OIL to Buy Back $300 Million in Debt

June 6, 2006

Oil Insurance Limited, founded in Bermuda in 1971 by 16 energy companies, as a mutual insurance company, announced that it is offering to purchase for cash any and all of its outstanding $300 million aggregate principal amount of deferrable subordinated debentures (the Securities) due August 15, 2033.

“In connection with the offer, OIL is soliciting consents from holders of the Securities to effect certain proposed amendments to the indenture governing the Securities, including, among other things, the elimination of substantially all of the restrictive covenants and certain events of default and amendments of certain other provisions contained in the indenture,” said the bulletin.

The bulletin gavce the following details concerning OIL’s offer: “The offer will commence on Monday, June 5, 2006, and will expire at 5:00 p.m. New York City time on Friday, June 30, 2006, unless extended or earlier terminated, in either case, by OIL in its sole discretion. The consent solicitation will expire at 5:00 p.m. New York City time, on Friday, June 16, 2006, unless extended (the “Consent Payment Deadline”). Holders of Securities wishing to sell must follow the instructions set forth in OIL’s Offer to Purchase and Consent Solicitation Statement dated June 5, 2006 (the “Purchase Offer”). Acceptances of the offer may be withdrawn until 5:00 p.m. New York City time on Friday, June 16, 2006. The tender offer is not conditioned on a minimum percentage of tenders or on the closing of any securities offering or other financing.”

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