Bermuda-based Delphi International Ltd. yesterday announced it will liquidate subsidiary Oracle Reinsurance Company Limited.

The Company announced on September 14, 2001 that it had reached an agreement with its primary reinsureds, creditors and preferred security holders pursuant to which it will settle substantially all of its reinsurance obligations, as well as its obligations under its debt securities and preferred shares.

In furtherance of this agreement, the Company's subsidiary, Oracle Reinsurance Company Ltd., has ceased operations and is in the process of commuting all of its reinsurance agreements currently in effect.

Oracle recently completed the commutations of its two primary reinsurance agreements pursuant to the terms of such agreement.

Upon completion of all commutations and settlement of its remaining liabilities, the company and its subsidiaries intend, subject to receipt of shareholder approvals, to commence winding up and liquidation proceedings.

Colin O'Connor, President and Chief Executive Officer said, "Under the terms of the commutation and other agreements reached by the Company, the common shareholders are to receive a liquidating distribution of $3 per share."

Subject to timely receipt of relevant approvals, we expect that the liquidation process will be completed in the first quarter of 2002. I believe that we made the only sensible choice given the limited strategic options available to us, and that, given all of the circumstances, the distribution reflects a good outcome for common shareholders."

The company reported earnings yesterday of a net loss of $2.6 million, or $0.64 per share, for the quarter ended September 30, 2001, and a net loss of $1.2 million, or $0.31 per share, for the nine months ended September 30, 2001.

Revenues of $1.2 million for the quarter ended September 30, 2001, and $9.0 million for the nine months to September 30, 2001, consisted principally of net investment income on the Company's insurance reserves.

The company incurred acquisition and operating expenses and accrued discount related to its insurance reserves of $3.5 million for the quarter and $9.4 million for the nine months to September 30, 2001.