Ltd. had net income of $2.8 million, or $1.38 per share. Bermuda-based Delphi began underwriting operations through wholly-owned subsidiary Oracle Reinsurance Co. Ltd. on January 27 this year.

Revenues for the first period were $128.4 million with premiums of $120.8 million.

The company concentrates on excess-of-loss and quota share reinsurance of Delphi Financial Group subsidiaries Safety National Casualty of St. Louis and Reliance Standard Life Insurance of Philadelphia.

The company made provisions of $116.9 million for losses incurred, and together with total underwriting expenses amounted to $123.6 million. The combined ratio for the period was 102.3 percent.

Investment income was $7.6 million. Net income was reduced by $2.4 million on two non-recurring items, the write-off of total organisational costs and US federal excise taxes on initial reinsurance transactions. Delphi President and Chief Executive Officer Colin O'Connor expressed satisfaction with the results so far.

"Despite providing for losses at a level which produced a conservative combined ratio of 102.3 percent, net income was a very satisfactory $1.38 per share for the two-month period,'' he said. "The period showed exceptional investment performance, but we cannot expect to replicate the 29.9 percent annualised portfolio yield on a long-term basis.'' The company has invested a significant portion of its assets in long-term vehicles which through a multi-manager, multi-strategy programme has produced 16-year annual investment returns of about 15 percent. The company had invested assets of $156.7 million, and other assets of $16 million according to an unaudited statement.

Delphi's common stock is quoted on the NASDAQ under the symbol "DPHIF''. Mr.

O'Connor is the former head of Belvedere Insurance, a Bermuda company that is now in run-off.