Exhibit 99.1

		News

For Immediate Release

Delphi Financial Announces Second Quarter Financial Results

Operating Earnings Per Share of $0.86, Net Income Per Share of $0.87

Diluted Book Value Per Share up 14% to $29.28

Wilmington, Delaware — July 26, 2011 — Delphi Financial Group, Inc. (NYSE: DFG) announced today operating earnings⁽¹⁾ of $48.7 million or $0.86 per diluted share for the second quarter of 2011 compared to $43.8 million or $0.79 per share for the second quarter of 2010. Net income attributable to shareholders was $49.4 million or $0.87 per diluted share, compared to $34.7 million or $0.62 per share in the second quarter of 2010.

Highlights for the second quarter include the following⁽²⁾:

	•		Core premium income of $366.5 million, an increase of 8.5% from the second quarter of 2010;
	•		Annuity sales of $149.0 million, an increase of 90.9% from the second quarter of 2010;
	•		Total premium and fee income of $385.0 million, an increase of 9.2% from the second quarter of 2010;
	•		Combined ratio of 93.8%, a decrease of 80 basis points from the second quarter of 2010;
	•		Net investment income of $83.2 million, an increase of 6.3% from the second quarter of 2010;
	•		Annualized operating return on beginning shareholders’ equity in the second quarter of 2011 of 12.2%, compared to 12.9% in the second quarter of 2010;
	•		Diluted book value per share of $29.28 at June 30, 2011, up 14.2% from June 30, 2010.

Robert Rosenkranz, Chairman and Chief Executive Officer, said, “Our financial results in the second quarter kept us on track to meet Delphi’s targets for the year. We are pleased with this performance, although investment results were somewhat below our expectations. Operating earnings benefited from strong underwriting margins in our insurance businesses. Reliance Standard’s modest premium growth and lower production in the quarter reflect our ongoing commitment to pricing and underwriting discipline. Safety National continued to expand our market leadership position in the excess workers’ compensation market and achieved robust growth in assumed workers’ compensation reinsurance. This positive momentum carried over into Safety National’s important July renewal period in excess workers’ compensation, which is not included in second quarter results, as we achieved high renewal ratios, strong new production and solid increases in rates and self-insured retentions.”

Mr. Rosenkranz added, “Delphi continues to maintain excellent financial flexibility to support the growth of our insurance and asset accumulation businesses, with shareholders’ equity at an all-time high, debt to total capitalization of 16.9% and holding company financial resources at a comfortable $140 million.”

Delphi Financial Reports Second Quarter 2011 Operating EPS of $0.86

Group Employee Benefit Segment

Core group employee benefit premiums for the second quarter of 2011 were $366.5 million, up 8.5% from $337.7 million in the second quarter of 2010. Core premiums at Delphi’s Safety National subsidiary rose 16.6% while core premiums at Delphi’s Reliance Standard Life subsidiary increased 5.9%. Core production in the second quarter of 2011 rose 5.3%, with core production at Safety National increasing 77.2% and core production at Reliance Standard Life decreasing 7.9%.

Delphi’s group employee benefit combined ratio in the second quarter of 2011 improved to 93.8% compared to 94.6% for the second quarter of 2010 and 95.3% for the full year 2010. Delphi’s group employee benefit loss ratio in the second quarter of 2011 improved by 200 basis points over the fourth quarter of 2010, resulting from the effect of better pricing and other actions taken to address elevated long-term disability claims incidence experienced in the second half of 2010.

Operating income for the group employee benefit segment for the second quarter of 2011 was $73.1 million, an 11.9% increase from $65.3 million in the second quarter of 2010.

Asset Accumulation Segment

Delphi’s asset accumulation segment, which is primarily focused on individual fixed annuities, achieved new annuity sales of $149.0 million in the second quarter of 2011, an increase of 90.9% from $78.0 million in the second quarter of 2010. The strong growth in annuity sales reflected continued favorable market conditions in Delphi’s wholesaler distribution channel. Funds under management at June 30, 2011 were $1.9 billion, up from $1.5 billion at June 30, 2010.

Operating income for the asset accumulation segment was $9.6 million, a decrease of 14.9% from $11.3 million the second quarter of 2010. Profitability was impacted by lower than expected investment income.

Investments

Delphi’s net investment income in the second quarter of 2011 was $83.2 million, a gain of 6.3% from $78.2 million in the second quarter of 2010. Invested assets at June 30, 2011 were $7.0 billion compared to $6.1 billion at June 30, 2010. The tax equivalent yield on the Company’s investment portfolio in the second quarter of 2011 was 5.3% compared to 5.6% in the second quarter of 2010.

Investment income was impacted in the second quarter by the challenging environment for fixed income securities, with interest rates trending lower and spreads remaining tight. In addition, returns from the Company’s alternative investments, which have historically provided enhanced investment income and reduced overall portfolio volatility, were essentially flat in the quarter.

Delphi reported after-tax net realized investment gains in the second quarter of 2011 of $0.7 million, including other-than-temporary impairments (“OTTI”) of ($3.5) million, compared with after-tax net realized investment losses of $(9.0) million, including OTTI of $(13.5) million, in the same quarter a year ago.

Delphi Financial Reports Second Quarter 2011 Operating EPS of $0.86

Capitalization and Shareholders’ Equity

Shareholders’ equity at June 30, 2011 increased 17% to a record $1.7 billion from $1.4 billion at June 30, 2010. Diluted book value per share reached a record $29.28 at June 30, 2011, up 14.2% from $25.64 at June 30, 2010.

Total capitalization at June 30, 2011 was $2.2 billion, including $375 million of corporate debt and $175 million of junior subordinated debentures.

Conference Call

On July 27, 2011 at 11:00 AM (Eastern time), Delphi will broadcast the Company’s second quarter 2011 earnings teleconference live on the Internet, hosted by Robert Rosenkranz, Chairman and Chief Executive Officer. Investors can access the broadcast at www.delphifin.com by clicking on the webcast icon on the home page. It is advisable to register at least 15 minutes prior to the call to download and install any necessary audio software. The online replay will be available on Delphi’s website for one week beginning at approximately 1:00 PM (Eastern time) on July 27, 2011. Investors can also download Delphi’s second quarter 2011 Financial Supplement from the Company’s website at www.delphifin.com/financial/stats11.html.

About Delphi Financial Group, Inc.

Delphi Financial Group, Inc. is a financial services company focused on specialty insurance and insurance-related businesses. Delphi is a leader in managing all aspects of employee absence to enhance the productivity of its clients and provides the related group insurance coverages: long-term and short-term disability, life, excess workers’ compensation for self-insured employers, large casualty programs including large deductible workers’ compensation, travel accident, dental and limited benefit health insurance. Delphi’s asset accumulation business emphasizes individual annuity products. Delphi’s common stock is listed on the New York Stock Exchange under the symbol DFG and its corporate website address is www.delphifin.com.

Cautionary Note Regarding Forward-Looking Statements

In connection with, and because it desires to take advantage of, the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Delphi cautions readers regarding certain forward-looking statements in the foregoing discussion and in any other statements made by, or on behalf of, Delphi, whether in future filings with the Securities and Exchange Commission or otherwise. Forward-looking statements are statements not based on historical information and which relate to future operations, strategies, financial results, prospects, outlooks or other developments. Some forward-looking statements may be identified by the use of terms such as “expects,” “believes,” “anticipates,” “intends,” “judgment,” “outlook,” “effort,” “attempt,” “achieve,” “project,” or other similar expressions. Forward-looking statements are necessarily based upon estimates and assumptions that are inherently subject to significant business, economic, competitive and other uncertainties and contingencies, many of which are beyond Delphi’s control and many of which, with respect to future business decisions, are subject to change. Examples of such uncertainties and contingencies include, among other important factors, those affecting the insurance industry generally, such as the economic and interest rate environment, federal and state legislative and regulatory developments, including but not limited to

Delphi Financial Reports Second Quarter 2011 Operating EPS of $0.86

changes in financial services, employee benefit and tax laws and regulations, changes in accounting rules or interpretations thereof, market pricing and competitive trends relating to insurance products and services, acts of terrorism or war, and the availability and cost of reinsurance, and those relating specifically to Delphi’s business, such as the level of its insurance premiums and fee income, the claims experience, persistency and other factors affecting the profitability of its insurance products, the performance of its investment portfolio and changes in Delphi’s investment strategy, acquisitions of companies or blocks of business, and ratings by major rating organizations of Delphi and its insurance subsidiaries. These uncertainties and contingencies can affect actual results and could cause actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of, Delphi. Forward-looking statements contained in the foregoing discussion are made as of the date of this press release and Delphi disclaims any obligation to update these or any other forward-looking statements.

Non-GAAP Financial Measures

In presenting the Company’s financial results, management has included and discussed certain financial measures that are not calculated under standards or rules that comprise U.S. GAAP. Such measures are referred to as non-GAAP. These measures should not be viewed as a substitute for those determined in accordance with U.S. GAAP. These non-GAAP financial measures are used by Delphi management in the management of its operations. Management of Delphi believes that showing these non-GAAP financial measures enables investors, analysts, rating agencies and other users of its financial information to more easily analyze Delphi’s results of operations in a manner similar to how management analyzes Delphi’s underlying performance.

Operating earnings, which is a non-GAAP financial measure, consists of net income attributable to shareholders excluding after-tax realized investment gains and losses, losses on early retirement of senior notes and results from discontinued operations, as applicable. The Company believes that because these excluded items arise from events that are largely within management’s discretion and whose fluctuations can distort comparisons between periods, a measure excluding their impact is useful in analyzing the Company’s operating trends. Investment gains or losses are realized based on management’s decision to dispose of an investment, and investment losses are realized based on management’s judgment that a decline in the market value of an investment is other than temporary. Early retirement of senior notes occurs based on management’s decision to redeem or repurchase these notes. Discontinued operations result from management’s decision to exit or sell a particular business. Thus, these excluded items are not reflective of the Company’s ongoing earnings capacity, and trends in the earnings of the Company’s underlying insurance operations can be more clearly identified without their effects. For these reasons, management uses the measure of operating earnings to assess performance and make operating plans and decisions, and the Company believes that analysts and investors typically utilize measures of this type as one element of their evaluations of insurers’ financial performance. However, gains or losses from the excluded items, particularly as to investments, can occur frequently and should not be considered as nonrecurring items. Further, operating earnings should not be considered a substitute for net income attributable to shareholders, the most directly comparable GAAP measure, as an indication of the Company’s overall financial performance and may not be calculated in the same manner as similarly titled captions in other companies’ financial statements. For reconciliations of the amounts of operating earnings to the corresponding amounts of net income attributable to shareholders for the indicated periods, see the table captioned “Non-GAAP Financial Measures — Reconciliation to GAAP” which follows.

Delphi Financial Reports Second Quarter 2011 Operating EPS of $0.86

Annualized operating return on beginning shareholders’ equity, which is a non-GAAP financial measure, is based on operating earnings divided by beginning shareholders’ equity. For reconciliations of the amounts of annualized operating return on equity to the corresponding amounts of annualized net income return on equity for the indicated periods, see the table captioned “Non-GAAP Financial Measures — Reconciliation to GAAP” which follows.

	(1)		Information regarding this and other non-GAAP financial measures included in this press release is contained under “Non-GAAP Financial Measures” above.
	(2)		In October 2010, the FASB issued guidance limiting the extent to which an insurer may capitalize costs incurred in the acquisition of an insurance contract. The guidance provides that, in order to be capitalized, such costs must be incremental and directly related to the acquisition of a new or renewal insurance contract. Insurers may only capitalize costs related to successful efforts in attaining a contract and advertising costs may only be capitalized if certain direct response advertising criteria are met. This guidance is effective for interim and annual reporting periods beginning after December 15, 2011, with either prospective or retrospective adoption permitted. Effective January 1, 2011, Delphi elected to adopt this guidance on a retrospective basis, which resulted in the write-off of the portion of its cost of business acquired that does not satisfy the standards for being capitalized under such guidance, as well as the restatement of certain of Delphi’s financial information for prior periods. Accordingly, the 2010 financial information has been restated to reduce operating earnings per share for the second quarter of 2010 by $0.04, and to reduce diluted book value per share at June 30, 2010 by $1.10. Detailed financial data concerning these matters is contained in the Company’s Second Quarter 2011 Financial Supplement, which is available on the Company’s website at www.delphifin.com/financial/stats11.html.

Contact:		Bernard J. Kilkelly
		Vice President, Investor Relations
		Delphi Financial Group, Inc.
Phone:		212-303-4349
E-mail:		bkilkelly@dlfi.com

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DELPHI FINANCIAL GROUP, INC.
Non-GAAP Financial Measures
Reconciliation to GAAP
(Unaudited; in thousands, except per share data)

		Three Months Ended								Six Months Ended
Income Statement Data		06/30/2011				06/30/2010				06/30/2011				06/30/2010
Operating earnings		$	48,697			$	43,818			$	100,203			$	90,153
Net realized investment gains (losses) (A)			730				(9,018	)			(552	)			(18,837	)
Loss on early retirement of senior notes (B)			—				(138	)			—				(138	)
Net income attributable to shareholders (GAAP measure)		$	49,427			$	34,662			$	99,651			$	71,178
Diluted results per share of common stock attributable to shareholders:
Operating earnings		$	0.86			$	0.79			$	1.76			$	1.62
Net realized investment gains (losses) (A)			0.01				(0.17	)			(0.01	)			(0.34	)
Loss on early retirement of senior notes (B)			—				(0.00	)			—				(0.00	)
Net income attributable to shareholders (GAAP measure)		$	0.87			$	0.62			$	1.75			$	1.28
Annualized operating return on beginning shareholders’ equity			12.2	%			12.9	%			13.1	%			13.9	%
Annualized net income return on beginning shareholders’ equity (GAAP measure)			12.4	%			10.2	%			13.0	%			11.0	%

Balance Sheet Data		6/30/2011				12/31/2010
Shareholders’ equity, excluding accumulated other comprehensive income		$	1,596,205			$	1,499,564
Add: Accumulated other comprehensive income			78,231				30,932
Shareholders’ equity (GAAP measure)		$	1,674,436			$	1,530,496
Diluted book value per share of common stock, excluding accumulated other comprehensive income		$	28.00			$	26.57
Add: Accumulated other comprehensive income			1.28				0.52
Diluted book value per share of common stock (GAAP measure)		$	29.28			$	27.09

DELPHI FINANCIAL GROUP, INC.
Consolidated Statements of Income
Total Operations
(Unaudited; in thousands, except per share data)

		Three Months Ended								Six Months Ended
		06/30/2011				06/30/2010				06/30/2011				06/30/2010
Revenue:
Premium and fee income		$	385,012			$	352,566			$	761,411			$	700,329
Net investment income			83,191				78,234				175,485				162,284
Net realized investment gains (losses):
Total other than temporary impairment losses			(7,775	)			(21,659	)			(15,314	)			(48,932	)
Less: Portion of other than temporary impairment losses recognized in other comprehensive income			2,432				826				953				5,101
Net impairment losses recognized in earnings			(5,343	)			(20,833	)			(14,361	)			(43,831	)
Other net realized investment gains			6,466				6,959				13,512				14,851
Net realized investment gains (losses)			1,123				(13,874	)			(849	)			(28,980	)
Loss on early retirement of senior notes			—				(212	)			—				(212	)
Total revenue			469,326				416,714				936,047				833,421
Benefits and expenses:
Benefits, claims and interest credited to policyholders			273,163				244,687				544,428				491,008
Commissions and expenses			121,137				116,460				240,575				229,789
			394,300				361,147				785,003				720,797
Operating income			75,026				55,567				151,044				112,624
Interest expense:
Corporate debt			6,007				8,264				12,017				15,587
Junior subordinated debentures			3,248				3,248				6,490				6,489
Income tax expense			15,762				9,385				32,157				19,297
Net income			50,009				34,670				100,380				71,251
Less: Net income attributable to noncontrolling interest			582				8				729				73
Net income attributable to shareholders		$	49,427			$	34,662			$	99,651			$	71,178
Basic results per share of common stock:
Net income attributable to shareholders		$	0.88			$	0.63			$	1.78			$	1.29
Weighted average shares outstanding			56,091				55,287				56,006				55,224
Diluted results per share of common stock:
Net income attributable to shareholders		$	0.87			$	0.62			$	1.75			$	1.28
Weighted average shares outstanding			56,868				55,765				56,801				55,611
Dividends paid per share of common stock		$	0.12			$	0.10			$	0.23			$	0.20

DELPHI FINANCIAL GROUP, INC.
SUMMARIZED CONSOLIDATED BALANCE SHEETS
(Unaudited; in thousands)

		06/30/2011				12/31/2010
Assets:
Investments:
Fixed maturity securities, available for sale		$	6,181,482			$	5,717,090
Short-term investments			228,486				334,215
Other investments			614,180				498,678
			7,024,148				6,549,983
Cash			90,271				72,806
Cost of business acquired			140,872				149,325
Reinsurance receivables			357,010				360,255
Goodwill			93,929				93,929
Other assets			337,274				311,577
Assets held in separate account			126,213				123,674
Total assets		$	8,169,717			$	7,661,549
Liabilities and Equity:
Policy liabilities and accruals		$	3,098,737			$	2,970,389
Policyholder account balances			1,884,029				1,753,744
Corporate debt			375,000				375,000
Junior subordinated debentures			175,000				175,000
Other liabilities and policyholder funds			830,157				728,612
Liabilities related to separate account			126,213				123,674
Total liabilities			6,489,136				6,126,419
Equity:
Class A Common Stock			567				565
Class B Common Stock			60				60
Additional paid-in capital			692,696				682,816
Accumulated other comprehensive income			78,231				30,932
Retained earnings			1,100,128				1,013,369
Treasury stock, at cost			(197,246	)			(197,246	)
Total shareholders’ equity			1,674,436				1,530,496
Noncontrolling interest			6,145				4,634
Total equity			1,680,581				1,535,130
Total liabilities and equity		$	8,169,717			$	7,661,549

DELPHI FINANCIAL GROUP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in thousands)

		Six Months Ended
		06/30/2011				06/30/2010
Operating activities:
Net income attributable to shareholders		$	99,651			$	71,178
Adjustments to reconcile net income attributable to shareholders to net cash provided by operating activities:
Change in policy liabilities and policyholder accounts			149,619				84,646
Net change in reinsurance receivables and payables			(4,016	)			(11,574	)
Amortization, principally the cost of business acquired and investments			16,626				24,624
Deferred costs of business acquired			(45,230	)			(34,273	)
Net realized losses on investments			849				28,980
Net change in federal income taxes			25,534				(5,473	)
Other			(45,373	)			(25,398	)
Net cash provided by operating activities			197,660				132,710
Investing activities:
Purchases of investments and loans made			(1,574,882	)			(936,660	)
Sales of investments and receipts from repayment of loans			1,002,719				494,984
Maturities of investments			171,331				176,718
Net change in short-term investments			105,729				55,689
Change in deposit in separate account			—				(2,965	)
Net cash used by investing activities			(295,103	)			(212,234	)
Financing activities:
Deposits to policyholder accounts			252,096				122,809
Withdrawals from policyholder accounts			(129,235	)			(54,905	)
Proceeds from issuance of 2020 Senior Notes			—				250,000
Principal payments under bank credit facility			—				(222,000	)
Early retirement of senior notes			—				(5,000	)
Cash dividends paid on common stock			(12,892	)			(11,054	)
Other financing activities			4,939				2,095
Net cash provided by financing activities			114,908				81,945
Increase in cash			17,465				2,421
Cash at beginning of year			72,806				65,464
Cash at end of period		$	90,271			$	67,885