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DELPHI FINANCIAL GROUP, INC. 2.5 MILLION SHARES PRICED AT $22 PER SHARE

 WILMINGTON, Del., Oct. 1 /PRNewswire/ -- Delphi Financial Group, Inc. (NASDAQ-NMS: DLFI) today announced the public offering of 2.5 million shares of Class A Common Stock priced at $22 per share.
 Merrill Lynch & Co. is the managing underwriter for the offering along with Oppenheimer & Co., Inc. as co-manager.
 The offering is part of Delphi's previously announced recapitalization plan designed to increase shareholders' equity, reduce leverage, decrease interest expense and increase the liquidity of its Class A Common Stock.
 The gross spread, or the difference between the price paid to the issuer and the price at which the shares are sold, was $1.10 per share. The selling concession, or the amount allocated to members of the selling group, was $.62 per share. The reallowance, or the amount allocated to firms that are not members of the selling group, was $.10 per share. Of the 2.5 million shares being offered, one million shares are being sold by certain shareholders. Delphi will not receive the proceeds from the shareholders' sales.
 Delphi will use the net proceeds of the stock offering along with a proposed $85 million senior note offering to redeem all $87.8 million of its 11 3/4% senior subordinated debentures outstanding. The remaining proceeds will be used to reduce outstanding indebtedness under Delphi's bank credit agreement. On a pro forma basis, the recapitalization plan reduces Delphi's interest expense from approximately $20 million to $12 million annually.
 Delphi Financial Group, Inc. is an insurance holding company that underwrites, nationally, through its principal subsidiary, Reliance Standard Life Insurance Company, a portfolio of life, long-term disability and personal accident insurance, targeted principally to the employee benefits market. It also operates an asset accumulation business, growing primarily through wholesale transactions and emphasizing intensive investment management. Delphi Financial Group, Inc.'s common stock (DLFI) is quoted through NASDAQ National Market System.
 /delval/
 -0- 10/1/93
 /CONTACT: Gerald R. Roop, director, Finance, of Delphi, 215-787-4274/
 (DLFI)


CO: Delphi Financial Group, Inc. ST: Delaware IN: INS SU: OFR

MK -- PH013 -- 7721 10/01/93 10:45 EDT
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Publication:PR Newswire
Date:Oct 1, 1993
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