in 1998 the company announced yesterday.

The 1998 consolidated net income included a $171 million one-time adjustment for unrealised investment gains relating to 1997 after OIL reclassified its investment portfolios.

The company ended the 1998 year with shareholders equity of about $2 billion, even after the company paid shareholders a special cash dividend of $200 million in 1998. OIL has declared a special dividend of $300 million payable on April 12, 1999.

OIL's investment income was the driving force behind the company's net income for the year. Investments generated $511 million in revenues to the company's net income.

The company had an underwriting loss of $16 million for the year before operating expenses. OIL president and chief executive officer Jon King said the underwriting loss was not considered an "unusual'' event and was consistent with the company's philosophy and operation.

Overall loss activity between 1993 to 1997 was unusually low which led to an automatic decline in premiums collected he said. OIL is a mutual insurance company owned by 46 petroleum companies and has been in operation for 28 years.