $473,000 for the same period a year earlier.
These figures do not include results for Loyalist Group Ltd. (LGL) following on the group’s decision to reduce its ownership in the former subsidiary to 44% back in March. The change also significantly lowers the company’s assets which now stand at $5.9 million versus $25.5 million at the end of 2002.
Loyalist continues to include Loyalist Insurance Co., brokerage operations and All-Canadian Management Inc., a mutual fund management company.
For the third quarter 2003, basic earnings per share were $0.03 versus a loss per share of $0.02 for the same period a year earlier. During the period, brokerage commissions were up, as were investment management fees. No premium, claims or investment income figures are available for the most recent quarter due to the divestment from LGL.
For the first nine months of the year, the group turned a profit of $255,000 versus a loss of $1.18 million a year earlier. Basic earnings per share for the nine-month period are $0.01, versus a loss per share of $0.06 for the first nine months of 2002.
Year to date, premium revenue, claims and investment income are down due to divestment from LGL, but brokerage commissions and fees are up to $2.1 million, almost double the revenues for the first nine months of 2002. Revenue from investment management is up to $589,000 from $366,000 a year earlier.
Overall, the company has returned to a profitable position in 2003,” states a Loyalist press release. “With the diminished exposure to non-strategic lines of business and a focus on higher margin products we hope to reduce the volatility of earnings and be consistently profitable going forward.”