Bermuda-based Oil Insurance Ltd. announced last week it had made $71 million for the year-end December 31, 2000, a drop of nearly 80 percent compared to the year before.

The company said in a statement this year its operating and financial results reflected "a continuation of record levels of overall performance'' -- the same statement it made last year.

Consolidated net income stood at $71 million in 2000, compared to consolidated net income of $351 million in 1999.

Shareholders' equity reached $1,954 million after an extraordinary dividend of $200 million paid to shareholders in April 2000. In 1999, it was $2,083 million, the highest level in the company's 29-year history.

Prior to operating expenses, OIL recorded 2000 underwriting and investment income of $48 million and $33 million respectively.

Total assets were $3.2 billion, compared to $3.093 billion at year-end 1999.

Jon R. King, President and Chief Executive Officer, said: "For the last three years shareholders' equity at each year-end has been approximately $2.0 billion. This was a remarkable achievement considering that OIL paid extraordinary cash dividends totaling $700 million to our shareholders in 1998, 1999 and 2000. Without these dividends, shareholders's equity would be approaching $3 billion.'' Mr. King said that both underwriting and investment activities contributed positively to the company's overall 2000 financial performance.

OIL was set up in 1971 as a mutual insurance company designed to service the needs of the petroleum industry. The company was formed at time when the commercial markets had ceased to provide petroleum companies with adequate insurance coverage limits, particularly in the area of pollution liability, the company said.

It was formed by a group of 16 petroleum companies who joined together to provide catastrophe insurance coverage to members of the petroleum industry.

OIL's capital and surplus at January 1, 1971 was $160,00 -each of the 16 founding members contributed $10,000 as start-up capital for the company.

This is OIL's 30th year, and now has 48 members. It gross assets are in excess of $909 billion.