UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549-1004

                                    FORM 10-Q

Mark  One
[X]     QUARTERLY  REPORT  PURSUANT  TO  SECTION  13  OR  15  (d)
         OF  THE  SECURITIES  EXCHANGE  ACT  OF  1934

            FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2002

[ ]     TRANSITION REPORT PURSUANT TO SECTION 13  OR  15(d)
         OF THE SECURITIES AND EXCHANGE ACT OF 1934

            For the transition period from _________ to _________



                        Commission File Number: 0-29042

                        SYMONS INTERNATIONAL GROUP, INC.
             (Exact name of registrant as specified in its charter)


INDIANA                                                              35-1707115
(State  or  other  jurisdiction  of                           (I.R.S.  Employer
incorporation  or  organization)                           Identification  No.)

                              4720 Kingsway Drive
                          Indianapolis, Indiana 46205
                    (Address of Principal Executive Offices)

       Registrant's telephone number, including area code: (317) 259-6300

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


As  of  July 31, 2002, there were 10,385,399 shares of Registrant's no par value
common  stock  issued  and  outstanding.

<PAGE>





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<CAPTION>


                                 FORM 10-Q INDEX

                                                                                Page
                                                                              Number
PART  I    FINANCIAL  INFORMATION
<S>              <C>                                                             <C>

Item  1    Financial  Statements

           Consolidated  Balance  Sheets  at  June  30,  2002
           (unaudited)  and  December  31,  2001                                    3

           Unaudited  Consolidated  Statements  of  Operations
           for  the  Three  Months  Ended
           June  30,  2002  and  2001                                               4

           Unaudited  Consolidated  Statements  of  Operations
           for  the  Six  Months  Ended
           June  30,  2002  and  2001                                               5

           Unaudited  Consolidated  Statements  of  Cash  Flows  for  the
           Six  Months  Ended  June  30,  2002  and  2001                           6

           Condensed  Notes  to  Unaudited  Consolidated  Financial
           Statements                                                               7

Item  2    Management's  Discussion  and  Analysis  of  Financial
           Condition  and  Results  of  Operations                                 15

Item  3    Quantitative  and  Qualitative  Disclosures  about  Market  Risk        21

PART  II   OTHER  INFORMATION                                                      21

Item  1    Legal  Proceedings                                                      21

Item  2    Changes  in  Securities  and  Use  of  Proceeds                         23

Item  3    Defaults  Upon  Senior  Securities                                      23

Item  4    Submission  of  Matters  to  a  Vote of Security Holders                23

Item  5    Other  Information                                                      23

Item  6    Exhibits  and  Reports  on  Form  8-K                                   23

SIGNATURES                                                                         24

CERTIFICATIONS                                                                     25

</TABLE>

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<TABLE>
<CAPTION>

PART  I  -  FINANCIAL  INFORMATION
ITEM  1.  FINANCIAL  STATEMENTS
SYMONS  INTERNATIONAL  GROUP,  INC.
CONSOLIDATED  BALANCE  SHEETS
(dollars  in  thousands)

                                                                        June 30,
                                                                         2002       December 31,
                                                                       (Unaudited)     2001
                                                                       -----------  ----------
<S>                                                                        <C>         <C>
ASSETS
Investments available for sale:
  Fixed maturities, at market . . . . . . . . . . . . . . . . . . . . .  $  75,230    $  77,896
  Equity securities, at market. . . . . . . . . . . . . . . . . . . . .      7,914       14,396
  Short-term investments, at amortized cost, which approximates market.      5,540       13,266
  Other invested assets .   . . . . . . . . . . . . . . . . . . . . . .        570        1,469
                                                                         ----------  ----------
Total investments . . . . .     . . . . . . . . . . . . . . . . . . . .     89,254      107,027
Cash and cash equivalents . . . . . .     . . . . . . . . . . . . . . .      3,547        3,385
Receivables, net of allowance of $176 and $1,526, respectively. . .         38,185       44,688
Reinsurance recoverable on paid and unpaid losses . . . . . . . . .   .     36,177       31,546
Prepaid reinsurance premiums. . . . . . . . . . . . . . . . . . . .         35,023       40,039
Deferred policy acquisition costs . . . . . . . . . . . . . . . . . .          777          763
Property and equipment, net of accumulated depreciation . . . . . .          8,457        9,890
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . .          4,291        4,376
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . .          2,393        2,418
                                                                          ----------  ----------
Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $ 218,104   $ 244,132
                                                                          ==========  ==========

LIABILITIES AND SHAREHOLDERS' (DEFICIT)
Liabilities:
  Loss and loss adjustment expense reserves . . . . . . . . . . . . . .  $  73,686    $  81,142
  Unearned premiums . . . . . . . . . . . . . . . . . . . . . . . . . .     50,487       59,216
  Reinsurance payables. . . . . . . . . . . . . . . . . . . . . . . . .     58,950       58,226
  Distributions payable on preferred securities . . . . . . . . . . . .     41,022       33,203
  Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . .      2,875        3,625
  Payable to affiliates . . . . . . . . . . . . . . . . . . . . . . . .      1,380          596
  Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . .     16,904       17,136
                                                                         ----------  -- --------
Total Liabilities . .   . . . . . . . . . . . . . . . . . . . . . . . .    245,304      253,144
                                                                         ----------  -- --------
Minority interest:
  Company-obligated mandatorily redeemable preferred stock of trust
   subsidiary holding solely parent debentures . .  . . . . . . . . . .    135,000      135,000
                                                                         ----------  -- --------
Shareholders' (Deficit):
  Common stock, no par value, 100,000,000 shares authorized,
   10,385,399 shares issued and outstanding in both 2002 and 2001. . .      38,136       38,136
  Additional paid-in capital. . . . . . . . . . . . . . . . . . . . . .      5,851        5,851
  Unrealized loss on investments available for sale . . . . . . . . . .     (3,651)      (2,613)
  Retained (deficit). . . . . . . . . . . . . . . . . . . . . . . . . .   (202,536)    (185,386)
                                                                         ----------  -- --------
Total Shareholders' (Deficit) . . . . . . . . . . . . . . . . . . . .     (162,200)    (144,012)
                                                                         ----------  -- --------
Total Liabilities and Shareholders' (Deficit) . . . . . . . . . . . .    $ 218,104    $ 244,132
                                                                         ==========   ==========
<FN>

See  condensed  notes  to  consolidated  financial  statements.
</TABLE>

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<TABLE>
<CAPTION>

SYMONS  INTERNATIONAL  GROUP,  INC.
UNAUDITED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(in  thousands,  except  per  share  data)

                                                                             Three Months Ended
                                                                                 June  30
                                                                            --------------------
                                                                              2002       2001
                                                                            ---------  ---------
<S>                                                                           <C>        <C>
Gross premiums written . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 21,499   $ 46,868
Less ceded premiums. . . . . . . . . . . . . . . . . . . . . . . . . . . .   (15,859)   (22,248)
                                                                            ---------  ---------
Net premiums written . . . . . . . . . . . . . . . . . . . . . . . . . . .  $  5,640   $ 24,620
                                                                            =========  =========
Net premiums earned. . . . . . . . . . . . . . . . . . . . . . . . . . . .  $  9,876   $ 23,031
Fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     2,186      3,540
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       375          -
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . .     1,375      1,574
Net realized capital (loss). . . . . . . . . . . . . . . . . . . . . . . .      (352)      (287)
                                                                            ---------  ---------
Total revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    13,460     27,858
                                                                            ---------  ---------
Expenses:
  Losses and loss adjustment expenses. . . . . . . . . . . . . . . . . . .    11,558     20,280
  Policy acquisition and general and administrative expenses . . . . . . .     7,221     10,713
  Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . .        75          -
  Amortization of intangibles. . . . . . . . . . . . . . . . . . . . . . .        43         42
                                                                            ---------  ---------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    18,897     31,035
                                                                            ---------  ---------
Loss from continuing operations before income taxes and minority interest.    (5,437)    (3,177)
                                                                            ---------  ---------
Total income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . .         -          -
                                                                            ---------  ---------
Loss from continuing operations before minority interest . . . . . . . . .    (5,437)    (3,177)
Minority interest:
  Distributions on preferred securities, net of tax of nil in both 2002 and
   2001                                                                        3,984      3,832
                                                                             ---------  -------
Loss from continuing operations. . . . . . . . . . . . . . . . . . . . . .    (9,421)    (7,009)
Discontinued operations:
  Loss from operations of discontinued segment, less applicable income
   taxes of nil in both 2002 and 2001.  . . . . . . . . . . . . . . . . . .        -     (2,156)
                                                                            ---------  ---------

Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ (9,421)  $ (9,165)
                                                                            =========  =========
Weighted average shares outstanding - basic and fully diluted. . . . . . .    10,385     10,385
                                                                            =========  =========
Net loss from continuing operations per share - basic and fully diluted. .  $  (0.91)  $  (0.67)
                                                                            =========  =========
Net loss of discontinued operations per share-basic and fully diluted. . .  $      -   $  (0.21)
                                                                            =========  =========
Net loss per share - basic and fully diluted . . . . . . . . . . . . . . .  $  (0.91)  $  (0.88)
                                                                            =========  =========
<FN>

See  condensed  notes  to  consolidated  financial  statements.
</TABLE>

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<TABLE>
<CAPTION>

SYMONS  INTERNATIONAL  GROUP,  INC.
UNAUDITED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(in  thousands,  except  per  share  data)

                                                                              Six Months Ended
                                                                                   June  30
                                                                            --------------------
                                                                              2002       2001
                                                                            ---------  ---------
<S>                                                                            <C>        <C>
Gross premiums written . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 65,254   $ 95,090
Less ceded premiums. . . . . . . . . . . . . . . . . . . . . . . . . . . .   (46,832)   (53,641)
                                                                            ---------  ---------
Net premiums written . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 18,422   $ 41,449
                                                                            =========  =========
Net premiums earned. . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 21,642   $ 41,759
Fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     4,829      6,466
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       750          -
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . .     2,619      3,172
Net realized capital (loss). . . . . . . . . . . . . . . . . . . . . . . .    (1,100)    (1,056)
                                                                            ---------  ---------
Total revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    28,740     50,341
                                                                            ---------  ---------
Expenses:
  Losses and loss adjustment expenses. . . . . . . . . . . . . . . . . . .    24,229     38,025
  Policy acquisition and general and administrative expenses . . . . . . .    13,680     21,231
  Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . .        75          -
  Amortization of intangibles. . . . . . . . . . . . . . . . . . . . . . .        86         85
                                                                            ---------  ---------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    38,070     59,341
                                                                            ---------  ---------
Loss from continuing operations before income taxes and minority interest.    (9,330)    (9,000)
                                                                            ---------  ---------
Total income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . .         -          -
                                                                            ---------  ---------
Loss from continuing operations before minority interest . . . . . . . . .    (9,330)    (9,000)
Minority interest:
  Distributions on preferred securities, net of tax of nil in both 2002 and
   2001                                                                        7,820      7,441
                                                                              ---------  -------
Loss from continuing operations. . . . . . . . . . . . . . . . . . . . . .   (17,150)   (16,441)
Discontinued operations:
  Loss from operations of discontinued segment, less applicable income
   taxes of nil in both 2002 and 2001  . . . . . . . . . . . . . . . . . .         -     (2,156)
                                                                            ---------  ---------

Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $(17,150)  $(18,597)
                                                                            =========  =========
Weighted average shares outstanding - basic and fully diluted. . . . . . .    10,385     10,385
                                                                            =========  =========
Net loss from continuing operations per share - basic and fully diluted. .  $  (1.65)  $  (1.58)
                                                                            =========  =========
Net loss of discontinued operations per share-basic and fully diluted. . .  $      -   $  (0.21)
                                                                            =========  =========
Net loss per share - basic and fully diluted . . . . . . . . . . . . . . .  $  (1.65)  $  (1.79)
                                                                            =========  =========
<FN>
See  condensed  notes  to  consolidated  financial  statements.
</TABLE>

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<TABLE>
<CAPTION>

SYMONS  INTERNATIONAL  GROUP,  INC.
UNAUDITED  CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS
(in  thousands)

                                                                  Six Months Ended
                                                                      June  30
                                                                 -------------------
                                                                 2002       2001
                                                                 ---------  --------
<S>                                                                 <C>        <C>
Cash flows from operating activities:
Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . .    $(17,150)  $(18,597)
  Adjustments to reconcile net loss to net cash provided by
   (used in) operations:
  Depreciation, amortization, impairment and other. . . . . .       1,846      2,274
  Net realized capital loss . . . . . . . . . . . . . . . . .       1,100      1,056
Net changes in operating assets and liabilities:
  Receivables . . . . . . . . . . . . . . . . . . . . . . . .       6,503    (14,190)
  Reinsurance recoverable on losses, net. . . . . . . . . . .      (4,631)     5,011
  Prepaid reinsurance premiums. . . . . . . . . . . . . . . .       5,016    (11,430)
  Deferred policy acquisition costs . . . . . . . . . . . . .         (14)       259
  Loss and loss adjustment expense reserves . . . . . . . . .      (7,456)   (15,627)
  Unearned premiums . . . . . . . . . . . . . . . . . . . . .      (8,729)    11,120
  Reinsurance payables. . . . . . . . . . . . . . . . . . . .         724      5,027
  Distribution payable on preferred securities. . . . . . . .       7,819      7,440
  Other assets and liabilities. . . . . . . . . . . . . . . .        (207)     7,994
  Deferred income . . . . . . . . . . . . . . . . . . . . . .        (750)     4,375
  Net assets from discontinued operations . . . . . . . . . .      (3,483)     2,302
                                                                 ---------  ---------
Net cash (used in) operations . . . . . . . . . . . . . . . .     (19,412)   (12,986)
                                                                 ---------  ---------

Cash flows from investing activities, net of assets acquired:
  Net (purchase) sales of short-term investments. . . . . . . .     7,726       (990)
  Proceeds from sales, calls and maturities of fixed maturities    16,766     22,409
  Purchase of fixed maturities. . . . . . . . . . . . . . . . .   (13,922)    (7,961)
  Proceeds from sales of equity securities. . . . . . . . . . .     4,875      9,508
  Purchase of equity securities . . . . . . . . . . . . . . . .      (758)   (10,277)
  Proceeds from repayment of mortgage loans . . . . . . . . . .         -      1,870
  Purchase of property and equipment. . . . . . . . . . . . . .      (259)    (1,577)
  Proceeds from sales of other investments. . . . . . . . . . .       635          -
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . . .       244        (44)
  Net investing activities from discontinued operations . . . .     3,912       (263)
                                                                ---------  ---------
Net cash provided by investing activities . . . . . . . . .   .    19,219     12,675
                                                                ---------  ---------

Cash flows from financing activities, net of assets acquired:
  Loans from and (repayment to) related parties . . . . . . . .       784        653
  Net financing activities from discontinued operations . . . .      (429)      (655)
                                                                 ---------  ---------
Net cash provided by (used in) financing activities . . . . .         355         (2)
                                                                 ---------  ---------
Increase (decrease) in cash and cash equivalents. . . . . . .         162       (313)
Cash and cash equivalents, beginning of period. . . . . . . .       3,385      1,363
                                                                 ---------  ---------
Cash and cash equivalents, end of period. . . . . . . . . . .    $  3,547   $  1,050
                                                                 =========  =========
<FN>

See  condensed  notes  to  consolidated  financial  statements.
</TABLE>

<PAGE>


                        SYMONS INTERNATIONAL GROUP, INC.
            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)
                     For the Six Months Ended June 30, 2002

1.     OVERVIEW  OF  THE  COMPANY  AND  BASIS  OF  PRESENTATION

Symons  International  Group, Inc. (the "Company") owns insurance companies that
underwrite  and  market  nonstandard private passenger automobile insurance. The
Company's  principal  insurance company subsidiaries are Pafco General Insurance
Company  ("Pafco") and Superior Insurance Company ("Superior"). The Company is a
73.1%  owned  subsidiary  of  Goran  Capital  Inc.  ("Goran").

The  parent  company  for  Pafco  and Superior is Superior Insurance Group, Inc.
("Superior  Group").  Pafco,  Superior  and  Superior's  subsidiaries,  Superior
Guaranty Insurance Company ("Superior Guaranty") and Superior American Insurance
Company  ("Superior American"), are engaged in the writing of insurance coverage
for  automobile  physical  damage  and liability policies for nonstandard risks.
Nonstandard  risk  insureds  are  those  individuals  who  are  unable to obtain
insurance  coverage through standard market carriers due to factors such as poor
premium payment history, driving experience or violations, particular occupation
or  type  of  vehicle.  The  Company  offers several different policies that are
directed  towards  different  classes  of  risk  within  the nonstandard market.
Premium rates for nonstandard risks are higher than for standard risks. Since it
can  be  viewed  as  a  residual  market,  the  size  of the nonstandard private
passenger automobile insurance market changes with the insurance environment and
grows when standard coverage becomes more restrictive. Nonstandard policies have
relatively  short  policy  periods  and low limits of liability. Also, since the
nonstandard  automobile  insurance business typically experiences lower rates of
retention  than  standard  automobile insurance, the number of new policyholders
underwritten  by  nonstandard  automobile  insurance  carriers  each  year  is
substantially  greater  than  the  number  of  new policyholders underwritten by
standard  carriers.

As  previously  announced,  the  Company  sold  its crop insurance operations to
Acceptance  Insurance  Companies,  Inc. ("Acceptance") on June 6, 2001. The crop
insurance  business  was  written through the Company's wholly owned subsidiary,
IGF  Insurance  Company  ("IGF"), which is in runoff. Accordingly, the financial
statements  included  in  this  report reflect the results of the crop insurance
segment  as  "discontinued  operations".

The  financial statements included in this report are the consolidated financial
statements  of  the  Company  and  its  subsidiaries. The consolidated financial
statements  have  been  prepared  pursuant  to  the rules and regulations of the
Securities  and  Exchange  Commission  ("SEC").  In  management's opinion, these
financial  statements  include  all  adjustments  (consisting  only  of  normal,
recurring  adjustments)  necessary  for  a  fair  presentation of the results of
operations  for  the  interim  periods  presented.  Pursuant  to  SEC  rules and
regulations,  certain  information and footnote disclosures normally included in
financial  statements  prepared in accordance with generally accepted accounting
principles  have  been  condensed  or  omitted  from  these  statements,  unless
significant  changes  have  taken  place since the end of the most recent fiscal
year.  For  this  reason, the accompanying consolidated financial statements and
notes  thereto  should  be read in conjunction with the financial statements and
notes for the year ended December 31, 2001 included in the Company's 2001 Annual
Report  on  Form  10-K.  Results  for  any  interim  period  are not necessarily
indicative  of  results  to  be  expected  for  the  year.

2.     PREFERRED  SECURITIES

On  August  12,  1997,  the  Company's  trust  subsidiary issued $135 million in
preferred  securities (the "Preferred Securities") bearing interest at an annual
rate  of  9.5%.  The  principal  assets  of  the  trust  subsidiary  are  senior
subordinated  notes  of the Company in the principal amount of $135 million with
an  interest  rate  and  maturity  date  substantially identical to those of the
Preferred  Securities.     Expenses of the issue aggregated $5.1 million and are
being  amortized  over  the  term  of  the  Preferred  Securities.

The  Preferred  Securities  represent  Company-obligated  mandatorily redeemable
securities  of  a  trust  subsidiary holding solely parent debentures and have a
term  of 30 years with semi-annual interest payments that commenced February 15,
1998.  The Company may redeem the Preferred Securities in whole or in part after
10 years. The annual Preferred Security obligations of approximately $13 million
must  be  funded  from  the Company's nonstandard automobile management company,
which  receives  management and billing fees from its insurance subsidiaries. In
the  event  the  Company's  insurance  company  subsidiaries  continue to reduce
premium  volume, reduced management and billing fees will be payable to Superior
Group,  which  would  result in less funds from which to fund the obligations of
the  Preferred  Securities.  Under  the  terms  of the indenture, the Company is
permitted  to  defer  semi-annual  interest  payments  for up to five years. The
Company  elected  to defer the interest payments due in February and August 2000
and  2001 and February 2002 and may continue this practice through January 2005.
The  Company  plans  to  defer  the  interest  payments  due  in  August  2002.

The  trust  indenture  for the Preferred Securities contains certain restrictive
covenants including covenants based on the Company's consolidated coverage ratio
of earnings before interest, taxes, depreciation and amortization ("EBITDA"). If
the  Company's  EBITDA  falls  below  2.5  times  consolidated  interest expense
(including  Preferred Security distributions) for the most recent four quarters,
the  following  restrictions  become  effective:

-    The  Company  may not incur additional indebtedness or guarantee additional
     indebtedness.
-    The Company may not make certain restricted payments including making loans
     or advances to affiliates, repurchasing common stock or paying dividends in
     excess  of  a  stated  limitation.
-    The  Company  may not increase its level of non-investment grade securities
     defined  as  equities,  mortgage  loans, real estate, real estate loans and
     non-investment  grade,  fixed  income  securities.

These restrictions currently apply, as the Company's consolidated coverage ratio
was  (1.06)  at  June  30,  2002, and will continue to apply until the Company's
consolidated  coverage ratio complies with the terms of the trust indenture. The
Company  was  in  compliance  with  these additional restrictions as of June 30,
2002.


3.     REGULATORY  AFFAIRS

Two  of  the  Company's  insurance  company  subsidiaries,  Pafco  and  IGF, are
domiciled  in  Indiana  and  prepare  their  statutory  financial  statements in
accordance  with  accounting  practices  prescribed  or permitted by the Indiana
Department  of  Insurance  ("IDOI").  While  neither Pafco nor IGF currently has
surplus from which to pay dividends, statutory requirements place limitations on
the  amount of funds that can be remitted to the Company from Pafco and IGF. The
Indiana  statute allows 10% of surplus in regard to policyholders or 100% of net
income,  whichever is greater, to be paid as dividends only from earned surplus;
however, the consent orders with the IDOI, described below, prohibit the payment
of  any  dividends  by  Pafco  and  IGF.  Another  insurance company subsidiary,
Superior  and  Superior's  insurance company subsidiaries, Superior American and
Superior  Guaranty,  are  domiciled  in  Florida  and  prepare  their  statutory
financial  statements  in  accordance  with  accounting  practices prescribed or
permitted  by  the Florida Department of Insurance ("FDOI"). The Florida statute
also  contains limitations with regard to the payment of dividends. Superior may
pay  dividends  of  up  to  10%  of  surplus or 100% of net income, whichever is
greater,  from earned surplus. Prescribed statutory accounting practices include
a variety of publications of the National Association of Insurance Commissioners
("NAIC"),  as well as state laws, regulations, and general administrative rules.
The  NAIC  adopted  the Codification of Statutory Accounting Principles guidance
("Codification"),  as  the  NAIC's  primary  guidance  on  statutory  accounting
effective  January  1,  2001.  The  IDOI  and  FDOI  have  adopted Codification.
Permitted  statutory accounting practices encompass all accounting practices not
so  prescribed.

On  June  6,  2001,  IGF  sold substantially all of its crop insurance assets to
Acceptance.  On June 24, 2001, following the sale of IGF's crop insurance assets
and  as  a result of losses experienced by IGF in its crop insurance operations,
the  IDOI and IGF entered into a consent order (the "Consent Order") relating to
IGF.  IGF has discontinued writing new business and its operations are presently
in  run  off.  The  IDOI has continued to monitor the status of IGF. The Consent
Order  prohibits  IGF  from  taking  any  of the following actions without prior
written  consent  of  the  IDOI:

-    Sell  or  encumber  any  of  its  assets,  property,  or business in force;
-    Disburse  funds,  except to pay direct unaffiliated policyholder claims and
     normal  operating  expenses  in the ordinary course of business (which does
     not include payment to affiliates except for the reimbursement of costs for
     running  IGF  by  the  Company,  and does not include payments in excess of
     $10,000);
-    Lend  its  funds  or  make  investments,  except  in  specified  types  of
     investments;
-    Incur  debts  or  obligations, except in the ordinary course of business to
     unaffiliated  parties;
-    Merge  or  consolidate  with  another  company;
-    Enter  into  new,  or  amend  existing,  reinsurance  agreements;
-    Complete,  enter  into  or  amend  any  transaction  or arrangement with an
     affiliate,  and
-    Disburse  funds  or  assets  to  any  affiliate.

The  Consent  Order  also  requires IGF to provide the IDOI with monthly written
updates  and  immediate  notice  of  any material change regarding the status of
litigation  with  Continental  Casualty  Company,  statutory reserves, number of
non-standard automobile insurance policies in-force by state, and reports of all
non-claims related disbursements. IGF's failure to comply with the Consent Order
could  cause the IDOI to begin proceedings to have a rehabilitator or liquidator
appointed  for  IGF  to  extend  the  provisions  of  the  Consent  Order.

Pafco has been subject to an agreed to order of the IDOI since February 17, 2000
that  requires  Pafco,  among  other  matters,  to:

-    Refrain  from  doing  any of the following without the IDOI's prior written
     consent:
-    Selling assets or business in force or transferring property, except in the
     ordinary  course  of  business;
-    Disbursing funds, other than for specified purposes or for normal operating
     expenses  and  in  the  ordinary course of business (which does not include
     payments  to  affiliates,  other  than  under  written contracts previously
     approved  by the IDOI, and does not include payments in excess of $10,000);
-    Lending  funds;
-    Making  investments,  except  in  specified  types  of  investments;
-    Incurring  debt,  except  in  the  ordinary  course  of  business  and  to
     unaffiliated  parties;
-    Merging  or  consolidating  with  another  company;  or
-    Entering  into  new,  or  modifying  existing,  reinsurance  contracts.
-    Reduce  its  monthly  auto premium writings, or obtain additional statutory
     capital or surplus, such that the ratio of gross written premium to surplus
     and  net  written  premium  to  surplus  does  not  exceed  4.0  and  2.4,
     respectively;  and  provide  the  IDOI  with  regular reports demonstrating
     compliance  with  these  monthly  writings  limitations.
-    Continue  to  comply  with  prior  IDOI  agreements  and  orders to correct
     business  practices  under  which  Pafco  must  provide  monthly  financial
     statements  to  the  IDOI,  obtain  prior  IDOI  approval  of  reinsurance
     arrangements  and  affiliated  party transactions, submit business plans to
     the  IDOI  that  address  levels  of  surplus and net premiums written, and
     consult  with  the  IDOI  on  a  monthly  basis.

Pafco's  inability  or  failure to comply with any of the above conditions could
result  in  the  IDOI  requiring further reductions in Pafco's permitted premium
writings  or  in  the  IDOI  instituting  future  proceedings  against  Pafco.
Restrictions on premium writings result in lower premium volume. Management fees
payable  to  Superior  Group are based on gross written premium; therefore lower
premium  volume  results  in  reduced  management fees paid by Pafco to Superior
Group.

Pafco  has  agreed  with the Iowa Department of Insurance ("IADOI") that it will
not  write  any  new non-standard business in Iowa, until such time as Pafco has
reduced  its  overall  non-standard  automobile  policy  counts in the state or:

-    Has  increased  surplus,  or
-    Has  achieved  a net written premium to surplus ratio of less than three to
     one,  or
-    Has  surplus  reasonable  to  its  risk.

Pafco has continued to service existing policyholders and renew policies in Iowa
and  provide  policy  count  information  on a monthly basis in conformance with
IADOI  requirements.

Superior and Pafco also provide monthly financial information to the departments
of  insurance  in  certain  states  in  which they write business, and Pafco has
agreed  to  obtain IDOI prior approval of any new affiliated party transactions.

On  July  7, 2000, the FDOI issued a notice of its intent to issue an order (the
"Notice") which principally addressed certain policy and finance fee payments by
Superior  to  Superior  Group.  A  formal  administrative  hearing to review the
Notice  and  a  determination  that  the order contemplated by the Notice not be
issued  was  held  in  February  2001.  The  administrative  law judge entered a
recommended  order on June 1, 2001 that was acceptable to the Company. On August
30,  2001,  the  FDOI  rejected the recommended order and issued its final order
which the Company believes improperly characterized billing and policy fees paid
by  Superior to Superior Group.  On September 28, 2001, Superior filed an appeal
of  the final order to the Florida District Court, which is pending. On March 4,
2002,  the  FDOI  filed  a  petition in the Circuit Court of the Second Judicial
Circuit  in and for Leon County, Florida seeking court enforcement of the FDOI's
final  order. Superior filed a motion with the FDOI for stay of the FDOI's final
order. Superior also filed a motion for stay with the District Court of Appeals,
which  was  denied  pending  a  ruling from the FDOI.  On April 5, 2002 the FDOI
granted a stay of the final order which is conditional upon the cessation of the
payment  of  billing fees by Superior to Superior Group and the posting of a $15
million  appeal  bond.  Superior  did not agree to the conditions imposed by the
FDOI's  conditional  stay.  On  May  6,  2002  Superior  filed a motion with the
district  court  seeking a stay of the final order pending Superior's appeal or,
in  the  alternative,  a consolidation of the FDOI's enforcement action with the
pending  appeal.  On  June  19,  2002, the district court entered an order which
struck  the FDOI's conditional requirement for the stay that Superior post a $15
million appeal bond. However, the order denied Superior's request to consolidate
the  appeal  with  the  enforcement  action.

In  1999,  Superior ceased writing business in Illinois and agreed to obtain the
approval  of  the  Illinois  Department  of  Insurance  prior to writing any new
business  in  Illinois.  In  July  2001,  Superior agreed with the Department of
Insurance  in Texas to obtain its prior approval before writing any new business
in  that  state.

On  October  9,  2001,  the  State Corporation Commission of Virginia ("Virginia
Commission")  issued  an  order  to  take  notice  regarding an order suspending
Superior's  license  to write business in that state.  An administrative hearing
for  a  determination  that the suspension order not be issued was held March 5,
2002.  On  May  3,  2002, the hearing examiner issued his report and recommended
that  Superior's  license not be suspended and that Superior file its Risk Based
Capital  plans and monthly and quarterly financial information with the Virginia
Bureau  of  Insurance  ("Bureau").  On  June  19,  2002  the Virginia Commission
entered  an  order which adopted the findings of the hearing examiner, continued
the  matter  until  such time as the Bureau requests further action and requires
the  continued  monitoring of the financial condition of Superior by the Bureau.
The  nonstandard  automobile  insurance policies written in Virginia by Superior
accounted  for  approximately  13.1%  of the total gross written premiums of the
Company  in  2001.

The  Company's  operating  subsidiaries,  their  business  operations, and their
transactions  with  affiliates, including the Company, are subject to regulation
and  oversight  by  the  IDOI,  the  FDOI, and the insurance regulators of other
states  in  which  the  subsidiaries  write  business.  The Company is a holding
company  and all of its operations are conducted by its subsidiaries. Regulation
and  oversight  of insurance companies and their transactions with affiliates is
conducted  by  state  insurance  regulators  primarily  for  the  protection  of
policyholders  and not for the protection of other creditors or of shareholders.
Failure  to  resolve  issues with the IDOI and the FDOI or other state insurance
regulators  in  a mutually satisfactory manner could result in future regulatory
actions  or  proceedings  that  materially  and  adversely  affect  the Company.

4.     COMMITMENTS  AND  CONTINGENCIES

As  previously  reported,  IGF  had  been  a  party to a number of pending legal
proceedings  and  claims  relating  to  agricultural  production  interruption
insurance  policies (the "AgPI Program") which were sold during 1998. All of the
policies  of  insurance  issued in the AgPI Program were issued by and under the
name  of  Mutual  Service  Casualty  Insurance  Company  ("MSI"),  a  Minnesota
corporation  with  its  principal  place  of  business  located  in Arden Hills,
Minnesota.  Sales  of this product resulted in large underwriting losses by IGF.

Approximately  $29 million was paid through June 30, 2002 in settlement of legal
proceedings  and  policyholder  claims  related  to  the  AgPI Program. All AgPI
policyholder  claims  were  settled  during 2000. However, on January 12, 2001 a
case  was  filed in the Superior Court of California, County of Fresno, entitled
S&W  Seed Company, Dudley Silveira, Ric Blanchard and Darrell Silveira v. Mutual
Service  Casualty  Insurance  Company,  IGF  Insurance  Company,  and  Dibuduo &
Defendis Insurance Agency, Inc.; Case No. OICE CG 00137. The case was brought by
four AgPI policyholders who had previously settled their AgPI claims pursuant to
binding  settlement agreements who now seek additional compensation by asserting
through  litigation  that  IGF  and  the  third party carrier paid less than the
policy  limits  they  were promised when they purchased the policy and that each
settling  policyholder  was  forced  to  accept  the  lesser amount due to their
economic  duress  -  a legal theory recognized in California if certain elements
can  be  established.  On  January 16, 2002, the court entered an order granting
IGF's  motion  for  judgment on the pleadings and required plaintiffs to show an
insurable  interest.  Plaintiffs amended their complaint attempting to allege an
insurable  interest,  and on March 19, 2002, the court granted IGF's demurrer to
the amended complaint. In granting the demurrer the court held that any recovery
payable to plaintiff would be limited to their actual economic losses regardless
of how much plaintiffs thought they had been promised (i.e. plaintiffs cannot be
paid  policy  limits  without regard to actual losses incurred).  The plaintiffs
then  filed  their  third  amended  complaint  to  which  MSI  filed  a demurrer
challenging  the  insurance  contract  allegations,  as  the  issuer of the AgPI
policies,  contending  that  plaintiffs failed to make the amendments to show an
insurable  interest  as  required by the court's previous rulings. This demurrer
was  granted,  without leave to amend, because the lack of an insurable interest
rendered  the contract an unenforceable wager agreement, as described in each of
the  various  versions  of  the  complaint.  Plaintiffs  have  now  moved  for
reconsideration  of  the  dismissal  of  the insurance claims asking for another
chance  to allege an adequate insurable interest. This hearing is set for August
13,  2002.  Discovery  is  proceeding.

As  previously  reported  in the Company's March 31, 2002 Form 10-Q, MSI and IGF
were  arbitrating  their  dispute  over  responsibility  for  claims paid to MSI
insureds.  Also as previously reported, an action was filed against the Company,
IGF,  IGF  Holdings,  Inc. ("IGFH"), Granite Reinsurance Company, Ltd. ("Granite
Re"),  a wholly owned subsidiary of Goran, Goran and certain affiliates of those
companies,  as  well  as certain members of the Symons family, and Acceptance in
the  United  States  District  Court  for the Southern District of Indiana which
alleged  that  the  June  6,  2001  sale  of  IGF's assets to Acceptance and the
payments by Acceptance to the Company, Goran and Granite Re violated Indiana law
and  were  voidable.  The  parties  have settled the arbitration and the Indiana
action,  and  an  order  of dismissal was entered by the court on June 26, 2002.

As  previously  reported, the Company and two of its subsidiaries, IGFH and IGF,
are  parties  to  a  "Strategic Alliance Agreement" dated February 28, 1998 (the
"SAA") with Continental Casualty Company ("CNA"), pursuant to which IGF acquired
certain  crop insurance operations of CNA. The obligations of the Company, IGFH,
IGF  and CNA under the SAA are the subject of an action pending in United States
District  Court  for  the  Southern  District of Indiana, Indianapolis Division.
Claims  have  also been asserted in the action against Goran, Granite Re, Pafco,
Superior  and  certain  members  of  the  Symons  family.  Although  the Company
continues to believe that it has claims against CNA and defenses to CNA's claims
which  may  offset  or  reduce amounts owing by the Company or its affiliates to
CNA,  there  can  be  no  assurance  that  the ultimate resolution of the claims
asserted  by CNA against the Company and its affiliates will not have a material
adverse  effect  upon  the  Company's and its affiliates' financial condition or
results  of  operations.  There  have  been  no material developments since last
reported  in  the  Company's  March  31,  2002  Form  10-Q.

As  previously  reported, the Company is a defendant in a case filed on February
23,  2000,  in  the  United  States  District Court for the Southern District of
Indiana  entitled  Robert  Winn,  et al. v. Symons International Group, Inc., et
al.,  Cause  No. IP 00-0310-C-B/S.  Other parties named as defendants are Goran,
three  individuals  who  were  or are officers or directors of the Company or of
Goran,  PricewaterhouseCoopers  LLP and Schwartz Levitsky Feldman, LLP. The case
purports  to  be  brought  on  behalf of a class consisting of purchasers of the
Company's  stock  or  Goran's stock during the period February 27, 1998, through
and  including  November  18, 1999.  Plaintiffs allege, among other things, that
defendants  misrepresented  the  reliability of the Company's reported financial
statements,  data  processing and financial reporting systems, internal controls
and  loss  reserves in violation of Section 10(b) of the Securities Exchange Act
of  1934  (the  "1934  Act")  and  SEC  Rule  10b-5  promulgated thereunder. The
individual  defendants  are  also  alleged to be liable as "controlling persons"
under  Sec.20  (a)  of the 1934 Act. Discovery in the case is proceeding.  There
have  been  no  material developments since last reported in the Company's March
31,  2002  Form  10-Q.

As  previously  reported, an action has been brought in Florida against Superior
which  purports  to  be  brought  on  behalf of a class consisting of healthcare
providers  improperly paid discounted rates on services to patients based upon a
preferred  provider  contract  with  a  third party.  The plaintiff alleges that
Superior  breached  a  third  party  beneficiary  contract,  committed fraud and
engaged  in  racketeering  activity  in  violation of federal and Florida law by
obtaining  discounted  rates  offered  by  a third party with whom the plaintiff
contracted  directly.  Superior  believes  that the allegations of wrongdoing as
alleged  in the complaint are without merit and intends to vigorously defend the
claims  brought against it.  There have been no material developments since last
reported  in  the  Company's  March  31,  2002  Form  10-Q.

As  previously  reported, an action has been brought in Florida against Superior
which  purports  to  be  brought  on  behalf of a class consisting of healthcare
providers that rendered treatment to and obtained a valid assignment of benefits
from Superior.  The plaintiff alleges that Superior reduced or denied claims for
medical  expenses  payable  to  the  plaintiff without first obtaining a written
report  in  violation  of Florida law.  The plaintiff also alleges that Superior
inappropriately  reduced  the  amount  of  benefits  payable to the plaintiff in
breach  of  Superior's  contractual  obligations  to  the  plaintiff.  Superior
believes the allegations of wrongdoing in violation of law are without merit and
intends  to vigorously defend the claims brought against it.  There have been no
material  developments  since last reported in the Company's March 31, 2002 Form
10-Q.

As  previously  reported, an action has been brought against Superior in Florida
by  a  purported  class  consisting  of  (i)  healthcare providers that rendered
treatment  to Superior insureds and claimants of Superior insureds and (ii) such
insureds  and  claimants. The plaintiff alleges that Superior improperly reduced
medical  benefits  payable  and  improperly  calculated interest in violation of
Florida  law.  The  Company  believes  the claim is without merit and intends to
vigorously  defend  the charges brought against it.  There have been no material
developments  since  last  reported  in  the Company's March 31, 2002 Form 10-Q.

As  previously  reported,  actions have been brought in Florida against Superior
Guaranty  purporting  to be on behalf of a class of purchasers of insurance from
Superior  Guaranty  allegedly charged service or finance charges in violation of
Florida  law.  Superior  Guaranty believes that the allegations of wrongdoing as
alleged  in the complaint are without merit and intends to vigorously defend the
claims  brought against it.  There have been no material developments since last
reported  in  the  Company's  March  31,  2002  Form  10-Q.

The  Company  is  a  50%  owner  in  a  limited  liability  corporation  ("LLC")
established  to  provide business services to the Company and an unrelated third
party.  The  fair  market  value  of the LLC's operating assets approximated its
outstanding  debt  at  June  30,  2002.

The  Company  and  its  subsidiaries  are  named  as defendants in various other
lawsuits relating to their business.  Legal actions arise from claims made under
insurance  policies  issued  by  the  Company's  subsidiaries.  The  Company, in
establishing  its  loss  reserves, has considered these actions. There can be no
assurance  that  the  ultimate  disposition  of  these lawsuits will not have an
adverse  material  affect  the  Company's  operations  or  financial  position.

5.     LOSS  DEVELOPMENT  ON  PRIOR  ACCIDENT  YEARS

During  the  second  quarter  of  2002,  the  Company  experienced  unfavorable
development  on  its  year-end  2001  loss  and  loss adjustment expense ("LAE")
reserves  in  the  amount  of  $3.2  million. This was the result of unfavorable
settlement  of  outstanding  claims  due  primarily  to  abnormally  high  loss
frequency.  This increased the loss and LAE ratio for the second quarter of 2002
by  32.3  percentage  points. The Company believes the high frequency of loss is
due to increased motor vehicle traffic as policyholders opt to drive rather than
fly  to  their  destinations following the September 11, 2001 terrorist attacks.

6.     RECLASSIFICATIONS

Certain  prior  period  amounts have been reclassified to conform to the current
year  presentation.


7.     LOSS  PER  SHARE
<TABLE>
<CAPTION>

Basic  and  diluted  net  loss  per  share  are computed by dividing net loss as
reported  by  the  average  number  of  shares  outstanding  as  follows:


                                               Three Months Ended
                                                    June 30
                                               ------------------
(in thousands)                                   2002      2001
                                               --------  -------
<S>                                              <C>        <C>
Basic:
  Weighted-average common shares outstanding.    10,385    10,385
                                                =======   =======

Diluted:
  Weighted-average common shares outstanding.    10,385    10,385
                                                =======   =======

<FN>

The  Company has 916,333 stock options outstanding as of June 30, 2002. Common
stock  equivalents are anti-dilutive; therefore, fully diluted loss per share is
the  same  as  basic  loss  per  share.
</TABLE>


8.     DISCONTINUED  OPERATIONS

In  December  2000,  the Company initiated the divestiture of its crop insurance
segment.  This  business was predominantly written through IGF.  The transaction
was completed in June 2001 and transferred ownership of substantially all of the
crop  insurance  assets  of  the  Company  and IGF, effective with the 2001 crop
cycle,  to  Acceptance.  Upon  completion  of  the  sale,  the net assets of the
discontinued  operations  were  reduced to zero. IGF and its affiliates received
approximately  $27.4  million  at closing and Acceptance assumed all of the crop
insurance in-force policies for the 2001 crop year.  For agreeing not to compete
in  the  crop  insurance  industry  for a period of three years from the date of
sale,  the  Company  received $4.5 million at closing that is being amortized to
income  on a straight-line basis over three years. An additional $9.0 million in
reinsurance  premium  is  payable by Acceptance to Granite Re under a multi-year
reinsurance  treaty  whereby  Granite Re has agreed to reinsure a portion of the
crop insurance business of Acceptance and provide an indemnity on behalf of IGF.
The  results  of the crop insurance segment have been reflected as "Discontinued
Operations"  in  the accompanying unaudited consolidated financial statements in
accordance  with  Accounting  Principles  Board  Opinion  No.  30 "Reporting the
Results  of  Operations  --- Reporting the Effects of Disposal of a Segment of a
Business,  and  Extraordinary,  Unusual  and  Infrequently  Occurring Events and
Transactions."


<PAGE>

Summarized  results  of  operations for discontinued operations were as follows:
<TABLE>
<CAPTION>

  STATEMENTS  OF  OPERATIONS:
  (in  thousands)
                                                          Three  Months  Ended
                                                                June  30
                                                            ----------------

                                                             2002     2001
                                                            -------  -------
<S>                                                            <C>     <C>
Gross premiums written . . . . . . . . . . . . . . . . . .  $  192   $88,569
                                                            ======  ========
Net premiums written . . . . . . . . . . . . . . . . . . .  $   (2)  $(7,906)
                                                            ======  ========

  Net premiums earned. . . . . . . . . . . . . . . . . . .  $   (2) $(2,816)
  Net investment and fee income. . . . . . . . . . . . . .     294    1,251
  Net realized capital gain. . . . . . . . . . . . . . . .      44      629
                                                            ------   -------
Total revenues . . . . . . . . . . . . . . . . . . . . . .     336     (936)
                                                            ------   -------

  Loss and loss adjustment expenses. . . . . . . . . . . .    (175)     913
  Policy acquisition and general and administrative expenses   511    1,901
  Interest and amortization expense. . . . . . . . . . . . .    -    (1,594)
                                                            ------   -------
Total expenses . . . . . . . . . . . . . . . . . . . . . .     336    1,220
                                                            ------  --------

Earnings before income taxes . . . . . . . . . . . . . . .       -   (2,156)

Income tax expense . . . . . . . . . . . . . . . . . . . .       -        -
                                                            ------  -------

Net earnings from discontinued operations. . . . . . . . .  $    -  $(2,156)
                                                            ======  =======
</TABLE>


<TABLE>
<CAPTION>

  STATEMENTS  OF  OPERATIONS:
  (in  thousands)
                                                            Six  Months  Ended
                                                                June  30
                                                            ------------------
                                                              2002     2001
                                                             ------  --------
<S>                                                             <C>     <C>
Gross premiums written. . . . . . . . . . . . . . . . . . .  $ 192   $182,959
                                                             ======  =========
Net premiums written. . . . . . . . . . . . . . . . . . . .  $   0   $    (18)
                                                             ======  =========

  Net premiums earned . . . . . . . . . . . . . . . . . . .  $   0   $    (18)
  Net investment and fee income . . . . . . . . . . . . . .    483        935
  Net realized capital gain (loss). . . . . . . . . . . . .    (79)       631
                                                             ------  ---------
Total revenues. . . . . . . . . . . . . . . . . . . . . . .    404      1,548
                                                             ------  ---------

  Loss and loss adjustment expenses . . . . . . . . . . . . . (193)     6,783
  Policy acquisition and general and administrative expenses.  597     (1,722)
  Interest and amortization expense . . . . . . . . . . . . .    -     (1,357)
                                                             ------  ---------
Total expenses. . . . . . . . . . . . . . . . . . . . . . .    404      3,704
                                                             ------  ---------

Earnings before income taxes. . . . . . . . . . . . . . . .      -     (2,156)

Income tax expense. . . . . . . . . . . . . . . . . . . . .      -          -
                                                             ------  ---------

Net earnings from discontinued operations . . . . . . . . .  $   -   $ (2,156)
                                                             ======  =========
</TABLE>

<PAGE>


ITEM  2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF  OPERATIONS

FORWARD  LOOKING  STATEMENTS  AND  CERTAIN  RISKS

All  statements,  trend analyses, and other information contained in this report
relative  to  markets  for the Company's products and/or trends in the Company's
operations or financial results, as well as other statements which include words
such  as  "anticipate,"  "could,"  "feel(s),"  "believes,"  "plan,"  "estimate,"
"expect,"  "should," "intend," "will," and other similar expressions, constitute
forward-looking statements under the Private Securities Litigation Reform Act of
1995.  These  forward-looking statements are subject to known and unknown risks,
uncertainties  and other factors which may cause actual results to be materially
different  from  those  contemplated  by  the  forward-looking statements.  Such
factors  include,  among  other  things:  (i)  the  effect on customers, agents,
employees  and  others  due  to the Company's receipt of a going concern opinion
from  its  accountants;  (ii)  general economic conditions, including prevailing
interest  rate  levels and stock market performance; (iii) factors affecting the
Company's  nonstandard  automobile  operations  such  as rate increase approval,
policy  renewals,  new  business  written,  and premium volume; (iv) the factors
described  in this section and elsewhere in this report; and (v) adverse actions
by  insurance  regulatory  officials.

OVERVIEW  OF  THE  COMPANY

Symons  International  Group, Inc. (the "Company") owns insurance companies that
underwrite  and  market nonstandard private passenger automobile insurance.  The
Company's  principal  insurance company subsidiaries are Pafco General Insurance
Company  ("Pafco") and Superior Insurance Company ("Superior"). The Company is a
73.1%  owned  subsidiary  of  Goran  Capital  Inc.  ("Goran").

Pafco, Superior and Superior's subsidiaries, Superior Guaranty Insurance Company
("Superior  Guaranty")  and  Superior  American  Insurance  Company  ("Superior
American"),  are  engaged  in  the  writing of insurance coverage for automobile
physical  damage and liability policies for nonstandard risks.  Nonstandard risk
insureds  are  those  individuals  who  are  unable to obtain insurance coverage
through  standard  market  carriers  due to factors such as poor premium payment
history,  driving  experience  or  violations,  particular occupation or type of
vehicle.  The  Company  offers  several  different  policies  that  are directed
towards  different classes of risk within the nonstandard market.  Premium rates
for  nonstandard  risks  are  higher  than  for standard risks.  Since it can be
viewed  as  a  residual  market,  the  size of the nonstandard private passenger
automobile  insurance  market  changes  with the insurance environment and grows
when  the standard coverage becomes more restrictive.  Nonstandard policies have
relatively  short  policy  periods  and low limits of liability. Also, since the
nonstandard  automobile  insurance business typically experiences lower rates of
retention  than  standard  automobile insurance, the number of new policyholders
underwritten  by  nonstandard  automobile  insurance  carriers  each  year  is
substantially  greater  than  the  number  of  new policyholders underwritten by
standard  carriers.

As  previously  announced,  the  Company  sold  its crop insurance operations to
Acceptance  Insurance  Companies  Inc.  ("Acceptance") on June 6, 2001. The crop
insurance  business  was written through the Company's subsidiary, IGF Insurance
Company  ("IGF"),  which  is  in  runoff.  Accordingly, the financial statements
included  in  this  report  reflect the results of the crop insurance segment as
"discontinued  operations".

SIGNIFICANT  LOSSES  HAVE  BEEN  REPORTED  AND  ARE  LIKELY  TO  CONTINUE

For  the  three  months  ended  June 30, 2002, losses from continuing operations
totaled  $(9,421,000)  compared to losses of $(7,009,000) in the same comparable
period  of  2001. For the six months ended June 30, 2002, losses from continuing
operations  were  $(17,150,000) compared to losses of $(16,441,000) for the same
period  of  2001.  The  Company  previously  reported  losses  from  continuing
operations  of  $(30,736,000)  for  the  year  2001,  $(71,384,000) for 2000 and
$(65,443,000)  for  1999.  Results from continuing operations before the effects
of  income  taxes  and  minority  interest  were  losses  of  $(15,930,000)  and
$(59,946,000) for 2001 and 2000, respectively. Losses from continuing operations
for  the  six  months ended June 30, 2002 increased over the same period in 2001
primarily  due  to significant adverse development on year end 2001 loss and LAE
reserves  and  on new business generated in the first quarter of 2002, primarily
due to increased frequency of losses. Although the Company has taken a number of
actions  to  address  factors contributing to these past losses, there can be no
assurance  that  operating  losses  will  not  continue.

RECENT  AND FURTHER REGULATORY ACTIONS MAY ADVERSELY AFFECT THE COMPANY'S FUTURE
OPERATIONS

The  Company's  insurance  company  subsidiaries, their business operations, and
their  transactions  with  affiliates,  including  the  Company,  are subject to
extensive  regulation  and  oversight  by  the  Indiana  Department of Insurance
("IDOI"),  the  Florida  Department  of  Insurance  ("FDOI")  and  the insurance
regulators  of  other  states  in which the insurance company subsidiaries write
business.  Moreover,  the insurance company subsidiaries' losses, adverse trends
and  uncertainties discussed in this report have been and continue to be matters
of  concern  to  the domiciliary and other insurance regulators of the Company's
insurance  company  subsidiaries  and  have  resulted  in  enhanced scrutiny and
regulatory action by several regulators (see Note 3, "Regulatory Affairs" in the
Condensed  Notes  to the Consolidated Financial Statements). The primary purpose
of  insurance  regulation  is  the  protection  of  policyholders  rather  than
shareholders.  Failure  to  resolve  issues with the IDOI and the FDOI, and with
other  regulators,  in  a  manner  satisfactory  to the Company could impair the
Company's  ability  to  execute  its  business  strategy  or  result  in  future
regulatory  actions or proceedings that could otherwise materially and adversely
affect  the  Company's  operations.

THE  COMPANY  IS  SUBJECT  TO  A  NUMBER  OF  PENDING  LEGAL  PROCEEDINGS

As  discussed  elsewhere  in this report, the Company is involved in a number of
pending legal proceedings  (see Part II - Item 1, "Legal Proceedings"). Although
the  Company  believes  that  many  of the allegations of wrongdoing are without
merit  and intends to vigorously defend the claims brought against it, there can
be no assurance that such proceedings will not have a material adverse effect on
the  Company's  financial  position  or  results of operations. Furthermore, the
existence  of  these  lawsuits  diverts the time and attention of management and
results  in  continued  expense  irrespective  of  the  ultimate  outcome.

THE  TERMS  OF THE TRUST PREFERRED SECURITIES MAY RESTRICT THE COMPANY'S ABILITY
TO  ACT

The  Company  has  issued  through  a wholly owned trust subsidiary $135 million
aggregate  principal  amount  in  trust  originated  preferred  securities  (the
"Preferred  Securities").  The Preferred Securities have a term of 30 years with
annual  interest  at  9.5%  paid semi-annually. The obligations of the Preferred
Securities  are  funded  from  the  Company's  nonstandard  automobile insurance
management  company.  The  Company  elected  to  defer  the semi-annual interest
payments  due  in  February  and  August  2000  and  2001 and the payment due in
February  2002 and may continue to defer such payments for up to an aggregate of
five  years  as  permitted  by  the  indenture for the Preferred Securities. The
Company  plans  to  defer  the  interest payments due in August 2002. All of the
deferred  interest (if all payments due in 2002, 2003, and 2004 are deferred) of
approximately  $84  million  will  become  due and payable in February 2005. The
indenture contains a number of covenants that may restrict the Company's ability
to  act  in  the  future.  These covenants include restrictions on the Company's
ability  to  incur or guarantee debt, make payment to affiliates, repurchase its
common  stock,  pay  dividends  on common stock or increase its level of certain
investments  other  than investment-grade, fixed-income securities. There can be
no assurance that compliance with these restrictions and other provisions of the
indenture  for  the Preferred Securities will not adversely affect the cash flow
of  the  Company.

CASH  FLOW  CONSTRAINTS  TO  SUPERIOR  GROUP  MAY ADVERSELY AFFECT THE COMPANY'S
ABILITY TO FUND OPERATIONS AND TO SERVICE THE OBLIGATIONS OF THE TRUST PREFERRED
SECURITIES

Under  the  present  structure,  claims, agent commissions and premium taxes are
paid  directly  by  the insurance company subsidiaries. However, pursuant to the
terms  of  the  management  agreement,  Superior  Group  is  responsible for all
payroll,  facilities,  data  processing,  computer  systems  and other functions
necessary  for the operations of the Company and its subsidiaries. The insurance
companies pay for such services through management fees that are calculated as a
percentage  of  gross  written premiums. Therefore, declines in written premiums
result  in  reduced  cash  flow  to  Superior  Group.

As  discussed  in  "Business - Recent Developments" in the annual report on Form
10-K  for  2001,  the  Company  projected  a  material decrease in gross written
premiums  for  2002 from 2001 levels with a corresponding decrease in management
fees  payable  to  Superior Group. However, the decrease in written premiums for
the  three  months ended June 30, 2002 was significantly higher than the Company
had  originally  anticipated.  Unless  the  Company  is able to increase written
premiums  or  reduce  expenses  to  correspond with the reduced level of written
premiums,  cash  flow will be inadequate to fund operations, including servicing
of  the  Preferred  Securities.  See,  "Management's  Discussion and Analysis of
Financial  Condition  and  Results  of  Operations  -  Liquidity  and  Capital
Resources."

There  can  be  no  assurance that current levels of reduced cash flows will not
have  a  material adverse effect on the Company's financial position, results of
operations  and  its  ability  to  meet  short  and  long-term  obligations.

REVIEW  OF  CONSOLIDATED  OPERATIONS

NET  LOSS

The  net  loss  for the three months ended June 30, 2002 totaled $(9,421,000) or
$(.91)  per  share  (basic  and  diluted).  This is an increase of $(256,000) or
$(0.03)  per share from the net loss for the same period in 2001.  The increased
net  loss  is  due  primarily  to the higher loss ratio of 117.0% in 2002 versus
88.1%  for  the  comparable  period in 2001. In addition, policy acquisition and
general  and  administrative expenses were 73.1% and 46.5% of earned premiums in
2002  and  2001,  respectively,  due  to the Company's inability to cut expenses
quickly  enough to match declining revenue. Results from discontinued operations
were  zero  and  $(2,156,000) for the three months ended June 30, 2002 and 2001,
respectively.  The  net loss for the six months ended June 30, 2002 decreased by
$1,447,000  or $0.14 per share from the net loss for the same period of 2001 due
primarily  to  the  loss  from  discontinued operations in 2001. Refer to Note 8
"Discontinued  Operations"  of  the  Condensed  Notes  to Consolidated Financial
Statements  for  additional  information.

GROSS  PREMIUMS  WRITTEN

Gross  premiums  written  decreased 54.1% and 31.4% for the three and six months
ended  June 30, 2002, respectively, as compared to the same periods in 2001. The
primary  reasons  for  this  decline  in  volume are the withdrawal from certain
competitive  markets  and  more  stringent  underwriting initiatives intended to
increase  profitability.  Refer  to  "Liquidity  and  Capital  Resources"  for
additional  volume  related  disclosure.

NET  PREMIUMS  WRITTEN

Net  premiums  written represent the portion of premiums retained by the Company
after  consideration for risk sharing through reinsurance contracts. As a result
of  declines  in  surplus  in the Company's insurance subsidiaries and to manage
overall risk retention, in 2000 the Company entered into a reinsurance agreement
to cede a portion of its gross written premiums to National Union Fire Insurance
Company of Pittsburgh, PA, an unrelated third party. For the first half of 2002,
the  Company  ceded  71.8%  of  its  gross  written  premiums.

NET  PREMIUMS  EARNED

Net premiums earned decreased 57.1% and 48.2% for the three and six months ended
June  30,  2002, respectively, as compared to the same periods in 2001. Premiums
are  earned  ratably over the term of the underlying insurance contracts and the
reduction in net premiums earned is a result of the decreases in written premium
and  policies  in  force.

FEE  INCOME

Fee  income  is derived from installment billings and other services provided to
policyholders.  Fee  income  decreased  38.2%  and  25.3%  for the three and six
months  ended  June  30,  2002,  respectively as compared to the same periods in
2001.  The  reduction in fee income is attributable to the reduction in policies
in  force  and  the  overall decline in written premium in the second quarter of
2002.

NET  INVESTMENT  INCOME

Net  investment  income  decreased  12.6% and 17.4% for the three and six months
ended June 30, 2002, respectively, as compared to the same periods in 2001. This
decrease  is  reflective  of  the  decline in invested assets during a period of
declining  premiums  and the liquidation of investments to pay prior year losses
settled  in  2002.


NET  REALIZED  CAPITAL  (LOSSES)

Net  realized  capital  losses  were  $(352,000) and $(1,100,000) for the second
quarter  and  first  half  of  2002,  respectively,  as compared to net realized
capital  losses  of  $(287,000)  and  $(1,056,000)  in the comparable periods of
2001.  Capital  losses  resulted  primarily  from  the  continued liquidation of
investments  to  fund  operations  and  claim  payments under unfavorable market
conditions.

LOSSES  AND  LOSS  ADJUSTMENT  EXPENSES

The loss and loss adjustment expense ("LAE") ratio for the Company for the three
and  six months ended June 30, 2002, was 117.0% and 112.0%, respectively, of net
premiums  earned  as  compared to 107.7% for first quarter 2002 and to 91.5% for
the  entire  year  of  2001.  During  the  second  quarter  of  2002 the Company
experienced  unfavorable  development on its loss and LAE reserves for accidents
occurring  in  2001  and  prior, primarily due to increased frequency of losses.
This  raised  the  loss  and  LAE  for  the  quarter  by 32.3 percentage points.

POLICY  ACQUISITION  AND  GENERAL  AND  ADMINISTRATIVE  EXPENSES

Policy acquisition and general and administrative expenses for the three and six
months  ended June 30, 2002 declined to $7,221,000 and 13,680,000, respectively,
from  $10,713,000  and 21,231,000 in the comparable periods of 2001, a reduction
for  the second quarter and first half of 2002 of 32.6% and 35.6%, respectively.
This  reduction  is  reflective  of  the  decline  in gross written premiums and
overall  operating  expense  reduction  initiatives.  As  a  percentage of gross
premiums  earned,  the  Company experienced an increase in its operating expense
ratio, net of fee income, from 31.1% for the second quarter of 2001 to 51.0% for
2002.  This  increase  in  the  expense  ratio is the result of lower net earned
premium  as  compared  to  second  quarter  2001.

INCOME  TAXES

At  June  30,  2002, the Company's net deferred tax assets are fully offset by a
100%  valuation allowance that resulted in no tax benefit in the second quarters
of  both  2002  and  2001.

REVIEW  OF  CONSOLIDATED  FINANCIAL  POSITION

CASH  AND  INVESTMENTS

Total  cash  and  investments  at  June 30, 2002 and December 31, 2001 was $92.8
million  and  $110.4  million,  respectively.  The  decline  in  invested assets
resulted  from  continued  liquidations  to  fund  claim  payments and operating
expenses  in  a  period  of  declining  premium  volume.

REINSURANCE  RECEIVABLES  AND  PAYABLES

The  Company  negotiated  a  third-party  quota share reinsurance agreement that
became  effective January 1, 2000.  Under the quota share agreement, the Company
may  cede a portion of its nonstandard automobile insurance premiums and related
losses  based  on  a  variable percentage of up to 75% of Superior's and Pafco's
earned  premiums. The Company's ceding percentage for the second quarter of 2002
totaled  71.8%.  The  decrease  in the amount of premiums and losses ceded under
this  contract  directly affect reinsurance balances due and payable on the face
of  the  financial  statements.

RECEIVABLES

Receivables, exclusive of the allowance for doubtful accounts, have decreased by
approximately  $6.5  million, or 14.6%, from December 31, 2001. This decrease is
primarily  attributable to a reduction in billable premiums due to lower written
premiums in the first and second quarters of 2002 compared to the fourth quarter
of  2001.  The  allowance  for  doubtful  accounts  was  reduced  in  2002  by
approximately  $1.4  million, or 88.5%, from December 31, 2001, primarily due to
the final reconciliation of receivables previously maintained on a legacy policy
administration  system  that  is  no  longer  in  service.

LOSS  AND  LOSS  ADJUSTMENT  EXPENSE  RESERVES

Total loss and loss adjustment expense reserves decreased from $81,142,000 as of
December  31,  2001  to  $73,686,000  as  of  June  30,  2002,  a  reduction  of
approximately  $7.5  million.  This  decrease  is  consistent with the Company's
declining  volume  of  business.

UNEARNED  PREMIUMS

At  June  30, 2002, unearned premiums were $50,487,000, a decrease of $8,729,000
from  December  31,  2001.  This  is consistent with the decrease in receivables
discussed  above.

DEFERRED  INCOME

In connection with the sale of the crop insurance book of business to Acceptance
on June 6, 2001, the Company received a payment of $4.5 million for agreeing not
to engage in the crop insurance business for three years from the sale date. The
payment  is being amortized to income on a straight-line basis over a three-year
period.

PAYABLE  TO  AFFILIATES

At  June  30, 2002, the Company owed a total of $1,380,000 to Goran Capital Inc.
("Goran")  and  its  affiliates.  This  balance  is  comprised  primarily of the
$2,500,000  line of credit owing to Granite Reinsurance Company Ltd. offset by a
$700,000 receivable from Goran's subsidiary, Granite Insurance Company, and held
by  IGF. The remaining balance is attributable to other receivables for expenses
paid  by the Company on behalf of Goran or its subsidiaries. The net increase of
$784,000  from  December  31,  2001 is due primarily to an additional $1,200,000
draw  on  the  line  of  credit  in  the first six months of 2002, offset by the
receivable  for  expenses  discussed  above.

SHAREHOLDERS'  (DEFICIT)

Shareholders'  (deficit)  has increased by $(18,188,000) from December 31, 2001.
This  increase  is primarily the result of the net loss of $(17,150,000) for the
six  months  ended  June  30,  2002  along  with the increase of $(1,038,000) in
unrealized  losses  on  investments  available  for  sale.


LIQUIDITY  AND  CAPITAL  RESOURCES

The  primary  source  of funds available to the management and holding companies
are  fees  from  policyholders, management fees and dividends from its insurance
company  subsidiaries.

Superior  Insurance Group, Inc. ("Superior Group") collects billing fees charged
to  policyholders  who  elect  to  make  their premium payments in installments.
Superior Group also receives management fees under its management agreement with
its  insurance subsidiaries.  When the FDOI approved the acquisition of Superior
by  Superior  Group,  it  prohibited Superior from paying any dividends (whether
extraordinary  or not) for four years from the date of acquisition (May 1, 1996)
without  the  prior  written  approval of the FDOI, which restriction expired in
April 2000.  As a result of regulatory actions taken by the IDOI with respect to
Pafco  and  IGF, those subsidiaries may not pay dividends without prior approval
by  the  IDOI.  Pafco  cannot pay extraordinary dividends, within the meaning of
the  Indiana Insurance Code, without the prior approval of the Indiana Insurance
Commissioner.  The  management  fees  charged  to  Pafco,  Superior  and IGF are
subject  to  review  by  the  IDOI  and  FDOI.

The  nonstandard  automobile  insurance subsidiaries' primary source of funds is
premiums,  investment  income and proceeds from the maturity or sale of invested
assets.  Such  funds  are used principally for the payment of claims, payment of
claims  settlement  costs,  operating  expenses  (primarily  management  fees),
commissions  to independent agents, premium taxes, dividends and the purchase of
investments.  There  is  variability  in  cash outflows because of uncertainties
regarding  settlement dates for liabilities for unpaid losses.  Accordingly, the
Company  maintains investment programs intended to provide adequate funds to pay
claims.  During  the  second  quarter  of  2002 and during 2001 and 2000, due to
reduced  premium  volume,  the Company has liquidated investments to pay claims.
The  Company  historically has tried to maintain duration averages of 3.5 years.
However,  the  reduction  in  new funds due to lower premium volume has and will
continue  to  cause  the Company to shorten the duration of its investments. The
Company  may  incur  additional  costs in selling longer bonds to pay claims, as
claim  payments  tend  to  lag  premium receipts.  Due to the decline in premium
volume, the Company has experienced a reduction in its investment portfolio, but
to  date  has  not  experienced  any problems meeting its obligations for claims
payments.

As  of  June  30, 2002, the Company has drawn all funds available under its $2.5
million revolving credit facility ("Facility") with Granite Reinsurance Company,
Ltd.,  a  related  party.  The  terms  of the Facility call for monthly interest
payments  at  the prime rate (as printed in the Wall Street Journal on the first
business  day  of  each month) plus 5.25% (the total rate was 10.0% at August 1,
2002)  computed on an annual basis and not to exceed 18% per annum calculated on
the  average  principal outstanding each month. All principal borrowed under the
Facility  is  due  on  December  20,  2004.

On  August  12, 1997, the Company issued through a wholly owned trust subsidiary
$135 million aggregate principal amount in trust originated preferred securities
(the  "Preferred  Securities"). The Preferred Securities have a term of 30 years
with  semi-annual  interest payments of $6.4 million that commenced February 15,
1998.  The Company may redeem the Preferred Securities in whole or in part after
10  years.  The Company may defer interest payments in accordance with the terms
of  the  trust  indenture  for a period of up to five years. The unpaid interest
installment  amounts  accrue  interest  at  9.5%.  The  Company  deferred  the
semi-annual  interest  payments  due  in  February  and August 2000 and 2001 and
February 2002 and may continue this deferral practice for all remaining payments
due in 2002, 2003, and 2004.  The Company intends to defer the interest payments
due  in  August  2002.

The  following  table sets forth the minimum required obligations of the Company
under  the  Preferred Securities for interest and principal payments for each of
the  next  four  years and thereafter assuming all semi-annual interest payments
due  in  2002,  2003,  and  2004  are  deferred  (in  thousands):

<TABLE>
<CAPTION>

                    2002   2003   2004    2005    Thereafter    Total
                    -----  -----  -----  -------  -----------  --------
<S>                 <C>    <C>    <C>    <C>      <C>          <C>
Interest payments.  $   -  $   -  $   -  $96,779  $   282,150  $378,929
Principal payments      -      -      -        -      135,000   135,000
                    -----  -----  -----  -------  -----------  --------
Total due. . . . .  $   -  $   -  $   -  $96,779  $   417,150  $513,929
                    =====  =====  =====  =======  ===========  ========

</TABLE>


The trust indenture contains certain restrictive covenants including those based
upon  the  Company's  consolidated  coverage  ratio of earnings before interest,
taxes,  depreciation  and  amortization  (EBITDA). If the Company's EBITDA falls
below  2.5  times  consolidated interest expense (including Preferred Securities
distributions)  for  the  most  recent four quarters, the following restrictions
become  effective:

-    The  Company  may not incur additional indebtedness or guarantee additional
     indebtedness.
-    The Company may not make certain restricted payments including making loans
     or advances to affiliates, repurchasing common stock or paying dividends in
     excess  of  a  stated  limitation.
-    The  Company  may not increase its level of non-investment grade securities
     defined  as  equities,  mortgage  loans, real estate, real estate loans and
     non-investment  grade  fixed  income  securities.

These restrictions currently apply, as the Company's consolidated coverage ratio
was  (1.06)  at  June  30,  2002, and will continue to apply until the Company's
consolidated  coverage ratio complies with the terms of the trust indenture. The
Company  was  in  compliance  with  these additional restrictions as of June 30,
2002.

Beginning  in the fourth quarter of 2001 and continuing in the second quarter of
2002,  the  Company experienced adverse loss experience on a substantial portion
of its new business written in certain markets. In late February and early March
2002, the Company commenced further analysis of loss ratios by individual agency
and  a  review of claim settlement procedures. Based on this and other analysis,
the  Company  took  the  following  actions  in  late March and in April 2002 to
improve  the  financial  position  and  operating  results  of  the  Company:

-    Eliminated  reinstatements  in all markets, i.e., upon policy cancellation,
     the  insured  must  obtain  a  new  policy  at prevailing rates and current
     underwriting  guidelines;
-    Terminated  or  placed  on  new  business moratorium several hundred agents
     whose loss ratios were abnormally high when compared to the average for the
     remaining agents (these agents accounted for approximately 16% of the total
     gross  written  premium  in  2001);
-    Increased  underwriting  requirements  in certain markets including: higher
     down  payments,  new  policy  fees,  and  shorter  policy  terms;
-    Hired  a  consultant  with  significant  auto  claims  experience to review
     processes  and  suggest  modifications  to  the  claims  function.

As  previously reported in the Company's December 31, 2001 Annual Report on Form
10-K,  the  Company  expected  the  above  actions  to  result  in  a decline of
approximately  10  to  15%  in gross written premiums from 2001 levels. Based on
actual  results  through  June 2002, the Company now expects a decline of 30% to
35%  in  gross  written  premiums for calendar year 2002 from 2001 levels with a
corresponding  decrease  in  management fees payable to Superior Group. In April
2002,  the Company eliminated approximately 60 full-time positions, primarily in
its  claims  and underwriting departments, representing approximately 17% of the
Company's  employees before the layoffs. In addition, the Company has undertaken
other  cost savings initiatives and process changes in order to reduce operating
expenses.

Net  cash  used  by  operating  activities  in the first half of 2002 aggregated
$(19,412,000)  compared  to  $(12,986,000)  for  the  same  period  in 2001. The
increase  is primarily due to the lower premium volume in the first half of 2002
and  the  receipt  in  2001  of  $4.5 million for the non-compete agreement with
Acceptance.  See  Note 8 "Discontinued Operations" in the Condensed Notes to the
Financial  Statements.

The  present projected level of cash flow from premium volume, investment income
and  billing  fees  will  be  insufficient  to  fund operating expenses at their
present  levels  through the end of 2002. The Company is considering alternative
sources  of  working capital which may be available in order to fund operations.
Among the alternate sources pursued by the Company are capital contributions and
loans from the Company's parent, Goran Capital Inc. In addition, the Company may
continue  to  reduce  operating  expenses to match cash inflows and may increase
premium  volume  in  the third or fourth quarters in certain states assuming the
new  business  is  written  to generate an underwriting profit. In the event the
Company's  insurance company subsidiaries continue to reduce premium volume, the
result  will  be  continued  reductions  in  management and billing fees paid to
Superior  Group  which  will  reduce cash flow and sources of funds available to
fund  operating  expenses  and  other  obligations,  including  the  Preferred
Securities.

Shareholders'  equity  reflected  a  deficit of $(162) million at June 30, 2002,
which does not reflect the statutory surplus upon which the Company conducts its
various  insurance  operations.  The  Company's  insurance  subsidiaries,  not
including  IGF,  after  the  effects  of  Codification, had statutory surplus of
approximately  $13.2  million  at  June  30,  2002.

Given  the  financial  position and loss experience of the Company over the past
several  years  as  described above, the Company's accountants issued an opinion
based  on their audit of the December 31, 2001 Consolidated Financial Statements
which  includes an emphasis paragraph that raises the question of whether or not
the  Company  can  continue  as  a going concern. The Company's plans to improve
financial  results  are  described  above.

ITEM  3.  QUALITATIVE  AND  QUANTITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

Information  related  to  Qualitative  and Quantitative Disclosures about Market
Risk was included under Item 1. Business in the December 31, 2001 Form 10-K.  No
material  changes  have  occurred  in  market  risk  since  this information was
disclosed  in  the  December  31,  2001  Form  10-K.

PART  II  -  OTHER  INFORMATION
ITEM  1.  LEGAL  PROCEEDINGS

As  previously reported, IGF, which is a wholly owned subsidiary of the Company,
had been a party to a number of pending legal proceedings and claims relating to
agricultural  production  interruption  insurance  policies (the "AgPI Program")
which  were sold during 1998. All of the policies of insurance which were issued
in the AgPI Program were issued by and under the name of Mutual Service Casualty
Insurance  Company  ("MSI"), a Minnesota corporation with its principal place of
business  located  in  Arden Hills, Minnesota. Sales of this product resulted in
large  underwriting  losses  by  IGF.

Approximately $29 million was paid through March 31, 2002 in settlement of legal
proceedings  and  policyholder  claims  related  to  the  AgPI Program. All AgPI
policyholder  claims  were  settled during 2000.  However, on January 12, 2001 a
case  was  filed in the Superior Court of California, County of Fresno, entitled
S&W  Seed Company, Dudley Silveira, Ric Blanchard and Darrell Silveira v. Mutual
Service  Casualty  Insurance  Company,  IGF  Insurance  Company,  and  Dibuduo &
Defendis  Insurance  Agency, Inc.; Case No. OICE CG 00137.  The case was brought
by four AgPI policyholders who had previously settled their AgPI claims pursuant
to  binding  settlement  agreements  who  now  seek  additional  compensation by
asserting through litigation that IGF and the third party carrier paid less than
the  policy  limits  they  were promised when they purchased the policy and that
each  settling  policyholder was forced to accept the lesser amount due to their
economic  duress  -  a legal theory recognized in California if certain elements
can  be  established.  On  January 16, 2002, the court entered an order granting
IGF's  motion  for  judgment on the pleadings and required plaintiffs to show an
insurable  interest.  Plaintiffs amended their complaint attempting to allege an
insurable  interest,  and on March 19, 2002, the court granted IGF's demurrer to
the  amended  complaint.  In  granting  the  demurrer  the  court  held that any
recovery  payable  to plaintiff would be limited to their actual economic losses
regardless  of  how  much  plaintiffs  thought  they  had  been  promised  (i.e.
plaintiffs  cannot  be  paid  policy  limits  without  regard  to  actual losses
incurred).  The plaintiffs then filed their third amended complaint to which MSI
filed  a  demurrer challenging the insurance contract allegations, as the issuer
of  the  AgPI policies, contending that plaintiffs failed to make the amendments
to  show an insurable interest as required by the court's previous rulings. This
demurrer  was  granted, without leave to amend, because the lack of an insurable
interest rendered the contract an unenforceable wager agreement, as described in
each  of  the  various  versions of the complaint. Plaintiffs have now moved for
reconsideration  of  the  dismissal  of  the insurance claims asking for another
chance  to allege an adequate insurable interest. This hearing is set for August
13,  2002.  Discovery  is  proceeding.

As  previously  reported  in the Company's March 31, 2002 Form 10-Q, MSI and IGF
were  arbitrating  their  dispute  over  responsibility  for  claims paid to MSI
insureds.  Also as previously reported, an action was filed against the Company,
IGF,  IGF  Holdings,  Inc. ("IGFH"), Granite Reinsurance Company, Ltd. ("Granite
Re"),  a wholly owned subsidiary of Goran, Goran and certain affiliates of those
companies,  as  well  as certain members of the Symons family, and Acceptance in
the  United  States  District  Court  for the Southern District of Indiana which
alleged  that  the  June  6,  2001  sale  of  IGF's assets to Acceptance and the
payments by Acceptance to the Company, Goran and Granite Re violated Indiana law
and  were  voidable.  The  parties  have settled the arbitration and the Indiana
action,  and  an  order  of dismissal was entered by the court on June 26, 2002.

The  Company  is a defendant in a case filed on February 23, 2000, in the United
States District Court for the Southern District of Indiana entitled Robert Winn,
et  al. v. Symons International Group, Inc., et al., Cause No. IP 00-0310-C-B/S.
Other  parties  named as defendants are Goran, three individuals who were or are
officers or directors of the Company or of Goran, PricewaterhouseCoopers LLP and
Schwartz  Levitsky  Feldman, LLP. The case purports to be brought on behalf of a
class  consisting  of  purchasers of the Company's stock or Goran's stock during
the  period  February  27,  1998,  through  and  including  November  18,  1999.
Plaintiffs  allege,  among  other  things,  that  defendants  misrepresented the
reliability  of the Company's reported financial statements, data processing and
financial reporting systems, internal controls and loss reserves in violation of
Section  10(b)  of  the Securities Exchange Act of 1934 (the "1934 Act") and SEC
Rule  10b-5  promulgated thereunder.  The individual defendants are also alleged
to  be  liable  as  "controlling  persons"  under  Sec.20  (a)  of the 1934 Act.
Discovery  in  the  case  is  proceeding.

The  Company  and  its  subsidiaries  are  named  as defendants in various other
lawsuits relating to their business.  Legal actions arise from claims made under
insurance  policies  issued  by  the  Company's  subsidiaries.  The  Company, in
establishing  its  loss reserves, has considered these actions.  There can be no
assurance  that  the  ultimate  disposition  of  these lawsuits will not have an
adverse  material  affect  the  Company's  operations  or  financial  position.

Except as set forth above, there have been no other material developments in any
of the pending legal proceedings previously reported by the Company in the March
31,  2002  Form  10-Q.


ITEM  2.     CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS
             None

ITEM  3.     DEFAULTS  UPON  SENIOR  SECURITIES
             None

ITEM  4.     SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS
             The  Company  held  its  annual  meeting  of  shareholders  on
             May 30, 2002. The following  is  a  summary  of  the  matters
             voted  on  at  the  meeting:

            (a)    The  three  nominees  for director were elected to serve
                   three-year terms ending  in  2005,  as follows:

                     Nominee              For        Against   Withhold Vote
                   -------------       --------    --------    -------------
                   G.  Gordon  Symons   4,445,566      None       237,284
                   Larry  S.  Wechter   4,628,766      None        54,084
                   Terry  W.  Anker     4,628,766      None        54,084

                   The  terms  of  the  following  directors continued after
                   the meeting: G. Gordon  Symons,  Alan  G.  Symons  and
                   Douglas  H.  Symons.

            (b)    The appointment of BDO Seidman, LLP as the Company's
                   independent auditors was  ratified  by  the  following
                   shareholder  vote:

                   For:      4,467,313
                   Against:    208,137
                   Abstain:      7,400

ITEM  5.     OTHER  INFORMATION
             On  August  12,  2002,  Larry  S. Wechter resigned as a director
             of the Company. There  were  no  material  disagreements  between
             Mr.  Wechter  and  Symons  International  Group,  Inc.  on any
             matter relating to the Company's operations, policies  or
             practices.

ITEM  6.     EXHIBITS  AND  REPORTS  ON  FORM  8-K
             Exhibits
             --------
             None

             Reports  on  Form  8-K
             ----------------------
On  June 10, 2002 the Company filed a Form 8-K announcing the retirement of Alan
G. Symons, the Company's Vice Chairman of the Board, effective May 31, 2002, and
the  end of Gene S. Yerant's employment with the Company effective May 20, 2002.

<PAGE>


SIGNATURES

Pursuant  to  the requirements of Section 13 or 15(d) of the Securities Exchange
Act  of  1934,  the  Registrant  has duly caused this report to be signed on its
behalf  by  the  undersigned,  thereunto  duly  authorized  on  August 13, 2002.



                            By:  /s/  Douglas  H.  Symons
                            ----------------------------
                            Douglas  H.  Symons
                            President,  Chief  Executive  Officer  and Secretary
                           (principal  executive  officer)


                            By:  /s/  Mark  A.  Paul
                            ----------------------------
                            Mark  A.  Paul
                            Vice  President  and  Chief  Financial  Officer
                           (principal  financial  and  accounting  officer)


<PAGE>


                            CERTIFICATION PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Symons International Group, Inc. (the
"Company") on Form 10-Q for the three month period ended June 30, 2002, as filed
with  the  Securities and Exchange Commission on the date hereof (the "Report"),
the  undersigned,  in  the  capacities  and on the dates indicated below, hereby
certify  pursuant  to 18 U.S.C. Section 1350, as adopted pursuant to Section 906
of  the Sarbanes-Oxley Act of 2002, that: (1) the Report fully complies with the
requirements  of  Section 13(a) or 15(d) of the Securities Exchange Act of 1934;
and (2) the information contained in the Report fairly presents, in all material
respects, the financial condition and results of operations of the Company as of
the  dates  and  for  the  periods  indicated.





Dated: August 13, 2002      By:  /s/  Douglas  H.  Symons
                            -----------------------------
                            Douglas  H.  Symons
                            President,  Chief  Executive  Officer and  Secretary
                           (principal  executive  officer)


Dated: August 13, 2002      By:  /s/  Mark  A.  Paul
                            ----------------------------
                            Mark  A.  Paul
                            Vice  President  and  Chief  Financial  Officer
                           (principal  financial  and  accounting  officer)