The Loyalist Insurance Group Ltd. (LIG) today reported a loss for the second quarter ended June 30.

The net loss for the quarter was $98,444 compared with net loss of $76,459 for the same quarter in 2005.

Total expenses for the second quarter were $613,397 compared to $541,265 for the same quarter in 2005.

Basic and diluted earnings per share for the quarter were (0.5¢) compared with (0.4¢) per share in the prior year.

Revenues for the second quarter at subsidiary Loyalist Insurance Brokers Ltd., increased to $473,953 from $433,606 for the same quarter in 2005. Expenses increased to $462,409 from $446,275. Income from operations was $11,543 versus a loss of $12,669 in the same quarter of the prior year.

In September 2003, Loyalist Insurance Brokers Ltd. sold the assets of its St. Catherine’s division comprising a note receivable for $100,000, due Oct. 8, 2006 and the remainder in cash. LIG made a reserved provision prior to quarter end for the entire amount of this note receivable. LIG has received payment for the note receivable in full as of Aug. 1, 2006.

In July 2006, LIG negotiated a sale of a minor portion of its book of business to a former employee for cash consideration of approximately $174,000.

LIG is a financial services holding company primarily involved, through its subsidiary in the retail insurance brokerage business.