Department of Trade & Industry that the company put forward a scheme of arrangement in order to best preserve the company's financial condition.

Anglo is a UK company purchased by Bermuda-based Centre Re in July 1994, nearly a month after Anglo stopped accepting new business and was placed in run-off. Centre Re said at the time that Anglo was to remain an independent entity and had adequate capital and reserves to meet all of its insurance obligations.

They said they would not provide additional capital or financial support to Anglo beyond its existing reinsurance agreements and substantial original investment.

A statement from Anglo yesterday said that in the recent past the company's financial condition had deteriorated as losses had developed and actuarial assessments had been revised in light of the current information.

The statement said, "The board of directors has determined that, in order best to protect the interests of Anglo's policyholders and creditors in light of these deteriorating circumstances, the company should consider a scheme of arrangement.

"In order to preserve the assets and allow time for the preparation of the scheme, a court order has been obtained today (yesterday) appointing Mr. A.

McMahon and Mr. P. Wallace, partners in KPMG, as provisional liquidators.'' IRISC London Ltd., specialising in insurance company run-offs, has been handling Anglo American's administration, including claims settlements since 1994 and were said to have made much progress.

Anglo said they and Centre Re expect a scheme will be quickly developed, with policyholders and creditors kept apprised of the progress.

Anglo was incorporated November 1986 to underwrite general liability, marine and professional liability insurance.

Centre Re made the announcement of the completion of the acquisition from Head Insurance Investors (Bermuda) Ltd. on July 28.

Anglo American was one of two insurance groups which wrote insurance on the H.S. Weavers (Underwriting Agencies) Ltd. line slip, which was thrown into disarray when the other company, Walbrook Ltd. and its parent London United Investments plc entered insolvency.

Anglo American, which was not on the slip until 1987, was not affected by earlier insurance liabilities. It was bought by Head Insurance Investors -- which was formed for that purpose by New York-based John Head & Partners -- in 1990 for $117 million.