The Loyalist Insurance Group has entered into a binding purchase and sale agreement with Brownstone Holdings, to sell its retail insurance brokerage assets.

The company has earlier signed a letter of intent to sell its retail insurance brokerage asset. The estimated proceeds to the company will be approximately $5 million cash. This transaction is expected to close in January 2008 and is subject to final regulatory and shareholder approval. The proceeds will be used for general corporate purposes which includes repaying all corporate liabilities.