BERMUDA’S DELPHI PULLS PLUG ON ORACLE RE UNIT

Delphi International, parent of Bermuda-based specialty reinsurer Oracle Re, plans to cease operations, settle its liabilities and liquidate its common shares after reaching an agreement with its reinsureds, creditors and preferred shareholders, IFD ’s sister publication the Re Report notes today. Under the deal, Oracle Re is to cease operations and commute all its existing reinsurance agreements. Once the contracts are commuted and other liabilities settled, Delphi and Oracle plan to commence winding-up and liquidation proceedings. President and chief executive Colin O’Connor said that the group’s investment returns had been acceptable, but “attractive specialty reinsurance business has not been available due to difficult conditions in the market and our small capital base”. Also, the group’s letters of credit are scheduled to expire in early 2002 and cannot be renewed or replaced, he said. “In light of these limits on our growth prospects, the board believes the best course is for the company to wind up its activities, settle its existing liabilities and distribute the remainder to shareholders”, Mr O’Connor said. The company expects to complete the liquidation and distribute about $3 per share to shareholders early next year.