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                                                                    Exhibit 99.1

New York, New York, October 22, 1998: Gryphon Holdings Inc. announced today that
its Board of Directors had approved an amendment to its Shareholders Rights Plan
to provide that the rights will be exercisable and will trade separately from
the Company's Common Stock on the tenth business day following (i) the
acquisition by a person or group of beneficial ownership of 11.8% or more of the
shares of the Company's Common Stock then outstanding, or (ii) the commencement
by a person or group of a tender or exchange offer that would result in such
person or group owning an amount of shares of the Company's Common Stock that
equals or exceeds 11.8% of the shares of the Company's Common Stock then
outstanding. The amendment adopted the percentage of beneficial ownership
specified above in lieu of a formula that had been a source of confusion to
shareholders.

The Shareholders Rights Plan was established to ensure that Gryphon shareholders
receive fair value and equal treatment in the event of any proposed takeover of
the Company. The Board believes that the clarification achieved by the amendment
is in the Company's and its shareholders' best interests.

Gryphon Holdings operates through its main subsidiary, Gryphon Insurance Group,
as a specialty property and casualty underwriting organization. The Company's
wholly owned insurance company subsidiaries are Associated International
Insurance Company, Calvert Insurance Company, and The First Reinsurance Company
of Hartford.