Mutual Risk Management's (MRM) share price plummeted yesterday to close at $3, a 27.4 percent drop.

The stock market drop followed news that the Bermuda-based provider of insurance risk management services would delay the release of its year-end report of earnings which had been scheduled for release yesterday.

MRM claimed the delay in reporting would allow the company to re-evaluate the carrying value of the deferred tax assets on its consolidated balance sheet.

Yesterday's closing share price of $3 was lower than the previous 52-week low of $3.20 and was in marked comparison to the high of $14.30. At one point during trading yesterday the share price dipped to a low of $2.72.

Calls made to CEO Robert Mulderig and CFO James Kelly were not returned last night, but a press release said MRM anticipates releasing the results "within the next several days".

In December MRM said it anticipated an after tax net loss of between $6.3 million and $8.4 million, or 15 to 20 cents per diluted share, for the fourth quarter of 2001.

The company, which trades on the New York Stock Exchange, was also reported to be the exchange's biggest percentage loser by CBS Market Watch.

The company said its losses result from the decision by the MRM's US insurance subsidiaries; the Legion Companies to add up to $30 million on an after tax basis, to their net loss reserves in the fourth quarter.

MRM also said in December that AM Best had advised it that the A- (Excellent) financial strength rating of the Legion Companies was being placed under review with negative implications.

In addition MRM said it intended to file a universal shelf registration statement with the Securities and Exchange Commission before the end of the year in order to seek $200 million in additional capital.

Mutual Risk said it would seek to raise the capital to allow it to take advantage of the increased business opportunities presented by the current hard market for commercial insurance and to retain the Legion Companies current rating from A.M. Best Company.