<PAGE>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                    FORM 10-Q

                                   (Mark One)


(X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934 For the Period Ended June 30, 2002.
                               or
( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the Transition Period From              to
                               ------------    ------------

Commission file number 0-21230

              Midwest Medical Insurance Holding Company
--------------------------------------------------------
  (Exact name of registrant as specified in its charter)

      Minnesota                                     41-1625287
----------------------------------           ----------------------
(State or other jurisdiction of               (I.R.S. Employer
incorporation or organization)               Identification No.)

7650 Edinborough Way, Suite 400
Minneapolis, Minnesota                               55435-5978
-----------------------------------          ----------------------
(Address of principal executive offices)             (Zip Code)

                                952-838-6700
--------------------------------------------
    (Registrant's telephone number, including area code)


                              Not applicable
--------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter periods that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
                                      ---  ---

The number of shares outstanding of the issuer's classes of common stock as of
June 30, 2002:

Class B Common Stock, $1,000 par value - 1 share

Class C Common Stock, no par value -- 10,762 shares



                                        1


<PAGE>




                                      INDEX

                    Midwest Medical Insurance Holding Company


PART  I. FINANCIAL INFORMATION

Item 1.  Financial Statements (Unaudited)

         Condensed consolidated balance sheets -- June 30, 2002 and
         December 31, 2001

         Condensed consolidated statements of income - Three months
         ended June 30, 2002 and 2001; Six months ended June 30, 2002
         and 2001

         Condensed consolidated statements of cash flows - six months
         ended June 30, 2002 and 2001

         Notes to condensed consolidated financial statements -- June 30, 2002

Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations

Item 3.  Quantitative and Qualitative Disclosures About Market Risk


PART II. OTHER INFORMATION

Item 6.  Exhibits and Reports on Form 8-K


SIGNATURES





                                        2


<PAGE>



Part I.  Financial Information
         Item 1.  - Financial Statements

           MIDWEST MEDICAL INSURANCE HOLDING COMPANY and SUBSIDIARIES

                      Condensed Consolidated Balance Sheets
                             (Dollars in thousands)
<TABLE>
<CAPTION>
                                                                     June 30                 December 31
                                                                       2002                      2001
                                                                   ----------                -----------
                                                                   (Unaudited)                 (Note A)
<S>                                                                <C>                       <C>
ASSETS
   Fixed maturities at fair value (cost:
       2002 $146,959; 2001 $137,844)                                 $148,810                  $140,436
   Equity securities at fair value (cost:
       2002 $29,517; 2001 $46,432)                                     37,993                    63,700
   Short-term investments                                              21,984                    21,541
   Other investments at fair value (cost:
       2002 $39,860; 2001 $20,000)                                     40,821                    21,616
                                                                   ----------                -----------
                                                                      249,608                   247,293

   Cash                                                                     -                     1,018
   Accrued investment income                                            2,097                     2,219
   Premiums receivable -- Note C                                       24,974                     9,844
   Reinsurance recoverable on paid and unpaid losses                   14,410                    14,528
   Amounts due from reinsurers                                          6,779                     1,657
   Deferred income taxes                                                1,833                         -
   Other assets                                                        12,480                    10,846
                                                                   ----------                -----------
   Total assets                                                      $312,181                  $287,405
                                                                   ==========                ===========
LIABILITIES AND SHAREHOLDERS' EQUITY

LIABILITIES
   Unpaid losses and loss adjustment expenses                        $133,658                  $118,574
   Unearned premiums -- Note C                                         43,624                    15,489
   Policyholder dividends -- Note D                                     2,024                     4,050
   Deferred income taxes                                                    -                     1,664
   Amounts due to reinsurers                                            8,615                     6,775
   Other liabilities -- Note C                                          6,475                    13,966
                                                                   ----------                -----------
                                                                      194,396                   160,518
SHAREHOLDERS' EQUITY
   Class B Common Stock; authorized, issued and
     outstanding 1 share; $1,000 par value                                  1                         1
   Class C Common Stock; authorized 300,000 shares,
     issued and outstanding 10,762 shares in 2002
     and 9,298 shares in 2001; no par value                                 -                         -
   Paid-in capital                                                     12,789                    12,789
   Retained earnings                                                   97,545                    99,923
   Accumulated other comprehensive income:
     Net unrealized appreciation of investments                         7,450                    14,174
                                                                   ----------                -----------
                                                                      117,785                   126,887
                                                                   ----------                -----------
   Total liabilities and shareholders' equity                        $312,181                  $287,405
                                                                   ==========                ===========
</TABLE>


See notes to condensed consolidated financial statements.





                                        3


<PAGE>



           MIDWEST MEDICAL INSURANCE HOLDING COMPANY and SUBSIDIARIES

                   Condensed Consolidated Statements of Income
                             (Dollars in thousands)
                                   (Unaudited)


<TABLE>
<CAPTION>
                                                                       Three months ended                    Six months ended
                                                                            June 30                               June 30
                                                                  ---------------------------           ----------------------------
                                                                    2002               2001               2002               2001
                                                                  --------           --------           --------           ---------
<S>                                                               <C>                <C>                <C>                <C>
Revenues:
  Net premiums earned                                             $ 15,774           $  9,150           $ 32,520           $ 20,734
  Net investment income                                              3,077              3,250              5,995              6,249
  Net realized capital gains                                           238              3,828                782              6,126
  Other                                                              1,097                872              2,341              1,536
                                                                  --------           --------           --------           --------
                                                                    20,186             17,100             41,638             34,645
Losses and expenses:
  Losses and loss adjustment expenses                               17,925             11,581             36,008             23,290
  Underwriting, acquisition and
    insurance expenses                                               1,947              1,693              5,079              4,402
  Other operating expenses                                           2,053              1,684              4,169              3,345
                                                                  --------           --------           --------           --------
                                                                    21,925             14,958             45,256             31,037
                                                                  --------           --------           --------           --------
(Loss) income from continuing
  operations before income taxes                                    (1,739)             2,142             (3,618)             3,608
Income tax (benefit) expense --
  Note B                                                              (617)               784             (1,240)             1,312
                                                                  --------           --------           --------           --------
(Loss) income from continuing
  operations after income taxes                                     (1,122)             1,358             (2,378)             2,296

Discontinued operations -- Note E:
  Loss from discontinued operations,
    net of income tax benefit                                           --                (65)                --               (119)
                                                                  --------           --------           --------           --------
Net (loss) income                                                 $ (1,122)          $  1,293           $ (2,378)          $  2,177
                                                                  ========           ========           ========           ========
</TABLE>


 See notes to condensed consolidated financial statements.







                                        4



<PAGE>



           MIDWEST MEDICAL INSURANCE HOLDING COMPANY and SUBSIDIARIES

                 Condensed Consolidated Statements of Cash Flows
                             (Dollars in thousands)
                                   (Unaudited)

<TABLE>
<CAPTION>
                                                                                   Six months ended
                                                                                       June 30
                                                                            ----------------------------
                                                                              2002                2001
                                                                            -------             -------
<S>                                                                         <C>                 <C>
OPERATING ACTIVITIES
   Net income                                                               $(2,378)            $ 2,177
   Adjustments to reconcile net income to net cash
    provided by (used in) operating activities:
      Increase in premiums receivable                                       (15,130)            (14,497)
      Decrease in reinsurance recoverable on paid and
        unpaid losses                                                           118               7,180
      Increase in amounts due from reinsurers                                (5,122)             (2,991)
      Increase (decrease) in unpaid losses and loss
        adjustment expenses                                                  15,084              (8,225)
      Increase in unearned premiums                                          28,135              22,437
      Decrease in policyholder dividends                                     (2,026)             (4,045)
      Decrease in other liabilities                                          (7,491)             (5,030)
      Net realized capital gains                                               (782)             (6,126)
      Other changes, net                                                        412               1,151
                                                                            -------             -------
                                                                             10,820              (7,969)

INVESTING ACTIVITIES
   Purchases of fixed maturity investments and
      equity securities                                                    (119,728)            (80,636)
   Sales of fixed maturity investments and equity
      securities                                                            108,333              84,924
   Maturities and calls of fixed maturity investments                             -               3,360
   Net (purchase) sale of short-term investments                               (443)                560
                                                                            -------             -------
                                                                            (11,838)              8,208
                                                                            -------             -------

(Decrease) increase in cash                                                  (1,018)                239
Cash at beginning of year                                                     1,018                 976
                                                                            -------             -------
CASH AT JUNE 30                                                             $     -             $ 1,215
                                                                            =======             =======
</TABLE>



See notes to condensed consolidated financial statements.





                                        5



<PAGE>



           MIDWEST MEDICAL INSURANCE HOLDING COMPANY and SUBSIDIARIES

              Notes to Condensed Consolidated Financial Statements
                                   (Unaudited)

                                  June 30, 2002


         NOTE A - BASIS OF PRESENTATION

         The accompanying unaudited interim condensed consolidated financial
         statements of Midwest Medical Insurance Holding Company and its
         subsidiaries have been prepared in accordance with accounting
         principles generally accepted in the United States for interim
         financial information and with the instructions to Form 10-Q and
         Article 10 of Regulation S-X. Accordingly, they do not include all of
         the information and notes required by accounting principles generally
         accepted in the United States for complete financial statements. In the
         opinion of management, all adjustments (consisting of normal recurring
         accruals) considered necessary for a fair presentation have been
         included. Operating results for any interim period are not necessarily
         indicative of the results that may occur for the full year. These
         interim financial statements should be read in conjunction with the
         2001 consolidated financial statements and notes thereto included in
         Midwest Holding's Annual Report on Form 10-K as filed with the
         Securities and Exchange Commission.

         The balance sheet at December 31, 2001 has been derived from the
         audited financial statements at that date but does not include all of
         the information and notes required by accounting principles generally
         accepted in the United States for complete financial statements.

         Certain amounts applicable to prior periods have been reclassified to
         conform to the classifications followed in the current year. All
         intercompany amounts have been eliminated.

         In management's judgment, the following are the critical accounting
         policies of the Company:

         Use of Estimates

         The preparation of financial statements in conformity with accounting
         principles generally accepted in the United States requires management
         to make estimates and assumptions that affect the reported amounts of
         assets, liabilities, revenues and expenses, as well as disclosure of
         contingent assets and liabilities at the date of the financial
         statements. Actual results could differ from those estimates.

         Investments

         The Company manages its investment portfolio to achieve its long-term
         investment objective of providing for the financial stability of the
         Company through preservation of assets and maximization of total
         portfolio return. Although management believes the Company has the
         ability to hold its fixed maturity investment portfolio to maturity,
         these investments are classified as "available for sale," as management
         may take advantage of opportunities to increase total return through
         sales of selected securities in response to changing market conditions.




                                        6


<PAGE>



         NOTE A - BASIS OF PRESENTATION (continued)

         Consistent with management's classification of its investment in debt
         and equity securities as available for sale, such investments are
         carried at fair value, with unrealized holding gains and losses
         reflected as a component of other comprehensive income, net of
         applicable deferred taxes.

         Fair values are based on quoted market prices, where available. For
         fixed maturity investments not actively traded, fair values are
         estimated using values obtained from independent pricing services.

         Short-term investments are principally money market funds and
         commercial paper with maturities of less than one year. Short-term
         investments are recorded at cost, which approximates fair value.

         Other investments are less than 20% equity interests in a non-traded
         real estate investment trust and an international equity limited
         partnership. The real estate investment trust is recorded at appraised
         value and the international equity limited partnership is recorded at
         its net asset value.

         Realized gains and losses on sales of investments are reported on a
         pre-tax basis as a component of income and are determined on the
         specific identification basis.

         When evidence indicates a decline, which is other than temporary, in
         the underlying value or earning power of individual investments, such
         investments are written down to fair value by a charge to income.

         Losses and Loss Adjustment Expenses

         The liability for unpaid losses and loss adjustment expenses represents
         management's best estimate of the ultimate cost of all such amounts
         which are unpaid at the balance sheet dates. The liability is based on
         both case-by-case estimates and statistical analysis and projections
         using the historical loss experience of Midwest Medical and gives
         effect to estimates of trends in claim severity and frequency. These
         estimates are continually reviewed and, as adjustments become
         necessary, such adjustments are included in current operations. Midwest
         Medical believes that the estimate of the liability for losses and loss
         adjustment expenses is reasonable.

         Reinsurance

         Midwest Medical purchases reinsurance in order to reduce its liability
         on individual risks and to enable it to write business at limits it
         otherwise would be unable to accept. Reinsurance contracts are
         principally excess-of-loss contracts, which indemnify Midwest Medical
         for losses in excess of a stated retention limit up to the policy
         limits. Reinsurance costs are recorded as a reduction of premium, which
         is known in the insurance industry as ceded premium.

         NOTE B - INCOME TAXES

         The Company calculates its federal income tax provision for interim
         periods by estimating its annual federal effective tax rate and
         applying this rate to the income of the interim period. The estimated
         annual federal effective tax rate used for the three and six-month
         periods ended June 30, 2002 and 2001 was 34%. An estimate for state
         income taxes is also made for each entity.




                                        7


<PAGE>



         NOTE C - UNEARNED PREMIUMS, PREMIUMS RECEIVABLE and OTHER LIABILITIES

         The majority of Midwest Medical's insurance policies expire at December
         31 and renew on January 1 of each year. As a result, the majority of
         the unearned premium amount at June 30, 2002 represents six months of
         unearned premium for every active policy renewed or newly written on
         January 1, 2002 with an expiration date of December 31, 2002. At
         December 31, 2001, most active 2001 policies expired and therefore had
         no unearned premium.

         Of the total unearned premium balance of $15,489,000 at December 31,
         2001, $5,800,000 is reserved to recognize Midwest Medical's obligation
         to provide reporting endorsement coverage without additional premium
         upon the death, disability or retirement of policyholders. This amount
         represents an actuarial estimate of the present value of future
         benefits to be provided less the present value of future revenues to be
         received. The unearned premium balance at June 30, 2002 includes a
         $6,300,000 estimate for this obligation.

         The increase of $15,130,000 in premiums receivable from December 31,
         2001 to June 30, 2002 is primarily due to the renewal of most active
         policies on January 1. The full year's premium is recorded as written
         and collectible at January 1. Premiums may be paid annually or
         quarterly and each year's premium is nearly all collected during the
         year. The receivable balance remaining at the end of the year primarily
         relates to the small number of policies underwritten by Midwest Medical
         that have other than December 31 expiration dates.

         Of the total other liabilities balance of $13,966,000 at December 31,
         2001, $6,878,000 is for premium payments received from policyholders in
         advance of their January 1, 2002 policy renewal. No advance premium
         payments were recorded at June 30, 2002.

         NOTE D - POLICYHOLDER DIVIDENDS

         Midwest Medical's policyholder dividend program has been in place since
         1999 replacing the previous retrospective premium credit program for
         physicians. Participating policies represented approximately 96% of
         total premiums in force and premium income at June 30, 2002 and
         December 31, 2001, respectively.

         The first two quarterly installments of the $4,050,000 policyholder
         dividend declared in the third quarter of 2001 by Midwest Medical's
         Board of Directors were paid in February and May, respectively. The
         remaining two quarterly installments will be paid to physician and
         clinic policyholders in August and November. The dividend is awarded
         proportionately based on annual premiums for physician and clinic
         policyholders that were insured by Midwest Medical in 1997 and remain
         insured throughout 2002.

         NOTE E - DISCONTINUED OPERATIONS

         Effective July 31, 2001, the Company sold all of the capital stock of
         MedPower Information Resources, Inc. to ClaimLynx, Inc. Proceeds from
         the sale were $150,000. The Company recorded a $240,000 loss on the
         sale net of an income tax benefit of $124,000. No significant assets or
         liabilities remain from MedPower. The Company's condensed consolidated
         financial statements and notes report its former electronic medical
         claims processor as discontinued operations. Prior periods have been
         restated accordingly.





                                        8



<PAGE>



         NOTE F - COMPREHENSIVE INCOME

         The components of Midwest Holding's comprehensive income are net income
         and changes in net unrealized appreciation of investments. Total
         comprehensive income was $(5,290,000) and $(9,102,000)for the three and
         six-months ended June 30, 2002 and $(342,000) and $(5,964,000)for the
         three and six-months ended June 30, 2001.

         NOTE G - SEGMENT INFORMATION

         The Company's continuing operations are organized into five legal
         entity business segments. MMIC Business Office Solutions, Inc. (Office
         Solutions) began operations in February 2002 to provide physicians with
         business office outsourcing services. The main outsourcing service is
         the billing and collection of patient accounts. The other four segments
         are described under the "Background" section in Item 1 of the 2001
         Annual Report on Form 10-K. The legal entity name of MMIHC Insurance
         Services, Inc. (Services) was changed to MMIC Benefits, Inc. (Benefits)
         in April 2002.

         The following financial information summarizes the results of
         operations and total assets reported by the Company's five business
         segments for the three and six-month periods ended June 30, 2002 and
         2001 (in thousands).








                                        9





<PAGE>



NOTE G - SEGMENT INFORMATION (continued)
<TABLE>
<CAPTION>
                                                                   Three months ended June 30, 2002
                                  -------------------------------------------------------------------------------------------------
                                   Midwest      Midwest                   Medical      Office
                                   Holding      Medical      Benefits    Solutions    Solutions      Eliminations(1)   Consolidated
                                  -------------------------------------------------------------------------------------------------
<S>                               <C>          <C>          <C>          <C>          <C>            <C>               <C>
Revenues:
   External customers             $      --    $  15,775    $     687    $     390    $       5        $      --        $  16,857
   Intersegment                       3,976           --           --           60           --           (4,036)              --
   Net investment income                  3        3,073           --           --            1               --            3,077
   Other(2)                              17          235           --           --           --               --              252
                                  -------------------------------------------------------------------------------------------------
                                      3,996       19,083          687          450            6           (4,036)          20,186

Total expenses                        4,277       19,872          663        1,072           77           (4,036)          21,925
                                  -------------------------------------------------------------------------------------------------

(Loss) income from continuing
   operations before tax               (281)        (789)          24         (622)         (71)              --           (1,739)
Income tax (benefit)
   expense                             (119)        (271)           9         (212)         (24)              --             (617)
                                  -------------------------------------------------------------------------------------------------
(Loss) income from
   continuing operations
   after tax                      $    (162)   $    (518)   $      15    $    (410)   $     (47)       $      --        $  (1,122)
                                  =================================================================================================

Total assets                      $ 122,886    $ 304,246    $   3,021    $   2,098    $     119        $(120,189)       $ 312,181
                                  =================================================================================================
</TABLE>


(1)      Intersegment eliminations for revenues and expenses are primarily for
         management and administrative services provided by Midwest Holding.
         Eliminations for assets consist primarily of investments in
         wholly-owned subsidiaries, intersegment receivables and payables for
         management fees and reclassifications between assets and liabilities
         primarily for taxes.

(2)      Other revenues consist primarily of net realized capital gains.




                                       10


<PAGE>



NOTE G - SEGMENT INFORMATION (continued)

<TABLE>
<CAPTION>
                                                                   Three months ended June 30, 2001
                                     --------------------------------------------------------------------------------------------
                                      Midwest      Midwest                  Medical      Office
                                      Holding      Medical     Benefits    Solutions    Solutions   Eliminations(1)  Consolidated
                                     --------------------------------------------------------------------------------------------
<S>                                  <C>          <C>         <C>          <C>          <C>         <C>              <C>
Revenues:
   External customers                $      --    $   9,154   $     644    $     224    $      --      $      --      $  10,022
   Intersegment                          3,877           --          --           20           --         (3,897)            --
   Net investment income                     2        3,242           1            5           --             --          3,250
   Other(2)                                 --        3,828          --           --           --             --          3,828
                                     --------------------------------------------------------------------------------------------
                                         3,879       16,224         645          249           --         (3,897)        17,100

Total expenses                           4,175       13,274         576          830           --         (3,897)        14,958
                                     --------------------------------------------------------------------------------------------

(Loss) income from
   continuing operations
   before tax                             (296)       2,950          69         (581)          --             --          2,142
Income tax (benefit)
   expense                                 (85)       1,042          24         (197)          --             --            784
                                     --------------------------------------------------------------------------------------------
(Loss) income from
   continuing operations
   after tax                         $    (211)   $   1,908   $      45    $    (384)   $      --      $      --      $   1,358
                                     ============================================================================================

Total assets                         $ 139,151    $ 291,740   $   3,139    $   2,662    $      --      $(138,154)     $ 298,538
                                     ============================================================================================
</TABLE>


(1)      Intersegment eliminations for revenues and expenses are primarily for
         management and administrative services provided by Midwest Holding.
         Eliminations for assets consist primarily of investments in
         wholly-owned subsidiaries, intersegment receivables and payables for
         management fees and reclassifications between assets and liabilities
         primarily for taxes.

(2)      Other revenues consist primarily of net realized capital gains.





                                       11


<PAGE>



NOTE G - SEGMENT INFORMATION (continued)
<TABLE>
<CAPTION>
                                                                       Six months ended June 30, 2002
                                   -------------------------------------------------------------------------------------------------
                                    Midwest      Midwest                   Medical      Office
                                    Holding      Medical      Benefits    Solutions    Solutions      Eliminations(1)   Consolidated
                                   -------------------------------------------------------------------------------------------------
<S>                                <C>          <C>          <C>          <C>          <C>              <C>              <C>
Revenues:
   External customers              $      --    $  32,520    $   1,222    $   1,116    $       5        $      --        $  34,863
   Intersegment                        7,964           --           --          131           --           (8,095)              --
   Net investment income                   5        5,987            1            1            1               --            5,995
   Other(2)                               25          755           --           --           --               --              780
                                   -------------------------------------------------------------------------------------------------
                                       7,994       39,262        1,223        1,248            6           (8,095)          41,638

Total expenses                         8,558       41,087        1,336        2,237          133           (8,095)          45,256
                                   -------------------------------------------------------------------------------------------------

Loss from continuing
   operations before tax                (564)      (1,825)        (113)        (989)        (127)              --           (3,618)
Income tax benefit                      (210)        (613)         (37)        (337)         (43)              --           (1,240)
                                   -------------------------------------------------------------------------------------------------
Loss from continuing
   operations after tax            $    (354)   $  (1,212)   $     (76)   $    (652)   $     (84)       $      --        $  (2,378)
                                  ==================================================================================================
Total assets                       $ 122,886    $ 304,246    $   3,021    $   2,098    $     119        $(120,189)       $ 312,181
                                  ==================================================================================================
</TABLE>


(1)      Intersegment eliminations for revenues and expenses are primarily for
         management and administrative services provided by Midwest Holding.
         Eliminations for assets consist primarily of investments in
         wholly-owned subsidiaries, intersegment receivables and payables for
         management fees and reclassifications between assets and liabilities
         primarily for taxes.

(2)      Other revenues consist primarily of net realized capital gains.






                                       12


<PAGE>



NOTE G -- SEGMENT INFORMATION (continued)
<TABLE>
<CAPTION>
                                                               Six months ended June 30, 2001
                                   ----------------------------------------------------------------------------------------------
                                    Midwest      Midwest                   Medical      Office
                                    Holding      Medical      Benefits    Solutions    Solutions    Eliminations(1)  Consolidated
                                   ----------------------------------------------------------------------------------------------
<S>                                <C>          <C>          <C>          <C>          <C>             <C>             <C>
Revenues:
   External customers              $      --    $  20,727    $   1,149    $     394    $      --       $      --       $  22,270
   Intersegment                        7,669           --           --           41           --          (7,710)             --
   Net investment income                  17        6,216            4           12           --              --           6,249
   Other(2)                               28        6,098           --           --           --              --           6,126
                                   ----------------------------------------------------------------------------------------------
                                       7,714       33,041        1,153          447           --          (7,710)         34,645

Total expenses                         8,266       27,693        1,202        1,586           --          (7,710)         31,037
                                   ----------------------------------------------------------------------------------------------

(Loss) income from
   continuing operations
   before tax                           (552)       5,348          (49)      (1,139)          --              --           3,608
Income tax (benefit)
   expense                              (167)       1,881          (15)        (387)          --              --           1,312
                                   ----------------------------------------------------------------------------------------------
(Loss) income from
   continuing operations
   after tax                       $    (385)   $   3,467    $     (34)   $    (752)   $      --       $      --       $   2,296
                                   ==============================================================================================

Total assets                       $ 139,151    $ 291,740    $   3,139    $   2,662    $      --       $(138,154)      $ 298,538
                                   ==============================================================================================
</TABLE>


(1)      Intersegment eliminations for revenues and expenses are primarily for
         management and administrative services provided by Midwest Holding.
         Eliminations for assets consist primarily of investments in
         wholly-owned subsidiaries, intersegment receivables and payables for
         management fees and reclassifications between assets and liabilities
         primarily for taxes.

(2)      Other revenues consist primarily of net realized capital gains.





                                       13


<PAGE>



         Item 2. - Management's Discussion and Analysis of Financial Condition
         and Results of Operations

         General

         The following analysis of the financial condition and results of
         operations of Midwest Holding and its wholly-owned subsidiaries,
         Midwest Medical Insurance Company, MMIC Benefits, Inc., Midwest Medical
         Solutions, Inc., and MMIC Business Office Solutions, Inc. should be
         read in conjunction with the condensed consolidated financial
         statements and notes included in this report. Midwest Holding and its
         subsidiaries are collectively referred to as the Company unless the
         reference pertains to a specific entity.

         Capital Resources and Liquidity

         The majority of the Company's assets, 80% at June 30, 2002 and 86% at
         December 31, 2001, are invested in investment-grade bonds, equities, a
         real estate investment trust fund, an international equity limited
         partnership, and short-term investments. Other investments consist of
         equity interests in a non-traded real estate investment trust (REIT)
         and an international equity limited partnership. These investments are
         classified as available for sale and are therefore recorded at fair
         value. The fair value for the REIT is determined by the most recent
         independent appraisal and the fair value for the international equity
         limited partnership is determined by the period ending net asset value
         as reported by the limited partnership's custodian. In the second
         quarter of 2002, the Company completed a like-kind exchange that
         transferred its managed international equities account to the
         investment manager's international equity limited partnership. The
         transfer retains the Company's diversification in international
         equities while simplifying the administration and reducing the related
         investment expense.

         Operations generated $10,820,000 of positive cash flow during the first
         six months of 2002 compared to $(7,969,000) of negative cash flow for
         the same period of 2001. Growth in new business volume of approximately
         $12,600,000 and premium rate increases of approximately 18% on average
         per renewed account caused greater cash receipts in the first six
         months of 2002. Lower policyholder dividend payments also contributed
         to the positive cash flow. Increased reinsurance costs due to volume
         growth and reinsurance rate increases partially offset the above
         positive cash flows. Reinsurance, policyholder dividend, claim, and
         federal tax payments drove the negative operating cash flow in the
         first six months of 2001.

         The Company believes that its cash, internally generated funds and
         investments will be sufficient to meet normal operating requirements.
         The principal operating requirement is the payment of insurance claims.
         Loss and operating expense payments have been met from policyholder
         premium receipts during the first six months of 2002. Policyholder
         premium receipts are anticipated to cover loss and operating expense
         payments for the remainder of 2002 due to growth in new business volume
         and premium rate increases.

         Shareholders' equity decreased $(9,102,000) during the first six months
         of 2002. The decrease consisted of a net loss from operations of
         $(2,378,000) and net unrealized losses in the fair value of
         investments, net of deferred taxes, of $(6,724,000).


                                       14


<PAGE>



         Results of Operations

         Net premiums earned increased $11,786,000 for the first six months of
         2002 compared to the same period of 2001. New business generated
         approximately $5,434,000 of additional earned premium. Base rate
         increases and fewer premium discounts resulted in an average written
         premium increase of approximately 18% on policies that renewed in the
         first six months of 2002. This was partially offset by greater
         reinsurance costs. The greater premium volume coupled with an increase
         in 2002 reinsurance rates caused current year reinsurance costs to
         increase from $4,120,000 in 2001 to $6,629,000 in 2002. Although the
         exit of major competitors from the medical malpractice marketplace has
         created many opportunities to write new business, Midwest Medical
         remains selective in assuming new risks. The following provides further
         detail on premiums written and earned for the six months ended June 30,
         2002 and 2001:

<TABLE>
<CAPTION>

                                       Six months ended June 30
                           --------------------------------------------------
                                    2002                        2001
                           ----------------------      ----------------------
                           Written        Earned       Written        Earned
                           ----------------------      ----------------------
                               (In Thousands)              (In Thousands)
<S>                        <C>           <C>           <C>           <C>
         Current Year:
           Direct          $ 67,584      $ 39,405      $ 49,747      $ 27,310
           Assumed               15            60            21            21
           Ceded            (11,751)       (6,629)       (7,112)       (4,120)
                           ----------------------      ----------------------
                             55,848        32,836        42,656        23,211
         Prior Years:
           Ceded               (316)         (316)       (2,477)       (2,477)
                           ----------------------      ----------------------
         Net               $ 55,532      $ 32,520      $ 40,179      $ 20,734
                           ======================      ======================
</TABLE>


         Net capital gains of $782,000 were realized during the first six months
         of 2002, a decrease of $(5,344,000) over the same period in 2001. The
         realized capital gains in the first six months of 2002 resulted
         primarily from bond sales initiated by the investment manager who
         manages the portfolio on a pre-tax total return basis. In the first six
         months of 2001, equities selected by the outside, domestic equity
         manager were sold to fund the additional REIT purchase of $10,000,000
         and policyholder dividend payments. Future levels of realized capital
         gains or losses are difficult to predict as investment managers
         purchase and sell securities in response to changing market conditions
         and investment policy guidelines.

         Other revenues were $2,341,000 for the first six months of 2002, an
         increase of $805,000 from the same period of 2001. Most of this
         increase is due to Medical Solutions' revenue growth primarily from the
         practice solutions division. Practice solutions is a value added
         reseller of the NextGen electronic practice management (EPM) and
         electronic medical records (EMR) systems. Practice solutions generated
         $783,000 in new revenues from the sale, installation and support of
         NextGen systems in the first six months of 2002.

         Losses and loss adjustment expenses increased $12,718,000 for the first
         six months of 2002 versus 2001. Since the effects of interim claim
         frequency and severity statistics are not actuarially analyzed,
         incurred losses are estimated during the interim using historical
         company data, known trends and management's judgment. The increase in
         2002 incurred losses was in line with management's expectations due to
         Midwest Medical's growth in business and the corresponding


                                       15


<PAGE>



         exposure as well as a recent upward trend in claims severity. Nothing
         came to management's attention during this period that would materially
         alter loss expectations for the remainder of the year.

         Underwriting, acquisition and insurance expenses increased $677,000 for
         the first six months of 2002 compared to the same period in 2001.
         Additional commissions and premium taxes resulting from the greater
         premium volume drove the increase.

         Other operating expenses increased $824,000 for the first six months of
         2002 compared to the same period in 2001. The increase was primarily
         due to the practice solutions division of Medical Solutions becoming
         fully operational towards the end of 2001 and the launch of Office
         Solutions in the first quarter of 2002.

         The first six months of 2002 incurred an income tax benefit of
         $1,240,000 compared to an income tax expense of $1,312,000 for the same
         period in 2001. The effective tax rates were 34% and 36%, respectively.
         State income tax estimates caused the difference from the estimated
         annual federal effective tax rate of 34% in 2001.

         As a result of the factors discussed above, the Company recorded a net
         loss of $2,378,000 for the six months ended June 30, 2002 compared to
         net income of $2,177,000 for the same period of 2001.

         Cautionary Note Regarding Forward-Looking Statements

         Statements other than historical information contained in this report
         are considered to be "forward-looking statements" within the meaning of
         Section 27A of the Securities Act of 1933, as amended, and Section 21E
         of the Securities Act of 1934, as amended.

         All forward-looking statements address matters that involve risks and
         uncertainties. Accordingly, in addition to the factors discussed in
         this report, there are or will be other significant factors that could
         cause actual results to differ materially from those indicated. These
         factors include but are not limited to:

         1.    the impact of changing market conditions on the Company's
               business strategy;
         2.    the effects of increased competition on pricing, coverage terms,
               retention of customers and ability to attract new customers;
         3.    greater severity or frequency of the types of losses that the
               Company insures;
         4.    faster or more adverse loss development experience than what the
               Company had based its underwriting, reserving, and investment
               practices;
         5.    developments in global financial markets which could adversely
               affect the performance of the Company's investment portfolio;
         6.    litigation, regulatory or tax developments which could adversely
               affect the Company's business;
         7.    risks associated with the introduction of new products and
               services;
         8.    dependence on key personnel; and
         9.    the impact of mergers and acquisitions.



         The above factors should be considered when reviewing any
         forward-looking statement contained in this report. The significant
         factors that could affect forward-looking statements are subject to
         change, and the Company does not intend to update any forward-looking
         statement or the above list of significant factors.

                                       16


<PAGE>



         Cautionary Note Regarding Forward-Looking Statements (continued)

         By this cautionary note, the Company intends to rely upon the safe
         harbor from liability with respect to forward-looking statements
         provided by Section 27A and Section 21E referred to previously.

         Item 3. - Quantitative and Qualitative Disclosures About Market Risk

         Market risk is the risk of loss that may occur when fluctuations in
         interest and foreign currency exchange rates and equity and commodity
         prices change the value of a financial instrument. Both derivative and
         nonderivative financial instruments have market risk. The Company is
         primarily exposed to interest rate risk on its investment in fixed
         maturities, equity price risk on its investments in equity securities
         and the international equity limited partnership, and foreign currency
         exchange rate risk on its investment in the international equity
         limited partnership.

         Based primarily on past annual performance relative to the Standard &
         Poors 500 Market Index (S&P 500), an abrupt ten percent decrease in the
         S&P 500 would adversely affect the fair value of equity securities and
         the international equity limited partnership by approximately
         $7,000,000 at June 30, 2002 compared to $7,800,000 at December 31,
         2001.

         No material change occurred in the interest rate risk or the foreign
         currency exchange rate risk since the year ended December 31, 2001.

         The Company believes that there would be no material effect on its net
         income and cash flows in any of the above scenarios. This effect on net
         income and cash flows does not consider the possible effects a change
         in economic activity could have in such an environment. Investors,
         customers, regulators and legislators could respond to these
         fluctuations in ways the Company cannot foresee. Because the Company
         cannot be certain what specific actions would be taken and their
         effects, the above sensitivity analyses assume no significant changes
         in the Company's financial structure.


         Part II. Other Information

         Item 6. -- Exhibits and Reports on Form 8-K


                    (a)    Exhibits

                           99.1     Chief Executive Officer Certification
                                    pursuant to 18 U.S.C. Section 1350, as
                                    adopted pursuant to Section 906 of the
                                    Sarbanes-Oxley Act of 2002.

                           99.2     Chief Financial Officer Certification
                                    pursuant to 18 U.S.C. Section 1350, as
                                    adopted pursuant to Section 906 of the
                                    Sarbanes-Oxley Act of 2002.

                    (b)   Reports on Form 8-K

                          None





                                       17


<PAGE>




         Signatures


         Pursuant to the requirements of the Securities Exchange Act of 1934,
         the registrant has duly caused this report to be signed on its behalf
         by the undersigned thereunto duly authorized.




                                      Midwest Medical Insurance Holding Company
                                     -------------------------------------------
                                                     (Registrant)





         Date August 12, 2002              /s/ David P. Bounk
              ---------------              -------------------------------------
                                           David P. Bounk
                                           President and Chief Executive Officer




         Date August 12, 2002              /s/ Niles Cole
              ---------------              -------------------------------------
                                           Niles Cole
                                           Vice President and
                                           Principal Financial Officer and
                                           Principal Accounting Officer









                                       18