The Loyalist Insurance Group Ltd. today reported lower income from operations for the third quarter ended Sept. 30, 2006.

Revenues for the third quarter decreased to $449,380 from $488,331 for the same quarter in 2005. The decrease, in part, was due to the sale of a small portion of the customer list to a former employee.

Total expenses for the third quarter were $520,450 compared to $490,597 for the same quarter in 2005. This was primarily due to increased expenses in the subsidiary, increased personnel, legal and accounting fees incurred by the company.

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

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

Net income from operations was $143,953 compared with net income of $48,694 in the same quarter of the prior year. The company charges management fees to its subsidiary, Loyalist Insurance Brokers Ltd. Basic and diluted earnings per share for the quarter were 0.7¢ compared with 0.3¢ per share in the prior year.

As of Oct. 31, 2006, the subsidiary successfully renewed a significant account well in excess of $1 million in premiums.