________________________________________________________________________________
                       SECURITIES AND EXCHANGE COMMISSION
                                Washington, D. C.

                                    FORM 10-K

                ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF
                       THE SECURITIES EXCHANGE ACT OF l934

  For the fiscal year ended December 31, 2000    Commission file number: 0-2047
                            -----------------                            ------

                        CAPITOL TRANSAMERICA CORPORATION
             ------------------------------------------------------
             (Exact name of registrant as specified in its charter)

    A Wisconsin Corporation                                  39-1052658
------------------------------------                    ----------------------
  (State or other jurisdiction                             (I.R.S. Employer
 of incorporation or organization)                       Identification Number)

      4610 University Avenue
         Madison, Wisconsin                                  53705-0900
   -----------------------------------------               --------------
   (Address of principal executive offices)                  (Zip code)


     Registrant's telephone number, including area code      (608) 231-4450
                                                        -------------------

          Securities registered pursuant to Section 12 (g) of the Act:

                          COMMON STOCK, $1.00 PAR VALUE
                          -----------------------------
                                (Title of Class)

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 l934
during  the  preceding  twelve  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
                                     --

Indicate by a check mark if disclosure of delinquent filers pursuant to Item 405
of  Regulation  S-K  (Sec. 229.405 of this chapter) is not contained herein, and
will  not  be  contained,  to  the best of registrant's knowledge, in definitive
proxy  or  information  statements incorporated by reference in Part III of this
Form  10-K.  [   ].

Based  on  the  closing  average  of  the bid (13 1/4) and asked price (14), the
aggregate  market value of voting stock held by non-affiliates of the registrant
as  of  March  9,  2001  was  approximately  $149,177,700.

Indicate  the number of shares of each of the issuer's class of common stock, as
of  the  latest  practicable  date:

                                At March 9, 2001

                         Common Stock, $1.00 Par Value;

                              Issued:   11,560,189

                           Outstanding:   10,948,822


DOCUMENTS  INCORPORATED  BY  REFERENCE
Schedule P of the Annual Statements of Capitol Indemnity Corporation and Capitol
Specialty  Insurance  Corporation  are  incorporated  by  reference into Part I.
Portions  of  the proxy statement for the annual shareholders meeting to be held
May  14,  2001  are  incorporated  by  reference  into  Part  III.


                                Total  Pages:  41
--------------------------------------------------------------------------------


<PAGE>
                            Form 10-K (Annual Report)
                            -------------------------
                        Capitol Transamerica Corporation
                        --------------------------------
                                     Part I
                                     ------

Item  1.  Business
-------   --------
     (a)  General  Development  of  Business
          ----------------------------------
          Capitol  Transamerica  Corporation  (CTC)  is  a  holding company with
          assets exceeding $283 million. CTC was formed in 1965 and owns 100% of
          Capitol  Indemnity  Corporation  (CIC),  Capitol  Specialty  Insurance
          Corporation (CSIC), and Capitol Facilities Corporation (CFC). Both CIC
          and  CSIC  are property and casualty insurance companies. CIC writes a
          complete  portfolio  of  fidelity  and  surety  bonds  and  specialty
          insurance  coverages,  while  CSIC  has  been  largely inactive due to
          market  conditions.  CIC  operates  on an admitted basis in thirty-six
          states  and  on  an  excess/surplus lines basis in one state. CFC is a
          non-insurance  entity  available  for  other  business  opportunities.

          Some  of  the  specialty  property and casualty coverages written are:
          Barber  & Beauty Shops, Bowling Alleys, Contractors/Manufacturers, Day
          Care  Centers,  Deer  Hunters  Accident,  Detective/Guard  Agencies,
          Equipment  Breakdown,  Golf  Courses,  Nurses  Professional,
          Resorts/Campgrounds,  Restaurants,  Special Events, Clubs, Sportsman's
          Accident,  Tanning/Toning  Salons  and  Taverns.

          The  full  line  of  surety  and fidelity bonds includes: Contractor's
          Performance  and Payment Bonds, License/Permit Bonds, Fiduciary Bonds,
          Judicial  Bonds  and  Commercial  Fidelity  Bonds.

          The results of operations have remained most favorable since 1986 with
          substantial  increases  in  premium  volume,  profitability  and
          shareholders'  investment.

     (b)  Information  about  Industry  Segments
          --------------------------------------

          General:
          -------
          The subsidiaries of the Company, through licensed agents, are involved
          only  in the business of underwriting property, casualty, fidelity and
          surety insurance on selected risks. The Company conducts business with
          insurance  agents located throughout the United States. As of December
          31,  2000 and 1999, no amount due from agents located in any one state
          exceeded  15%  of  total  balances;  no  industry  segment  other than
          insurance amounted to 10% or more of the Company's gross or net income
          and  no  agent  had  writings  in excess of 10% of the Company's gross
          premiums  in  2000,  1999  or 1998. During 2000, 1999 and 1998, direct
          premiums written in Wisconsin accounted for approximately 19%, 19% and
          17%,  respectively,  and direct premiums written in Illinois accounted
          for  approximately 14%, 14% and 14%, respectively, of the total direct
          premiums  written  by  the  Company.  No  other  state  exceeded  10%.

     (c)  Narrative  Description  of  Business
          ------------------------------------

          Competitive  Conditions:
          -----------------------
          All business written by the Company is highly competitive in the areas
          of  price,  service  and  agent  relationships.  The  large  number of
          insurers  transacting  business  at  rates  which  are  independently
          regulated  by  their  respective  insurance  departments  compete
          aggressively  for  desirable  business.  Because  of  limitations  in
          capacity  and other regulatory restrictions, companies the size of CIC
          are  sometimes  at a disadvantage when competing with larger insurance
          companies.

          CIC  is  required  by  the  Insurance  Commissioner  of  the  State of
          Wisconsin to maintain a minimum compulsory surplus (surplus as regards
          policyholders)  of  25%  of  net premiums written during the preceding
          twelve months. As of December 31, 2000, CIC reported $107.9 million in
          surplus  as  regards  policyholders,  approximately  $84.6  million in
          excess  of the required amount. In addition, CIC is required to report
          a  minimum  60% loss and loss expense ratio for the most current three
          years on certain liability lines as well as a minimum 65% ratio on the
          workers  compensation  line.  Based upon actual historical experience,
          the  Company's  ratios are substantially less than the requirement and
          had  the  company  not  included  the  excess  statutory reserves over
          statement  reserves  in  reporting  to regulatory authorities, surplus
          would  have  been  $110.6  million  at  December  31,  2000.

          Importance  and  Effect  of  Licenses:
          -------------------------------------
          Generally speaking, insurance companies must be licensed by the states
          in  which  the  insurance  is written. Forms and rates for each policy
          offered  are  filed  with  individual  state  insurance  departments.

          Number  of  Persons  Employed:
          -----------------------------
          Capitol Transamerica Corporation and subsidiaries employ approximately
          200  people.

                                       2
<PAGE>
Item  1(c).          (continued)
-----------

     Information  as  to  Similar  Products  or  Services:
     -----------------------------------------------------
     Gross  premiums written, reinsurance ceded and net premiums written for the
     past  five  years  are  as  follows:

<TABLE>
<CAPTION>
                                            2000
                           -------------------------------------
                              Gross        Ceded         Net
                           ------------  ----------  -----------
<S>                        <C>           <C>         <C>
Accident and Health        $  2,234,341  $1,940,917  $   293,424
Burglary and Theft               13,838           -       13,838
Fidelity                      1,315,459      87,659    1,227,800
Fire and Allied Lines           233,707       4,008      229,699
Inland Marine                 1,067,314     802,577      264,737
Liability                    10,841,327     265,893   10,575,434
Commercial Multiple Peril    60,080,487   3,926,534   56,153,953
Workers' Compensation         5,607,168       9,339    5,597,829
Surety                       20,716,575   1,181,507   19,535,068
                           ------------  ----------  -----------
                           $102,110,216  $8,218,434  $93,891,782
                           ============  ==========  ===========
</TABLE>

<TABLE>
<CAPTION>
                                            1999
                           -------------------------------------
                              Gross       Ceded         Net
                           -----------  ----------  -----------
<S>                        <C>          <C>         <C>
Accident and Health        $ 1,783,585  $1,493,857  $   289,728
Burglary and Glass               8,043           -        8,043
Fidelity                     1,529,920      77,098    1,452,822
Fire and Allied Lines          219,222       3,986      215,236
Inland Marine                  523,766     383,631      140,135
Liability                    8,086,932     163,639    7,923,293
Commercial Multiple Peril   50,787,804   2,734,476   48,053,328
Workers' Compensation        4,549,679           -    4,549,679
Surety                      18,513,849     952,737   17,561,112
                           -----------  ----------  -----------
                           $86,002,800  $5,809,424  $80,193,376
                           ===========  ==========  ===========
</TABLE>

<TABLE>
<CAPTION>
                                            1998
                           -------------------------------------
                              Gross       Ceded         Net
                           -----------  ----------  -----------
<S>                        <C>          <C>         <C>
Accident and Health        $ 1,884,645  $1,596,313  $   288,332
Burglary and Glass               4,897           -        4,897
Fidelity                     1,172,166      50,915    1,121,251
Fire and Allied Lines          319,109       5,621      313,488
Inland Marine                  828,791     714,331      114,460
Liability                    9,669,318     136,386    9,532,932
Commercial Multiple Peril   49,502,961   1,914,558   47,588,403
Workers' Compensation        4,059,756           -    4,059,756
Surety                      20,487,509     735,055   19,752,454
                           -----------  ----------  -----------
                           $87,929,152  $5,153,179  $82,775,973
                           ===========  ==========  ===========
</TABLE>


                                       3
<PAGE>
Item  1(c).          (continued)
-----------

<TABLE>
<CAPTION>
                                            1997
                           -------------------------------------
                              Gross       Ceded         Net
                           -----------  ----------  -----------
<S>                        <C>          <C>         <C>
Accident and Health        $ 5,090,314  $4,817,208  $   273,106
Burglary and Glass               4,189           -        4,189
Fidelity                     1,230,700      22,697    1,208,003
Fire and Allied Lines          424,516       4,296      420,220
Inland Marine                1,076,850     953,052      123,798
Liability                   10,967,296     143,567   10,823,729
Commercial Multiple Peril   52,132,045   1,599,619   50,532,426
Workers' Compensation        3,381,685           -    3,381,685
Surety                      25,200,251     402,612   24,797,639
                           -----------  ----------  -----------
                           $99,507,846  $7,943,051  $91,564,795
                           ===========  ==========  ===========
</TABLE>

<TABLE>
<CAPTION>
                                            1996
                           -------------------------------------
                              Gross        Ceded         Net
                           -----------  -----------  -----------
<S>                        <C>          <C>          <C>
Accident and Health        $   238,615  $        -   $   238,615
Burglary and Glass              32,189           -        32,189
Fidelity                     1,317,643      25,958     1,291,685
Fire and Allied Lines          698,783        (271)      699,054
Inland Marine                  987,201       2,802       984,399
Liability                   13,048,828     130,503    12,918,325
Commercial Multiple Peril   48,790,958   1,027,117    47,763,841
Workers' Compensation        2,470,176      17,104     2,453,072
Surety                      23,354,994     492,849    22,862,145
                           -----------  -----------  -----------
                           $90,939,387  $1,696,062   $89,243,325
                           ===========  ===========  ===========
</TABLE>

(d)  Copies of "Schedule P" of the Annual Statements filed with State Regulatory
     Authorities  by  CIC  and CSIC are incorporated herein by reference and are
     available  upon  request.


                                       4
<PAGE>
(e)  Discussion  Topics
     ------------------

     The  following  discussion  topics,  if  applicable,  have been included in
     Management's  Discussion and Analysis of Financial Condition and Results of
     Operations  and/or  the  Notes to Consolidated Financial Statements and the
     accompanying  Schedules  which  appear  elsewhere  in  this  Annual Report:

          (1)  Reinsurance transactions which have a material effect on earnings
               or  reserves.

          (2)  Significant reserving assumptions including any recent changes.

          (3)  The nature of recent changes in the terms under which reinsurance
               is  ceded  to  other  insurers.

          (4)  Changes  in  the  mix  of  business, including but not limited to
               changes  in the location of business, geographic mix and types of
               risks  assumed.

          (5)  Changes  in  payment  patterns  due  to portfolio loss transfers,
               structured  settlements and other transactions and circumstances.

          (6)  Unusually  large  losses  or  gains.


(f)  Reconciliation  of  Loss  and  Loss  Adjustment  Expense  Reserves:
     -------------------------------------------------------------------

<TABLE>
<CAPTION>

                                                                 2000          1999          1998
                                                             ------------  ------------  ------------
<S>                                                          <C>           <C>           <C>
Balances at January 1,                                       $77,256,192   $78,504,050   $71,472,338
Reinsurance balances                                             121,478    (1,101,770)         (594)
                                                             ------------  ------------  ------------
Net reserves                                                  77,377,670    77,402,280    71,471,744

Incurred losses and loss adjustment expenses related to:
     Current year                                             60,051,007    47,749,455    49,862,090
     Prior years:
        Direct losses (net of recoveries)                     (1,744,893)     (562,627)    4,091,923
        Direct loss adjustment expenses (net of recoveries)      520,814    (2,379,899)   (1,956,631)
        Discontinued assumed reinsurance                      (1,325,553)      493,912       379,732
                                                             ------------  ------------  ------------
            Total prior years                                 (2,549,632)   (2,448,614)    2,515,024

Total incurred                                                57,501,375    45,300,841    52,377,114
                                                             ------------  ------------  ------------

Paid losses and loss adjustment expenses related to:
     Current year                                             25,045,636    18,642,962    20,035,517
     Prior years                                              29,411,213    26,682,489    26,370,166
                                                             ------------  ------------  ------------
Total paid                                                    54,456,849    45,325,451    46,405,683
                                                             ------------  ------------  ------------

Other adjustments, net                                                 -             -       (40,895)
                                                             ------------  ------------  ------------

Net balance at December 31                                    80,422,196    77,377,670    77,402,280
Reinsurance balances                                          (2,441,223)     (121,478)    1,101,770
                                                             ------------  ------------  ------------

Balances at December 31,                                     $77,980,973   $77,256,192   $78,504,050
                                                             ============  ============  ============
</TABLE>


                                       5
<PAGE>
<TABLE>
<CAPTION>
(g)     Loss Reserve Development                          Consolidated (in millions of dollars)

  Year ended:                                     1991     1992     1993     1994     1995     1996     1997   1998   1999   2000
                                                 -------  -------  -------  -------  -------  -------  ------  -----  -----  -----
<S>                                              <C>      <C>      <C>      <C>      <C>      <C>      <C>     <C>    <C>    <C>
  Reserves for losses and loss
    adjustment expenses                          $ 14.5   $ 18.1   $ 19.3   $ 27.5   $ 38.5   $ 47.7   $71.5   $78.5  $77.3  $78.0

  Re-estimated reserves:
    One year later                                 19.5     21.2     25.5     33.8     43.4     65.8    75.1    74.9   73.3
    Two years later                                21.3     23.8     31.2     37.5     57.7     65.9    72.0    71.0      -
    Three years later                              22.7     28.3     33.5     51.4     56.2     65.6    67.0       -      -
    Four years later                               25.9     30.7     43.6     48.2     54.4     60.9       -       -      -
    Five years later                               27.9     38.6     42.7     45.3     51.7        -       -       -      -
    Six years later                                34.7     38.0     40.0     43.8        -        -       -       -      -
    Seven years later                              34.2     37.1     38.3        -        -        -       -       -      -
    Eight years later                              34.2     35.3        -        -        -        -       -       -      -
    Nine years later                               32.6        -        -        -        -        -       -       -      -

  Cumulative (deficiency) redundancy              (18.1)   (17.2)   (19.0)   (16.3)   (13.2)   (13.2)    4.5     7.5    4.0
                                                 =======  =======  =======  =======  =======  =======  ======  =====  =====

  Cumulative (deficiency) redundancy
  from discontinued reinsurance
  assumed operations                              (12.2)   (11.0)   (10.0)    (8.9)    (8.0)    (6.5)   (5.2)    0.4    0.8
                                                 -------  -------  -------  -------  -------  -------  ------  -----  -----

  Cumulative (deficiency)
      redundancy from
  continuing operations                            (5.9)    (6.2)    (9.0)    (7.4)    (5.2)    (6.7)    9.7     7.1    3.2
                                                 =======  =======  =======  =======  =======  =======  ======  =====  =====

  Cumulative amount of liability paid through:

    One year later                                  7.6      9.4      9.9     12.2     16.2     21.2    26.4    26.7   29.1
    Two years later                                12.7     14.1     17.2     21.4     26.6     34.6    40.5    43.8      -
    Three years later                              15.4     18.9     23.6     27.5     34.2     44.3    50.0       -      -
    Four years later                               18.7     23.0     27.0     31.7     38.4     48.9       -       -      -
    Five years later                               21.6     25.0     28.7     33.3     41.6        -       -       -      -
    Six years later                                22.8     26.5     29.5     34.9        -        -       -       -      -
    Seven years later                              23.9     27.2     30.1        -        -        -       -       -      -
    Eight years later                              24.5     27.3        -        -        -        -       -       -      -
    Nine years later                               24.6        -        -        -        -        -       -       -      -
</TABLE>

This  table  does  not  present  accident or policy year development data, which
readers  may  be  more  accustomed to analyzing. Conditions and trends that have
affected  development  of the liability in the past may not necessarily occur in
the  future.  Accordingly,  it  may  not  be  appropriate  to extrapolate future
redundancies  or  deficiencies  based  on  this  table.  There  are  no specific
provisions  for  the  effects  of  inflation  or other factors which may cause a
future  change  in  claim  costs.

The  Company withdrew from the reinsurance assumed business in 1976; however, it
remains  involved  with  treaties  that  cover  certain  risks  which  have  had
significant  development  industry-wide  over the past several years. Due to the
nature of this discontinued assumed business, ultimate losses may, and often do,
vary  from current estimates. See footnote 4(b) of the notes to the consolidated
financial  statements.


                                       6
<PAGE>
(h)  Reconciliation  of  Statutory  to  Generally Accepted Accounting Principles
     (GAAP)  reserves:

<TABLE>
<CAPTION>
                                                                    For the Year  Ended  December  31,
                                                                    ----------------------------------
                                                                     2000          1999          1998
                                                                 ------------  ------------  ------------
<S>                                                              <C>           <C>           <C>
Balance,  December  31,  as reported to the
     Insurance Commissioner of the
     State of Wisconsin:
                  - CIC                                          $80,127,074   $77,044,646   $77,094,939

                   CSIC                                                    -             -       367,612

Funds withheld from reinsurers, reclassified to
     loss reserves on a GAAP basis                                   417,789       412,481       408,516

Reserve for return of disability premiums, reclassified
     to loss reserves on a GAAP basis                                  3,369        19,517        24,064

GAAP adjustment to gross up reserves
     for the effect of reinsurance                                (2,494,771)     (185,866)      669,190

Other, net                                                           (72,488)      (34,586)      (60,271)
                                                                 ------------  ------------  ------------

Balance, December 31, on a GAAP basis                            $77,980,973   $77,256,192   $78,504,050
                                                                 ============  ============  ============
</TABLE>

Item  2.  Properties
--------  ----------

          Capitol  Transamerica  Corporation leases premises in the Pyare Square
          building  located at 4610 University Avenue, Madison, Wisconsin 53705,
          as  follows:

               Approximately  45,940  square  feet occupying all or a portion of
               the  1st, 2nd, 3rd, 6th, and 9th through 14th floors. The term of
               the  lease is from June 1, 1999 through August 31, 2002, with two
               three  year  options  to  renew  after  that  date.

          The  Company  also  leases  approximately 2,900 square feet of storage
          space  from  the  President  of  the  Company  in  a  personally owned
          warehouse  at  terms as favorable as those available from unaffiliated
          third  parties.

          The  Company  also  leases  3,317  square  feet of office space in Las
          Vegas,  Nevada.  The  term  of  the  lease is from February 1, 1998 to
          February  28,  2006.

Item  3.  Legal  Proceedings
--------  ------------------

          Capitol Indemnity Corporation (CIC) is a defendant in certain lawsuits
          involving  complaints  which  demand damages and recoveries for claims
          and  losses  allegedly related to risks insured by CIC. In the opinion
          of  management, such lawsuits are routine in that they result from the
          ordinary  course  of  business in the insurance industry. The reserves
          for losses and loss adjustment expenses include management's estimates
          of  the  probable  ultimate  cost  of  settling  all  claims involving
          lawsuits.  Such  estimates  are  continually reviewed and updated. The
          reserves for losses and loss adjustment expenses at December 31, 2000,
          are,  in  the opinion of management, adequate to absorb claims arising
          from  those routine legal proceedings presently in process against the
          Company.

Item  4.  Submission  of  Matters  to  a  Vote  of  Shareholders
--------  ------------------------------------------------------

          No  matters  were  submitted  to  a  vote  of  shareholders during the
          Company's  fourth  fiscal  quarter  ended  December  31,  2000.


                                       7
<PAGE>
Item  5.  Market  Information,  Dividends  and  Other  Information
--------  --------------------------------------------------------

On  March  9, 2001, the approximate number of registered shareholders was 2,500.
CTC is publicly owned and traded on the National Over-the-Counter Market, symbol
CATA. The market price of the stock during 2000 was a low of 9 3/8 and a high of
13  1/4  with  the  equivalent  of  1.8  million  shares  traded.

Quarterly  high  and  low  quoted  prices,  which are obtained from the National
Association  of  Securities  Dealers,  are  illustrated  below.

<TABLE>
<CAPTION>
                     2000                           1999
          --------------------------     ----------------------------
Quarter    High    Low    Dividends       High     Low     Dividends
--------  ------  ------  ----------     ------  --------  ----------
<S>       <C>     <C>     <C>            <C>     <C>       <C>

First     13 1/4   9 3/8  $      .07     19 1/2    14 1/8  $      .07
Second        13      10         .07     15 3/8    12 1/2         .07
Third     12 1/4  10 7/8         .07     15 1/4  13  5/16         .07
Fourth    12 7/8  10 3/8         .07         14     9 1/2         .07
          ------  ------  ----------     ------  --------  ----------
Year      13 1/4   9 3/8  $      .28     19 1/2     9 1/2  $      .28
          ======  ======  ==========     ======  ========  ==========
</TABLE>

For  the  period January 1 through March 9, 2001, the high ask price was 14 7/16
and  the low bid price was 12 1/8. A regular cash dividend of $.08 per share was
paid  on  March  23,  2001,  to  shareholders  of  record  on  March  9,  2001.

Future  dividend  payments must be authorized by the Board of Directors and will
be  dependent  on  operating  results,  capital  requirements  and the financial
condition  of  the  Company.

<TABLE>
<CAPTION>
   Subsidiaries                                      S.E.C. Form 10-K
   ------------                                      ----------------
<S>                                         <C>      <C>
   Capitol Indemnity Corporation                     Copies of the Company's Annual Report
   Capitol Specialty Insurance Corporation           filed with the Securities and Exchange
   Capitol Facilities Corporation                    Commission, including exhibits, are
                                                     available by written request addressed to:
   Independent Public Accountants
   ------------------------------
                                                     Paul J. Breitnauer
   Ernst & Young LLP                                 Vice President & Treasurer
   111 East Kilbourn Avenue                          4610 University Ave.
   Milwaukee, Wisconsin 53202                        Madison, Wisconsin 53705-0900

   Transfer Agent and Registrar                      Annual Meeting
   ----------------------------                      --------------

   Firstar Trust Co.                                 The Company's Annual Meeting
   Corporate Trust Department                        will be held Monday, May 14, 2001
   1555 N. River Center Drive                        4:00 PM at the
   Suite 301                                         Marriott Inn - Madison West
   Milwaukee, Wisconsin 53212                        1313 John Q. Hammond Drive
                                                     Middleton, Wisconsin 53562

   Common stock
   ------------

   Listed:          OTC
   Quoted:          NASD (CATA)
</TABLE>


                                       8
<PAGE>
<TABLE>
<CAPTION>
Item  6.  FIVE  YEAR  CONSOLIDATED  SUMMARY  OF SELECTED FINANCIAL DATA:
--------  --------------------------------------------------------------

                                                            2000           1999           1998           1997           1996
                                                        -------------  -------------  -------------  -------------  -------------
<S>                                                     <C>            <C>            <C>            <C>            <C>
Gross Premiums Written                                  $102,110,215   $ 86,002,801   $ 87,929,152   $ 99,507,846   $ 90,939,387
                                                        =============  =============  =============  =============  =============
Net Premiums Written                                    $ 93,891,782   $ 80,193,376   $ 82,775,973   $ 91,564,795   $ 89,243,325
                                                        =============  =============  =============  =============  =============
Premiums Earned                                         $ 88,184,842   $ 82,841,104   $ 88,629,476   $ 87,451,620   $ 77,347,319
Net Investment Income                                      9,163,062      9,136,244      9,119,936      8,580,713      7,155,382
Realized Investment Gains                                 11,805,350      8,184,101     13,198,139     15,370,384      8,468,911
Other Revenues                                               355,208        249,672        113,005         36,801        382,130
                                                        -------------  -------------  -------------  -------------  -------------
Total Revenues                                           109,508,462    100,411,121    111,060,556    111,439,518     93,353,742
                                                        -------------  -------------  -------------  -------------  -------------
Losses and Loss Adjustment Expenses Incurred              57,501,375     45,300,841     52,377,114     61,128,402     41,165,776
Underwriting and Other Expenses                           32,688,826     31,199,583     30,682,454     28,587,186     26,680,657
                                                        -------------  -------------  -------------  -------------  -------------
Total Losses Incurred and Expenses                        90,190,201     76,500,424     83,059,568     89,715,588     67,846,433
                                                        -------------  -------------  -------------  -------------  -------------
Income from Operations Before Income Taxes                19,318,261     23,910,697     28,000,988     21,723,930     25,507,309
Income Tax Expense                                         4,864,944      7,198,234      8,577,075      6,532,051      7,158,151
                                                        -------------  -------------  -------------  -------------  -------------
Consolidated Net Income                                 $ 14,453,317   $ 16,712,463   $ 19,423,913   $ 15,191,879   $ 18,349,158
                                                        =============  =============  =============  =============  =============
Weighted Average Number of Shares Outstanding- Basic      11,124,074     11,252,358     11,206,018     11,151,428     11,077,501
                                                        =============  =============  =============  =============  =============
Weighted Average Number of Shares Outstanding- Diluted    11,158,462     11,297,289     11,280,442     11,285,751     11,315,758
                                                        =============  =============  =============  =============  =============
Income Per Share - Basic                                $       1.30   $       1.49   $       1.73   $       1.36   $       1.66
                                                        =============  =============  =============  =============  =============
Income Per Share - Diluted                              $       1.30   $       1.48   $       1.72   $       1.35   $       1.62
                                                        =============  =============  =============  =============  =============
Total Cash Dividends Per Share                          $       0.28   $       0.28   $       0.28   $       0.38   $       0.33
Consolidated Net Income and Cash Dividends Stated
   as a Ratio to Beginning Shareholders' Equity                 13.2%          14.1%          16.2%          16.7%          23.8%
Year End Financial Position:
   Assets                                               $283,258,052   $257,622,581   $277,359,597   $286,682,275   $228,885,454
   Shareholders' Investment                              145,699,869    133,226,210    141,315,973    139,342,141    116,581,883
   Book Value Per Share                                 $      13.23   $      11.82   $      12.59   $      12.46   $      10.50
                                                        -------------  -------------  -------------  -------------  -------------
Shares Outstanding                                        11,008,900     11,267,899     11,222,180     11,178,882     11,103,297
                                                        -------------  -------------  -------------  -------------  -------------
Insurance Operating Ratios (Statutory Basis):
   Losses and Loss Adjustment Expenses to
     Net Premiums Earned                                        65.4%          54.9%          59.4%          70.1%          53.5%
   Underwriting Expenses to Net Premiums Written                35.1%          37.0%          35.6%          32.1%          33.5%
                                                        -------------  -------------  -------------  -------------  -------------
   Combined Ratio                                              100.5%          91.9%          95.0%         102.2%          87.0%
                                                        =============  =============  =============  =============  =============
A. M. BEST Rating                                             A+             A+             A+             A+             A+
                                                           Superior       Superior       Superior       Superior       Superior
                                                        =============  =============  =============  =============  =============
</TABLE>


                                        9
<PAGE>
Item  7.  Management's  Discussion  and  Analysis  of Financial Condition and
--------  -------------------------------------------------------------------
          Results  of  Operations
          -----------------------

OVERVIEW

Capitol Transamerica Corporation (the "Company") is an insurance holding company
operating  in  37  states  which  writes,  through  its  subsidiaries,  both
property-casualty  and  fidelity-surety insurance. The property-casualty segment
accounts for approximately 77% of the business written while the fidelity-surety
segment  accounts  for  approximately
23%  of  the  Company's  business.

The  underwriting  cycles  of the property-casualty insurance industry have been
characterized  by peak periods of adequate rates, underwriting profits and lower
combined  ratios,  while  the  downward  side  of  the cycle is characterized by
inadequate  rates, underwriting losses and, as a result, higher combined ratios.
The  adequacy  of  premium  rates  is  affected  primarily  by  the severity and
frequency  of  claims  which,  in  turn,  are  affected  by  natural  disasters,
regulatory  measures  and  court  decisions  which  continue to uphold the "deep
pocket"  theory  in  awarding against insurance companies. Unfortunately for the
insurance  industry,  the trend of increasing price competition has continued as
has  the  number of significant natural disasters. This combination has resulted
in  a considerable reduction in underwriting profitability for the industry as a
whole.

Adequate  premium  rates  continue  to  be  of  concern  to  the Company and the
property-casualty  insurance industry as a whole. Management feels strongly that
rate  regulators  have  been slow to adjust rates in response to increased claim
costs  from  the  factors  noted  above.  This,  when  combined  with  increased
competition  in  the  Companys'  niche  market,  has  presented an unprecedented
challenge  to  management.  The  Company  has  responded  to this challenge with
increased  marketing  efforts as well as the addition of innovative programs and
alliances  that  should  position  the  Company  for  continued  expansion  and
profitability.

OPERATING  RESULTS

     As  mentioned  in  the  Overview,  management  believes  that  the
property-casualty insurance industry is in a downward cycle. Underwriting income
decreased  to a loss of $2,005,359 this year compared to income of $6,340,680 in
1999  and income of $5,569,908 in 1998. The 2000 decrease in underwriting income
is  due  to  larger  than  expected losses on a few specific claims as well as a
$7,000,000  reserve  strengthening  for  the increased premium volume. Had these
items  not  occurred,  underwriting  income  would  have  been  approximately
$13,000,000.  Management  is  confident  that  the increased emphasis on prudent
underwriting  standards  as  well  as  aggressive  marketing  will  assure  a
continuation  of  the  Company's history of substantial underwriting profits and
increasing  shareholder  value.

Gross  premiums written during 2000 were $102,110,215, compared with $86,002,801
in  1999  and  $87,929,152  in  1998.  The  premium growth in 2000 is due to the
Company's concerted efforts to profitably grow its business as well as from rate
increases.  Management  continually  monitors the Company's expansion efforts to
ensure  that  the  Company  is  growing  profitably.

Premiums  earned  are recognized as net revenues after reduction for reinsurance
ceded and after establishment of the provision for the pro rata unearned portion
of  premiums  written.  Net premiums earned in 2000 totaled $88,184,842 compared
with  $82,841,104  and  $88,629,476  in  1999  and  1998,  respectively. The net
unearned  premium  reserve was $45,587,586, $39,454,257, and $41,541,432 at each
year  end.

                                        2000            1999           1998
     ---------------------------------------------------------------------------
     Gross Premiums Written        $   102,110,215  $  86,002,801  $  87,929,152
     Reinsurance Ceded                   8,218,433      5,809,425      5,153,179
     ---------------------------------------------------------------------------
     Net Premiums Written          $    93,891,782  $  80,193,376  $  82,775,973
     ===========================================================================
     Net Premiums Earned           $    88,184,842  $  82,841,104  $  88,629,476
     ===========================================================================
     Net Unearned Premium Reserve  $    45,587,586  $  39,454,257  $  41,541,432
     ===========================================================================

The  Company's underwriting results can be measured by reference to the combined
loss  and  expense ratios. The following table includes the operating results of
the  Company's  two  subsidiary insurance companies on a statutory basis. Losses
and loss adjustment expenses are stated as a ratio of net premiums earned, while
underwriting  expenses  are  stated  as  a  ratio  of  net premiums written. The
combined  ratios  were  as  follows:

<TABLE>
<CAPTION>
Insurance Operating Ratios (Statutory Basis):   2000   1999   1998
-------------------------------------------------------------------
<S>                                            <C>    <C>    <C>
Losses and Loss Adjustment Expenses            65.4%  54.9%  59.4%
      Underwriting Expenses                    35.1%  37.0%  35.6%
-------------------------------------------------------------------
      Combined Ratios                         100.5%  91.9%  95.0%
===================================================================
</TABLE>


                                       10
<PAGE>
The Companys' combined ratio continues to compare very favorably to the industry
average,  as  indicated  by  the  following  chart:

Combined Ratio                                           2000    1999    1998
------------------------------------------------------------------------------
Company                                                 100.5%   91.9%   95.0%
Industry Average *                                      109.3%  110.2%  105.9%
------------------------------------------------------------------------------
* The industry number for 2000 is the ratio for commercial carriers at
  September 30, 2000.

During  the year, the Company continued the program of purchasing treasury stock
for  contingent commission payments. Under this program, the Company distributes
shares  of  stock  as  additional compensation to agents based on achievement of
premium  growth  and  loss  ratio  targets for the agent's business in the prior
year.

REINSURANCE

The  Company  follows the customary practice of reinsuring with other companies,
i.e.,  ceding  a  portion  of  its exposure on the policies it has written. This
program  of  reinsurance permits the Company greater diversification of business
and  the  ability  to  write  larger  policies  while limiting the extent of its
maximum  net  loss.  It  provides  protection  for the Company against unusually
serious  occurrences in which a number of claims could produce a large aggregate
loss.  Management  continually  monitors  the  Company's  reinsurance program to
obtain  protection  that  should be adequate to ensure the availability of funds
for  losses  while  maintaining  future  growth.

NET  INVESTMENT  INCOME  AND  REALIZED  GAINS

The  Company's  fixed  maturities  and  equity  securities  are  classified  as
available-for-sale  and  are  carried  at  fair  value. The unrealized gains and
losses,  net  of  tax,  are  reported as "Accumulated Other Comprehensive Income
(Loss)"  in  the  equity  portion  of  the  balance  sheet.

Interest and Dividend Income: Interest on fixed maturities is recorded as income
when  earned  and  is  adjusted  for  any  amortization  of  purchase premium or
accretion  of discount. Dividends on equity securities are recorded as income on
ex-dividend  dates.

Investments:                              2000          1999           1998
--------------------------------------------------------------------------------
          Invested Assets             232,367,776   $218,085,184   $238,140,592
          Net Investment Income         9,163,062      9,136,244      9,119,936
          Percent of Return to
             Average Carrying Value           4.0%           4.2%           4.5%
          Realized Gains               11,805,350      8,184,101     13,198,139
          Change in Unrealized Gains    4,239,902   $(21,981,943)  $(14,657,027)
--------------------------------------------------------------------------------

The  net  unrealized  gain  of $4,239,902 for 2000 was comprised of a $1,482,391
unrealized  gain  on  fixed  maturities  and a $2,757,511 unrealized gain on the
Company's  equity  portfolio.  Management  has  begun  to gradually increase its
tax-free  bond holdings and de-emphasize the equity portfolio, but is optimistic
that the recent downturn in the value of its equity investments is temporary and
that the current market conditions provide an even greater opportunity to invest
and  build  shareholder  value  over the long term. This appears to be coming to
fruition,  as  evidenced  by  the  current  year's increase in unrealized gains.

Net  investment  income  in 2000 amounted to $9,163,062 compared with $9,136,244
and  $9,119,936  in  1999  and  1998,  respectively.  The  Company holds a large
percentage of equity investments, which results in a comparatively lower rate of
return  on  invested  assets.

INCOME  TAXES

Income  tax expense is based on income reported for financial statement purposes
and  tax  laws  and  rates  in  effect for the years presented. Deferred federal
income  taxes  arise  from  timing differences between the recognition of income
determined for financial reporting purposes and income tax purposes. Such timing
differences are related principally to the deferral of policy acquisition costs,
the  recognition of unearned premiums and discounting of claims reserves for tax
purposes.  Deferred  taxes  are  also  provided  on unrealized gains and losses.

LOSS  RESERVES

Reserves  for  losses  and  loss  adjustment expenses reflect the Company's best
estimate  of the liability for the ultimate cost of reported claims and incurred
but  not  reported  (IBNR)  claims  at the end of each period. The estimates are
based  on  past  claim  experience  and consider current claim trends as well as
social  and  economic  conditions.  The  Company's  reserves for losses and loss
adjustment  expenses  were  $77,980,973  as  of December 31, 2000, compared with
$77,256,192 as of December 31, 1999. Management continues to closely monitor the
reserves  for losses and loss adjustment expenses to assure adequate recognition
of  the  ultimate  liability  for  claims  and  claim  expenses.


                                       11
<PAGE>
LIQUIDITY  AND  CAPITAL  RESOURCES

Liquidity  refers  to  the  Company's ability to meet obligations as they become
due.  The obligations and cash outflow of the Company include claim settlements,
acquisition  and  administrative expenses, investment purchases and dividends to
shareholders.  In  addition  to  satisfying obligations and cash outflow through
premium  collections,  there  is cash inflow obtained from interest and dividend
income,  maturities  and sales of investments. Because cash inflow from premiums
is  received  in  advance of cash outflow required to settle claims, the Company
accumulates  funds  which  it invests pending liquidity requirements. Therefore,
investments  represent  the  majority (82.0% in 2000, 84.7% in 1999 and 85.9% in
1998)  of  the  Company's  assets.  Cash  outflow  can  be unpredictable for two
reasons:  first,  a large portion of liabilities representing loss reserves have
uncertainty  regarding  settlement  dates;  and  second,  there is potential for
losses  occurring  either  individually  or  in  the aggregate. As a result, the
Company  maintains  adequate  short-term investment programs necessary to ensure
the availability of funds. The investment program is structured so that a forced
sale liquidation of fixed maturities should not be necessary during the ordinary
course of business. The Company has no material capital expenditure commitments.

MARKET  RISK

Market  risk  is  defined as exposure to adverse fluctuations in interest rates,
foreign  currency  exchange  rates,  and  commodity  or other price changes. The
Company  does  not invest in derivatives or similar financial instruments, which
are  highly  sensitive  to  market  risk and which are the main focus of the new
requirements.  However,  the requirements are broad enough in scope to encompass
the potential impact of interest rate fluctuations on the Company's fixed income
portfolio,  as well as the potential impact of a severe drop in the stock market
on  the  Company's  equity  investments.

The  following  table shows the interest rate sensitivity of the Company's fixed
income  investments  (bonds  and  preferred  stock)  by presenting the projected
impact  of  a  parallel  rise  or decline in interest rates of 100 and 200 basis
points. The interest rate fluctuation is assumed to occur on January 1, 2001 and
remain  in  effect  for  the  life  of  the  fixed  income  portfolio.

<TABLE>
<CAPTION>
                          Basis Point (Decrease) Increase
                                                     Current
Portfolio Characteristics     (200)      (100)     Market Rate     100       200
-----------------------------------------------------------------------------------
<S>                         <C>        <C>        <C>            <C>       <C>
Market Value ($000's)       $105,278   $101,203   $     96,358   $90,834   $85,231
Market/Statement Value (%)     115.9%     111.4%         106.1%    100.0%     93.8%
Effective Duration (years)       3.9        4.2            4.5       4.8       5.0
</TABLE>

The valuation of the Company's common stock portfolio is subject to equity price
risk.  If market prices were to decrease 10%, the fair value of the common stock
portfolio  would  decrease  by an estimated $9.0 million, from $119.4 million to
$110.4  million.

The  Company's  investment  portfolio  is  actively managed to minimize downward
price  risk.

YEAR  2000

In  prior  years,  the Company discussed the nature and progress of its plans to
become  year  2000  ready.  In  1999  the  Company completed its remediation and
testing  of systems. As a result of the planning and implementation efforts, the
Company  experienced  no significant disruptions in mission critical information
technology  and  non-information  technology  systems and believes those systems
successfully  responded  to  the  year  2000  date  change.

The  Company  expensed  approximately  $90,000  during  1999  in connection with
remediating  its  systems.  The  Company  is  not aware of any material problems
resulting  from year 2000 issues, either with our products, our internal systems
or  the  products  and  services  of third parties. The Company will continue to
monitor  its  mission critical computer applications and those of its agents and
vendors  throughout  the  year  2000 to ensure that any latent year 2000 matters
that  may  arise  are  addressed  promptly.

SAFE  HARBOR  STATEMENT
Some  of  the statements in this report, as well as statements by the Company in
periodic  press  releases and oral statements made by the Company's officials to
analysts  and  shareholders  in  the  course of presentations about the Company,
constitute  "forward-looking  statements"  within  the  meaning  fo  the Private
Securities  Litigations  Reform  act  of  1995.  Such forward-looking statements
involve  known  and unknown risks, estimates subject to change in circumstances,
uncertainties  and  other factors that may cause the actual results, performance
or  achievements  of  the  Company  to  be  materially different from any future
results, performance or achievements expressed or implied by the forward-looking
statements.


                                       12
<PAGE>
Item  8.  Financial  Statements  and  Supplementary  Data
--------  -----------------------------------------------

     Financial  Statements    The  financial  statements  filed  by  CTC  in
     ---------------------
                              connection  with  this  annual  report  are
                              consolidated  financial  statements  which present
                              all  of  the  operations of the parent company and
                              its  subsidiaries.

                                   (1)  Capitol  Transamerica  Corporation
                                        Consolidated  Financial  Statements.
                                   (2)  Report  of  independent  auditors.
                                   (3)  Consolidated  balance  sheets-  December
                                        31,  2000  and  1999.
                                   (4)  Consolidated  statements  of income- for
                                        each  of  the  three years in the period
                                        ended  December  31,  2000.
                                   (5)  Consolidated statements of shareholders'
                                        investment  and  comprehensive  income
                                        (loss)-  for  each of the three years in
                                        the  period  ended  December  31,  2000.
                                   (6)  Consolidated  statements  of cash flows-
                                        for  each  of  the  three  years  in the
                                        period  ended  December  31,  2000.
                                   (7)  Notes  to  consolidated  financial
                                        statements.

Item  9.  Disagreements  of  Accounting  and  Financial  Disclosures
--------  ----------------------------------------------------------

     None.

                                    PART  III
                                    ---------

Item  10. Directors  and  Executive  Officers  of  CTC
--------- --------------------------------------------

<TABLE>
<CAPTION>
(a)  Directors:
                                                                                                                         Expire at
                                                                                                                          Annual
Name  (Age)                                                                     Other Directorships, Business             Meeting
Date of Original Election            Principal Occupation                 Experience and Miscellaneous Information          In:
--------------------------- --------------------------------------- ---------------------------------------------------- ---------
<S>                         <C>                                     <C>                                                  <C>

Paul J. Breitnauer (61)     Vice President and Treasurer of the     Mr. Breitnauer has been associated with the            2002
     1986                   Company; Senior Vice President and      insurance industry in various capacities since 1963.
                            Treasurer of CIC, CSIC and CFC, wholly-
                            owned subsidiaries of the Company.
                            Madison, Wisconsin

George A. Fait (74)         Chairman of the Board and President of  Mr. Fait is has been associated with the insurance     2003
     1965                   the Company and its wholly-owned        industry in various capacities since 1950.
                            subsidiaries;  Director of Bank One.
                            Madison, Wisconsin

Larry Burcalow (59)         Owner & President                       Mr. Burcalow as been Owner and President of            2001
     1997                   Yahara Materials, Inc.                  Yahara Materials, Inc. for over 30 years.
                            Waunakee,  Wisconsin



                                                                13
<PAGE>
Item 10 (continued)
---------------------------
                                                                                                                         Expire at
                                                                                                                          Annual
Name  (Age)                                                                     Other Directorships, Business             Meeting
Date of Original Election            Principal Occupation                 Experience and Miscellaneous Information          In:
--------------------------- --------------------------------------- ---------------------------------------------------- ---------
Michael J. Larson (59)      Principal                               Mr. Larson has been associated with  the banking       2001
     1991                   Southwestern Financial Services         industry in various capacities since 1965.
                            Madison,  Wisconsin

Reinhart H. Postweiler (71) Retired, formerly with Flad Affiliated  Mr. Postweiler is a member of the Wisconsin            2002
     1977                   Corporation; Director of Bank One       Society of Professional Engineers and the National
                            Madison, Wisconsin                      Society of Professional Engineers.

Kenneth P. Urso (66)        Principal                               Mr. Urso has been in the insurance business for        2003
     1997                   Urso Ventures; Director of First        over 30 years.
                            Business Bank
                            Madison, Wisconsin

                            None  of  the  above  directors  are  related  and  there are no arrangements or
                            understandings  between directors since each is acting solely in their described
                            capacity.  There  have  been  no  events  during  the  past five years which are
                            material  to the evaluation of the ability and integrity of any director of CTC.
</TABLE>


                                      14
<PAGE>
     (continued)
     (b)  Executive  Officers:
          ---------------------

          Chairman of the Board and President - George A. Fait (74 years of age)
          ----------------------------------------------------

          Elected  in  1960. Chairman of the Board and President - CIC, CSIC and
          CFC,  wholly-owned  subsidiary  companies.

          Vice President and Treasurer - Paul J. Breitnauer    (61 years of age)
          -------------------------------------------------
          Elected  Treasurer  in  1970  and  Vice President in 1982. Senior Vice
          President  and  Treasurer  -  CIC,  CSIC  and  CFC.

          Secretary  - Virgiline M. Schulte                    (72 years of age)
          ---------------------------------
          Elected  in  1988.  Secretary  -  CIC,  CSIC  and  CFC.

     (c)  Additional  Executive  Officers  -
          ----------------------------------
          CIC  &  CSIC  -  Wholly-Owned  Subsidiary  Insurance  Companies:
          ----------------------------------------------------------------

<TABLE>
<CAPTION>
<S>                                                    <C>
          Vice President - Property & Casualty Claims           Vice President - Personnel
          -------------------------------------------           --------------------------
          Robert F. Miller (62 years of age)                    Virgiline M. Schulte (72 years of age)
          Elected in 1986.                                      Elected in 1993.

          Vice President - Agency                               Vice President - Data Processing
          -----------------------  ------------------------------------------------
          Joel G. Fait (42 years of age)                        Frank S. Zillner (39 years of age)
          Elected in 1993.                                      Elected in 1993.

          Vice President - Rating                               Corporate Counsel
          -----------------------                               -----------------
          Vacant                                                Vacant


          Vice President - Property & Casualty & Underwriting   Vice President - Fidelity & Surety Underwriting
          ----------------------------------------------------  ------------------------------------------------
          Vacant                                                Jess J. Wadle (61 years of age)
                                                                Elected in 1998
</TABLE>

     (d)  Disclosure  of  Delinquent  Filers
          ----------------------------------

          The section captioned "Compliance with Section 16(a) of the Securities
          Exchange  Act of 1934" in the Capitol Transamerica Corporation ("CTC")
          Proxy  Statement  dated  April  6,  2001  is  incorporated  herein  by
          reference.

Item  11. Executive  Compensation  and  Transactions
--------- ------------------------------------------

          The  sections  captioned  "Compensation  of  Directors",  "Report  on
          Executive  Compensation" and "Executive Compensation Committee Report"
          in the CTC Proxy Statement dated April 6, 2001 are incorporated herein
          by  reference.


Item  12. Security  Ownership  of  Certain  Beneficial Owners and Management
--------- ------------------------------------------------------------------

          The  sections captioned "Principal Shareholders", "Option Exercised in
          Last  Fiscal Year" and "Compensation Plans" in the CTC Proxy Statement
          dated  April  6,  2001  are  incorporated  herein  by  reference.

Item  13. Certain  Relationships  and  Related  Transactions
--------- --------------------------------------------------

          The  section  captioned "Compensation Committee Interlocks and Insider
          Participation" and the three sections referenced in Item 11 above, all
          included  in  the  CTC  Proxy  Statement  dated  April  6,  2001,  are
          incorporated  herein  by  reference.

          George Fait and Virgiline Schulte are brother and sister; Joel Fait is
          George  Fait's  son  and  Frank Zillner is his son-in-law; none of the
          other  officers  are  related  and  there  are  no  arrangements  or
          understandings  between  officers since each is acting solely in their
          described  capacity.  There  have  been no events during the past five
          years  which  are  material  to  the  evaluation  or  the  ability and
          integrity of any executive officer of the Company or its subsidiaries.


                                       15
<PAGE>
Item  14. Exhibits,  Financial  Statement  Schedules and Reports on Form 8-K
--------- ------------------------------------------------------------------

          (a)  1  and  2. Financial statements and financial statement schedules
               -----------------------------------------------------------------

               The  following  financial  statements  of  Capitol  Transamerica
               Corporation  and  Subsidiaries  are  included  in  Item  8.

               Consolidated  balance  sheets  -  December  31,  2000  and  1999.

               Consolidated  statements  of income - for each of the three years
               in  the  period  ended  December  31,  2000.

               Consolidated  statements  of  shareholders'  investment  and
               comprehensive  income-  for each of the three years in the period
               ended  December  31,  2000.

               Consolidated  statements  of  cash  flows - for each of the three
               years  in  the  period  ended  December  31,  2000.

               Notes  to  consolidated  financial  statements.

          The  following  financial  statement schedules of Capitol Transamerica
          Corporation  and  Subsidiaries  are  included  in  Item  14(d).

            Schedule I          Summary of Investments Other than Investments in
                                Related  Parties

            Schedule II         Condensed Financial Information of Registrant -
                                Parent  Company

            Schedule  III       Supplementary  Insurance  Information

            Schedule  IV        Reinsurance

            Schedule  VI        Supplemental  Information  Concerning
                                Property-Casualty  Insurance  Operations

          All  other  schedules  required by Article 7 of Regulation S-K are not
          required  under  the  related  instructions  or  are inapplicable, and
          therefore  have  been  omitted.

     (b)  No  Reports  on  Form  8-K were filed during the fourth quarter of the
          fiscal  year  ended  December  31,  2000.

     (c)  Exhibits
          --------
          None

     (d)  Financial  Statement  Schedules
          -------------------------------
          Reference  is  made  to  the  financial  statement  schedules  above.


                                       16
<PAGE>
                                   SIGNATURES
                                   ----------


     Pursuant  to  the  requirements  of  Section 13 and 15(d) of the Securities
Exchange  Act  of  l934, the company has duly caused this report to be signed on
its  behalf  by  the  undersigned,  thereunto  duly  authorized.


                        CAPITOL TRANSAMERICA CORPORATION
                       ----------------------------------



By                                        By
      -------------------------------         ----------------------------------
      George  A.  Fait                        Paul  J.  Breitnauer
      Chairman  of  the  Board,               Vice  President,
      President  and  Director                Treasurer  and  Director



By                                        By
      -------------------------------         ----------------------------------
      Virgiline  M.  Schulte                  Larry  Burcalow
      Secretary                               Director



By                                        By
      -------------------------------         ----------------------------------
      Michael  J.  Larson                     Reinhart  H.  Postweiler
      Director                                Director



By
      -------------------------------
      Kenneth  P.  Urso
      Director



March  26,  2001


                                       17
<PAGE>
RESPONSIBILITY  FOR  FINANCIAL  REPORTING

To  The Shareholders and Board of Directors of Capitol Transamerica Corporation:

The  Company  has prepared the consolidated financial statements, related notes,
and  other  financial  data appearing in this Annual Report. The statements were
developed  using  accounting  principles generally accepted in the United States
and  policies  considered  appropriate in the circumstances. They reflect, where
applicable,  management's best estimates and judgments.  The financial data also
includes  disclosures  and explanations that are relevant to an understanding of
the  financial  affairs of the Company.  To meet management's responsibility for
financial  reporting,  internal  control  systems and procedures are designed to
provide  reasonable assurance as to the reliability of the financial records and
compliance  with  corporate  policy  throughout  the  organization.

Ernst  & Young LLP, independent auditors, have audited the financial statements.
To  express  an opinion thereon, they review and evaluate the Company's internal
accounting  controls  and conduct such tests of the accounting records and other
auditing procedures as they deem necessary.  The Board of Directors oversees the
Company's financial reporting through its Audit Committee, which regularly meets
with  the  independent  auditors,  both  with and without management present, to
review  accounting,  auditing  and  financial  reporting  matters.  A  policy of
business  ethics  is  communicated annually to the Company's directors, officers
and  responsible  employees.  The Company monitors compliance with the policy to
help  assure  that  operations  are  conducted in a responsible and professional
manner  with  a  commitment  to  the  highest  standard  of  business  conduct.




                                   Paul  J.  Breitnauer
                                   Vice  President  and  Treasurer

--------------------------------------------------------------------------------

REPORT  OF  ERNST  &  YOUNG  LLP,  INDEPENDENT  AUDITORS

To  the Shareholders and Board of Directors of Capitol Transamerica Corporation:

We  have  audited  the  accompanying  consolidated  balance  sheets  of  Capitol
Transamerica  Corporation  (the "Company") as of December 31, 2000 and 1999, and
the  related consolidated statements of operations, shareholders' investment and
comprehensive  income,  and  cash  flows for the three years in the period ended
December  31,  2000.  Our audits also included the financial statement schedules
listed in the Index at Item 14(a).  These financial statements and schedules are
the  responsibility  of  the  Company's  management.  Our  responsibility  is to
express  an  opinion  on  these  financial statements and schedules based on our
audits.

We conducted our audits in accordance with auditing standards generally accepted
in  the  United  States.  Those  standards  require that we plan and perform the
audit  to obtain reasonable assurance about whether the financial statements are
free  of  material  misstatement.  An audit includes examining, on a test basis,
evidence  supporting the amounts and disclosures in the financial statements. An
audit  also  includes  assessing  the accounting principles used and significant
estimates  made  by  management,  as  well  as  evaluating the overall financial
statement  presentation.  We  believe that our audits provide a reasonable basis
for  our  opinion.

In  our opinion, the consolidated financial statements referred to above present
fairly, in all material respects, the consolidated financial position of Capitol
Transamerica  Corporation  at  December  31, 2000 and 1999, and the consolidated
results  of its operations and its cash flows for each of the three years in the
period  ended  December  31,  2000,  in  conformity  with  accounting principles
generally  accepted  in  the  United  States.  Also, in our opinion, the related
financial  statement  schedules,  when  considered  in  relation  to  the  basic
financial  statements  taken as a whole, present fairly in all material respects
the  information  set  forth  therein.



Ernst  &  Young  LLP
Milwaukee,  Wisconsin
February  16,  2001



                                       18
<PAGE>
<TABLE>
<CAPTION>
                                        CAPITOL  TRANSAMERICA  CORPORATION
                                          CONSOLIDATED  BALANCE  SHEETS
                                          December  31,  2000  and  1999

                                                                                         2000          1999
                                                                                     ------------  ------------
<S>                                                                                  <C>           <C>
Assets
  Investments (Notes (1)(b) and (2)):
     Available-for-sale investment securities, at fair value
        Fixed maturities (amortized cost $85,369,980 and $80,019,257, respectively)  $ 90,841,811  $ 83,210,487
        Equity securities:
          Common stock, (cost $123,504,211 and $125,913,872, respectively)            119,413,538   116,656,582
          Nonredeemable preferred stock, (cost $6,470,793 and
               $5,725,500, respectively)                                                5,516,567     5,695,567
     Investment real estate, at cost, net of depreciation                              11,008,554    10,540,426
     Short-term investments, at cost which approximates fair value (Note(2)(d))         5,587,306     1,982,122
                                                                                     ------------  ------------
Total Investments                                                                     232,367,776   218,085,184
                                                                                     ------------  ------------

  Cash                                                                                  3,641,628     1,080,435
  Accrued investment income                                                             1,953,466     1,927,901
  Receivables from agents, insureds and others, less allowance
     for doubtful accounts of $530,000 each year                                       18,438,610    14,892,647
  Balances due from reinsurers                                                          1,794,851             -
  Funds held by ceding reinsurers                                                          47,000        40,000
  Income taxes recoverable- current                                                        67,463       686,240
  Deferred income taxes (Notes (1)(f) and (5))                                          2,468,713     4,153,393
  Deferred insurance acquisition costs (Note (1)(e))                                   13,726,372    12,644,189
  Prepaid reinsurance premiums                                                          1,714,017     1,287,627
  Due from securities brokers                                                           4,218,650       639,136
  Other assets                                                                          2,819,506     2,114,074
                                                                                     ------------  ------------
Total Assets                                                                         $283,258,052  $257,550,826
                                                                                     ============  ============
</TABLE>

      The accompanying notes to the consolidated financial statements are
                an integral part of these financial statements.


                                       19
<PAGE>
<TABLE>
<CAPTION>
                              CAPITOL  TRANSAMERICA  CORPORATION
                                CONSOLIDATED  BALANCE  SHEETS
                                December  31,  2000  and  1999

                                                                                   2000           1999
                                                                               -------------  -------------
<S>                                                                            <C>            <C>
Liabilities
  Policy Liabilities and Accruals (Notes (1)(d), (3) and (4)):
     Reserve for losses                                                        $ 52,231,685   $ 53,575,780
     Reserve for loss adjustment expenses                                        25,749,288     23,680,412
     Unearned premiums                                                           45,587,586     39,454,257
                                                                               -------------  -------------
  Total Policy Liabilities and Accruals                                         123,568,559    116,710,449
                                                                               -------------  -------------

  Accounts payable                                                                4,203,407      3,950,898
  Claim drafts outstanding                                                        4,927,097      1,854,701
  Due to securities brokers                                                          34,125              -
  Balances due to reinsurers                                                      4,097,368      1,469,705
  Accrued premium taxes                                                             727,627        338,863
                                                                               -------------  -------------
  Total Other Liabilities                                                        13,989,624      7,614,167
                                                                               -------------  -------------
Total Liabilities                                                               137,558,183    124,324,616
                                                                               -------------  -------------
  Commitments and contingent liabilities (Notes (4) and (8))                              -              -

Shareholders' Investment (Notes (6) and (7))
     Common stock, $1.00 par value, authorized 15,000,000 shares,
        issued 11,558,767 and 11,538,970, respectively                           11,558,767     11,538,970
     Paid-in surplus                                                             22,733,088     22,594,538
     Accumulated other comprehensive income (loss), net of deferred taxes of
        $149,428 and ($2,133,595), respectively (Notes (1)(b) and (2))              277,504     (3,962,398)
     Retained earnings                                                          114,944,048    103,577,193
                                                                               -------------  -------------
Shareholders' investment before treasury stock                                  149,513,407    133,748,303
     Treasury stock, 549,867 and 271,071 shares, respectively, at cost           (3,813,538)      (522,093)
                                                                               -------------  -------------
Total Shareholders' Investment                                                  145,699,869    133,226,210
                                                                               -------------  -------------
Total Liabilities and Shareholders' Investment                                 $283,258,052   $257,550,826
                                                                               =============  =============
</TABLE>

      The accompanying notes to the consolidated financial statements are
                an integral part of these financial statements.


                                       20
<PAGE>
<TABLE>
<CAPTION>
                                        CAPITOL TRANSAMERICA CORPORATION
                                        CONSOLIDATED STATEMENTS OF INCOME
                              For The Years Ended December 31, 2000, 1999 and 1998

                                                                           2000           1999          1998
                                                                       -------------  ------------  ------------
<S>                                                                    <C>            <C>           <C>
Revenues:
   Premiums earned (Note (1)(c))                                       $ 88,184,842   $ 82,841,104  $ 88,629,476
   Net investment income (Note (2)(e))                                    9,163,062      9,136,244     9,119,936
   Realized investment gains (Notes (1)(b) and (2))                      11,805,350      8,184,101    13,198,139
   Other revenues                                                           355,208        249,672       113,005
                                                                       -------------  ------------  ------------
Total Revenues                                                          109,508,462    100,411,121   111,060,556
                                                                       -------------  ------------  ------------

Losses and Expenses Incurred (Notes (1)(d), (3) and (4)):
   Losses incurred                                                       43,728,496     34,407,096    43,994,221
   Loss adjustment expenses incurred                                     13,772,879     10,893,745     8,382,893
   Underwriting, acquisition and insurance expenses (Note (10))          32,299,497     28,920,512    28,558,650
   (Increase) decrease in deferred insurance acquisition costs           (1,082,183)       880,588       662,164
   Other expenses                                                         1,471,512      1,398,483     1,461,640
                                                                       -------------  ------------  ------------
Total Losses and Expenses Incurred                                       90,190,201     76,500,424    83,059,568
                                                                       -------------  ------------  ------------

Income from operations before income taxes                               19,318,261     23,910,697    28,000,988
Income tax expense (Note (5))                                             4,864,944      7,198,234     8,577,075
                                                                       -------------  ------------  ------------

Net Income                                                             $ 14,453,317   $ 16,712,463  $ 19,423,913
                                                                       =============  ============  ============


Income Per Share- basic  (Note (1)(g))                                 $       1.30   $       1.49  $       1.73
                                                                       =============  ============  ============

Weighted average number of shares outstanding- basic  (Note (1)(g))      11,124,074     11,252,358    11,206,018
                                                                       =============  ============  ============

Income Per Share- diluted  (Note (1)(g))                               $       1.30   $       1.48  $       1.72
                                                                       =============  ============  ============

Weighted average number of shares outstanding- diluted  (Note (1)(g))    11,158,462     11,297,289    11,280,442
                                                                       =============  ============  ============
</TABLE>

The accompanying notes to the consolidated financial statements are an integral
                      part of these financial statements.


                                       21
<PAGE>
<TABLE>
<CAPTION>
                                        CONSOLIDATED STATEMENTS OF SHAREHOLDERS' INVESTMENT
                                                  AND COMPREHENSIVE INCOME (LOSS)


                                             Common                                    Accumulated
                                              Stock                                       Other
                                           (Par Value     Paid-In     Comprehensive    Comprehensive     Retained       Treasury
                                             $1.00)       Surplus     Income (Loss)    Income (Loss)     Earnings        Stock
                                          ------------  -----------  ---------------  ---------------  -------------  ------------
<S>                                       <C>           <C>          <C>              <C>              <C>            <C>
Balance, January 1, 1998                  $11,502,520   $21,832,206  $            -   $   32,676,572   $ 73,732,118   $  (401,275)
  Comprehensive income (loss):
    Net income                                      -             -      19,423,913                -     19,423,913             -
                                                                     ---------------
    Other comprehensive loss:
      Unrealized depreciation on
        available-for-sale securities,
        net of deferred taxes                       -             -      (6,078,237)               -              -             -
      Less: reclassification adjustment,
        net of tax of $4,619,349,
        for gain included in net income             -             -      (8,578,790)               -              -             -
                                                                     ---------------
      Other comprehensive loss                      -             -     (14,657,027)     (14,657,027)             -             -
                                                                     ---------------
  Comprehensive income                              -             -       4,766,886                -              -             -
  Stock options exercised                      26,856       142,409               -                -              -       (18,952)
  Purchases and sales
    of treasury stock, net                          -       271,751               -                -              -       (75,332)
  Cash dividends paid                               -             -               -                -     (3,139,786)            -
                                          ------------  -----------  ---------------  ---------------  -------------  ------------
Balance, December 31, 1998                 11,529,376    22,246,366               -       18,019,545     90,016,245      (495,559)
  Comprehensive income (loss):
    Net income                                      -             -      16,712,463                -     16,712,463             -
                                                                     ---------------
    Other comprehensive loss:
      Unrealized depreciation on
        available-for-sale securities,
        net of deferred taxes                       -             -     (16,662,277)               -              -             -
      Less: reclassification adjustment,
        net of tax of $2,864,435,
        for gain included in net income             -             -      (5,319,666)               -              -             -
                                                                     ---------------
      Other comprehensive loss                      -             -     (21,981,943)     (21,981,943)             -             -
                                                                     ---------------
  Comprehensive loss                                -             -      (5,269,480)               -              -             -
  Stock options exercised                       9,594        57,748               -                -              -       (26,534)
  Purchases and sales
    of treasury stock, net                          -       290,424               -                -              -             -
  Cash dividends paid                               -             -               -                -     (3,151,515)            -
                                          ------------  -----------  ---------------  ---------------  -------------  ------------
Balance, December 31, 1999                $11,538,970   $22,594,538  $            -   $   (3,962,398)  $103,577,193   $  (522,093)
  Comprehensive income
    Net income                                      -             -      14,453,317                -     14,453,317             -
                                                                     ---------------
    Other comprehensive income:
      Unrealized appreciation on
        available-for-sale securities,
        net of deferred taxes                       -             -      11,913,380                -              -             -
      Less: reclassification adjustment,
        net of tax of $2,546,352,
        for gain included in net income             -             -      (7,673,478)               -              -             -
                                                                     ---------------
      Other comprehensive income                    -             -       4,239,902        4,239,902              -             -
                                                                     ---------------
  Comprehensive income                              -             -      18,693,219                -              -             -
  Stock options exercised                      19,797       138,550               -                -              -       (76,250)
  Stock-based compensation                          -             -               -                -         25,476             -
  Purchases and sales
    of treasury stock, net                          -             -               -                -              -    (3,215,195)
  Cash dividends paid                               -             -               -                -     (3,111,938)            -
                                          ------------  -----------  ---------------  ---------------  -------------  ------------
Balance, December 31, 2000                $11,558,767   $22,733,088  $            -   $      277,504   $114,944,048   $(3,813,538)
                                          ============  ===========  ===============  ===============  =============  ============
</TABLE>

The accompanying notes to the consolidated financial statements are an integral
                      part of these financial statements.


                                       22
<PAGE>
<TABLE>
<CAPTION>
                                      CAPITOL TRANSAMERICA CORPORATION
                                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                            For the Years Ended December 31, 2000, 1999 and 1998



                                                                            2000           1999           1998
                                                                        -------------  -------------  -------------
<S>                                                                     <C>            <C>            <C>
Cash flows provided by operating activities:
----------------------------------------------------------------------
  Net Income                                                            $ 14,453,317   $ 16,712,463   $ 19,423,913
    Adjustments to reconcile net income to net cash
      provided by operating activities:
        Depreciation                                                       1,215,024      1,161,702      1,195,955
        Realized investment gains                                        (11,805,350)    (8,184,101)   (13,198,139)
        Change in:
          Deferred insurance acquisition costs                            (1,082,183)       880,588        662,164
          Unearned premiums                                                6,133,329     (2,087,175)    (5,870,417)
          Allowance for doubtful accounts receivable from agents                   -         30,000         60,000
          Accrued investment income                                          (25,565)      (248,903)        28,694
          Receivables from agents, insureds and others                    (3,545,963)     2,294,999      3,542,835
          Balances due to/from reinsurers                                    149,564        317,498       (191,361)
          Reinsurance recoverable on paid and unpaid losses                  683,248      1,026,426       (897,506)
          Funds held by ceding reinsurers                                     (7,000)        (4,244)       (35,756)
          Income taxes payable/recoverable                                   618,777       (635,702)       633,804
          Deferred income taxes                                             (598,340)      (538,796)      (304,896)
          Due to/from securities brokers                                  (3,545,389)       763,512     (6,721,020)
          Prepaid reinsurance premiums                                      (426,390)      (560,553)        16,914
          Other assets                                                      (707,858)      (332,788)        (5,305)
          Reserves for losses and loss adjustment expenses                   724,781     (1,247,858)     7,031,712
          Accounts payable                                                 3,324,905       (371,947)       371,977
          Accrued premium taxes                                              388,764        101,692        (99,992)
                                                                        -------------  -------------  -------------
            Net cash provided by operating activities                      5,947,671      9,076,813      5,643,576
                                                                        -------------  -------------  -------------

Cash flows provided by (used for) investing activities:
----------------------------------------------------------------------
   Proceeds from sales of available-for-sale investments                  26,278,568     29,718,246     40,484,195
   Purchases of available-for-sale investments                           (26,716,842)   (44,377,254)   (49,573,482)
   Maturities of available-for-sale investments                            4,053,867      8,690,009      7,660,719
   Purchases of depreciable assets                                          (782,511)      (751,534)    (1,080,065)
                                                                        -------------  -------------  -------------
     Net cash provided by (used for) investing activities                  2,833,082     (6,720,533)    (2,508,633)
                                                                        -------------  -------------  -------------

Cash flows used for financing activities:
----------------------------------------------------------------------
  Cash dividends paid                                                     (3,111,938)    (3,151,515)    (3,139,786)
  Stock options exercised                                                     45,273         40,808        441,017
  Net (cost of) proceeds from sale (purchase) of treasury stock           (3,152,895)       290,424        (94,284)
                                                                        -------------  -------------  -------------
    Net cash used for financing activities                                (6,219,560)    (2,820,283)    (2,793,053)
                                                                        -------------  -------------  -------------

  Net increase (decrease) in cash                                          2,561,193       (464,003)       341,890
  Cash, beginning of year                                                  1,080,435      1,544,438      1,202,548
                                                                        -------------  -------------  -------------
  Cash, end of year                                                     $  3,641,628   $  1,080,435   $  1,544,438
                                                                        =============  =============  =============
Cash paid during the year for:
  Income taxes                                                          $  4,856,364   $  8,611,726   $  8,358,132
</TABLE>

     The accompanying notes to the consolidated financial statements are an
                  integral part of these financial statements.

                                       23
<PAGE>
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1)       Summary  of  Significant  Accounting  Policies
          ----------------------------------------------
          Capitol  Transamerica  Corporation  (the  "Company")  is  an insurance
          holding  company,  which  writes, through its subsidiaries, commercial
          insurance  coverages  in  37  states.  The property-casualty insurance
          coverages  represent  approximately  77%  of  the  Company's  premiums
          written while fidelity-surety coverages represent approximately 23% of
          the  Company's  premiums  written. The Company's products are marketed
          through  independent  agents  located  throughout  the  United States.

          The consolidated financial statements are presented in accordance with
          accounting  principles  generally  accepted  in  the  United  States
          ("GAAP").  The  preparation  of  financial  statements  of  insurance
          companies  requires  management to make estimates and assumptions that
          affect  amounts  reported in the financial statements and accompanying
          notes. Actual results could differ significantly from those estimates.

     (a)  Principles  of  Consolidation
          -----------------------------
          The  consolidated  financial  statements  include  the accounts of the
          Company  and  its  wholly-owned  subsidiaries,  Capitol  Indemnity
          Corporation  ("CIC"), Capitol Specialty Insurance Corporation ("CSIC")
          and  Capitol  Facilities  Corporation  ("CFC").  All  significant
          inter-company  accounts  and  transactions  have  been  eliminated  in
          consolidation.

     (b)  Investments
          -----------
          The  Company  classifies  all  of  its  fixed  maturities  and  equity
          securities  as  available-for-sale.  Accordingly, investments in fixed
          maturities  and  equity  securities  are  reported at fair value, with
          unrealized  gains  and  losses  reported  in  a  separate component of
          shareholders'  investment,  net  of  tax  effect.  The  cost  of fixed
          maturities  is  adjusted for amortization of premiums and accretion of
          discounts  to  maturity. Fixed maturities and equity securities deemed
          to  have  declines  in value that are other than temporary are written
          down through the statement of income to carrying values equal to their
          estimated  fair  values.

          Investment  real  estate  is  carried  at  cost  net  of  accumulated
          depreciation  of $1,595,693 and $1,173,643 as of December 31, 2000 and
          December  31,  1999, respectively. The real estate is depreciated over
          the  estimated  useful  life  of  the  asset.

          Cost  of  investments  sold  is  determined  under  the  specific
          identification  method.

     (c)  Premiums
          --------
          Premiums  are  recognized as revenue on a pro-rata basis over the term
          of  the contracts. Approximately 18.5% and 13.9% of the total premiums
          written  are on risks located in Wisconsin and Illinois, respectively.
          No  other  state  exceeds  10%.

     (d)  Loss  and  Loss  Adjustment  Expenses
          -------------------------------------
          Losses  and  loss  adjustment  expenses  less  related reinsurance and
          subrogation  recoverable, are provided for as claims are incurred. The
          reserves  for  losses  and  loss  adjustment expenses include: (1) the
          accumulation  of  individual  estimates  for claims reported on direct
          business  prior  to  the close of the accounting period; (2) estimates
          received  from other insurers with respect to reinsurance assumed; (3)
          estimates  for  incurred  but  not  reported  claims  based  on  past
          experience  modified for current trends; and (4) estimates of expenses
          for  investigating  and  settling claims based on past experience. The
          liabilities  recorded  are  based  on  estimates  resulting  from  the
          continuing  review  process,  and  differences  between  estimates and
          ultimate payments are reflected in expense for the period in which the
          estimates  are  changed.

                                       24
<PAGE>
     (e)  Deferred  Insurance  Acquisition  Costs
          ---------------------------------------
          Deferred  insurance acquisition costs that vary with, and are directly
          related  to,  the  production  of  premiums  (principally commissions,
          premium  taxes,  compensation  and  certain underwriting expenses) are
          deferred.  Deferred  insurance  acquisition  costs  are  amortized  to
          expense  as  the  related  premiums  are  earned.

     (f)  Income  Taxes
          -------------
          Deferred  income  taxes  reflect  the  net  tax  effects  of temporary
          differences between the carrying amounts of assets and liabilities for
          financial  statement  purposes  and  the  amounts  used for income tax
          reporting.

     (g)  Income  Per  Share
          ------------------
          Basic  income  per  share  is  computed  by dividing net income by the
          weighted-average  number  of  shares  of  stock outstanding during the
          year.  Diluted  income per share is computed by dividing net income by
          the  weighted-  average  number  of  shares of common stock and common
          stock  equivalents  from options outstanding. The following table sets
          forth  the  computation  of  basic  and  diluted  EPS:

<TABLE>
<CAPTION>
                                               December 31,
                                     2000         1999         1998
                                 -----------  -----------  -----------
<S>                              <C>          <C>          <C>
Numerator:
  Consolidated net income        $14,453,317  $16,712,463  $19,423,913

Denominator:
Denominator for basic EPS -
  weighted average shares         11,124,074   11,252,358   11,206,018
Effect of dilutive securities -
  unexercised stock options           34,388       44,931       74,424
                                 -----------  -----------  -----------
Denominator for diluted EPS       11,158,462   11,297,289   11,280,442

Basic EPS                        $      1.30  $      1.49  $      1.73
Diluted EPS                      $      1.30  $      1.48  $      1.72
</TABLE>

     (h)  Comprehensive  Income  (Loss)
          -----------------------------
          Comprehensive  income  (loss)  is  defined as net income plus or minus
          other  comprehensive  income  (loss),  which  for  the  Company, under
          existing  accounting  standards,  consists  of  unrealized  gains  and
          losses,  net of income tax effects, on certain investments in debt and
          equity  securities.  Comprehensive  income  (loss)  is reported by the
          Company  in  the  consolidated  statements of changes in shareholders'
          investment  and  comprehensive  income  (loss).

     (i)  Reclassifications
          -----------------
          Certain  reclassifications  have  been  made  to  the  1999  financial
          statements  to  conform  with  the  2000  presentation.

                                       25
<PAGE>
(2)          Investments
             -----------
     (a)  The  amortized  cost  and estimated fair value of fixed maturities and
          equity  securities  are  as  follows:

<TABLE>
<CAPTION>
                                                      Gross         Gross
                                      Amortized    Unrealized    Unrealized        Fair
Type of investment                       Cost         Gains        Losses         Value
-------------------------------------------------------------------------------------------
<S>                                  <C>           <C>          <C>            <C>
DECEMBER 31, 2000
Fixed maturities:
     U.S. Government bonds           $     33,930  $     1,690             -   $     35,620
     State, municipal and political
          subdivision bonds            84,236,162    5,559,420       (63,528)    89,732,054
     Corporate bonds and notes          1,099,888            -       (25,751)     1,074,137
-------------------------------------------------------------------------------------------
   Total fixed maturities            $ 85,369,980  $ 5,561,110      ($89,279)  $ 90,841,811
===========================================================================================

Equity securities:
     Common stock                    $123,504,211  $26,442,675  ($30,533,348)  $119,413,538
     Non-redeemable preferred stock     6,470,793      185,332    (1,139,558)     5,516,567
-------------------------------------------------------------------------------------------
   Total equity securities           $129,975,004  $26,628,007  ($31,672,906)  $124,930,105
===========================================================================================

DECEMBER 31, 1999
Fixed maturities:
     U.S. Government bonds           $     39,428  $     2,196             -   $     41,624
     State, municipal and political
          subdivision bonds            78,855,846    4,423,576    (1,204,274)    82,075,148
     Corporate bonds and notes          1,123,983            -       (30,268)     1,093,715
-------------------------------------------------------------------------------------------
   Total fixed maturities            $ 80,019,257  $ 4,425,772   ($1,234,542)  $ 83,210,487
===========================================================================================

Equity securities:
     Common stock                    $125,913,872  $16,310,888  ($25,568,178)  $116,656,582
     Non-redeemable preferred stock     5,725,500      552,975      (582,908)     5,695,567
-------------------------------------------------------------------------------------------
   Total equity securities           $131,639,372  $16,863,863  ($26,151,086)  $122,352,149
===========================================================================================
</TABLE>

     (b)  The  amortized  cost  and  estimated fair value of fixed maturities at
          December  31,  2000, by contractual maturity, is shown below. Expected
          maturities  will  differ from contractual maturities because borrowers
          may  have the right to call or prepay obligations with or without call
          or  prepayment  penalties.

                                                   Amortized      Fair
                                                     Cost         Value
          ----------------------------------------------------------------
          Due in one year or less                 $         -  $         -
          Due after one year through five years     3,014,408    3,125,891
          Due after five years through ten years   10,295,355   10,745,902
          Due after ten years                      72,060,217   76,970,018
          ----------------------------------------------------------------
          Total                                   $85,369,980  $90,841,811
          ================================================================


                                       26
<PAGE>
     (c)  Realized  gains  (losses)  and change in unrealized gains (losses) for
          the three years ended December 31, 2000, 1999 and 1998 are as follows:

<TABLE>
<CAPTION>
                                                 2000           1999            1998
-----------------------------------------------------------------------------------------
<S>                                          <C>           <C>             <C>
Realized gains (losses):
  Fixed maturities
    Gross gains                              $    45,234   $      66,054   $      64,575
    Gross losses                                  (4,235)         (6,386)         (5,040)
  Equity securities
    Gross gains                               12,398,816       8,174,659      13,138,613
    Gross losses                                (634,465)        (50,226)             (9)
  Other                                                -               -               -
-----------------------------------------------------------------------------------------
Net realized gains                           $11,805,350   $   8,184,101   $  13,198,139
=========================================================================================


Change in unrealized gains (losses):
  Fixed maturities                           $ 2,280,601     ($3,659,687)  $   2,214,372
  Equity securities                            4,242,324     (30,158,682)    (24,001,959)
-----------------------------------------------------------------------------------------
Net change in unrealized gains (losses)        6,522,926     (33,818,369)    (21,787,587)
  Less effect of applicable deferred taxes     2,283,024     (11,836,426)     (7,130,560)
-----------------------------------------------------------------------------------------
Net increase (decrease) in unrealized gains  $ 4,239,902    ($21,981,943)   ($14,657,027)
=========================================================================================
</TABLE>

          Following  is  a  summary  of  total  unrealized  gains (losses) as of
          December  31,  2000,  1999  and  1998:

<TABLE>
<CAPTION>
                                                 2000           1999           1998
---------------------------------------------------------------------------------------
<S>                                         <C>            <C>            <C>
Unrealized gains (losses):
  Fixed maturities
    Gross unrealized gains                  $  5,561,110   $  4,425,772   $  6,860,733
    Gross unrealized losses                      (89,279)    (1,234,542)        (9,819)
  Equity securities
    Gross unrealized gains                    26,628,007     16,863,863     32,173,006
    Gross unrealized losses                  (31,672,906)   (26,151,086)   (11,301,546)
---------------------------------------------------------------------------------------
Gross unrealized gains (losses)                  426,932     (6,095,993)    27,722,374
  Less effect of applicable deferred taxes       149,428     (2,133,595)     9,702,829
---------------------------------------------------------------------------------------
Net unrealized gains (losses)               $    277,504    ($3,962,398)  $ 18,019,545
=======================================================================================
</TABLE>

     (d)  The  fair  value  of  securities  on deposit with insurance regulators
          in  accordance  with statutory requirements was $3,936,264 at December
          31,  2000  and  $3,927,732  at  December  31,  1999.

          In  connection  with  the  reinsurance  assumed  operations,  CIC  has
          established  security trust fund agreements with a bank, consisting of
          cash and securities in the amount of $835,000 at December 31, 2000 and
          $865,000  at  December  31,  1999.

                                       27
<PAGE>
     (e)  Following  is  a  summary  of  investment income from each category of
          investments:

<TABLE>
<CAPTION>
                                      2000         1999         1998
------------------------------------------------------------------------
<S>                                <C>          <C>          <C>
Fixed maturities                   $ 4,927,452  $ 4,732,097  $ 4,619,471
Equity securities                    3,792,573    3,917,943    3,907,213
Investment real estate               2,343,288    2,458,961    2,383,255
Short-term                             350,688      252,387      186,341
------------------------------------------------------------------------
Total investment income             11,414,001   11,361,388   11,096,280
Investment expenses - real estate    1,484,161    1,434,580    1,310,113
Other investment expenses              344,742      406,518      321,016
Depreciation on real estate            422,036      384,046      345,215
------------------------------------------------------------------------
Net investment income              $ 9,163,062  $ 9,136,244  $ 9,119,936
========================================================================
</TABLE>

     (f)  The  Company  had  investments  in  state,  municipal  and  political
          subdivision  bonds with amortized costs of $84,236,162 and $78,855,846
          at December 31, 2000 and 1999 respectively. Approximately 93% of these
          bonds  were  special  assessment revenue bonds and approximately 7% of
          these  bonds  were  state  and  political  subdivision  obligations at
          December  31,  2000  and  1999.  The  Company monitors its exposure by
          investing its funds in accordance with guidelines set by the Company's
          investment  committee.  At December 31, 2000, approximately 40% of the
          municipal  bond  portfolio  consisted  of  securities of Wisconsin and
          Minnesota.  No  other  state  total  exceeded  10%.

     (g)  Fair  values  for  fixed  maturities  and  equity  securities  are
          determined from quoted market prices where available, or are estimated
          using values obtained from independent pricing services. Thinly traded
          fixed  maturities  are  individually priced based upon year-end market
          conditions, type of security, interest rate and maturity of the issue.

(3)       Reserves  for  Losses  and  Loss  Adjustment  Expenses
          ------------------------------------------------------
          The  table below provides a reconciliation of the beginning and ending
          reserves  for losses and loss adjustment expenses, net of reinsurance:

<TABLE>
<CAPTION>
                                                               2000          1999          1998
---------------------------------------------------------------------------------------------------
<S>                                                        <C>           <C>           <C>
Balance as of January 1,                                   $77,256,192   $78,504,050   $71,472,338
Reinsurance balances                                           121,478    (1,101,770)         (594)
---------------------------------------------------------------------------------------------------
Net reserves                                                77,377,670    77,402,280    71,471,744

Incurred losses and loss adjustment expenses related to:
     Current year                                           60,051,007    47,749,455    49,862,090
     Prior years
        Direct losses (net of ceded)                        (1,744,893)     (562,627)    4,091,923
        Direct loss adjustment expenses (net of ceded)         520,814    (2,379,899)   (1,956,631)
        Discontinued assumed reinsurance                    (1,325,553)      493,912       379,732
---------------------------------------------------------------------------------------------------
            Total prior years                               (2,549,632)   (2,448,614)    2,515,024

Total incurred                                              57,501,375    45,300,841    52,377,114
---------------------------------------------------------------------------------------------------

Paid losses and loss adjustment expenses related to:
     Current year                                           25,045,636    18,642,962    20,035,517
     Prior years                                            29,411,213    26,682,489    26,370,166
---------------------------------------------------------------------------------------------------
Total paid                                                  54,456,849    45,325,451    46,405,683
---------------------------------------------------------------------------------------------------

Other adjustments, net                                               -             -       (40,895)
---------------------------------------------------------------------------------------------------

Net balance at December 31                                  80,422,196    77,377,670    77,402,280
Reinsurance balances                                        (2,441,223)     (121,478)    1,101,770
---------------------------------------------------------------------------------------------------
Balance at December 31                                     $77,980,973   $77,256,192   $78,504,050
===================================================================================================
</TABLE>

                                       28
<PAGE>
          The  Company  continually  reviews  its  reserves  for losses and loss
          adjustment  expenses  and  the  related  reinsurance  recoverables. As
          explained  in  Note (1)(d), differences between estimates and ultimate
          payments  are  reflected  in  expense  for  the  period  in  which the
          estimates  are  changed.  As  a  result  of  the  variability in these
          estimates,  reserves have differed from actual experience during 2000,
          1999  and  1998.  The  actuarial  estimates  are  based  on past claim
          experience  and  consider  current  claim trends and premium volume as
          well  as  social  and  economic  conditions.

          While  the  Company has recorded its best estimate of its reserves for
          losses  and  loss adjustment expenses, it is reasonably possible these
          estimates,  net  of  estimated reinsurance recoverables, may change in
          the  future.  See  Note  4(b) for a discussion of discontinued assumed
          reinsurance.

(4)       Reinsurance
          -----------

     (a)  Ceded
          -----
          From  1996  through  2000,  the  Company reinsured losses in excess of
          $1,000,000  with  various  other  companies  through reinsurance ceded
          contracts.  These  arrangements provide for greater diversification of
          business,  allow  the  Company to control exposure to potential losses
          arising  from large risks, and provide additional capacity for growth.
          Amounts  recoverable  fromreinsurers  are  estimated  in  a  manner
          consistent  with  the  claim  liability  associated with the reinsured
          policies.

          Reinsurance  ceded  contracts  do  not  relieve  the  Company from its
          obligations  to  policyholders.  The  Company  remains  liable  to its
          policyholders  for  the  portion  reinsured  to  the  extent  that any
          reinsurer  does not meet the obligations assumed under the reinsurance
          agreements.  To  minimize  its  exposure  to  losses  from  reinsurer
          insolvencies,  the  Company  continually  evaluates  the  financial
          condition  of  its  reinsurers.

     (b)  Assumed  -  Discontinued
          ------------------------
          CIC  was  involved  in  providing  reinsurance  coverage by assuming a
          portion  of  risks  underwritten by other insurance companies and risk
          pools.  Although  CIC withdrew from this reinsurance business in 1976,
          liability  remains for losses on policies written during the period in
          which  it  participated  as  a reinsurer. The Company is involved with
          treaties  that  cover  certain  risks  which  have  had  significant
          development  industry-wide  over  the  past  several  years.  The
          discontinued  reinsurance  assumed  loss reserves are based on current
          information  available  from  the ceding companies and are continually
          reviewed  for  accuracy  and  reasonableness.

          Management  believes  that  the reserves of $7,344,795 at December 31,
          2000  are  adequate,  but  recognizes  the  uncertainty  industry-wide
          concerning  these  exposures.  The  Company  has  provided a letter of
          credit  relating  to  reinsurance assumed of $130,000 at both December
          31,  2000  and  1999.

     (c)  Assumed  -  Active
          ------------------
          CIC  participates  in  reinsurance programs in the accident and health
          and  commercial multiple peril lines of business. The exposure on this
          business  is  minimal.

          Net  written  and  earned  premiums  and  losses  and  loss adjustment
          expenses  included  in  this  reinsurance  activity  are  as  follows:

<TABLE>
<CAPTION>
                                   Written Premiums
                      -----------------------------------------
                          2000           1999          1998
---------------------------------------------------------------
<S>                   <C>            <C>           <C>
Direct                $100,103,877   $84,460,081   $86,329,672
Assumed                  2,006,338     1,542,719     1,599,480
Ceded                   (8,218,433)   (5,809,424)   (5,153,179)
--------------------------------------------------------------
Net premiums written  $ 93,891,782   $80,193,376   $82,775,973
===============================================================
</TABLE>

<TABLE>
<CAPTION>
                                 Earned Premiums
                     ----------------------------------------
                         2000          1999          1998
-------------------------------------------------------------
<S>                  <C>           <C>           <C>
Direct               $93,981,038   $86,565,885   $92,203,082
Assumed                1,995,850     1,524,090     1,596,487
Ceded                 (7,792,046)   (5,248,871)   (5,170,093)
-------------------------------------------------------------
Net premiums earned  $88,184,842   $82,841,104   $88,629,476
=============================================================
</TABLE>

                                            29
<PAGE>
<TABLE>
<CAPTION>
                                            Losses and Loss Adjustment Expenses Incurred
                                                    2000          1999          1998
----------------------------------------------------------------------------------------
<S>                                             <C>           <C>           <C>
Direct                                          $66,443,778   $47,738,063   $53,447,519
Assumed - Losses                                   (408,609)    1,253,237       280,900
Assumed - Legal and audit                            30,571        17,084        98,832
Ceded                                            (8,564,365)   (3,707,543)   (1,450,137)
----------------------------------------------------------------------------------------
Net loss and loss adjustment expenses incurred  $57,501,375   $45,300,841   $52,377,114
========================================================================================
</TABLE>

(5)       Income  Taxes
          -------------
     (a)  The  Company  and  its subsidiaries file a consolidated federal income
          tax  return  and  separate  state franchise and premium tax returns as
          applicable.

     (b)  The components of income tax expense for the years 2000, 1999 and 1998
          are  as  follows:

<TABLE>
<CAPTION>
                                                            2000         1999         1998
----------------------------------------------------------------------------------------------
<S>                                                      <C>          <C>          <C>
Current expense:
   Federal                                               $4,827,862   $7,115,401   $8,096,181
   State                                                    635,425      621,630      785,787
----------------------------------------------------------------------------------------------
Total current expense                                     5,463,287    7,737,031    8,881,968

Deferred expense(benefit):
  Deferred insurance acquisition costs                      378,764     (308,206)    (231,757)
  Unearned premiums                                        (399,486)     185,341      409,745
  Discount on loss and loss adjustment expense reserves    (555,695)     (69,897)    (322,034)
  Unpaid commissions                                        (18,931)    (333,362)    (140,748)
  Other, net                                                 (2,995)     (12,673)     (20,099)
----------------------------------------------------------------------------------------------
Total deferred benefit                                     (598,343)    (538,797)    (304,893)
----------------------------------------------------------------------------------------------

Income tax expense                                       $4,864,944   $7,198,234   $8,577,075
==============================================================================================
</TABLE>

     (c)  A  reconciliation  of  the  effective income tax rate, as reflected in
          the consolidated statements of income, to the statutory federal income
          tax  rate,  is  as  follows:

<TABLE>
<CAPTION>
                                                       2000    1999    1998
----------------------------------------------------------------------------
<S>                                                   <C>     <C>     <C>
Statutory tax rate                                     35.0%   35.0%   35.0%
Municipal bond income, net of proration               (7.7%)  (5.9%)  (4.9%)
Dividend received exemption, net of proration         (2.1%)  (1.8%)  (1.7%)
State income tax expense, net of federal tax benefit    2.1%    1.7%    1.7%
Other, net                                            (2.1%)    1.1%    0.5%
----------------------------------------------------------------------------
Effective income tax rate                              25.2%   30.1%   30.6%
============================================================================
</TABLE>

     (d)  Significant  components  of  the  deferred  tax liabilities and assets
          are  as  follows:

<TABLE>
<CAPTION>
                                                         December 31,   December 31,
                                                             2000           1999
-------------------------------------------------------------------------------------
<S>                                                      <C>            <C>
Deferred tax liabilities:
   Deferred insurance acquisition costs                  $   4,804,230  $   4,425,466
   Net unrealized gains on investment securities               149,425              -
   Other, net                                                  110,934         79,339
-------------------------------------------------------------------------------------
  Total deferred tax liabilities                             5,064,589      4,504,805
-------------------------------------------------------------------------------------

Deferred tax assets:
   Unearned premium reserve discounting                      3,071,150      2,671,664
   Loss and loss adjustment expense reserve discounting      3,197,269      2,641,574
   Net unrealized losses on investment securities                    -      2,133,595
   Unpaid commissions                                          858,601        839,670
  Other, net                                                   406,283        371,695
-------------------------------------------------------------------------------------
  Total deferred tax assets                                  7,533,302      8,658,198
-------------------------------------------------------------------------------------

Net deferred tax asset                                   $   2,468,713  $   4,153,393
=====================================================================================
</TABLE>

                                       30
<PAGE>
(6)       Common  Stock  Options
          ----------------------
          The  Company has elected to follow Accounting Principles Board Opinion
          No.  25,  "Accounting  for  Stock  Issued  to  Employees" (APB 25) and
          related Interpretations in accounting for its stock options. Under APB
          25, since the exercise price of the Company's stock options equals the
          market  price  of  the  underlying  stock at the date of the grant, no
          compensation  expense is recognized. The Company did recognize $25,476
          in  compensation  expense  during  2000  under  FASB Interpretation 44
          effective  July  1,  2000  for  APB  25  related to options which were
          repriced  to  the  stockmarket  value  in  1999.

          Had the Company elected to follow the fair value method under SFAS 123
          "Accounting for Stock-Based Compensation", net income and earnings per
          share  would not be materially different for the years 2000, 1999, and
          1998.  Pro  forma disclosure is required and has been determined as if
          the  Company  had  accounted  for its stock options under this method.

          The  fair  value  for these options was estimated at the date of grant
          using  a  Black-Scholes  option  pricing  model  with  the  following
          weighted-average  assumptions  for 2000, 1999, and 1998, respectively:
          risk-free  interest  rates of 6.4%, 6.1%, and 4.4%; dividend yields of
          2.4%,  2.0%, and 1.4%; volatility factors of the expected market price
          of  the  Company's  common  stock  of  .394,  .394  and  .345;  and  a
          weighted-average  expected  life  of  the  options of two and one-half
          years.  The  weighted-average  fair  value  of options granted for the
          years  2000, 1999, and 1998 was $3.03, $2.29, and $3.92, respectively.
          The  estimated  fair  value  is amortized to expense over the options'
          vesting  period.

          The  Company's  pro  forma  information  follows:

<TABLE>
<CAPTION>
                                  2000         1999         1998
                               -----------  -----------  -----------
<S>                            <C>          <C>          <C>
Pro forma net income           $14,333,943  $16,538,296  $19,156,540
Pro forma earnings per share:
Basic                          $      1.30  $      1.47  $      1.71
Diluted                        $      1.30  $      1.46  $      1.70
</TABLE>

          The  Company's  1993  Stock  Option  Plan  has authorized the grant of
          options  for up to 1,072,500 shares of the Company's common stock. All
          options  granted  have a five year term and become fully vested at the
          end of four years. Stock options available to be granted in the future
          equal  721,011  shares  at  December  31,  2000.


          A  summary  of  the  Company's  stock  option  activity,  and  related
          information  for  the  years  ended  December  31  follows:

<TABLE>
<CAPTION>
                          2000               1999                    1998
-------------------------------------------------------------------------------------
                              Weighted-              Weighted-             Weighted-
                               Average                Average               Average
                               Exercise               Exercise              Exercise
                    Options     Price      Options     Price     Options     Price
-------------------------------------------------------------------------------------
<S>                 <C>       <C>         <C>        <C>         <C>       <C>
Outstanding,
 beginning of year  280,545   $     9.93   280,924   $    13.38  237,111   $    11.81
Granted               6,400        11.28   236,704        10.19   97,900        15.75
Exercised           (19,797)        7.99    (9,594)        7.02  (26,856)        6.30
Expired             (30,296)        9.40  (227,489)       14.58  (27,231)       15.15
                    --------              ---------              --------  ----------
Outstanding,
 end of year        236,852   $    10.20   280,545   $     9.93  280,924   $    13.38
-------------------------------------------------------------------------------------
</TABLE>

          Options  exercisable  at  December  31, 2000 were 64,890. The weighted
          average  remaining  exercise  period for all outstanding options as of
          December  31,  2000  was  4.0  years.  Exercise  prices  for  options
          outstanding  as  of December 31, 2000 ranged from $4.37 to $12.50 with
          44%, and 52% having exercise prices of $9.69 and $10.66, respectively.

                                       31
<PAGE>
(7)  Statutory  Reporting
     --------------------
     (a)  The  financial  statements  of  the  insurance  subsidiaries have been
          prepared  in  accordance with accounting principles generally accepted
          in the United States, which differ in certain respects from accounting
          practices  prescribed or permitted by insurance regulatory authorities
          (statutory  basis).  The statutory capital and surplus, and net income
          of  the  insurance  subsidiaries  as  reported  to  state  regulatory
          authorities,  were  as  follows:

<TABLE>
<CAPTION>
                                        Policyholders' Surplus as of December 31,
 -------------------------------------------------------------------------------
                                             2000         1999          1998
-------------------------------------------------------------------------------
<S>                                      <C>           <C>          <C>
Capitol Indemnity Corporation            $107,917,384  $91,570,236  $102,902,836
Capitol Specialty Insurance Corporation     4,667,963    4,865,494     5,865,245
-------------------------------------------------------------------------------
Total                                    $112,585,347  $96,435,730  $108,768,081
================================================================================
</TABLE>

<TABLE>
<CAPTION>
                                        Net Income For The Year Ended December 31,
-------------------------------------------------------------------------------
                                            2000          1999          1998
-------------------------------------------------------------------------------
<S>                                      <C>           <C>           <C>
Capitol Indemnity Corporation            $13,003,336   $16,306,022   $19,051,239
Capitol Specialty Insurance Corporation      232,388       689,133       479,019
-------------------------------------------------------------------------------
Total                                    $13,235,724   $16,995,155   $19,530,258
================================================================================
</TABLE>

     (b)  CIC  is  required  by  the  Insurance  Commissioner  of  the  State of
          Wisconsin to maintain a minimum compulsory surplus (surplus as regards
          policyholders)  of  25%  of  net premiums written during the preceding
          twelve  months.  As  of  December  31,  2000, the amount of compulsory
          surplus  required  to  be  maintained  by  CIC  was  $23,350,674.

     (c)  In  accordance  with  state  insurance  regulations,  the  insurance
          subsidiaries  can distribute dividends to the Company of the lesser of
          their  net income or 10% of their surplus without regulatory approval.

     (d)  The National Association of Insurance Commissioners (NAIC) revised the
          Accounting  and  Procedures  Manual  in  a  process  referred  to  as
          Codification,  with  the  revised manual becoming effective January 1,
          2001.  The  revised  manual  has  changed,  to some extent, prescribed
          statutory  accounting  practices  and  will  resultin  changes  to the
          accounting practices CIC and CSIC use to prepare their statutory-basis
          financial  statements. Management believes the impact of these changes
          to  CIC's and CSIC's statutory-basis capital and surplus as of January
          1,  2001  will  be  insignificant.

(8)  Contingent  Liabilities
     -----------------------
     CIC  is  a  defendant in certain lawsuits involving complaints which demand
     damages  and  recoveries  for  claims and losses allegedly related to risks
     insured  by CIC. In the opinion of management, such lawsuits are routine in
     that  they  result  from  the  ordinary course of business in the insurance
     industry.  The  reserve  for  losses  and  loss adjustment expenses include
     management's estimates of the probable ultimate cost of settling all losses
     involving  lawsuits.  See  Notes  (1)(d),  (3)  and  (4).

(9)  Employee  Benefit  Plans
     ------------------------
     The Company has a defined contribution benefit plan (the Plan) in which all
     qualified  employees  are  eligible to participate. The Plan incorporates a
     contributory  feature  under  Section  401(k)  of the Internal Revenue Code
     allowing  employees to defer portions of their income through contributions
     to  the  Plan. The Company's annual contribution to the Plan is 150% of the
     first  $1,500 of each participant's contributions during the plan year. The
     Company made contributions of $250,637, $242,511 and $214,839 in 2000, 1999
     and  1998,  respectively.

     The  Company  also  has  an  Employee  Stock  Ownership  Plan  in which all
     qualified  employees  are  eligible  to  participate. The plan provides for
     discretionary  employer contributions of shares of Company stock or cash to
     purchase  shares  of  Company  stock.  The  Company  made  contributions of
     $301,000,  $179,000  and  $100,000  in  2000,  1999 and 1998, respectively.

(10)  Underwriting,  Acquisition  and  Insurance  Expenses
      ----------------------------------------------------
     A  summary  of  underwriting,  insurance  acquisition  costs  and insurance
     expenses  incurred  during the years ended December 31, 2000, 1999 and 1998
     is  as  follows:

<TABLE>
<CAPTION>
                                                                 2000         1999         1998
---------------------------------------------------------------------------------------------------
<S>                                                          <C>           <C>          <C>
Net commissions                                              $19,869,276   $18,001,338  $18,459,299
Salaries and other compensation                                5,647,661     4,944,476    4,710,297
Other                                                          6,782,560     5,974,697    5,389,054
---------------------------------------------------------------------------------------------------
Total costs                                                   32,299,497    28,920,511   28,558,650
(Increase) decrease in deferred insurance acquisition costs   (1,082,183)      880,588      662,164
---------------------------------------------------------------------------------------------------
Total underwriting, acquisition and insurance expenses       $31,217,314   $29,801,099  $29,220,814
===================================================================================================
</TABLE>

                                       32
<PAGE>
     Included in net commissions is the fair value of CTC stock purchased by CIC
     and  issued  to  agents  as  part of a contingent commission agreement. The
     amounts  expensed  were $201,212, $478,880 and $468,858 for the years 2000,
     1999  and  1998,  respectively.

     Deferred  insurance  acquisition  costs  are amortized over the term of CIC
     insurance  contracts.  The amount of deferred insurance costs amortized was
     $28,431,941,  $28,325,677  and  $27,833,262  in  2000,  1999  and  1998,
     respectively.

(11)  Credit  Lines
      -------------
     The  Company  has  credit  lines  of $11,200,000. There were no significant
     borrowings  during  2000,  and  none  outstanding  as of December 31, 2000.

(12)  Quarterly  Results  of  Operations  (Unaudited)
      -----------------------------------------------

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
For the year ended December 31, 2000     First       Second        Third       Fourth        Total
------------------------------------------------------------------------------------------------------
<S>                                   <C>          <C>          <C>          <C>          <C>
Revenues                              $24,043,062  $26,676,380  $28,442,325  $30,346,695  $109,508,462
Losses and expenses incurred           15,768,779   22,009,105   23,921,438   28,490,879    90,190,201
Net income                              5,680,879    3,391,751    3,323,751    2,056,936    14,453,317
Net income per share -  basic         $      0.50  $      0.30  $      0.30  $      0.20  $       1.30
Net income per share -  diluted       $      0.50  $      0.30  $      0.30  $      0.20  $       1.30
Dividends per share                   $      0.07  $      0.07  $      0.07  $      0.07  $       0.28
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
For the year ended December 31, 1999     First       Second        Third       Fourth        Total
------------------------------------------------------------------------------------------------------
<S>                                   <C>          <C>          <C>          <C>          <C>
Revenues                              $25,089,802  $26,254,623  $25,857,210  $23,209,486  $100,411,121
Losses and expenses incurred           18,550,741   16,380,003   21,460,886   20,108,794    76,500,424
Net income                              4,525,052    6,732,395    3,107,433    2,347,583    16,712,463
Net income per share -  basic         $      0.40  $      0.60  $      0.28  $      0.21  $       1.49
Net income per share -  diluted       $      0.39  $      0.60  $      0.28  $      0.21  $       1.48
Dividends per share                   $      0.07  $      0.07  $      0.07  $      0.07  $       0.28
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------
For the year ended December 31, 1998     First       Second        Third       Fourth        Total
------------------------------------------------------------------------------------------------------
<S>                                   <C>          <C>          <C>          <C>          <C>
Revenues                              $25,467,589  $31,516,526  $25,107,417  $28,969,024  $111,060,556
Losses and expenses incurred           20,787,325   21,504,889   21,144,534   19,622,820    83,059,568
Net income                              3,460,541    7,032,357    2,806,682    6,124,333    19,423,913
Net income per share -  basic         $      0.31  $      0.62  $      0.25  $      0.55  $       1.73
Net income per share -  diluted       $      0.31  $      0.62  $      0.25  $      0.54  $       1.72
Dividends per share                   $      0.07  $      0.07  $      0.07  $      0.07  $       0.28
</TABLE>

(13)  Industry  Segment  Disclosures
      ------------------------------
     The  Company has three business segments, which are segregated based on the
     types  of  products and services provided. The segments are 1) property and
     casualty,  2)  fidelity and surety, and 3) discontinued reinsurance assumed
     operations.  These  segments  constitute  100%  of  the  operations  of the
     Company.

     The  property  and casualty segment provides specialty commercial coverages
     for beauty and barber shops, bowling alleys, contractors/manufacturers, day
     care  centers,  restaurants,  detective/guard  agencies,  golf  courses and
     taverns.  This  segment  also provides nurses professional, deerhunters and
     sportsmen's  accident, and special event coverages. The fidelity and surety
     segment  offers  a  full  range  of  surety  and  fidelity bonds, including
     contractor's payment and performance bonds, license/permit bonds, fiduciary
     and  judicial  bonds, as well as commercial fidelity bonds. The reinsurance
     assumed  segment  was  discontinued  in 1976, but, due to the nature of the
     coverages,  the  Company  continues  to experience loss activity related to
     this  business.  The Company maintains and monitors its segment information
     on a statutory basis. Financial data by segment, including a reconciliation
     to  consolidated  GAAP  basis,  for  1998  through  2000  is  as  follows:

<TABLE>
<CAPTION>
                                                                     2000           1999           1998
                                                                 -------------  -------------  -------------
<S>                                                              <C>            <C>            <C>
  Revenue, excluding net investment income
    and realized investment gains:
    Property and Casualty                                        $ 67,773,588   $ 63,918,736   $ 65,678,284
    Fidelity and Surety                                            20,369,689     18,908,835     22,948,025
    Reinsurance Assumed                                                41,565         13,533          3,167
                                                                 -------------  -------------  -------------
      Totals:                                                    $ 88,184,842   $ 82,841,104   $ 88,629,476
                                                                 =============  =============  =============

                                       33
<PAGE>
  Losses and loss adjustment expenses:

    Property and Casualty                                        $ 47,246,293   $ 31,734,367   $ 40,400,269
    Fidelity and Surety                                            11,719,015     13,233,814     11,818,682
    Reinsurance Assumed                                            (1,315,504)       493,912        379,732
                                                                 -------------  -------------  -------------
      Totals:                                                    $ 57,649,804   $ 45,462,093   $ 52,598,683
  Reconciliation to Consolidated GAAP:
    Inter-company adjustments                                        (148,429)      (161,252)      (221,569)
                                                                 -------------  -------------  -------------
    Consolidated GAAP                                            $ 57,501,375   $ 45,300,841   $ 52,377,114
                                                                 =============  =============  =============

  Other underwriting expenses:
    Property and Casualty                                        $ 22,867,032   $ 20,509,441   $ 20,226,965
    Fidelity and Surety                                            10,143,105      9,194,086      9,239,049
    Reinsurance Assumed                                               (56,283)       (58,626)        34,509
                                                                 -------------  -------------  -------------
      Totals:                                                    $ 32,953,854   $ 29,644,901   $ 29,500,523
  Reconciliation to Consolidated GAAP:
    (Increase) decrease in deferred insurance acquisition costs    (1,082,183)       880,588        662,164
    Inter-company adjustments                                         817,155        674,094        519,767
                                                                 -------------  -------------  -------------
    Consolidated GAAP                                            $ 32,688,826   $ 31,199,583   $ 30,682,454
                                                                 =============  =============  =============

  Net investment gain and other income:
    Property and Casualty                                        $  7,288,011   $  5,264,383   $  6,742,389
    Fidelity and Surety                                             1,082,299        678,678        692,572
    Reinsurance Assumed                                               949,300        714,362        821,247
                                                                 -------------  -------------  -------------
      Totals:                                                    $  9,319,610   $  6,657,423   $  8,256,208
  Reconciliation to Consolidated GAAP:
    Capital and surplus                                            12,064,331     10,417,802     13,419,217
    Inter-company adjustments                                         (60,321)       494,792        755,655
                                                                 -------------  -------------  -------------
    Consolidated GAAP                                            $ 21,323,620   $ 17,570,017   $ 22,431,080
                                                                 =============  =============  =============

  Income tax expense (benefit):
    Property and Casualty                                        $  1,187,442   $  5,356,364   $  3,652,050
    Fidelity and Surety                                              (202,775)    (1,151,955)       803,964
    Reinsurance Assumed                                               739,605         70,582        128,293
                                                                 -------------  -------------  -------------
      Totals:                                                    $  1,724,271   $  4,274,991   $  4,584,307
  Reconciliation to Consolidated GAAP:
    Capital and surplus                                             3,140,673      2,923,243      4,091,130
    GAAP & inter-company adjustments                                        -              -        (98,362)
                                                                 -------------  -------------  -------------
    Consolidated GAAP                                            $  4,864,944   $  7,198,234   $  8,577,075
                                                                 =============  =============  =============

  Net income (loss):
    Property and Casualty                                        $  3,760,832   $ 11,582,947   $  8,141,389
    Fidelity and Surety                                              (207,357)    (1,688,432)     1,778,902
    Reinsurance Assumed                                             1,623,047        222,027        281,880
                                                                 -------------  -------------  -------------
      Totals:                                                    $  5,176,523   $ 10,116,542   $ 10,202,171
  Reconciliation to Consolidated GAAP:                              9,276,794      6,595,921      9,221,742
                                                                 -------------  -------------  -------------
    Consolidated GAAP                                            $ 14,453,317   $ 16,712,463   $ 19,423,913
                                                                 =============  =============  =============

                                       34
<PAGE>
  Assets:
    Property and Casualty                                        $ 84,545,028   $ 90,756,970   $105,614,860
    Fidelity and Surety                                            40,146,831     24,936,678     20,432,187
    Reinsurance Assumed                                            12,866,324      8,702,723      9,996,577
                                                                 -------------  -------------  -------------
      Totals:                                                    $137,558,183   $124,396,371   $136,043,624
  Reconciliation to Consolidated GAAP:
    Capital and surplus                                           145,699,869    133,226,210    141,315,973
                                                                 -------------  -------------  -------------
    Consolidated GAAP                                            $283,258,052   $257,622,581   $277,359,597
                                                                 =============  =============  =============
</TABLE>

          The  Company operates in 37 states, with all business conducted within
          the  United  States.  No  customer  represents greater than 10% of the
          Company's  revenue.  There  have  been  no  material  intersegment
          transactions.

                                       35
<PAGE>
                                                              SCHEDULE  I

                        CAPITOL TRANSAMERICA CORPORATION
                            SUMMARY  OF  INVESTMENTS
                    OTHER THAN INVESTMENTS IN RELATED PARTIES
                             As of December 31, 2000

<TABLE>
<CAPTION>

                                                                     SCHEDULE  I

                                       CAPITOL TRANSAMERICA CORPORATION
                                           SUMMARY  OF  INVESTMENTS
                                   OTHER THAN INVESTMENTS IN RELATED PARTIES
                                            As of December 31, 2000


                                                                                            Amount  at
                                                                                           Which  Shown
                                                                                Fair       in  Balance
          Type of Investment                                    Cost            Value         Sheet
------------------------------------------------------  -------------------  ------------  ------------
<S>                                                     <C>                  <C>           <C>
Fixed maturity securities, available-for-sale:
  Bonds:                                                                  0
     United States Government and government                              0
       agencies and authorities                         $            33,930  $     35,620  $     35,620
     State, municipalities, and political subdivisions           84,236,162    89,732,054    89,732,054
     All other corporate bonds                                    1,099,888     1,074,137     1,074,137
                                                        -------------------  ------------  ------------

  Total                                                          85,369,980    90,841,811    90,841,811
                                                        -------------------  ------------  ------------

Equity securities, available-for-sale:
  Common stocks:
     Public utilities                                             2,065,853     2,129,269     2,129,269
     Banks, trusts, and insurance companies                      66,009,901    66,983,698    66,983,698
     Industrial, miscellaneous, and all other                    55,428,457    50,300,571    50,300,571
  Nonredeemable preferred stocks                                  6,470,793     5,516,567     5,516,567
                                                        -------------------  ------------  ------------

  Total                                                         129,975,004   124,930,105   124,930,105
                                                        -------------------  ------------  ------------

Real estate, net of depreciation                                 11,008,554    11,008,554    11,008,554
Short-term investments                                            5,587,306     5,587,306     5,587,306
                                                        -------------------  ------------  ------------

Total Investments                                       $       231,940,844  $232,367,776  $232,367,776
                                                        ===================  ============  ============
</TABLE>



                                       36
<PAGE>
                                                                    SCHEDULE  II
<TABLE>
<CAPTION>
                   CONDENSED  FINANCIAL  INFORMATION  OF  REGISTRANT
                                  CAPITOL  TRANSAMERICA  CORPORATION
                                    (Parent  Company)


CONDENSED BALANCE SHEETS                                                               December 31,
------------------------                                            ------------------------------------------
  Assets                                                                       2000                  1999
  ------                                                            --------------------------  --------------
<S>                                                                 <C>                         <C>
    Investments                                                     $               9,067,200   $   7,046,418
    Cash                                                                              553,169          13,908
    Accrued investment income                                                          45,164          47,730
    Investment in subsidiaries                                                    134,350,154     124,363,795
    Income taxes recoverable                                                          189,696         169,680
    Other assets                                                                    1,728,997       1,619,474
                                                                    --------------------------  --------------
       Total assets                                                 $             145,934,380   $ 133,261,005
                                                                    ==========================  ==============
  Liabilities and shareholders' investment
  -----------------------------------------
  Liabilities:
  ------------
    Accounts payable                                                $                  11,170   $      30,795
    Payable to affiliates                                                                   -           4,000
    Deferred income taxes                                                             223,340               -
                                                                    --------------------------  --------------
       Total liabilities                                                              234,510          34,795
                                                                    --------------------------  --------------
  Shareholders' investment:
    Common stock                                                                   11,558,767      11,538,970
    Additional paid-in-capital                                                     21,995,693      21,857,143
    Accumulated other comprehensive (loss) income,
      net of deferred taxes                                                           414,771         (37,235)
    Retained earnings (including undistributed earnings of
      subsidiaries of $132,038,443 and $123,866,985, respectively)                115,544,177     100,389,425
                                                                    --------------------------  --------------
                                                                                  149,513,408     133,748,303
  Less treasury stock, at cost                                                     (3,813,538)       (522,093)
                                                                    --------------------------  --------------
  Total shareholders' investment                                                  145,699,870     133,226,210
                                                                    --------------------------  --------------
  Total liabilities and shareholders' investment                    $             145,934,380   $ 133,261,005
                                                                    ==========================  ==============
</TABLE>
<TABLE>
<CAPTION>

                                                      For  the  years  ended  December  31,
                                                      -------------------------------------
  STATEMENTS OF INCOME                                   2000         1999         1998
  --------------------                               ------------  -----------  -----------
<S>                                                  <C>           <C>          <C>
  Dividends received from subsidiaries               $ 5,500,000   $   500,000  $ 5,000,000
  Management fees received from subsidiaries             913,404       906,737    2,031,293
  Investment income                                      253,257       306,874      350,901
  Realized investment (losses) gains                    (107,273)      966,943           13
  Other income                                             4,752         4,052        7,100
                                                     ------------  -----------  -----------
        Total Income                                   6,564,140     2,684,606    7,389,307
  Administrative expenses                              1,698,363     1,504,083    1,495,240
                                                     ------------  -----------  -----------
  Net income before tax and equity in undistributed
      net income of subsidiaries                       4,865,777     1,180,523    5,894,067
  Income tax (benefit) expense                          (258,439)      166,487      346,794
                                                     ------------  -----------  -----------
  Income before equity in undistributed net
      income of subsidiaries                           5,124,216     1,014,036    5,547,273
  Equity in undistributed net income of
      subsidiaries, net of dividends paid              9,329,101    15,698,427   13,876,640
                                                     ------------  -----------  -----------
  Net Income                                         $14,453,317   $16,712,463  $19,423,913
                                                     ============  ===========  ===========
</TABLE>

     The  accompanying  condensed  financial  information  should  be  read  in
     conjunction with the consolidated financial statements and notes thereto of
     Capitol  Transamerica  Corporation.

                                  37

<PAGE>
                                                                    SCHEDULE  II
                                                                     (continued)
<TABLE>
<CAPTION>

                                  CAPITOL  TRANSAMERICA  CORPORATION
                                     (Parent  Company)


                                                                          December  31,
                                                            -------------------------------------------
  STATEMENTS OF CASH FLOWS                                      2000          1999           1998
----------------------------------------------------------  ------------  -------------  --------------
<S>                                                         <C>           <C>            <C>
Cash flows provided by operating activities:
  Net income                                                $14,453,317   $ 16,712,463   $ 19,423,913
  Adjustments to reconcile net income to
     net cash provided by operating activities:
     Depreciation                                               792,989        777,657        850,739
     Realized investment losses (gains)                         107,273       (966,943)           (13)
     Change in:
         Equity in net income of subsidiaries                (9,329,101)   (15,698,427)   (13,876,640)
         Other assets                                          (157,451)      (131,113)       (21,410)
         Other liabilities                                      (23,625)       (17,476)         6,093
                                                           ------------  -------------  --------------
  Net cash provided by operating activities                   5,843,402        676,161      6,382,682

  Cash flows provided by (used for) investing activities:
     Proceeds from investments sold/matured                      94,575      3,559,461         70,022
     Purchases of investments                                (1,527,553)      (347,971)    (2,367,149)
     Purchase of depreciable assets                            (782,511)      (751,534)    (1,079,278)
                                                           ------------  -------------  --------------
     Net cash (used for) provided by investing activities    (2,215,489)     2,459,956     (3,376,405)
                                                           ------------  -------------  --------------
  Cash flows provided by (used for) financing activities:
     Cash dividends paid                                     (3,170,749)    (3,166,188)    (3,163,880)
     Stock options exercised                                    158,347         67,342        169,265
     Net proceeds from (purchase) sale of treasury stock        (76,250)       (26,534)       (18,952)
                                                           ------------  -------------  --------------
     Net cash used for financing activities                  (3,088,652)    (3,125,380)    (3,013,567)

  Net increase (decrease) in cash                               539,261         10,737         (7,290)

  Cash, beginning of year                                        13,908          3,171         10,461
                                                           ------------  -------------  --------------
  Cash, end of year                                         $   553,169   $     13,908   $      3,171
                                                           ============  =============  ==============
Cash paid during the year for:
     Income taxes                                           $   262,100   $    337,110   $    333,917
     Interest                                                         -              -          4,190
</TABLE>

     The  accompanying  condensed  financial  information  should  be  read  in
     conjunction with the consolidated financial statements and notes thereto of
     Capitol  Transamerica  Corporation.




                                    38
<PAGE>
                                                                   SCHEDULE  III

<TABLE>
<CAPTION>
                                                       CAPITOL  TRANSAMERICA  CORPORATION
                                                     SUPPLEMENTARY  INSURANCE  INFORMATION


                                               December 31,                            Year ended December 31,
                   ----------------------------------------------------------  --------------------------------------
                     Deferred      Future Policy                                                          Benefits,
                      Policy     Benefits, Losses,                 Other                       Net     Claims, Losses
                    Acquisition    Claims, and       Unearned   Policyholder    Premium    Investment  and Settlement
Segment                Costs      Loss Expenses      Premiums      Funds        Revenue      Income       Expenses
-----------------  ----------------------------------------------------------  --------------------------------------
<S>                <C>           <C>               <C>          <C>           <C>          <C>
2000
----
Property-casualty
insurance          $ 13,726,372  $     77,980,973  $45,587,586  $         -  $ 88,184,842  $ 9,163,062  $ 57,501,375

1999
----
Property-casualty
insurance          $ 12,644,189  $     77,256,192  $39,454,257  $         -  $ 82,841,104  $ 9,136,244  $ 45,300,841

1998
----
Property-casualty
insurance          $ 13,524,777  $     78,504,050  $41,541,432  $         -  $ 88,629,476  $ 9,119,936  $ 52,377,114



                       Year ended December 31, (continued)
                   -------------------------------------------
                   Amortization of
                   Deferred Policy     Other
                    Acquisition      Operating      Premiums
Segment                Costs         Expenses       Written
-----------------  ---------------  -----------  -------------
<S>                <C>              <C>           <C>
2000
----
Property-casualty
insurance          $    28,431,941  $ 1,471,512  $ 102,110,215

1999
----
Property-casualty
insurance          $    28,325,677  $ 1,398,483  $  86,002,801

1998
----
Property-casualty
insurance          $    27,833,262  $ 1,461,640  $  87,929,152
</TABLE>



                                                                           39
<PAGE>

SCHEDULE  IV
<TABLE>
<CAPTION>

                                      CAPITOL TRANSAMERICA CORPORATION
                                                REINSURANCE
                            For The Years Ended December 31, 2000, l999 and l998


                                                              Assumed                              Percentage
                                     Direct      Ceded to       From       Assumed                 of Amount
                                    Premiums       Other       Other        From          Net       Assumed
                                    Written      Companies   Companies   Affiliates     Amount       To Net
                                  ------------  -----------  ----------  -----------  -----------  ----------
December 31, 2000
Premiums Written:
<S>                               <C>           <C>          <C>         <C>          <C>          <C>
   Accident and Health insurance  $    293,424  $ 1,940,917  $1,940,917  $         -  $   293,424      661.5%

   Property & casualty and
    fidelity & surety insurance     99,810,454    6,277,517      65,421            -   93,598,358        0.1%
                                  ------------  -----------  ----------  -----------  -----------  ----------

   Total premiums written         $100,103,878  $ 8,218,434  $2,006,338  $         0  $93,891,782        2.1%
                                  ============  ===========  ==========  ===========  ===========  ==========


December 31, 1999
Premiums Written:
   Accident and Health insurance  $    289,728  $ 1,493,857  $1,493,857  $         -  $   289,728      515.6%

   Property & casualty and
    fidelity & surety insurance     84,170,353    4,315,567      48,862            -   79,903,648        0.1%
                                  ------------  -----------  ----------  -----------  -----------  ----------

   Total premiums written         $ 84,460,081  $ 5,809,424  $1,542,719  $         0  $80,193,376        1.9%
                                  ============  ===========  ==========  ===========  ===========  ==========


December 31, 1998
Premiums Written:
   Accident and Health insurance  $    288,332  $ 1,596,313  $  270,803  $ 1,325,510  $   288,332      553.6%

   Property & casualty and
    fidelity & surety insurance     86,041,340    3,556,866       3,167            -   82,487,641        0.0%
                                  ------------  -----------  ----------  -----------  -----------  ----------

   Total premiums written         $ 86,329,672  $ 5,153,179  $  273,970  $ 1,325,510  $82,775,973        1.9%
                                  ============  ===========  ==========  ===========  ===========  ==========
</TABLE>


                                       40
<PAGE>
                                                                    SCHEDULE  VI
<TABLE>
<CAPTION>

                            CAPITOL TRANSAMERICA CORPORATION
                                SUPPLEMENTAL INFORMATION
                   CONCERNING PROPERTY-CASUALTY INSURANCE OPERATIONS
                                   December 31, 2000


                                                           As of December 31,
                                                       --------------------------
BALANCE SHEET DATA:                                         2000             1999
------------------                                     -------------  -----------
<S>                                                    <C>                  <C>
Deferred insurance acquisition costs                   $  13,726,372  $12,644,189

Outstanding loss and loss adjustment expense reserves     77,980,973   77,256,192

Discount deducted from reserves                                    -            -

Unearned premiums                                      $  45,587,586  $39,454,257
</TABLE>






<TABLE>
<CAPTION>

INCOME STATEMENT DATA:                                       Year Ended December 31,
----------------------                             ----------------------------------------
                                                       2000           1999         1998
                                                   -------------  ------------  -----------
<S>                                                <C>            <C>           <C>
Earned premiums                                    $ 88,184,842   $82,841,104   $88,629,476

Net investment income                                 9,163,062     9,136,244     9,119,936


Incurred losses and loss adjustment
   expenses related to:

      Current year                                   60,051,007    47,749,455    49,862,090
      Prior years                                    (2,549,632)   (2,448,614)    2,515,024

Amortization of deferred policy acquisition costs    28,431,941    28,325,677    27,833,262

Paid claims and claim adjustment expenses            54,456,849    45,325,451    46,405,683

Gross premiums written                             $102,110,215   $86,002,801   $87,929,152
</TABLE>

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