a share, for the first five months in operation ended June 30.

The company began underwriting through subsidiary Oracle Reinsurance Co. Ltd.

on January 27.

The company previously reported profits of $2.8 million, or $1.38 a share, for the first two months in operation.

Delphi president and chief executive officer Colin O'Connor said the five month period gave a better indication of the company's performance.

"Large reinsurance transactions and our investment approach, which emphasises long-term performance, can generate volatile financial results in the short run,'' he said. "The company's initial two-month operating period witnessed above average investment performance and the second quarter experienced below average performance, but we continue to have confidence in this strategy which has produced long-term annual investment of approximately 15 percent. In addition, while the reinsurance environment continues to be very competitive, we have been encouraged by the number of potential business opportunities that have been presented to Oracle Re.'' The company had premiums of $120.8 million for the five months derived from initial reinsurance transactions with Safety National Casualty Corp. and Reliance Standard Life Insurance Co.

During the quarter the company received $10.5 million from a new quota share reinsurance cession of annuity business from Reliance. Investment income was $6.2 million. The company had revenues of $127 million for the five month period.

Delphi made provisions for losses incurred of $112.6 million, and provisions for total losses and expenses of $123.4 million. This included $2.6 million for the write-off of start-up costs and US federal excise taxes incurred.