`WASHINGTON, D.C. 20549


                           FORM 10-QSB


      --X-      Quarterly Report Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934

      ----      Transition Report Pursuant to Section 13 or 15(d)
      ----      of the Securities Exchange Act of 1934


For Quarter Ending         June 30, 2000
                     ---------------------------------------------------------
Commission File Number      333-24739
                       -------------------------------------------------------

                         STONEVILLE INSURANCE COMPANY
------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

        MISSISSIPPI                                 72-1341156
------------------------------------------------------------------------------
(State or other jurisdiction of              (I.R.S. Employer Identification
incorporation or organization)                Number)

633 NORTH STATE STREET, SUITE 200, JACKSON, MISSISSIPPI       39202-7817
------------------------------------------------------------------------------
(Address of principal executive offices)                     (Zip Code)

                              (601) 352-7817
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              (Registrants telephone number, including area code)

                             NOT APPLICABLE
------------------------------------------------------------------------------
      (Former name, address and 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  period 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
                             ---------        ----------


503,384 Common Shares were outstanding  as of June 30, 2000 for financial
statement purposes.

Transitional Small Business Disclosure format

YES                 NO
   -------             ---------`

# 1

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`STONEVILLE INSURANCE COMPANY

                                      Unaudited Quarterly Financial Statements

                                                                                                         Page


                                      Consolidated Balance Sheets
                                           June 30, 2000 and December 31, 1999                             3

                                      Consolidated Statements of Income
                                          Six Months Ended June 30, 2000 and 1999                          4

                                      Changes in Shareholders Equity                                      5
                                          Six Months Ended June 30, 2000

                                      Consolidated Statements of Cash Flows                                6
                                           Six Months Ended June 30, 2000 and 1999

                                      Notes To Consolidated Financial Statements                           7

                                      Managements Discussion and Analysis                                 9`

# 2

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`PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

STONEVILLE INSURANCE COMPANY AND SUBSIDIARIES
Consolidated Balance Sheets
June 30, 2000 and December 31, 1999


                                                                               June 30,                   December 31,
                                                                                 2000                         1999
                                                                            ---------------            -------------------
Assets
Investments:
Securities available-for-sale at fair value - amortized
   cost of $958,867 (2000) and $967,000 (1999)                                    $951,765                       $961,939
Short-term investments, at cost which approximates market                          351,692                        351,692
                                                                            ---------------            -------------------
Total Investments                                                                1,303,457                      1,313,631

Cash and Cash Equivalents                                                        1,395,927                      1,062,290
Premiums receivable                                                                503,282                        622,228
Accounts receivable                                                                294,769                        309,081
Refundable income taxes                                                             68,419                        211,063
Reinsurance recoverable                                                            556,986                        573,676
Equipment, net of accumulated depreciation of
  $83,000 (2000) and $59,000 (1999)                                                181,541                        183,807
Deferred tax assets                                                                198,356                         62,849
Intangible assets, net of accumulated amortization of
  $45,000 (2000) and $30,000 (1999)                                                155,000                        170,000
Other                                                                               65,098                         29,621
                                                                            ---------------            -------------------

Total Assets                                                                    $4,722,835                     $4,538,246
                                                                            ===============            ===================


Liabilities
Reserve for losses and loss adjustment expenses                                 $1,326,604                     $1,258,463
Unearned premium                                                                   663,411                        846,982
Funds advanced under reinsurance contracts                                         652,901                        443,015
Accounts payable and accrued liabilities                                           272,843                        197,755
Capital lease obligations                                                            6,400                          6,953
                                                                            ---------------            -------------------
Total Liabilities                                                                2,922,159                      2,753,168
                                                                            ---------------            -------------------

Shareholders Equity
Common stock ($1 par value; 10,000,000 shares authorized;
  503,384 shares issued and outstanding)                                           503,384                        503,384
Retained earnings                                                                1,299,732                      1,284,625
Accumulated other comprehensive income -
  Unrealized gains on securities available for sale,
  net of income taxes (benefit) of $(4,662) (2000) and $(2,000) (1999)              (2,440)                        (2,931)
                                                                            ---------------            -------------------
Total Shareholders Equity                                                       1,800,676                      1,785,078
                                                                            ---------------            -------------------

Total Liabilities and Shareholders Equity                                      $4,722,835                     $4,538,246
                                                                            ===============            ===================








See accompanying notes to financial statements.`

# 3

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`STONEVILLE INSURANCE COMPANY AND SUBSIDIARIES
Consolidated Statements of Operations
Three Months and Six Months Ended June 30, 2000 and 1999
(Unaudited)
                                                                       Three Months Ended                   Six Months Ended
                                                                             June 30                             June 30
                                                                   ------------------------------     --------------------------
                                                                        2000           1999                2000          1999
                                                                   ------------------------------     --------------------------
Revenues
Net premiums earned (less ceded amount of approximately
   $364,840 and $626,405 in 2000 and $98,067 and
   $152,744 in 1999)                                                     $512,586       $534,540        1,004,757       769,932
Investment income                                                          30,691         23,821           56,895        49,229
Gain on sale of securities                                                      0          6,387                0         6,387
Administrative and management fees                                        476,268        198,873          835,608       569,215
Other                                                                     101,232         20,447          181,232        22,109
                                                                       ----------     ----------      -----------    -----------

Total Revenues                                                          1,120,777        784,068        2,078,492     1,416,872
                                                                       ----------     ----------      -----------    -----------

Expenses
Loss and loss adjustment expenses                                         358,334        437,298          766,466       660,068
Policy acquisition fees                                                    41,240         37,225           81,143        61,348
Program administration fees                                                82,234         75,262          148,535       118,284
Regulatory fees                                                            31,674         29,711           61,335        46,949
General expenses                                                          568,608        427,132          996,250       773,753
                                                                       ----------     ----------      -----------    -----------

Total Expenses                                                          1,082,090      1,006,628        2,053,729     1,660,402
                                                                       ----------     ----------      -----------    -----------

Income (Loss) before Income Taxes                                          38,687       (222,560)          24,763      (243,530)

Provision (benefit) for income taxes                                       15,081        (88,345)           9,658       (96,524)
                                                                       ----------     ----------      -----------    -----------

Net Income (Loss)                                                          23,606       (134,215)          15,105      (147,006)

Other Comprehensive Income, net of income tax effect -
  Unrealized gain (loss) on investments in securities                       4,851         (6,372)             493       (18,588)
                                                                       ----------     ----------      -----------    -----------
Comprehensive Income (Loss)                                                28,457       (140,587)          15,598      (165,594)
                                                                       ==========     ==========      ===========    ===========

Net Income (Loss) Per Share                                                 $0.05         ($0.27)           $0.03        ($0.29)
                                                                       ==========     ==========      ===========    ===========













See accompanying notes to financial statements.`

# 4

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`STONEVILLE INSURANCE COMPANY AND SUBSIDIARIES
Consolidated Statements of Changes in Shareholders Equity
For Periods Indicated



                                                                                                  Accumulated
                                                                                                     Other            Total
                                                         Common Stock             Retained       Comprehensive    Shareholders
                                                      -------------------------
                                                         Shares      Amount       Earnings           Income           Equity
                                                      ---------------------------------------------------------------------------
Balance at December 31, 1998                               503,384    $503,384      $1,388,334       $23,335          $1,915,053
  Net income (loss)                                                                   (103,709)                         (103,709)

  Net decrease in unrealized appreciation of
   securities available for sale                                                                     (26,266)            (26,266)
                                                      ---------------------------------------------------------------------------

Balance at December 31, 1999                               503,384    $503,384      $1,284,625       ($2,931)         $1,785,078

  Net income                                                                            15,105                            15,105

  Net increase in unrealized appreciation of
   securities available for sale                                                                         493                 493
                                                      ---------------------------------------------------------------------------


Balance at June 30, 2000                                   503,384    $503,384      $1,299,730       ($2,438)         $1,800,676
                                                      ===========================================================================


















See accompanying notes to financial statements.`

# 5

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`STONEVILLE INSURANCE COMPANY AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Six Months Ended June 30, 2000 and 1999


                                                                                            2000                       1999
                                                                                       ---------------            ---------------
Cash Flows From Operating Activities
Premiums collected                                                                         $1,126,219                   $641,864
Other income                                                                                1,028,636                    289,750
Losses and loss adjustment expenses paid                                                     (438,342)                  (345,578)
General insurance and administrative expenses paid                                         (1,416,552)                  (883,860)
Investment income received                                                                     55,877                     54,688
Interest paid                                                                                    (500)                      (497)
                                                                                       ---------------            ---------------
Net Cash Provided by (Used by) Operating Activities                                           355,338                   (243,633)
                                                                                       ---------------            ---------------

Cash Flows From Investing Activities
Proceeds from sales and maturities of securities available-for-sale                               468                    478,104
Purchase of available-for-sale securities                                                                               (131,414)
Capital expenditures                                                                          (21,616)                  (211,541)
                                                                                       ---------------            ---------------
Net Cash Provided by (Used in) Investing Activities                                           (21,148)                   135,149
                                                                                       ---------------            ---------------

Cash Flows From Financing Activities
Principal payments under capital lease obligations                                               (553)                      (607)
                                                                                       ---------------            ---------------
Net Cash Used in Financing Activities                                                            (553)                      (607)
                                                                                       ---------------            ---------------

Net Increase (Decrease) in Cash and
  Cash Equivalents                                                                            333,637                   (109,091)

Cash and Cash Equivalents at Beginning of Period                                            1,062,290                  1,222,322
                                                                                       ---------------            ---------------

Cash and Cash Equivalents at End of Period                                                 $1,395,927                 $1,113,231
                                                                                       ===============            ===============
















See accompanying notes to financial statements.`

# 6

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`Stoneville Insurance Company and Subsidiaries

Notes to Consolidated Financial Statements
Quarters Ended June 30, 2000 and 1999 (Unaudited)

1.       Basis of Presentation

         These interim consolidated financial statements have been prepared in accordance with the
         instructions to Form 10Q and do not include all of the information and note disclosures required by
         accounting principles generally accepted in the United States of America and must be read in conjunction
         with the 1999 annual statement.  The accompanying financial statements have not been audited by independent
         accountants in accordance with auditing standards generally accepted in the United States of America,
         but in the opinion of management, the accompanying interim unaudited financial statements contain all adjustments
         necessary to summarize fairly the statement of financial position and results of operations of the
         Company for the interim periods.


2.       Consolidation of Subsidiaries

         In January, 1999, the Company formed Stoneville Service Company, Inc., a Mississippi corporation
         owned entirely by Stoneville Insurance Company.  Stoneville Service Company, Inc. provides claims
         and risk control services primarily to Arkansas groups that are self-funded for workers compensation
         purposes.

         In May, 1999, the Company acquired all of the outstanding stock of American Colonial Insurance
         Company, an Arkansas property and casualty insurance company.  Immediately after the
         acquisition, the name was changed to Stoneville Insurance Company of Arkansas.  The  Company
         has begun to write small premium workers compensation insurance in Arkansas and will reinsure
         other workers compensation carriers on a limited risk basis.  The Company also plans to provide
         claims administration and program management services for these insurance programs through its
         Arkansas subsidiary.

         The accompanying financial statements present the  Company and its subsidiaries, Stoneville
         Service Company, Inc. and Stoneville Insurance Company of Arkansas, on a consolidated basis.
         All material inter-company profits, transactions and balances have been eliminated.

3.       Operations of the Company

         The Company was formed to become the successor to the Delta Agricultural and Industrial Trust,
         a Mississippi self-funded workers compensation trust.  The Company entered the workers
         compensation market in the first quarter of 1998 as a reinsurer and began direct writing of workers
         compensation insurance in the fourth quarter of 1998. In July, 1998, the Company began providing
         claims and risk control services as well as program management services to the insurance programs
         being reinsured by the Company.  In January, 1999,  the Company began providing claims and risk
         control services to Arkansas self-funded workers compensation groups through its newly formed
         subsidiary, Stoneville Service Company, Inc.

         The Company also began duplicating its Mississippi workers compensation programs in Arkansas
         through Stoneville Insurance Company of Arkansas in the third quarter of 1999.`

# 7

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`4.       Assets Pledged

         All of the $951,765 in securities available-for-sale and approximately $500,000 in cash is pledged
         collateral for letters of credit issued to an insurance carrier that the Company reinsures on a quota
         share basis.  A claim may be made against the letter of credit if the ceding insurer is unable to pay
         claims from premiums collected by it.

5.       Reserve for Losses and Loss Adjustment Expenses

         The reserve for losses and loss adjustment expenses (LAE) is based upon case reserve reports
         received from ceding insurance companies and the companys own estimates.  Loss and LAE
         reserves also include estimates of incurred but not reported losses based on past experience
         modified for current trends and estimates of  expenses for investigating and settling claims.  It is the
         companys policy not to discount such reserves.   Management believes that the reserve for loss and
         LAE as of June 30, 2000 is adequate to cover ultimate gross cost of losses and LAE incurred
         through June 30, 2000.  The reserve is based on estimates of losses and LAE incurred and,
         therefore, the amount ultimately paid may be more or less than such estimates.


6.       Earnings (Loss) Per Share

         Earnings (loss) per common share is based on net income or (loss) and the weighted average
         number of shares outstanding during each interim period.  The number of shares used in computing
         earnings per share is 503,384 for the periods ended June 30, 2000 and 1999.`

# 8

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Total  shareholders  equity  increased  by  $15,598  or .87% from  $1,785,078  at  December  31,  1999 to
$1,800,676  at June 30, 2000.  This  increase was caused by a net income from  operations  of $15,105 for the first
six months of 2000 and an increase in unrealized gain on securities available-for-sale of $493.

Total  assets  increased  by $184,589 or 4.0% at June 30, 2000  compared to December  31,  1999.  Cash and
investments  increased a total of $333,637  during the six months ended June 30, 2000 due largely to an increase in
the collection of premium and other income.

Total  liabilities  increased by $168,991 or 6.1% at June 30, 2000  compared to December  31,  1999.  This
increase was due primarily to the collection of premium  dollars on behalf of quota share  reinsurers that were not
due to be distributed until the third quarter of 2000.

The Company  experienced a net income of $23,606  during the second quarter of 2000 compared to a net loss
of $134,215  during the second  quarter of 1999.  The  increase is due  primarily to fees  generated in  connection
with the  assumption of the insurance  obligations of another  workers  compensation  carrier in early 2000.  Total
revenue  increased  $336,709 to $1,120,777 in the second quarter of 2000 compared to $784,068 in the same period in
1999.

In the area of fee based  services  which the  Company  has  emphasized  over its risk  taking  activities
during the last twelve  months,  administrative  and management  fees increased  $277,395 to $476,268 in the second
quarter of 2000  compared  to $198,873 in the same  period in 1999.  The Company  intends to continue  its focus on
this line of business for the foreseeable future.

As a result of the  Companys  decision  in mid 1999 to reduce  the  amount of risk it  retains  on direct
written  insurance  business,  the Companys net premiums  earned began to decrease in the second  quarter of 2000.
Net premiums  earned  decreased  from $534,540 in the second  quarter of 1999 to $512,586 in the quarter ended June
30, 2000.  Losses and loss  adjustment  expenses  were  $358,334  during the second six months of 2000  compared to
$437,298 in the same period in 1999.  Other expenses  directly  associated  with the Companys  insurance  programs
totaled  $155,148  during the second  quarter of 2000  compared  to  $142,198  in the second  quarter of 1999.  The
Company  plans to continue its policy of retaining as little risk as possible on any direct  insurance  business it
writes.

Investment  income of the Company  increased  from $23,821 in the second quarter of 1999 to $30,691 in the
second  quarter of 2000.  This  increase is a result of having more cash  available  for  investment  in the second
quarter of 2000 compared to 1999 due to increased collections of fee based income.

General  expenses  increased  from  $427,132  in the second  quarter  of 1999 to  $568,608  in 2000.  This
increase is due primarily to the costs associated with the growth of the claims administration operation.

The  Company  recorded  an income tax  provision  for the  quarter  ended  June 30,  2000 in the amount of
$15,081 compared to a tax benefit for the same quarter in 1999 of $88,345.

# 9

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The  Company  experienced  a net income of $15,105  during the first six months of 2000  compared to a net
loss of $147,006  during the same period in 1999.  The  increase is due  primarily  to other  income  generated  in
connection  with the  assumption of the insurance  obligations  of another  workers  compensation  carrier in early
2000.  Total  revenue  increased  $661,620 to  $2,078,492 in the first six months of 2000 compared to $1,416,872 in
the same period in 1999.

Administrative  and  management  fees  increased  $266,393  to  $835,608  in the first six  months of 2000
compared to $569,215 in the same period in 1999.

Net premiums  earned  increased  from  $769,932 in the first six months of 1999 to  $1,004,757 in the same
period of 2000.  Losses and loss  adjustment  expenses  were  $766,466  during  the six  months  end June 30,  2000
compared to $660,068 in the same period in 1999. Other expenses  directly  associated with the Companys  insurance
programs  totaled  $291,013  during the first six months of 2000  compared  to  $226,581 in the first six months of
1999.

Investment  income of the  Company  increased  from  $49,229  in the first six  months of 1999 to  $56,895
during the six months ended June 30, 2000.  This increase is a result of having more cash  available for  investment
in 2000 compared to 1999 due to increased collections of fee based income.

General  expenses  increased  from  $773,753  during the first six months of 1999  compared to $996,250 in
2000.  This  increase  is due  primarily  to the costs  associated  with the  growth of the  claims  administration
operation.

The  Company  recorded  an income tax  provision  for the six months  ended June 30, 2000 in the amount of
$90,658 compared to a tax benefit for the same period in 1999 of $147,006.

# 10

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`PART II: OTHER INFORMATION

Item 6  Exhibits and Report on Form 8-K

(a)  Exhibits

Exhibit 27;  Financial data schedule`

# 11

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`STONEVILLE INSURANCE COMPANY

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.




                                                                                                                                                                                    MISSISSIPPI PHYSICIANS INSURANCE
                             STONEVILLE INSURANCE COMPANY



                                                                                                                                                                                                COMPANY



                             By: /s/ Harry E. Vickery
                                 ---------------------------
                                 Harry E. Vickery, President

                                 DATE: August 14, 2000

                             By: /s/ Richard L. Eaton
                                ---------------------------
                                Richard L. Eaton, Chief Financial
                                Officer (Principal Financial Officer
                                and Principal Accounting Officer`