Loyalist completes turnaround for profitable 2003

After successive quarters in the red, and following a restructuring process, The Loyalist Insurance Group (TSX Venture: LOY) has posted a profit for 2003 of $185,000. Although modest, the income comes against a lost of almost $3.9 million for 2002.Results do not include those of Loyalist Group Ltd, in which the holding company has reduced its stake to 44%, and which are accounted for on an equity basis since March 10, 2003.As a result of this and the sale of other brokerage operations as part of the restructuring process, the company saw revenue decrease for 2003 to $3.6 million, down from $10 million in 2002. Earnings per share work out to $0.01 per share, against a loss of more than $0.02 per share the year prior.The company’s focus in on its commercial insurance brokering business, which produced pre-tax profit of $508,000, compared to a loss of $24,000 in 2002.The commercial underwriting operations, Loyalist Insurance Co., produced a profit of $714,000 last year, including a tax asset of almost $1.1 million, compared to a loss of $4.1 million in 2002. This comes as the subsidiary stopped writing personal lines and focused on specialty commercial lines.The company also owns an mutual fund management company, All-Canadian Management Inc.”Overall, Loyalist has returned to a profitable position in 2003,” states the yearend release. “With the diminished exposure to non-strategic lines of business and a focus on higher margin products we expect to reduce the volatility of earnings and be consistently profitable going forward.”Loyalist also announces the departure of CFO Doug MacKenzie, which will be filled in the interim by CEO Donald Coons, until a successor is hired.