(November 29 – 14:00 ET) – The Loyalist Insurance Group Ltd. is reporting a net loss for the nine months ended September 30, 2000. The property and casualty underwriter says revenues rose to $5.5 million from $2.5 million last year. The net loss incurred was $62,277, compared to a net profit of $15,278 in 1999.

Total assets were $20.9 million at September 30, up from $18.8 million at the same time last year. Shareholders’ equity at stood at $3.9 million. Through the first nine months of the year the company generated $4.3 million in cash including cash used in investing and financing activities, compared to $421,427 for the same period last year.

During the quarter Loyalist says it repositioned its investment portfolio to reduce risk and to take advantage of future opportunities. As a result, cash, trust cash and short-term investments increased compared to last year.

Loyalist says the increase in revenue results primarily from the inclusion of net premiums earned from the company’s underwriting operations, majority control of which was acquired on August 26, 1999.

Effective December 1, American Special Risks Inc., majority owned by Loyalist, will be opened in Charlotte, N.C., to manage the company’s successful and growing ATM insurance product in the United States and to introduce other innovative niche lines.

“While our investments to expand our operations did increase costs this year, we are confident that they will provide strong returns going forward,” commented Donald Coons, president and CEO. “We have also successfully implemented price increases at both our brokerage and underwriting operations, and firming conditions across the industry should result in further revenue growth in the future. We are also continuing to evaluate a number of interesting acquisition opportunities that will broaden our reach, lever our strengths and, ultimately, achieve our goal of enhancing shareholder value.”
-IE Staff