Overseas Partners Ltd. announced yesterday it would cease underwriting in most of its units and would put its US unit, OPUSRe, up for sale.

A statement said that following several strategic reviews, the board of directors of OPL had decided that OPL will discontinue writing new business

in Bermuda immediately, and put its Bermuda operations (OP Re, OPAL, and

OPFinite business) into runoff.

"In that regard, the company is in discussions

with parties potentially interested in hiring the Bermuda finite and accident &

health underwriting teams," the statement said." The Company has also entered in to an agreement with

Renaissance Reinsurance Ltd. whereby Renaissance will assume the policies of

OPCat, thereby assuring continuity of coverage for our clients."

Overseas Partners US Reinsurance Company (``OPUS Re'') will continue its

reinsurance operations; discussions between OPL and companies potentially

interested in buying OPUS Re are in process.

OPL has approximately $1.3 billion in capital today, with a strong balance

sheet, loss reserves independently reviewed and approved by two outside

actuarial/consulting firms, and significant operating strength in terms of

employees, customer and broker relationships, the company said.

The statement added: "Following its strategic

alternative reviews, the Board has concluded that despite its management and reserve strengths, OPL's current capital structure will not allow it to continue to grow and compete effectively in today's reinsurance market.

"In addition, the Board is mindful of the desire of many of OPL's 98,000 shareholders to have greater liquidity for their investment in OPL, for which there is no trading market and no present prospect of such a market. The capital requirements for OPL's business have constrained its ability to offer regular redemption of shares to its shareholders for several years."

Robert Clanin, Chairman of the Board of OPL said, ``We are indebted to the management and the employees of OPL for the fine job they have done in transforming the Company's operations over the past two years."

Further background information on OPL's history and operations can be found on the Company's website: www.overseaspartners.com.