UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

          Mark One

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

                  For the quarterly period ended March 31, 2000

             [ ] 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                               (I.R.S. Employer
of incorporattion or organizaiton)                         Identification No.)


                               4720 Kingsway Drive

                           Indianapolis, Indiana 46205

                    (Address of Principal Executive Offices)

       Registrant's telephone number, including area code: (317) 259-6400

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 May 1, 2000, there were 10,385,399 shares of Registrant's  $1.00 par value
common stock issued and outstanding.

<PAGE>

                                 FORM 10-Q INDEX

                      FOR THE QUARTER ENDED MARCH 31, 2000


Page

Number

PART I     FINANCIAL INFORMATION

Item 1     Financial Statements

           Consolidated Financial Statements:
           Consolidated Balance Sheets at March 31, 2000
           (unaudited) and December 31, 1999.................................  3

           Unaudited Consolidated Statements of Earnings
           for the Three Months Ended

           March 31, 2000 and 1999...........................................  4

           Unaudited Consolidated Statements of Cash Flows for the

           Three Months Ended March 31, 2000 and 1999 .......................  5

           Condensed Notes to Unaudited Consolidated Financial

           Statements........................................................  6

Item 2     Management's Discussion and Analysis of Financial

           Condition and Results of Operations............................... 12

Item 3     Quantitative and Qualitative Disclosures About Market Risk........ 21

PART II    OTHER INFORMATION................................................. 21

SIGNATURES      ............................................................. 23




<PAGE>

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

<TABLE>
<CAPTION>

                                                                                 March 31,       December 31,
                                                                                   2000               1999
                                                                                (Unaudited)
ASSETS

Investments
Available for sale:

<S>                                                                               <C>                <C>
    Fixed maturities, at market                                                   $158,303           $166,748
    Equity securities, at market                                                    12,918             13,425
    Short-term investment, at amortized cost which approximates market              19,322             21,820
Mortgage loans, at cost                                                              1,960              1,990
Other                                                                                  996                945
        Total Investments                                                          193,499            204,928
Investment in and advances to related parties                                        1,008              1,462
Cash and cash equivalents                                                            4,266              3,097
Receivables, net of allowance for doubtful accounts                                125,492             86,450
Reinsurance recoverable on paid and unpaid losses, net                              47,319             98,258
Prepaid reinsurance premiums                                                        94,230             10,463
Federal income taxes recoverable                                                        --              6,820
Deferred policy acquisition costs                                                   12,490             13,920
Deferred income taxes                                                                   --                 --
Property and equipment, net of accumulated depreciation                             21,248             21,936
Intangible assets                                                                   43,808             43,221
Other assets                                                                         9,178              9,256
           TOTAL ASSETS                                                           $552,538           $499,811

LIABILITIES

Losses and loss adjustment expense reserves                                       $170,332           $214,948
Unearned premiums                                                                  165,839             90,008
Reinsurance payables                                                                82,563             35,850
Notes payable                                                                        3,735             16,929
Distributions payable on preferred securities                                        8,073              4,809
Other                                                                               17,384             27,247
           TOTAL LIABILITIES                                                       447,926            389,791

Commitments and contingencies:
Minority interest:
Company obligated mandatorily redeemable preferred stock of trust
subsidiary holding solely parent debentures                                        135,000            135,000

STOCKHOLDERS' (DEFICIT)
Common Stock                                                                        38,136             38,136
Additional paid-in capital                                                           5,851              5,851
Unrealized gain (loss) on investments                                               (4,928)            (4,898)
Retained (deficit)                                                                 (69,447)           (64,069)
           TOTAL STOCKHOLDERS' (DEFICIT)                                           (30,388)           (24,980)
           TOTAL LIABILITIES AND STOCKHOLDERS'  (DEFICIT)                         $552,538           $499,811


See condensed notes to consolidated financial statements

</TABLE>

<PAGE>

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

<TABLE>
<CAPTION>

                                                                                      Three Months Ended
                                                                                          March 31,

                                                                                   2000               1999

<S>                                                                               <C>                <C>
Gross premiums written                                                            $144,219           $152,022
Less ceded premiums                                                               (106,180)           (76,723)
Net premiums written                                                                38,039             75,299
Change in net unearned premiums                                                      7,936            (10,962)
Net premiums earned                                                                 45,975             64,337
Fee income                                                                           3,775              4,463
Net investment income                                                                3,040              3,289
Net realized gain (loss)                                                               365             (1,382)
        Total Revenues                                                              53,155             70,707

Loss and loss adjustment expenses                                                   39,659             56,487
Policy acquisition and general and administrative expenses                          14,390             11,892
Interest expense                                                                       203                 74
Amortization of intangibles                                                            530                605
    Total Expenses                                                                  54,782             69,058
    Earnings (loss) before income taxes and minority interest                       (1,627)             1,649
Provision (benefit) for income taxes                                                   487               (491)
    Net earnings (loss) before minority interest                                    (2,114)             2,140
Minority interest:
Distributions on preferred securities                                                3,264              3,162
    Net (loss)                                                                     $(5,378)           $(1,022)
Other comprehensive earnings

    Net  (loss)                                                                    $(5,378)           $(1,022)
    Change in unrealized gains (losses) on securities                                  (30)            (1,380)
Comprehensive  (loss)                                                              $(5,408)           $(2,402)

Net  (loss) per share - basic                                                        $(0.52)           $(0.10)
Net  (loss) per share - fully diluted                                                $(0.52)           $(0.10)
Weighted average shares outstanding :
    Basic                                                                           10,385             10,385
    Fully diluted                                                                   10,385             10,385



See condensed notes to consolidated financial statements
</TABLE>


<PAGE>

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

                                                                                      Three Months Ended
                                                                                          March 31,

                                                                                   2000               1999

Cash Flows from Operating Activities:
<S>                                                                                <C>                <C>
    Net  (loss) for the period                                                     $(5,378)           $(1,022)
    Adjustments to reconcile net earnings to net cash provided from
    operations:
        Depreciation and amortization                                                2,073              1,364
        Deferred income tax (benefit) provision                                         --              3,319
        Net realized (gain) loss                                                      (366)             1,382
Net changes in operating assets and liabilities:

    Receivables                                                                    (39,042)           (68,479)
    Reinsurance recoverable on paid and unpaid losses, net                          50,939             10,085
    Prepaid reinsurance premiums                                                   (83,767)           (50,077)
    Deferred policy acquisition costs                                                1,430              1,425
    Other Assets                                                                      (754)            (3,907)
    Losses and loss adjustment expenses                                            (44,616)           (23,166)
    Unearned premiums                                                               75,832             65,357
    Reinsurance payables                                                            46,713             77,168
    Distribution payable on preferred securities                                     3,264             (3,250)
    Federal income taxes                                                             6,820             (6,141)
    Other liabilities                                                               (9,679)             7,406
NET CASH PROVIDED FROM OPERATIONS                                                    3,469             11,464
Cash flow used in investing activities:
    Net (purchases) sales of short-term investments                                  2,498             (2,428)
    Purchases of fixed maturities                                                      (75)           (75,340)
    Proceeds from sales, calls and maturities of fixed maturities                    9,675             67,429
    Purchase of equity securities                                                   (2,009)              (944)
    Proceeds from sales of equity securities                                         1,544                 22
    Purchases of property and equipment                                               (716)              (976)
    Purchase of real estate                                                             --                 (7)
    (Purchases) sales of other investments                                             (27)              (243)
NET CASH FROM (USED IN) INVESTING ACTIVITIES                                        10,890            (12,487)
Cash flow provided from/(used in) financing activities:
    Cost of shares acquired                                                                                --
    Payments on notes payable                                                      (13,194)            (9,224)
    Loans from (repayments to) related parties                                           4               (180)
NET CASH (USED IN) FINANCING ACTIVITIES                                            (13,190)            (9,404)
Increase (decrease) in cash and cash equivalents                                     1,169            (10,427)
Cash and cash equivalents, beginning of period                                       3,097             14,800
Cash and cash equivalents, end of period                                            $4,266             $4,373


</TABLE>

See condensed notes to consolidated financial statements


<PAGE>

                        SYMONS INTERNATIONAL GROUP, INC.
            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

                                   (UNAUDITED)

                    For The Three Months Ended March 31, 2000

CONDENSED NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.       Basis of Presentation

         The financial  statements  included in this report are the consolidated
         financial  statements  of  Symons  International  Group,  Inc.  and its
         subsidiaries  (the "Company").  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, 1999  included in the  Company's  1999 Annual
         Report on Form 10-K. Results for any interim period are not necessarily
         indicative of results to be expected for the year.

2.       Supplemental Cash Flow Information

         Cash  payments of interest  were  $581,000  and  $311,000 for the three
         months  ended  March 31,  2000 and 1999,  respectively.  Cash  received
         related to refund  Federal  Income taxes was taxes were  $6,586,000 and
         $6,548,000 for the first three months of 2000 and 1999, respectively.

3.       Notes Payable

         IGF  Insurance  Company,   the  Company's  subsidiary  ("IGF"),  has  a
         revolving  bank line of credit (the "IGF  Revolver").  During the first
         quarter  2000 the maximum  amount that could be borrowed  under the IGF
         Revolver was reduced from $15,000,000 to $8,000,000 and it was extended
         through  December  15,  2000.  As of April 1, 2000,  the entire line of
         credit was available to IGF. This line is collateralized by receivables
         and real property.  The IGF Revolver  contains certain  covenants which
         (i) restrict IGF's ability to accumulate common stock; (ii) set minimum
         standards for investments and policyholder surplus; and (iii) limit the
         ratio of net written premiums to statutory surplus.  At March 31, 2000,
         IGF was not in compliance with a minimum  statutory  surplus  covenant;
         however,  IGF has received a waiver from the bank for the period ending
         March 31, 2000. Although the Company believes it will be able to obtain
         waivers  from the bank as  necessary  in the  future,  there  can be no
         assurance thereof.

         The average  interest  rate on the IGF Revolver was 6.75% for the three
         months  ended March 31, 1999 and 7.91% for the three months ended March
         31, 2000.

         Notes payable also includes a $1,000,000  note due 2001 on the purchase
         of North American Crop Underwriters,  Inc. ("NACU") at no interest. The
         balance of notes payable at March 31, 2000 includes three smaller notes
         (less than $300,000 each) assumed in the acquisition of NACU which have
         various due dates from 2002 to 2006 with periodic  payments at interest
         rates ranging from 7% to 9.09%.

4.       Preferred Securities

         The  preferred  securities  represent   company-obligated   mandatorily
         redeemable  preferred  securities of a trust subsidiary (the "Preferred
         Securities")  holding solely parent  debentures which have a term of 30
         years with semi-annual  interest payments commencing February 15, 1998.
         The Preferred  Securities  may be redeemed in whole or in part after 10
         years. The Company  deferred the semi-annual  interest payment that was
         due February  2000.  Under the terms of the  indenture,  the Company is
         permitted to defer such payment for up to five years.

<PAGE>

         The indenture for the Preferred Securities contains certain restrictive
         covenants.  Some of  these  covenants  are  based  upon  the  Company's
         consolidated  coverage  ratio  of  earnings  before  interest,   taxes,
         depreciation  and  amortization  ("EBITDA")  whereby  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:

o                 The Company may not incur additional indebtedness or guarantee
                  additional indebtedness.

o                 The Company may not make certain restricted payments including
                  loans or  advances  to  affiliates,  stock  repurchases  and a
                  limitation on the amount of dividends is inforce.

o                 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 (5.00) as of March 31, 2000,  and will  continue to
         apply  until the  Company's  consolidated  coverage  ratio  exceeds the
         amount set forth in the  indenture.  The Company is in compliance  with
         the additional  restrictions  and is not in default in its  obligations
         with the regard to the Preferred Securities.

5.       Regulatory Affairs

         As previously  reported,  Pafco General Insurance Company ("Pafco") has
         agreed to an order  under  which the Indiana  Department  of  Insurance
         ("IDOI") may monitor more closely the ongoing  operations  of Pafco due
         to the  risk-based  capital ratio being below the Company  action level
         using the  National  Association  of Insurance  Commissioners  ("NAIC")
         guidelines  and applicable  law. This order remains in effect.  Pafco's
         inability or failure to comply with this order could result in the IDOI
         requiring  further  reductions in Pafco's permitted premium writings or
         in the IDOI  instituting  future  proceedings  against Pafco. The final
         report has not yet been issued by the IDOI on its previously  disclosed
         target  examination  of Pafco,  covering  loss  reserves,  pricing  and
         reinsurance and no action was taken thereon.

         Pafco has also agreed with the Iowa  Department of Insurance  ("IADOI")
         to (i) limit its policy counts on automobile  business in Iowa and (ii)
         provide  the IADOI with policy  count  information  on a monthly  basis
         until June 30, 2000 and thereafter on a quarterly basis.

         In addition Pafco has agreed to provide monthly  financial  information
         to other  departments  of  insurance  in  states  in  which  it  writes
         business.

         As  previously  disclosed,  with  regard  to IGF and as a result of the
         losses  experienced  by IGF in the crop insurance  operations,  IGF has
         agreed with the IDOI to provide  monthly  financial  statements  to the
         IDOI,  consult  monthly with the IDOI, and to obtain prior approval for
         affiliated party transactions.  IGF is currently in compliance with its
         agreement to provide monthly financial statements to the IDOI.

         IGF has agreed  with the IADOI  that it will not write any  nonstandard
         business, other than that which it is currently writing until such time
         as IGF has:  (i)  increased  surplus;  (ii) a net  written  premium  to
         surplus ratio of less than three to one; and (iii)  surplus  reasonable
         to its risk.

         The  Florida   Department  of  Insurance  ("FDOI")  has  concluded  its
         examinations of Superior Insurance Company  ("Superior") with regard to
         review of systems and year 2000 compliance.  No significant  action was
         taken  by the  FDOI as a  result  of  these  examinations.  The  FDOI's
         financial  review of Superior  for the year ended  December 31, 1999 is
         ongoing,  and Superior is maintaining ongoing discussions with the FDOI
         regarding  reserve levels,  financial  review and reporting,  and other
         issues.  Superior  has also  agreed  with  the  Arizona  Department  of
         Insurance to provide it with monthly financial statements.

<PAGE>

         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,  the  insurance
         regulators of other states in which the  subsidiaries  write  business,
         and  in the  case  of  IGF,  the  Federal  Crop  Insurance  Corporation
         ("FCIC").  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  and,  in the case of IGF,  the  FCIC,
         primarily  for  the  protection  of  policyholders   and  not  for  the
         protection of other  creditors or of  shareholders.  Failure to resolve
         outstanding  issues with the IDOI,  the FDOI and other  regulators in a
         manner  satisfactory  to the Company could result in future  regulatory
         actions  or  proceedings  that  materially  and  adversely  affect  the
         Company.

6.       Commitments and Contingencies

         As  previously  reported,  a  complaint  for a  class  action  alleging
         violations of Sections 10(b) and 20(a) of the  Securities  Exchange Act
         of 1934 was filed  against the Company and certain of its  officers and
         directors in the United States District Court for the Southern District
         of Indiana. The Company intends to vigorously defend the claims brought
         against it. No material developments have occurred since last reported.

         As previously reported, the California Department of Insurance ("CDOI")
         has  advised  the Company  that it is  reviewing a possible  assessment
         which could total $3,000,000. As the ultimate outcome of this potential
         assessment  is not deemed  probable,  the  Company  has not accrued any
         amount  in  its  consolidated   financial   statements.   Although  the
         assessment  has not been  formally  made by the CDOI at this time,  the
         Company will vigorously defend any potential assessment and believes it
         will  prevail.  No  material  developments  have  occurred  since  last
         reported.

         As  previously  reported,  IGF is a party to a number of pending  legal
         proceedings  relating to a product  sold in 1998 (AgPI) which has since
         been discontinued. Approximately $22,400,000 was paid through March 31,
         2000. A reserve of $12,100,000  remains. No material  developments have
         occurred since last reported.

         As  previously  reported,  two  assertions  have been  made in  Florida
         alleging  that service  charges or finance  charges are in violation of
         Florida   law.  The   plaintiffs   are   attempting   to  obtain  class
         certification  in  these  actions.  The  Company  believes  that it has
         substantially  complied with the premium  financing statute and intends
         to vigorously defend any potential loss. No material  developments have
         occurred since last reported.

         The Company and its  subsidiaries  are named as  defendants  in various
         lawsuits  relating to their  business.  Legal actions arise from claims
         made under  insurance  policies  issued by the Company's  subsidiaries.
         These actions were considered by the Company in  establishing  its loss
         reserves.  The Company believes that the ultimate  disposition of these
         lawsuits  will  not  materially  affect  the  Company's  operations  or
         financial position.

         The  Company is a joint and  several  guarantor  in a  $7,250,000  debt
         collateralized  by  operating  assets  held in an  entity  in which the
         Company is a 50% owner.  The estimated  fair market value of the assets
         approximates the debt.

7.       Loss Development on Prior Accident Years

         During the first  quarter  of 2000 the  Company  experienced  favorable
         development  on its  year end 1999  loss  and loss  adjustment  expense
         ("LAE")  reserves for the  nonstandard  auto operation in the amount of
         $300,000.  As the result of favorable  settlement of outstanding claims
         on surplus line policies, the Company experienced favorable development
         of $100,000 and this amount is included in the results of the Company's
         nonstandard  auto  segment.   In  total,  the  Company's   results  for
         nonstandard auto include favorable  development on prior accident years
         of $400,000.

         During  the  same  time  period  the  Company   experienced   favorable
         development  on its year end crop  insurance  reserves in the amount of
         $600,000. Although the aggregate reserve development was favorable, the
         Company  experienced an adverse loss reserve development of $700,000 on
         crop hail and named peril claims caused by claims  reported late.  This
         was offset by a catastrophic  coverage ("CAT") and multiple-peril  crop
         insurance  ("MPCI") LAE  reimbursement  of $1,300,000 for the Company's
         handling of 1999 MPCI and CAT claims.

8.

<PAGE>

Segment Disclosures

         The Company has two reportable segments based on products:  nonstandard
         automobile  insurance and crop insurance.  The  nonstandard  automobile
         segment offers  personal  nonstandard  automobile  insurance  through a
         network of independent  general agencies.  The crop segment writes MPCI
         and crop hail insurance through  independent  agencies with its primary
         concentration in the midwest.  The accounting  policies of the segments
         are the same as those  described in the December 31, 1999 annual report
         in "Nature of Operating and Significant Accounting Policies." There are
         no  significant  intersegment   transactions.   The  Company  evaluates
         performance and allocates  resources to the segments based on profit or
         loss from operations before income taxes.

         The  following  is a  summary  of  the  Company's  segment  data  and a
         reconciliation  of  the  segment  data  to the  Consolidated  Financial
         Statements.  "Corporate  and Other"  includes  operations  not directly
         related to the reportable  business segments and unallocated  corporate
         items (i.e., corporate investment income, interest expense on corporate
         debt and  unallocated  overhead  expenses).  Segment  assets  are those
         assets in the  Company's  operations in each  segment.  "Corporate  and
         Other" assets are principally  cash,  short-term  investments,  related
         party assets, intangible assets, and property and equipment.

9.           Reclassifications

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

<PAGE>

<TABLE>
<CAPTION>

         The following tables show financial data by segment (in thousands):

                                                                                      Three Months Ended
                                                                                          March 31,

                                                                                   2000               1999

NONSTANDARD AUTOMOBILE INSURANCE OPERATIONS
<S>                                                                                <C>                <C>
    Gross premiums written                                                         $59,569            $61,171
    Net premiums written                                                            30,469             73,687
    Net premiums earned                                                             43,041             65,396
    Fee income                                                                       3,934              4,521
    Net investment income                                                            2,860              3,164
    Net realized gain (loss)                                                           365             (1,382)
        TOTAL REVENUES                                                              50,200             71,699
    Losses and loss adjustment expense                                              37,219             51,313
    Policy acquisition and general and administrative expenses                      17,560             19,595
        TOTAL EXPENSES                                                              54,779             70,908
    Earnings (loss) before income taxes                                            $(4,579)              $791
GAAP RATIOS (Nonstandard Automobile Only):
    Loss and LAE Ratio (2)                                                              86.5%              78.5%
    Expense ratio, net of billing fees (3)                                              31.7%              23.0%
    Combined ratio (4)                                                                 118.2%             101.5%

CROP INSURANCE OPERATIONS:
    Gross premiums written                                                         $84,360            $90,723
    Net premiums written                                                             7,570             $1,613
    Net premiums earned                                                              2,934            $(1,060)
    Fee income                                                                        (159)               (59)
    Net investment income                                                              126                 57
    Net realized capital gain (loss)                                                    --                 --
        TOTAL REVENUES                                                               2,901             (1,062)
    Losses and loss adjustment expenses                                              2,440              5,174
    Policy acquisition and general and administrative expenses(1)                   (3,792)            (8,008)
    Interest and amortization of intangibles                                           243                169
        TOTAL EXPENSES                                                              (1,109)            (2,665)
    Earnings (loss) before income taxes                                             $4,010             $1,603

(1)   Negative crop expenses are caused by inclusion of MPCI expense reimbursement and underwriting gain.
(2)   Loss and LAE ratio:  ratio of loss and LAE  incurred during the period, as a percentage of net premium earned.
(3)   Expense ratio, net of billing fees:  ratio of policy acquisition and general and administrative  expense less fee income, as a
         percentage of net premium earned.
(4)   Combined ratio:  sum of the loss and LAE ratio plus the expense ratio net of billing fees.
</TABLE>

<PAGE>

<TABLE>
<CAPTION>

                                                                               Three Months Ended
                                                                                   March 31,

                                                                             2000           1999
         Earnings (loss) before income taxes and minority interest:

<S>                                                                        <C>                 <C>
             Nonstandard automobile                                        $(4,579)            $791
             Crop                                                            4,010            1,603
                 Segment totals                                               (569)          $2,394
             Corporate and other                                            (1,058)            (745)
                 Consolidated totals                                       $(1,627)          $1,649

                                                                           March 31,    December 31,
                                                                             2000           1999
         Segment assets:
             Nonstandard automobile                                        $258,323        $229,640
             Crop                                                           189,681         145,622
             Corporate and other                                            104,534         124,549

         Total  assets of the crop  business  are  subject  to  normal  cyclical
fluctuations.

</TABLE>

9.       Earnings Per Share

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

<TABLE>
<CAPTION>

                                                                             Three Months Ended
                                                                                  March 31,

         (in thousands)                                                      2000          1999

         Basic:
<S>                                                                            <C>           <C>
           Weighted-average common shares outstanding                          10,385        10,385

         Diluted:
           Weighted-average common shares outstanding                          10,385        10,385
           Dilutive effect of stock options                                        --            --

         Average common shares outstanding assuming dilution                   10,385        10,385

</TABLE>

         The Company has 147,333 stock options outstanding as of March 31, 2000.
         The weighted  average common shares  outstanding on a basic and a fully
         diluted basis are the same because of the net losses in 1999 and 2000.

10.      Subsequent Events

         Effective April 1, 2000, the new and renewal  nonstandard  auto premium
written by IGF will no longer be reinsured by Pafco.

<PAGE>

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

OVERVIEW OF THE COMPANY

Symons  International  Group,  Inc.  ("Company") owns insurance  companies which
underwrite and market  nonstandard  private passenger  automobile  insurance and
crop insurance. The Company's principal insurance company subsidiaries are Pafco
General Insurance Company ("Pafco"), Superior Insurance Company ("Superior") and
IGF Insurance Company ("IGF").  The Company is approximately a 67% subsidiary of
Goran Capital Inc. ("Goran").

Nonstandard Automobile Insurance Operations

Pafco,  Superior,  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.  Nonstandard  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 which are
directed  towards  different  classes  of risk  within the  nonstandard  market.
Premium rates for nonstandard  risks are higher than for standard risk. 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. Due to the low
limits of coverage,  the period of time that elapses  between the occurrence and
settlement of losses under nonstandard policies is shorter than many other types
of  insurance.   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.

Crop Insurance Operations

The two  principal  components  of the  Company's  crop  insurance  business are
multiple-peril  crop insurance  ("MPCI") and private named peril crop insurance,
primarily crop hail insurance.  Crop insurance is purchased by farmers to reduce
the risk of crop loss from  adverse  weather  and other  uncontrollable  events.
Farms are subject to drought,  floods and other natural disasters that can cause
widespread  crop losses and, in severe  cases,  force  farmers out of  business.
Historically,  one out of every  twelve  acres  planted by farmers  has not been
harvested  because of adverse weather or other natural  disasters.  Because many
farmers rely on credit to finance their purchases of such agricultural inputs as
seed,  fertilizer,  machinery and fuel, the loss of a crop to a natural disaster
can reduce their ability to repay these loans and to find sources of funding for
the following year's operating expenses.

The Company generates  revenue like other private insurers  participating in the
MPCI program in two ways.  First, it markets,  issues and administers  policies,
for which it receives  administrative  fees; and second,  it  participates  in a
profit-sharing arrangement with the federal government. The Company may also pay
a portion of the aggregate  loss,  in respect of the business it writes,  if the
losses exceed  certain  levels.  The Company writes MPCI and crop hail insurance
through approximately 2,850 independent agencies in 46 states.

The  Company's  risk in the first two  quarters  of the year is  affected to the
following  facts:  (1) the Company has a large  exposure of crops planted in the
fall and winter  (citrus  and  nursery in  Florida,  nursery in Texas,  wheat in
Kansas),  (2) the Company's crop revenue  coverage ("CRC") risk which is tied to
commodity  prices is quantified  in July,  November and December but is incurred
throughout the various growing seasons, (3) the preventative  planting risk that
the Company incurs on its traditional  spring crops, and (4) the planting of its
spring  crops (corn and soybeans in the  Midwest),  the majority of which occurs
prior  to the  end of May of any  given  crop  year.  Also,  MPCI  policies  are
continuous  and  automatically  renew each year unless the insured  notifies the
Company prior to March 15 of each year.

<PAGE>

In addition to MPCI, the Company offers stand alone crop hail  insurance,  which
insures growing crops against damage  resulting from hail storms and involves no
federal  participation.  The Company  also offers a  proprietary  product  which
combines the application and underwriting  process for MPCI and hail coverages -
HAILPLUS(TM)  ("HAILPLUS").  This product  tends to produce less  volatile  loss
ratios than the stand alone product since the combined product generally insures
a greater  number of acres,  thereby  spreading the risk of damage over a larger
insured area.  Approximately  37% of the Company's  hail policies are written in
combination with MPCI. Although both crop hail and MPCI provide coverage against
hail damage,  the private crop hail coverages allow farmers to receive  payments
for hail damage which would not be severe  enough to require a payment  under an
MPCI policy.  The Company believes that offering crop hail insurance  enables it
to sell more policies than it otherwise would.

In addition to crop hail  insurance,  the Company also sells  insurance  against
crop damage from other  specific  named perils.  These  products  cover specific
crops and are  generally  written on terms that are specific to the kind of crop
and farming  practice  involved and the amount of actuarial data available.  The
Company plans to seek  potential  growth  opportunities  in this niche market by
developing  basic policies on a diverse number of named crops grown in a variety
of geographic areas.

The Company has started three new business  initiatives  related to  agriculture
risk management:  agronomy services, price risk management,  and carbon emission
reduction  credits.  Each will provide the  opportunity to increase fee revenue.
Fee revenue  provides the Company with limited risk and high profit margins from
its same base of operations and thus  contributes to capital and surplus growth.
Fee revenue in total is not projected to be more than $2.0 million for 2000.

The crop insurance  business is seasonal by geographic  region;  spring crops in
northern and midwestern states,  fall crops in southern states such as fruit and
nuts,  winter crops in coastal  states such as California  and summer cash crops
grown in all states. The Company also insures long term crops such as timber and
nurseries. While this seasonality is time specific for each crop, the associated
tasks of sales and marketing primarily occur before each respective crop growing
season. The customer support,  applications and claims processing tasks are time
and event driven within the mid to later part of the growing season;  many times
being finished  after the growing  season and harvest is completed.  The bulk of
the loss  adjustment  activities for the spring and fall crops occur between May
and November.  These same activities occur for winter crops,  such as fruits, in
January and February, and for cash crops throughout the year.

Throughout  the year the Company  provides  to its  customers  services  such as
education, agronomy training, soil sampling, grid mapping for precision farming,
insurance advice and loss adjusting.

FORWARD LOOKING STATEMENTS AND CERTAIN RISKS

All statements,  trend analyses, and other information herein contained relative
to markets for the Company's products and/or trends in the Company's  operations
or  financial  results,  as well as other  statements  including  words  such as
"anticipate,"  "could," "feel(s),"  "believe(s),"  "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) general economic conditions,  including
prevailing  interest  rate levels and stock  market  performance;  (ii)  factors
affecting  the  Company's  crop  insurance  operations  such as  weather-related
events,  final harvest  results,  commodity price levels,  governmental  program
changes,  new product  acceptance  and commission  levels paid to agents;  (iii)
factors  affecting  the  Company's  nonstandard  automobile  operations  such as
premium volume and levels of operating  expenses as compared to premium  volume;
and (iv) the factors described in this section and elsewhere in this report.

<PAGE>

Losses Have Been Reported and May Continue

The Company has reported net losses on a quarterly basis since the third quarter
of  1998.  Net  losses  for  the  quarter  ended  in  March  31,  2000  totalled
($5,378,000). Losses for the first quarter of 2000 were primarily due to reduced
earnings in the  nonstandard  auto  segment.  Despite  the  losses,  loss ratios
started to improve in the first quarter of the current year for nonstandard auto
over the prior  quarter.  Also,  during the first  quarter of 2000,  the Company
experienced  favorable  development  on its  loss and  loss  adjustment  expense
("LAE") reserves for accidents  occurring in 1999 and prior years. Losses in the
current quarter for the nonstandard auto segment were primarily due to decreases
in premiums  and fee income that  exceeded  operating  expenses.  The Company is
actively seeking rate increases and implementing other underwriting  initiatives
and expense reductions which are likely to result in reduced premium volume this
year.  The  nonstandard  auto  business  strategy is to retain  only  profitable
business and reduce  expenses  proportionately.  For first quarter 2000 the crop
segment reported pre-tax earnings of approximately $4 million.  The crop segment
business  strategy  is to continue  focusing on MPCI and named peril  insurance,
which is primarily crop hail insurance.  Although the Company has taken a number
of actions to address the factors that have  contributed to these past operating
losses, there can be no assurance that operating losses will not continue.

Recent and Further Regulatory Actions May 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"), the insurance regulators
of other states in which the insurance company  subsidiaries write business and,
in the case of IGF, the Federal Crop Insurance Corporation  ("FCIC").  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  actions by
several  regulators.  The Company relies on payment of management  fees from the
regulated  insurance  subsidiaries to support its cash flow needs, and continued
payment of those fees is subject to regulatory oversight. The primary purpose of
insurance   regulation   is  the   protection  of   policyholders   rather  than
stockholders.  Failure to resolve  issues with the IDOI, the FDOI, the FCIC, and
with other  regulators  (including  the risk based  capital  levels of Pafco and
IGF),  in a manner  satisfactory  to the  regulation  could impair the Company's
ability  to  execute  its  business  strategies  or result in future  regulatory
actions or  proceedings  that  otherwise  materially  and  adversely  affect the
Company's operations.

A.M. Best Rating May Adversely Affect the Company's Ability to Retain and Expand
 its Business

The A.M. Best Company rates insurance  companies based on factors of concerns to
policyholders.  No  changes  in the  ratings of the  Company  subsidiaries  have
occurred since those reported previously. It is not likely that the ratings will
be improved unless the Company  improves its future operating  performance.  One
factor in an insurer's  ability to compete  effectively is its A.M. Best rating.
There can be no assurance  that the current or future ratings will not adversely
affect the Company's competitive position.

The Company is Subject to a Number of Pending Legal Proceedings

As previously  reported and discussed  elsewhere in this report,  the Company is
involved in a number of pending  legal  proceedings.  Most of these  proceedings
remain in the early  stages.  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 materially adverse effect on the Company's operations.

<PAGE>

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  ("Preferred
Securities").  The  Preferred  Securities  have a term of 30 years  with  annual
interest payments of 9.5% paid  semi-annually.  The obligations of the Preferred
Securities  are funded  from the  Company's  nonstandard  automobile  management
company and dividend  capacity  from the crop  insurance  business.  The Company
deferred the  semi-annual  interest  payment that was due February  2000 and may
continue  to  defer  such  payments  for up to five  years as  permitted  by the
indenture for the Preferred  Securities.  Although  there is no present  default
under  the  indenture  which  would  accelerate  the  payment  of the  Preferred
Securities, the indenture contains a number of convenants which 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;  and make 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 Company's
ability to improve its operating results.

REVIEW OF CONSOLIDATED OPERATIONS

Net Loss

For the three months ended March 31,  2000,  the Company  recorded a net loss of
$(5,378,000),  or $(0.52) per share (basic and diluted).  The net loss increased
over the same  quarter  in 1999 by  $4,356,000  or $0.42  per share  (basic  and
diluted).

Income  before  taxes  and   distributions  on  Preferred   Securities  for  the
nonstandard  automobile  segment  showed a loss of  $(4,579,000)  for the  three
months  ended  March 31, 2000  compared  to  earnings of $791,000  for the three
months ended March 31, 1999. These losses were driven primarily by a decrease in
net premiums earned.

Income  before taxes and  distributions  on preferred  securities  for the three
months ended March 31, 2000 in the crop segment  showed  earnings of  $4,010,000
which  compares  to  earnings of  $1,603,000  for the same  period in 1999.  The
increase  in  earnings  was  primarily  due to a decrease in the net loss to net
premium  retained  ratios for crop hail and named peril in the first  quarter of
2000 as compared to the same period in the prior year.

Losses before tax and  distributions  on preferred  securities for the corporate
segment  were  $(1,058,000)  for the  three  months  ended  March  31,  2000 and
$(745,000)  for the same  period in 1999.  These  losses  consist  primarily  of
amortization of intangibles and general and administrative  expenses. The losses
increased  primarily  due to a decrease in net premiums  earned  coupled with an
increase in policy acquisition and general and administrative expenses.

Gross Premiums Written

Gross premiums written for the nonstandard automobile segment decreased 2.6% for
the three months  ended March 31, 2000  compared to the three months ended March
31, 1999.  The primary  reasons for this decline in volume are the downsizing by
the  Company of its  nonstandard  automobile  business  in  certain  competitive
markets, rate increases and other underwriting  initiatives intended to increase
profitablility.

Gross premiums written for the crop segment  decreased 7.0% for the three months
ended March 31, 2000 compared to the  comparable  period in 1999.  Such decrease
was due to lower than  expected  first  quarter  2000 crop hail  business.  Crop
premiums  (expressed  in  thousands)  for the three months ended March 31 are as
follows:

<TABLE>
<CAPTION>

                                                                Three Months Ended
                                                                       March 31,

                                                              2000               1999
<S>                                                          <C>                <C>
CAT imputed                                                  $12,250            $16,312
MPCI                                                          69,934             62,280
Crop Hail and named perils                                    14,426             28,443
AgPI  (1)                                                         --                 --
                                                              96,611            107,035
Less:  CAT imputed                                           (12,250)           (16,312)
                                                             $84,360            $90,723
(1) Represents discontinued product sold in 1998.
</TABLE>

Remaining other gross written  premiums not reflected in nonstandard  automobile
or crop  segments  represent  commercial  business  which  is  ceded  100% to an
affiliate,  Granite  Reinsurance Company Ltd ("Granite Re"). Other gross written
premiums  were  $290,000 for the three  months ended March 31, 2000  compared to
$128,000  for the same  periods  in 1999 due to the effect of  endorsements  and
cancellations on a book of business in run off beginning in 1999.

Net Premiums Written

MPCI  premiums are  considered  to be 100% ceded to the federal  government  for
accounting  purposes  and  therefore  no net written  premiums  result from MPCI
business.  Quota share  cession rates for other lines of insurance for the three
months ended March 31 are as follows:

                                                     2000               1999

Nonstandard automobile                                22%                 0%
Crop Hail                                             45%                62%
Named peril                                           50%                50%

To address writing ratio and other statutory surplus concerns, the Company ceded
a portion of its automobile  business  effective  January 1, 2000. The reinsurer
has an A.M. Best rating of A++.  Based on its 1999  results,  IGF has decided to
retain  more risk on the crop hail line of business  resulting  in a decrease in
the quota share cession rate.

Fee Income

Fee income  declined 15.4% for the three months ended March 31, 2000 as compared
to the  first  quarter  of 1999 due to the  overall  decrease  in gross  written
premium volume.

Net Investment Income

Net investment  income  decreased 7.6% for the three months ended March 31, 2000
as compared to the corresponding period of the prior year. This decrease was due
to a decrease in the size of the  investment  portfolio  and lower yields on the
remaining investments.

Loss and Loss Adjustment Expense

The loss and LAE ratio for the Company's  nonstandard auto segment for the three
months  ended  March 31,  2000 was 86.5% of net  premiums  earned as compared to
78.5% for the  corresponding  period in 1999 and  92.7% for the  entire  year of
1999.  During  the  first  quarter  of 2000 the  Company  experienced  favorable
development  on its loss and LAE  reserves for  accidents  occurring in 1999 and
prior.  This reduced the nonstandard  auto loss and LAE ratio for the quarter by
1.0%.

The loss and LAE ratio for the Company's  crop  insurance  segment for the three
months ended March 31, 2000, was 83.2% of net premiums earned.  The loss and LAE
ratio for 1999 is not  meaninful due to unusual one time AgPI losses and related
reinsurance cots. During the first quarter of 2000 the Company  experienced $0.6
million favorable  development on its loss and LAE reserves for losses occurring
in 1999 and prior.  This reduced the crop  insurance  loss and LAE ratio for the
quarter by 20.9%.

Policy Acquisition and General and Administrative Expenses

Policy acquisition and general and administrative  expenses were $14,390,000 and
$11,892,000  or 31.3% and 18.5% of net premium earned for the three months ended
March 31, 2000 and March 31, 1999,  respectively.  Overall expenses in the first
three  months  of 2000  versus  the first  three  months  of 1999  increased  by
$2,498,000.  Within this increase crop  expenses  increased by $4,216,000  while
nonstandard auto expenses decreased by $2,035,000.

The  expense  ratio for the  nonstandard  auto  segment  was 40.8% for the first
quarter  of 2000  as  compared  to 30% in  1999.  The  expense  ratio  increased
primarily due to a 34.2%  decrease in net premiums  earned  comparing  March 31,
2000  to  March  31,  1999.  Nonstandard  auto  expenses  were  $17,560,000  and
$19,595,000 or a $2,035,000 decrease (10.4%) for the three month ended March 31,
2000 and March 31,  1999,  respectively.  The  decrease in expenses is primarily
attributable  to the ceding  commission  received  from a quota share  agreement
effective January 1, 2000.

<PAGE>

Crop segment expenses include agent commissions, stop loss reinsurance costs and
operating  expenses  which are offset by MPCI  expense  reimbursements  and MPCI
underwriting  gain. The underwriting gain is an estimate until later in the year
when crops are harvested and losses are known.  The estimated  year to date gain
ratio in 2000, as well as for 1999, was 13.6% on gross premium. The underwriting
gain  increased in 2000 due to the fact that the crops  covered by MPCI policies
are  estimated  to have  average to above  average  yields this year.  The 13.6%
estimate is in line with actual annual results over the past four years.

Provision (Benefit) for Income Taxes

The current provision primarily consists of a write off of a refund being denied
by the IRS offset by a refund  received in the first quarter of 2000 relating to
a 1998 net  operating  loss.  At March 31, 2000 the Company's net tax assets are
fully  offset by a 100%  valuation  allowance  which  resulted in no tax benefit
being reflected for the three months ended March 31, 2000.

REVIEW OF CONSOLIDATED FINANCIAL CONDITION

Investments

Total investments as of March 31, 2000 and December 31, 1999 were $193.5 million
and $204.9  million,  respectively.  Composition  of  investments  is comparable
between these  periods.  The Company's  market risk exposure has not  materially
changed since prior year end.

Cash and Cash Equivalents

Total cash and cash  equivalent  balances as of March 31, 2000 and  December 31,
1999 were $4,266,000 and $3,097,000 million, respectively.

Investments in and Advances to Related Parties

Investments  in and advances to related  parties  decreased  from  $1,462,000 at
December 31, 1999,  to  $1,008,000  at March 31, 2000.  The balance at March 31,
2000  is  made up  primarily  of a $0.7  million  investment  in  nonredeemable,
nonvoting  preferred  stock of Granite  Insurance  Company  and loans to Company
officers.

Accounts Receivable Net of Allowance For Doubtful Accounts

Receivables  net of  allowances  for doubtful  accounts as of March 31, 2000 and
December 31, 1999 were  $125,492,000  and  $86,450,000,  respectively.  The crop
portion of the net  receivable  balances as of March 31, 2000 and  December  31,
1999 were  $56,574,000  and  $23,924,000,  respectively.  The fluctuation in the
balance is due to cyclicality of the crop business.

Nonstandard auto receivable  balances net of allowance for doubtful  accounts as
of March 31,  2000 and  December  31,  1999 were  $64,216,000  and  $62,299,000,
respectively and are comparable.

Reinsurance Recoverables and Prepaid Reinsurance Premiums

Reinsurance  recoverables  were $47,319,000 and $98,258,000 as of March 31, 2000
and December 31, 1999, respectively. However the reinsurance recoverable balance
is more effectively compared to the March 31, 1999 balance of $61,555,000.  This
is  primarily  due to the  cyclical  nature of the crop  business.  Of the total
reinsurance  recoverable balance, as of March 31, 2000 and 1999, $25,756,000 and
$28,245,000,  respectively  pertain  to  crop  business.  The  nonstandard  auto
recoverables  were $10,558,000 and ($1,353,000) for the periods ending March 31,
2000 and 1999, respectively.  The nonstandard auto increase is attributable to a
quota share treaty agreement effective January 1, 2000.

Prepaid  reinsurance  premiums were  $94,230,000 and $10,463,000 as of March 31,
2000  and  December  31,  1999,  respectively.  This  prepaid  balance  is  more
effectively  compared to the March 31, 1999 balance of $81,249,000.  The prepaid
reinsurance  balance is affected  by the  cyclical  nature of the crop  business
reinsured. Crop prepaid reinsurance premiums totaled $75,431,000 and $73,124,000
as of March 31, 2000 and 1999,  respectively.  Prepaid  reinsurance  premiums on
nonstandard auto totaled $17,826,000 and $463,000 as of March 31, 2000 and 1999,
respectively.  The increase in nonstandard auto is attributable to a quota share
that was effective January 1, 2000.

<PAGE>

Deferred Policy Acquisition Costs

Deferred policy  acquisition costs ("DAC") as of March 31, 2000 and December 31,
1999, were  $12,490,000 and $13,920,000  respectively.  Although these costs are
comparable,  the Company believes the ratio of DAC to net unearned premium would
be more  comparable  using prior year to date  comparisons.  DAC as of March 31,
1999 was $14,907,000.  DAC was primarily  composed of DAC on nonstandard auto at
March 31, 2000 and 1999 of $11,550,000 and $14,372,000,  respectively. The ceded
deferred  costs on nonstandard  auto at March 31, 2000 and 1999 were  $3,124,000
and  $0,  respectively.   DAC  costs  for  nonstandard  auto  as  compared  with
nonstandard net unearned  premiums of $66,792,000 and $90,531,000 were 17.3% and
15.9% as of the above dates,  respectively.  DAC for crop insurance at March 31,
2000 and 1999 was $940,000 and  $535,000,  respectively.  In the last quarter of
1999 the company  changed its method of  calculating  the auto  deferred  policy
costs by including investment income in the computation.

Federal Income Taxes

Federal  income taxes  recoverable  were $0 and $6,800,000 at March 31, 2000 and
December 31, 1999.  The 1999 balance  consists of amounts  recoverable  from the
1997  tax  year due to tax  losses  generated  in  1999.  All  receivables  were
collected during the first quarter of 2000.

The deferred  income tax asset  balance of $0 as of March 31, 2000 has decreased
from $2,600,000 at March 31, 1999 and $5,100,000 at December 31, 1998 because of
a 100% valuation allowance of all deferred tax assets.

Fixed Assets

Property and equipment, net of accumulated depreciation, decreased $688,000 over
year end 1999. This change is primarily due to disposals and depreciation.

Intangible Assets

The  balance  in the  intangible  assets  decreased  from  year  end 1999 due to
amortization expense. Intangible assets include goodwill from the acquisition of
Superior,  additional  goodwill from the acquisition of the minority interest in
Superior  Insurance Group Management,  Inc. and NACU, debt or Preferred Security
issuance costs and organizational costs.

Loss and Loss Adjustment Expense Reserves

Total loss and LAE reserves  decreased from $214,948,000 as of December 31, 1999
to  $170,332,000  as of March  31,  2000.  The  total  decrease  in loss and LAE
reserves is approximately $44.6 million.

Nonstandard auto reserves declined  $7,800,000 during the first quarter of 2000;
this  decrease is  consistent  with the  declining  volume in  nonstandard  auto
business.  Reserves for crop  insurance  declined  $34,800,000  during the first
quarter  of 2000 due to the  seasonal  nature  of the  business.  The  remaining
reserve decrease of $2,000,000 resulted from favorable settlement of outstanding
claims on surplus line  policies.  Because most of the  outstanding  liabilities
from this business are reinsured,  the favorable  development has minimal impact
on the Company's net income.

Unearned Premium

The unearned  premium reserve  increased by $75,831,000 from December 31,1999 to
March 31, 2000.  Gross unearned  premium was  $165,839,000 and $90,008,000 as of
March 31, 2000 and December  31,  1999,  respectively.  However,  this  unearned
premium  balance is more  effectively  compared to the March 31, 1999 balance of
$176,021,000  due to the cyclical nature of the crop business.  Crop unearned as
of  March  31,  2000  and  March  31,  1999  was  $80,133,000  and  $77,363,000,
respectively. Crop unearned increased by $2,770,000 or 3.6% from March 31, 1999.
This was primarily due to an increase in crop hail written  premium for the same
period.  Unearned on nonstandard auto decreased  $6,262,000 or 6.9% for the same
period.  This was primarily due to the decrease in nonstandard  premiums written
for the respective  quarter ended March 31, 2000.  Unearned for nonstandard auto
was $84,733,000 and $90,995,000 as of March 31, 2000 and March 31, 1999.

Reinsurance Payables

Reinsurance  payables  increased by $46,714,000  from December 31, 1999 to March
31,  2000  due to the  cyclical  nature  of the  crop  business.  Crop  payables
increased from year end by $19,551,000 through March 31, 2000.  Nonstandard auto
increased  by  $24,854,000  from  December  1999 due to a quota share  agreement
effective January 1, 2000.

<PAGE>

Notes Payable

Notes payable  include the IGF Revolver which on December 31, 1999 and March 31,
2000 had an outstanding balance of $15,000,000 and $0, respectively. This change
in the  balance  is due to the fact  that  IGF  primarily  depends  upon the IGF
Revolver to meet its seasonal needs for liquidity.  The average interest rate on
the IGF  Revolver  was 6.75% for the nine months  ended March 31, 1999 and 7.91%
for the three months ended March 31, 2000.

Notes  payable also include a $1,000,000  note due 2001 on the purchase of North
American Crop Underwriters,  Inc. ("NACU") which bears no interest.  The balance
of notes  payable at March 31, 2000  consists of three  smaller notes (less than
$300,000  each) assumed in the  acquisition of NACU which have various due dates
from 2002 to 2006 with  periodic  payments at interest  rates ranging from 7% to
9.09%.

Other Liabilities

Other  liabilities  decreased by $9,863,000  from December 31, 1999 to March 31,
2000. However,  payables as of March 31, 2000 of $17,384,000 are more comparable
to payables of $25,602,00 as of March 31, 1999.

Stockholders' (Deficit)
Stockholders'  deficit has increased  $5,408,000  from  December 31, 1999.  This
increase is primarily the result of the net loss of  $(5,378,000)  for the three
months ended March 31, 2000.

 LIQUIDITY AND CAPITAL RESOURCES

The Company's nonstandard  automobile insurance  subsidiaries' primary source of
funds are 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,  dividends  and  the  purchase  of
investments.  There is  variability  to 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 1999, the Company liquidated some investments to pay claims. The
Company  historically  has tried to  maintain  duration  averages  of 3.5 years.
However,  the  losses in 1999 and the first  quarter  of 2000  have  caused  the
Company  to shorten  the  duration  averages.  The  Company  may incur a cost of
selling longer bonds to pay claims. Claim payments tend to lag premium receipts.
Due to losses,  the  Company  has  experienced  a  reduction  in its  investment
portfolio but to date has not experienced  any problems  meeting its obligations
for claims payments.

Cash flows in the Company's crop insurance  subsidiary  (which is primarily MPCI
business)  differ  from cash flows from  certain  more  traditional  lines.  The
Company pays insured  losses to farmers as they are incurred  during the growing
season, with the full amount of such payments being reimbursed to the Company by
the federal  government  within  three  business  days.  MPCI  premiums  are not
received  from  farmers  until  covered  crops  are  harvested.   Collected  and
uncollected premiums are required to be paid in full to the FCIC by the Company,
with interest at 15%, if not paid by a specified date during the crop year.

The Company itself relies  primarily on the payment of management  fees from its
insurance  subsidiaries  as a source of cash flow.  The Company has deferred the
semi-annual  Preferred  Securities  interest payment because its nontandard auto
operations have not generated  sufficient cash to both provide funding for these
interest  payments and maintain  sufficient  cash liquidity for the  nonstandard
auto operations.

<PAGE>

The trust indenture for the Preferred  Securities  contains certain  restrictive
covenants.  Certain of these covenants are based upon the Company's consolidated
coverage ratio of earnings before interest, taxes, depreciation and amortization
(EBITDA)  whereby 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:

o     The Company may not incur additional  indebtedness or guarantee additional
      indebtedness.

o    The Company may not make certain  restricted  payments  including  loans or
     advances to affiliates, stock repurchases and a limitation on the amount of
     dividends is in force.

o    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 (5.00) in March 31,  2000,  and will  continue to apply until the  Company's
consolidated coverage ratio exceeds the amount set forth in the indenture.

The  Company's  consolidated  total  assets of  $552,538,000  at March 31,  2000
increased  $52,727,000 from the balance at December 31, 1999. The primary reason
for this increase was an increase in receivable balances and prepaid reinsurance
premiums which are impacted by the cyclical nature of the crop hail business.

As of March 31, 2000, the Company had $23,588,000 of cash, cash  equivalents and
short-term  investments  available to meet short-term operating cash needs. This
was a decrease of $1,329,000 from the December 31, 1999 balance.

The Company's portfolio of fixed maturities reduced to $158,303,000 at March 31,
2000 from $166,748,000 and $196,916,000 at December 31, 1999 and March 31, 1999,
as a result of the sale of fixed maturities to fund operating losses.

Net cash  provided  from  operating  activities  to March  31,  2000  aggregated
$3,469,000  compared to cash provided from  operations  of  $11,464,000  for the
comparable  period in 1999 due to the effect of operating  losses  offset by net
cash from changes in operating assets and liabilities.

Net cash provided from investing  activities of $10,890,000 for the three months
ended  March  31,  2000  compares  to  cash  used  in  investing  activities  of
$12,487,000  for the comparable  period in 1999. Such increase was due primarily
to a reduction in the purchases of fixed maturities.

Overall,  operating  cash flow for the  Company and its  insurance  subsidiaries
combined with the  availability of short term investments and the liquidation of
certain   fixed   maturity   investments   continues  to  be  adequate  to  meet
policyholders  needs for claims and other needs. The Company believes these cash
flows will continue to be adequate through year end.

The IGF Revolver has been extended  through  December 15, 2000.  IGF relies upon
the IGF Revolver to meet seasonal needs for  liquidity.  The maximum amount that
may be borrowed on the IGF Revolver is $8,000,000.

<PAGE>

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, 1999 Form 10-K. No material
changes have occurred in market risk since this information was disclosed in the
December 31, 1999 Form 10-K.

PART II -         OTHER INFORMATION
ITEM 1.  LEGAL PROCEEDINGS

                  There have been no material developments in any of the pending
                  legal  proceedings  previously  reported by the Company in the
                  December 31, 1999 Form 10-K.

                  The  Company's  insurance  subsidiaries  are  parties to other
                  litigation  arising in the ordinary  course of  business.  The
                  Company  believes  that  the  ultimate   resolution  of  these
                  lawsuits  will  not  have a  material  adverse  effect  on its
                  financial  condition  or results of  operations.  The Company,
                  through its claims  reserves,  reserves for both the amount of
                  estimated  damages  attributable  to  these  lawsuits  and the
                  estimated costs of litigation.

ITEM 2.  CHANGES IN SECURITIES
                  None
ITEM 3.  DEFAULTS UPON SENIOR SECURITIES
                  None

ITEM 4.  SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS
                  None
ITEM 5.  OTHER INFORMATION

                  On March 22, 2000, the Company  received  notice from Nasdaq -
                  Amex that the Listing  Qualifications  Panel (the "Panel") has
                  determined that the Company was not in compliance with certain
                  listing  qualifications.  On or  before  June  30,  2000,  the
                  Company  must  make a filing  with  the SEC and  Nasdaq - Amex
                  evidencing    complete    compliance    with   the    required
                  qualifications   including  net  tangible   assets   excluding
                  preferred securities, of at least $15,000,000, market value of
                  public  float  of at  least  $5,000,000  for a  period  of ten
                  consecutive days immediately  thereafter,  and a minimum $1.00
                  per share bid price requirement. In the event that the Company
                  fails to comply  with any of the terms of these  requirements,
                  the  Company's  securities  will be  delisted  from The Nasdaq
                  National Market.  The Company has appealed the decision of the
                  Panel and  expects  to  receive a  decision  on the  appeal in
                  September,  2000. It is unlikely that the Cmpany will meet all
                  of the listing  requirements  by June 30,  2000.  In the event
                  that the  Company's  common  stock is  delisted,  the  company
                  expects  that its  common  stock may then be traded on the OTC
                  Bulletin Board.

<PAGE>

ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K

(a)      Exhibits:

                      Exhibit               10.8(2)  Amendment  Number Two dated
                                            January  2,  2000 to the  Employment
                                            Agreement   between  IGF   Insurance
                                            Company  and Thomas F.  Gowdy  dated
                                            August 1, 1997.

                      Exhibit 10.15         The Employment  Agreement between
                                            Symons  International Group, Inc.
                                            and Goran Capital Inc. and Gene
                                            Yerant dated December 10, 1999
                                            effective January 10, 2000.

                      Exhibit 10.16         The Employment  Agreement between
                                            Symons International Group, Inc. and
                                            Goran Capital Inc. and Gregg
                                            Albacete effective January 26, 2000.

                      Exhibit 27            Financial Data Schedule.  Submitted
                                            in electronic format only.

(b)      8-K Reports:
         During the first quarter of 2000,  the Company filed no reports on Form
         8-K.

<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.

Dated: May 15, 2000                                  By:______________________
                                                        Douglas H. Symons
                                                        Chief Executive Officer



Dated: May 15, 2000                                  By: ______________________
                                                         Bruce K. Dwyer
                                                         Vice President and
                                                         Chief Financial Officer


<PAGE>