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

<TABLE>
<CAPTION>
                                         FORM 10-Q INDEX

                                                                             Page
                                                                             Number
PART I      FINANCIAL INFORMATION
<S>                        <C>                                                 <C>
Item 1. . . Financial Statements

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

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

            Unaudited Consolidated Statements of Operations
            for the Nine Months Ended
            September 30, 2002 and 2001                                           5

            Unaudited Consolidated Statements of Cash Flows for the
            Nine Months Ended September 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           22

Item 4     Controls  and  Procedures                                             22

PART II . . OTHER INFORMATION                                                    22

Item 1. . . Legal Proceedings                                                    22

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. . . . . . . . . . . . . . . . . . . . . . . .                        25

ERTIFICATIONS . . . . . . . . .                                                  26
</TABLE>


<TABLE>
<CAPTION>

PART  I  -  FINANCIAL  INFORMATION
ITEM  1.  FINANCIAL  STATEMENTS
SYMONS  INTERNATIONAL  GROUP,  INC.
CONSOLIDATED  BALANCE  SHEETS
(dollars  in  thousands)
                                                                   September 30,
                                                                       2002       December 31,
                                                                    (Unaudited)    2001
                                                                    ----------    ----------
<S>                                                                    <C>          <C>
ASSETS
Investments available for sale:
  Fixed maturities, at market . . . . . . . . . . . . . . . . . . . . .$  66,147   $  77,896
  Equity securities, at market. . . . . . . . . . . . . . . . . . . . .    5,671      14,396
  Short-term investments, at amortized cost, which approximates market.    7,420      13,266
  Other invested assets . . . . . . . . . . . . . . . . . . . . . . . .      573       1,469
                                                                       ----------  ----------
Total investments . . . . . . . . . . . . . . . . . . . . . . . . .       79,811     107,027
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . .          764       3,385
Receivables, net of allowance of $240 and $1,526, respectively. . .       26,786      44,688
Reinsurance recoverable on paid and unpaid losses . . . . . . . . . .     28,621      31,546
Prepaid reinsurance premiums. . . . . . . . . . . . . . . . . . . .       26,675      40,039
Deferred policy acquisition costs . . . . . . . . . . . . . . . . . .          -         763
Property and equipment, net of accumulated depreciation . . . . . .        7,646       9,890
Preferred securities issuance costs, net of amortization. . . . . .        4,248       4,376
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . .        4,934       2,418
                                                                       ----------  ----------
Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 179,485   $ 244,132
                                                                       ==========  ==========

LIABILITIES AND SHAREHOLDERS' (DEFICIT)
Liabilities:
  Loss and loss adjustment expense reserves . . . . . . . . . . . . .  $  65,634   $  81,142
  Unearned premiums . . . . . . . . . . . . . . . . . . . . . . . . .     37,992      59,216
  Reinsurance payables. . . . . . . . . . . . . . . . . . . . . . . .     42,394      58,226
  Distributions payable on preferred securities . . . . . . . . . . .     45,100      33,203
  Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . .      2,500       3,625
  Payable to affiliates . . . . . . . . . . . . . . . . . . . . . . .      1,370         596
  Other liabilities . . . . . . . . . . . . . . . . . . . . . . . . .     17,282      17,136
                                                                       ----------  ----------
Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . .    212,272     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 . . . . . . . . .     (4,654)     (2,613)
  Retained (deficit). . . . . . . . . . . . . . . . . . . . . . . . .   (207,120)   (185,386)
                                                                       ----------  ----------
Total Shareholders' (Deficit) . . . . . . . . . . . . . . . . . . . .   (167,787)   (144,012)
                                                                       ----------  ----------
Total Liabilities and Shareholders' (Deficit) . . . . . . . . . . . .  $ 179,485   $ 244,132
                                                                       ==========  ==========
<FN>

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


<TABLE>
<CAPTION>

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

                                                                             Three Months Ended
                                                                               September  30
                                                                             ------------------
                                                                             2002       2001
                                                                           ---------  ---------
<S>                                                                           <C>        <C>
Gross premiums written. . . . . . . . . . . . . . . . . . . . . . . . . .  $ 17,449   $ 27,268
Less ceded premiums . . . . . . . . . . . . . . . . . . . . . . . . . . .   (13,280)   (12,664)
                                                                           ---------  ---------
Net premiums written. . . . . . . . . . . . . . . . . . . . . . . . . . .  $  4,169   $ 14,604
                                                                           =========  =========
Net premiums earned . . . . . . . . . . . . . . . . . . . . . . . . . . .  $  7,721   $ 22,839
Fee income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     2,237      3,799
Other income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       375          -
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . .     1,014      1,443
Net realized capital gain . . . . . . . . . . . . . . . . . . . . . . . .       611        793
                                                                           ---------  ---------
Total revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    11,958     28,874
                                                                           ---------  ---------
Expenses:
  Losses and loss adjustment expenses . . . . . . . . . . . . . . . . . .     8,431     19,072
  Policy acquisition and general and administrative expenses. . .   . . .     3,929     13,038
  Interest expense. . . . . . . . . . . . . . . . . . . . . . . . . . . .        63          -
  Amortization of preferred securities issuance cost. . . . . . . . . . .        42         43
                                                                           ---------  ---------
Total expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    12,465     32,153
                                                                           ---------  ---------
Loss from continuing operations before income taxes and minority interest      (507)    (3,279)
                                                                           ---------  ---------
Total income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . .         -          -
                                                                           ---------  ---------
Loss from continuing operations before minority interest. . . . . . . . .      (507)    (3,279)
Minority interest:
  Distributions on preferred securities, net of tax of nil in both 2002 and
   2001                                                                       4,077      3,545
                                                                            ---------  --------
  Loss from continuing operations . . . . . . . . . . . . . . . . . . . .    (4,584)    (6,824)
Discontinued operations:
Loss from operations of discontinued segment, less applicable income
   Taxes of nil in both 2002 and 2001 . . . . . . . . . . . . . . . . . .         -
                                                                           ---------  --------

Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ (4,584)  $ (6,824)
                                                                           =========  ========
Weighted average shares outstanding - basic and fully diluted . . . . . .    10,385     10,385
                                                                           =========  ========
Net loss from continuing operations per share - basic and fully diluted .  $  (0.44)  $  (0.66)
                                                                           =========  ========
Net loss of discontinued operations per share-basic and fully diluted . .  $      -   $      -
                                                                           =========  ========
Net loss per share - basic and fully diluted. . . . . . . . . . . . . . .  $  (0.44)  $  (0.66)
                                                                           =========  ========
<FN>

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


<TABLE>
<CAPTION>

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

                                                                               Nine Months Ended
                                                                                September  30
                                                                               -----------------
                                                                              2002       2001
                                                                            ---------  ---------
<S>                                                                            <C>        <C>
Gross premiums written . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 82,703   $122,358
Less ceded premiums. . . . . . . . . . . . . . . . . . . . . . . . . . . .   (60,112)   (66,305)
                                                                            ---------  -------
Net premiums written . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 22,591   $ 56,053
                                                                            =========  ========
Net premiums earned. . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 29,363   $ 64,598
Fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     7,066     10,265
Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,125          -
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . .     3,633      4,615
Net realized capital (loss). . . . . . . . . . . . . . . . . . . . . . . .      (489)      (263)
                                                                            ---------  ---------
Total revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    40,698     79,215
                                                                            ---------  ---------
Expenses:
  Losses and loss adjustment expenses. . . . . . . . . . . . . . . . . . .    32,660     57,097
  Policy acquisition and general and administrative expenses . . . . . .      17,609     34,269
  Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . .       138          -
  Amortization of preferred securities issuance costs. . . . . . . . . . .       128        128
                                                                            ---------  ---------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    50,535     91,494
                                                                            ---------  ---------
Loss from continuing operations before income taxes and minority interest.    (9,837)   (12,279)
                                                                            ---------  ---------
Total income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . .         -          -
                                                                            ---------  ---------
Loss from continuing operations before minority interest . . . . . . . . .    (9,837)   (12,279)
Minority interest:
  Distributions on preferred securities, net of tax of nil in both 2002 and
   2001                                                                       11,897     10,986
                                                                            ---------  ---------
Loss from continuing operations. . . . . . . . . . . . . . . . . . . . . .   (21,734)   (23,265)
Discontinued operations:
  Loss from operations of discontinued segment, less applicable income
  taxes of nil in both 2002 and 2001 . . . . . . . . . . . . . . . . . . .         -     (2,156)
                                                                            ---------  ---------

Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $(21,734)  $(25,421)
                                                                            =========  =========
Weighted average shares outstanding - basic and fully diluted. . . . . . .    10,385     10,385
                                                                            =========  =========
Net loss from continuing operations per share - basic and fully diluted. .  $  (2.09)  $  (2.24)
                                                                            =========  =========
Net loss of discontinued operations per share-basic and fully diluted. . .  $      -   $  (0.21)
                                                                            =========  =========
Net loss per share - basic and fully diluted . . . . . . . . . . . . . . .  $  (2.09)  $  (2.45)
                                                                            =========  =========
<FN>

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


<TABLE>
<CAPTION>

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

                                                                  Nine Months Ended
                                                                    September  30
                                                                  -----------------
                                                                 2002       2001
                                                               ---------  ---------
<S>                                                               <C>        <C>
Cash flows from operating activities:
 Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . .  $(21,734)  $(25,421)
   Adjustments to reconcile net loss to net cash provided by
   (used in) operations:
   Depreciation, amortization, impairment and other. . . . . .     2,755      1,987
   Net realized capital loss . . . . . . . . . . . . . . . . .       489        263
 Net changes in operating assets and liabilities:
  Receivables . . . . . . . . . . . . . . . . . . . . . . . .    17,903      3,482
  Reinsurance recoverable on losses, net. . . . . . . . . . .     2,925     22,290
  Prepaid reinsurance premiums. . . . . . . . . . . . . . . .    13,364     (4,014)
  Deferred policy acquisition costs . . . . . . . . . . . . .       763      2,918
  Loss and loss adjustment expense reserves . . . . . . . . .   (15,508)   (21,682)
  Unearned premiums . . . . . . . . . . . . . . . . . . . . .   (21,224)    (1,884)
  Reinsurance payables. . . . . . . . . . . . . . . . . . . .   (15,832)   (18,991)
  Distribution payable on preferred securities. . . . . . . .    11,897     10,985
  Other assets and liabilities. . . . . . . . . . . . . . . .    (2,371)     4,299
  Deferred income . . . . . . . . . . . . . . . . . . . . . .    (1,125)     4,000
  Net assets from discontinued operations . . . . . . . . . .    (5,633)     2,277
                                                               ---------  ---------
Net cash (used in) operations . . . . . . . . . . . . . . . .   (33,331)   (19,491)
                                                               ---------  ---------

Cash flows from investing activities, net of assets acquired:
  Net proceeds from sales of short-term investments . . . . . .   5,846      2,273
  Proceeds from sales, calls and maturities of fixed maturities  40,413     54,594
  Purchase of fixed maturities. . . . . . . . . . . . . . . .   (27,364)   (12,339)
  Proceeds from sales of equity securities. . . . . . . . . .     5,650      9,842
  Purchase of equity securities . . . . . . . . . . . . . . .      (831)   (10,486)
  Proceeds from repayment of mortgage loans . . . . . . . . .         -      1,870
  Purchase of property and equipment. . . . . . . . . . . . .      (281)    (1,216)
  Proceeds from sales of other investments. . . . . . . . . .       870          -
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . .         -       (104)
  Net investing activities from discontinued operations . . .     5,081     (1,322)
                                                               ---------  ---------
Net cash provided by investing activities . . . . . . . . . .    29,384     43,112
                                                               ---------  ---------

Cash flows from financing activities, net of assets acquired:
  Loans from and (repayment to) related parties . . . . . . .       774        187
  Net financing activities from discontinued operations . . .       552        429
                                                               ---------  ---------
Net cash provided by financing activities . . . . . . . . . .     1,326        616
                                                               ---------  ---------
Increase (decrease) in cash and cash equivalents. . . . . . .    (2,621)    24,237
Cash and cash equivalents, beginning of period. . . . . . . .     3,385      1,363
                                                               ---------  ---------
Cash and cash equivalents, end of period. . . . . . . . . . .  $    764   $ 25,600
                                                               =========  =========
<FN>

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



                        SYMONS INTERNATIONAL GROUP, INC.
            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)
                  For the Nine Months Ended September 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  of  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, 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 Pafco and IGF and management
fees  from  Superior.  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, 2001, and 2002 and may continue this practice through January 2005.
The  Company  plans  to  defer  the  interest  payments  due  in  February 2003.

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 (0.70) at September 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 September 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  or  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  to  obtain IDOI prior approval of any new affiliated
party  transactions.

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 provide monthly financial information to the departments of
insurance  in certain states in which they write business at the states request.


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 of Appeal. 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 Appeal, which
was  denied pending a ruling from the FDOI.  On April 5, 2002 the FDOI granted a
stay  of  the final order that was 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  of Appeal 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 of Appeal 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.  On September 26, 2002, the
District  Court  of Appeal affirmed the final order of the FDOI.  On October 31,
2002  the  Circuit Court entered a final order which granted the FDOI's petition
for  enforcement  of  the  FDOI's final order and which requires Superior comply
with  the  FDOI  final  order.  In  accordance  with such order, Superior ceased
payment  of  finance  and  service  fees as of October 1, 2002 and has requested
repayment  from  Superior  Group of $15 million of finance and service fees paid
from  1997  through 1999 and additional finance and service fees paid thereafter
in  the  approximate  amount of $20 million.  Without the payment of finance and
service fee income to Superior Group or an amendment to the management agreement
or  reallocation of operational responsibilities, Superior Group can not operate
profitably.  Superior Group therefore would be unable to continue to provide the
same  types  of  services  to Superior or to repay the finance and service fees.
Some  of  the  alternatives being considered would require the approval of FDOI.
Superior and Superior Group are seeking to identify operational alternatives and
a  repayment  plan  that  would  be  acceptable  to  the  FDOI.


On  September  10,  2002,  the FDOI filed a petition in the Circuit Court of the
Second  Judicial  Circuit  in  and for Leon County, Florida for an order to show
cause  and  notice  of automatic stay which sought the appointment of a receiver
for  the  purpose  of rehabilitation of Superior.  The court entered an order to
show  cause,  temporary injunction and notice of automatic stay on September 13,
2002 and a hearing was held on October 24, 2002.  On November 1, 2002, the court
entered  an order that denied the FDOI's petition for appointment of a receiver.
On  November  8,  2002, the FDOI filed a motion for rehearing. Superior believes
the FDOI's motion lacks merit and has filed a motion in opposition to the motion
for  rehearing.

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.
On  October  11,  2002,  the Virginia Commission filed an administrative Rule to
Show  Cause.  A hearing was scheduled for November 18, 2002 to determine whether
Superior's  license  to  transact  insurance  business  in  Virginia  should  be
suspended.  Because  of  Superior's  improved financial conditions, the Virginia
Commission  has  continued  the hearing indefinitely. The nonstandard automobile
insurance  policies  written in Virginia by Superior accounted for approximately
13.1%  and  17.2% of the total gross written premiums of the Company in 2001 and
through  September  30,  2002,  respectively.

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,  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 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 earlier ruling. This demurrer was
granted,  without  leave to amend, based on the court's analysis that plaintiffs
claims  continued  to  reveal they did not have an insurable interest, rendering
the  contract  they  alleged  an  unenforceable  wager agreement, not insurance.
Thereafter, the court vacated its "without leave to amend" ruling in response to
a  motion  for  reconsideration filed by the plaintiffs who contended they could
cure  the  fatal defect if they were allowed to file a fourth amended complaint.
However,  the new version of the complaint still claims coverage amount based on
a  formula  which  is  not  tied  to plaintiffs' economic losses. Accordingly, a
demurrer to the fourth amended complaint was filed by MSI and a motion to strike
was  filed  by  IGF. A hearing on these issues was held on November 8, 2002, and
the  court  has  not  yet  issued  its  ruling.

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  June  30,  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.  During  the  third quarter of 2002, the
Company,  Goran and the individual defendants entered into an agreement with the
plaintiffs  for  settlement.  The  settlement  is  subject  to certain terms and
conditions  and  court  approval.


As  previously reported, an action was brought in Florida against Superior which
purported  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 alleged 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  June  30,  2002  Form  10-Q.

As  previously reported, an action was brought in Florida against Superior which
purported  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  alleged  that  Superior  reduced or denied claims for
medical  expenses  payable  to  the  plaintiff without first obtaining a written
report in violation of Florida law and that Superior inappropriately reduced the
amount  of benefits payable to the plaintiff in breach of Superior's contractual
obligations to the plaintiff. The case was dismissed on August 13, 2002 pursuant
to  a  settlement  between  the  parties.

As  previously  reported, an action was 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 alleged that Superior improperly reduced medical
benefits payable and improperly calculated interest in violation of Florida law.
The case was dismissed on September 3, 2002 pursuant to a settlement between the
parties.

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 complaints 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  June  30,  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  September  30,  2002.

The  Company's  insurance  subsidiaries  are  involved  in  a  number of pending
regulatory  matters (see Note 3, " Regulatory Affairs" in the Condensed Notes to
the  Consolidated  Financial  Statements).  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
regulatory  actions  and  lawsuits  will not have an adverse material affect the
Company's  operations  or  financial  position.


5.     Loss  Development  on  Prior  Accident  Years

During the third quarter of 2002 the Company experienced unfavorable development
on  its year-end 2001 loss and LAE reserves in the amount of $1.4 million.  This
was  the  result of unfavorable settlement of outstanding claims which increased
the  loss  and  loss adjustment expense ratio for the quarter by 17.8 percentage
points.

6.     Reclassifications

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


7.     Loss  Per  Share

Basic  and  diluted  net  loss  per  share  are computed by dividing net loss as
reported  by  the  average  number  of  shares  outstanding  as  follows:
<TABLE>
<CAPTION>
                                              Three  Months  Ended
                                                 September 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 858,732 stock options outstanding as of October  31,  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."

Summarized  results  of  operations for discontinued operations were as follows:
<TABLE>
<CAPTION>
Statements  of  Operations:
  (in  thousands)
                                                                Three  Months  Ended
                                                                    September 30
                                                                -------------------
                                                                   2002        2001
                                                                ----------  ---------
<S>                                                                  <C>       <C>
Gross premiums written. . . . . . . . . . . . . . . . . . .     $     (101)  $56,236
                                                                  =========  ========
Net premiums written. . . . . . . . . . . . . . . . . . . .     $        -   $   154
                                                                  =========  ========
  Net premiums earned . . . . . . . . . . . . . . . . . . .     $        -   $   154
  Net investment and fee income . . . . . . . . . . . . . . .          519       (26)
  Net realized capital gain (loss). . . . . . . . . . . . . .         (470)       (6)
                                                                   --------  --------
Total revenues. . . . . . . . . . . . . . . . . . . . . . .             49       122
                                                                   --------  --------

  Loss and loss adjustment expenses . . . . . . . . . . . . .         (507)    1,546
  Policy acquisition and general and administrative expenses.          556    (1,424)
  Interest and amortization expense . . . . . . . . . . . . .            -         -
                                                                   --------  --------
Total expenses. . . . . . . . . . . . . . . . . . . . . . .             49       122
                                                                   --------  --------

Earnings before income taxes. . . . . . . . . . . . . . . .              -         -
Income tax expense. . . . . . . . . . . . . . . . . . . . .              -         -
                                                                   --------  --------

Net earnings from discontinued operations . . . . . . . . .      $       -   $     -
                                                                  =========  ========
</TABLE>


<TABLE>
<CAPTION>

Statements  of  Operations:
  (in  thousands)

                                                                 Nine Months Ended
                                                                   September 30
                                                                -------------------
                                                                  2002        2001
                                                               -----------  ---------
<S>                                                              <C>          <C>
Gross premiums written. . . . . . . . . . . . . . . . .       $      (293)  $239,195
                                                               ===========  =========
Net premiums written. . . . . . . . . . . . . . . . . .       $         -   $   (172)
                                                               ===========  =========
  Net premiums earned . . . . . . . . . . . . . . . . .       $         -   $   (172)
  Net investment and fee income . . . . . . . . . . . .             1,002        961
  Net realized capital gain (loss). . . . . . . . . . .              (548)       636
                                                               -----------  ---------
Total revenues. . . . . . . . . . . . . . . . . . . . .               454      1,425
                                                               -----------  ---------

  Loss and loss adjustment expenses . . . . . . . . . .              (700)     5,238
  Policy acquisition and general and administrative expense         1,154       (300)
  Interest and amortization expense . . . . . . . . . . .               -     (1,357)
                                                               -----------  ---------
Total expenses. . . . . . . . . . . . . . . . . . . . .               454      3,581
                                                               -----------  ---------

Earnings before income taxes. . . . . . . . . . . . .                   -     (2,156)
Income tax expense. . . . . . . . . . . . . . . . . .                   -          -
                                                               -----------  ---------

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



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 September 30, 2002, losses from continuing operations
totaled  $(4,584,000)  compared to losses of $(6,824,000) in the same comparable
period  of  2001.  For  the  nine  months  ended September 30, 2002, losses from
continuing operations were $(21,734,000) compared to losses of $(23,265,000) 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  nine months ended September 30, 2002 decreased over the same period in
2001  largely  due  to  lower  volume  and corresponding actions taken to reduce
operating  expenses.  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% payable semi-annually. The obligations of the Preferred
Securities  were expected to be 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, 2001, and 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. All of the deferred
interest  (if  all  payments due in 2003 and 2004 are deferred) of approximately
$96.8  million  will  become  due  and  payable  in  February 2005 (see details,
"Liquidity and Capital Resources" in the Management's Discussion and Analysis of
Financial  Condition and Results of Operations). 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 payments 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 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  September  30,  2002  was 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 September 30, 2002 totaled $(4,584,000)
or  $(.44)  per share (basic and diluted). This is an improvement of $ 2,240,000
or  $0.22  per  share  from  the  net  loss  for the same period in 2001. Policy
acquisition  and  general  and  administrative  expenses,  net  of  fee  income,
decreased  to  21.9%  from  40.5%  of  earned premiums in the three months ended
September  30,  2002  and  2001, respectively.  The net loss for the nine months
ended September 30, 2002 decreased by $3,687,000 or $0.36 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 36.0% and 32.4% for the three and nine months
ended September 30, 2002, respectively, as compared to the same periods in 2001.
The  primary  reasons for this decline are the Company's withdrawal from certain
highly  competitive markets, additional strict underwriting initiatives intended
to  increase  profitability,  and  the  aforementioned  regulatory and strategic
actions accompanied with reduction in policies in force. 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.  Additional premiums ceded
in  the  third  quarter, less than 2%, are attributed to auto excess losses. The
Company  ceded  76.1%  and  72.7%  of its gross written premiums under the quota
share  reinsurance  contract  for  the three and nine months ended September 30,
2002,  respectively.

NET  PREMIUMS  EARNED

Net  premiums  earned  decreased  66.2%  and 54.5% for the three and nine months
ended September 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  41.1%  and  31.2% for the three and nine
months ended September 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  2002.

NET  INVESTMENT  INCOME

Net  investment  income  decreased 29.7% and 21.3% for the three and nine months
ended September 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  GAINS  (LOSSES)

Net  realized  capital  gain (losses) were $611,000 and $(489,000) for the three
and  nine  months  ended  September  30,  2002, respectively, as compared to net
realized  capital  gain  (losses)  of  $793,000 and $(263,000) in the comparable
periods  of  2001.  Capital  losses  resulted  primarily  from  the  continued
liquidation  of  investments to fund operation expenses 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  nine  months ended September 30, 2002, was 109.2% and 111.2%, respectively,
of net premiums earned as compared to 83.5% and 88.4% for the similar periods of
2001 and 91.5% for the entire year of 2001. During the third quarter of 2002 the
Company  experienced  unfavorable  development  on  its loss and loss adjustment
expense reserves for accidents occurring in 2001 and prior. This raised the loss
and loss adjustment expense ratio for the three months ended September 30, 2002,
by  17.8  percentage  points.


POLICY  ACQUISITION  AND  GENERAL  AND  ADMINISTRATIVE  EXPENSES

Policy  acquisition  and  general  and administrative expenses for the three and
nine  months  ended  September  30, 2002 declined to $3,929,000 and $17,609,000,
respectively,  from  $13,038,000  and  $34,269,000  in the comparable periods of
2001,  a  reduction for the third quarter and first nine months of 2002 of 69.9%
and  48.6%,  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 a decrease in its
operating  expense ratio, net of fee income, from 40.5% for the third quarter of
2001  to  21.9%  for  2002.


INCOME  TAXES

At September 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 third quarters
of  both  2002  and  2001.

REVIEW  OF  CONSOLIDATED  FINANCIAL  POSITION

CASH  AND  INVESTMENTS

Total cash and investments at September 30, 2002 and December 31, 2001 was $80.6
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  an  annual renewal addendum to the
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  third  quarter  of  2002  totaled 72.7%. The decrease in the amount of
premiums  and  losses  ceded  under  this  contract  directly affect reinsurance
balances  due  and  payable  as  reported  in  the  financial  statements.

RECEIVABLES

Receivables, exclusive of the allowance for doubtful accounts, have decreased by
approximately  $17.9 million, or 40.1%, from December 31, 2001. This decrease is
primarily  attributable to a reduction in billable premiums due to lower written
premiums  in  the  first  nine  months of 2002 compared to the fourth quarter of
2001.  The  allowance for doubtful accounts was reduced in 2002 by approximately
$1.3  million,  or  84.3%,  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  $65,634,000  as  of  September 30, 2002, a reduction of
approximately  $15.5  million.  This  decrease  is consistent with the Company's
declining  volume  of  business.

UNEARNED  PREMIUMS

At  September  30,  2002,  unearned  premiums  were  $37,992,000,  a decrease of
$21,224,000  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  September  30, 2002, the Company owed a total of $1,370,000 to Goran Capital
Inc.  ("Goran")  and  its  affiliates.  This  balance  is comprised primarily of
$2,500,000 line of credit due to Granite Reinsurance Company Ltd. ("Granite Re")
reduced  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  $774,000  from  December  31, 2001 is due
primarily  to an additional $1,200,000 draw on the line of credit and reduced by
the  receivable  discussed  above. The Company obtained an additional $1,000,000
loan  from  Granite  Reinsurance  Company  Ltd.  on  October  31,  2002.


SHAREHOLDERS'  (DEFICIT)

Shareholders'  (deficit)  has increased by $(23,775,000) from December 31, 2001.
This  increase  is primarily the result of the net loss of $(21,734,000) for the
nine  months ended September 30, 2002 along with the increase of $(2,041,000) 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  Group  and  Superior collect 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  the  insurance  companies are
subject  to  review  by  the  IDOI  and  FDOI.

The  nonstandard automobile insurance subsidiaries' primary sources 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, 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  third  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 October 31, 2002, the Company has borrowed $3.5 million from Granite Re.,
a  related  party.  Under  terms of the loans monthly interest is payable 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 November 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 loans 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, 2001 and 2002 and
may  continue  this deferral practice for all remaining payments due in 2003 and
2004.

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>


                    2003   2004    2005    Thereafter    Total
                    -----  -----  -------  -----------  --------
<S>                 <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>


                                       26

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 (0.70) at September 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 September 30,
2002.

Beginning in the fourth quarter of 2001 and continuing through the third 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  has  taken  the following actions 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.
-    Consolidated  the  majority  of  operations,  except claims, to the
     Indianapolis  office.

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 September 2002, the Company now expects a decline of 25%
to  30% in gross written premiums for calendar year 2002 from 2001 levels with a
corresponding decrease in management fees payable to Superior Group. Since April
2002,  the  Company  has  eliminated  approximately  100  full-time  positions,
primarily in its claims and underwriting departments, representing approximately
29%  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  nine  months of 2002
aggregated  $(33,331,000) compared to $(19,491,000) 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 availed by the Company are capital contributions and
loans  from  the  Company's  parent,  Goran  Capital Inc. and its affiliates. In
addition,  the  Company continues to reduce operating expenses commensurate with
cash  inflows  and has decreased premium volume in the third and fourth quarters
in  certain  states  to  assure  new  business written generates 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
fees paid to Superior Group and billing fees paid to Superior Group and Superior
which  will  reduce  cash  flow and sources of funds available to fund operating
expenses  and  other  obligations,  including  the  Preferred  Securities.


In  addition,  in accordance with the final order of the FDOI, Superior Group is
unable  to  continue to collect finance and service fees from Superior. Superior
must  also seek repayment from Superior Group of prior years finance and service
fees  in  the  approximate  amount  of  $15  million.  The operating expenses of
Superior  Group  attributable  to the business of Superior exceed the management
fees  payable  by Superior under the management agreement. Superior and Superior
Group  are  reviewing  alternatives  including  an amendment to the agreement to
provide  for  a  management  fee  commensurate with the expenses associated with
Superior's  business  or  reallocation  of  operational  responsibilities.  Any
amendment  of the management agreement would require prior approval of the FDOI.
See  Note  3,  "Regulatory  Affairs"  in the Consolidated Notes to the Financial
Statements.

Shareholders'  equity  reflected  a  deficit  of $(168) million at September 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  $14.6  million  at  September  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.


ITEM  4.  CONTROLS  AND  PROCEDURES
Symons  International  Group,  Inc, maintains disclosure controls and procedures
designed  to  ensure  that information required to be disclosed in reports filed
under  the  Securities Exchange Act of 1934, as amended, is recorded, processed,
summarized and reported within the specified time periods.  Within 90 days prior
to  the  date  of  this  report,  the  Company's Chief Executive Officer and the
Company's  Chief  Financial  Officer  evaluated,  with  the participation of the
Company's management, the effectiveness of the Company's disclosure controls and
procedures.  Based on the evaluation which disclosed no significant deficiencies
or  material weaknesses, the Company's Chief Executive Officer and the Company's
Chief  Financial  Officer  concluded  that the Company's disclosure controls and
procedures  are  effective.  There  were no significant changes in the Company's
internal  controls  or in other factors that could significantly affect internal
controls  subsequent  to  the  evaluation.


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 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 earlier ruling. This demurrer was
granted,  without  leave to amend, based on the court's analysis that plaintiffs
claims  continued  to  reveal they did not have an insurable interest, rendering
the  contract  they  alleged  an  unenforceable  wager agreement, not insurance.
Thereafter, the court vacated its "without leave to amend" ruling in response to
a  motion  for  reconsideration filed by the plaintiffs who contended they could
cure  the  fatal defect if they were allowed to file a fourth amended complaint.
However,  the new version of the complaint still claims coverage amount based on
a  formula  which  is  not  tied  to plaintiffs' economic losses. Accordingly, a
demurrer to the fourth amended complaint was filed by MSI and a motion to strike
was  filed  by  IGF. A hearing on these issues was held on November 8, 2002, and
the  court  has  not  yet  issued  its  ruling.

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.  During  the  third quarter of 2002, the
Company,  Goran and the individual defendants entered into an agreement with the
plaintiffs  for  settlement.  The  settlement  is  subject  to certain terms and
conditions  and  court  approval.


As  previously  reported, Superior was a defendant in a case filed September 15,
2000  in  the  Circuit Court for Lee County, Florida entitled Charles L. Fulton,
D.C.  v.  Superior  Insurance  Company.  The case was purported to be brought on
behalf  of a class consisting of healthcare providers that rendered treatment to
and  obtained  a  valid assignment of benefits from persons insured by Superior.
The  case  was  settled  and  the  action  was  dismissed  on  August  13, 2002.

As  previously  reported,  Superior  was  a  defendant in a case entitled Oviedo
Family  Chiropractic Center, P.A. v. Superior Insurance Company originally filed
February  4,  2000  in  the  Circuit  Court  for  Dade County, Florida, formerly
entitled  Medical  Re-Hab  Center  v.  Superior Insurance Company.  The case was
settled  and  the  action  was  dismissed  on  September  3,  2002.

The  Company's  insurance  subsidiaries  are  involved  in  a  number of pending
regulatory  actions  (see Note 3, "Regulatory Affairs" in the Condensed Notes to
the  Consolidated  Financial  Statements).  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
regulatory  actions  and  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 June
30,  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
          None


ITEM  5.  OTHER  INFORMATION
          None

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K

          Exhibits
          --------
          10.26     Promissory  Note  dated  December  28,  2001  by  Superior
                    Insurance  Group,  Inc.  to  Granite  Reinsurance
                    Company,  Ltd.

          10.27     Promissory  Note  dated  October  23,  2002 made by Superior
                    Insurance  Group,  Inc.  to  Granite Reinsurance
                    Company,  Ltd.

          Reports  on  Form  8-K  Filed  September  18,  2002
          ---------------------------------------------------
Mark  A.  Paul resigned his position as Vice President, Chief Financial Officer,
Treasurer  and  Director  of  the  Company  on  September 13, 2002. The Board of
Directors  of  the  Company  has  elected  Bruce  K.  Dwyer as its interim Chief
Financial  Officer  while  the Company searches for a permanent replacement. Mr.
Dwyer  previously  served as Chief Financial Officer of the Company from October
1999  to  September  2000  and  has  been  a consultant to the Company since his
departure.


<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 November 14, 2002.



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

                                                      By:  /s/  Bruce  K.  Dwyer
                                                           ---------------------
                                                       Chief  Financial  Officer



<PAGE>





                                  EXHIBIT 99.2

                               CERTIFICATE OF THE
                           CHIEF FINANCIAL OFFICER OF
                        SYMONS INTERNATIONAL GROUP, INC.
                        --------------------------------

     I,  Douglas  H.  Symons,  certify  that:
         -------------------

1.   I  have  reviewed  this  quarterly  report on Form 10-Q of Symons
International  Group,  Inc.

2.     Based  on my knowledge, this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report.

3.     Based  on  my  knowledge,  the  financial statements, and other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report.

4.     The  registrant's  other  certifying  officers  and I are responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a014  and  15d-14)  for  the  registrant,  and  we have:

a)     designed  such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;

b)     evaluated  the  effectiveness of the registrant's disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and

c)     presented  in  this  quarterly  report  our  conclusions  about  the
effectiveness  of the disclosure controls and procedures based on our evaluation
as  of  the  Evaluation  Date;

5.     The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of  registrant's  board  of  directors  (or  persons  performing  the equivalent
functions):

a)     all  significant  deficiencies  in  the  design  or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and  have  identified for the
registrant's  auditors  any  material  weaknesses  in  internal  controls;  and

b)     any  fraud,  whether  or  not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6.     The  registrant's  other certifying officers and I have indicated in this
quarterly  report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the  date  of  our most recent evaluation, including any corrective actions with
regard  to  significant  deficiencies  and  material  weaknesses.


Dated:  November  14,  2002
        -------------------
                                                  By:  /s/  Douglas  H.  Symons
                                                       ------------------------
                                                            Douglas  H.  Symons
                                                      Chief  Executive  Officer


<PAGE>
                                  EXHIBIT 99.2

                               CERTIFICATE OF THE
                           CHIEF FINANCIAL OFFICER OF
                        SYMONS INTERNATIONAL GROUP, INC.
                        --------------------------------

     I,  Bruce  K.  Dwyer,  certify  that:
         ----------------

1.     I  have  reviewed  this  quarterly  report  on  Form  10-Q  of  Symons
International  Group,  Inc.

2.     Based  on my knowledge, this quarterly report does not contain any untrue
statement  of a material fact or omit to state a material fact necessary to make
the  statements  made, in light of the circumstances under which such statements
were  made,  not misleading with respect to the period covered by this quarterly
report.

3.     Based  on  my  knowledge,  the  financial statements, and other financial
information  included  in  this quarterly report, fairly present in all material
respects  the  financial  condition, results of operations and cash flows of the
registrant  as  of,  and  for,  the  periods presented in this quarterly report.

4.     The  registrant's  other  certifying  officers  and I are responsible for
establishing  and  maintaining disclosure controls and procedures (as defined in
Exchange  Act  Rules  13a014  and  15d-14)  for  the  registrant,  and  we have:

a)     designed  such disclosure controls and procedures to ensure that material
information relating to the registrant, including its consolidated subsidiaries,
is  made  known  to  us by others within those entities, particularly during the
period  in  which  this  quarterly  report  is  being  prepared;

b)     evaluated  the  effectiveness of the registrant's disclosure controls and
procedures  as  of  a  date  within  90  days  prior  to the filing date of this
quarterly  report  (the  "Evaluation  Date");  and

c)     presented  in  this  quarterly  report  our  conclusions  about  the
effectiveness  of the disclosure controls and procedures based on our evaluation
as  of  the  Evaluation  Date;

5.     The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation, to the registrant's auditors and the audit committee
of  registrant's  board  of  directors  (or  persons  performing  the equivalent
functions):

a)     all  significant  deficiencies  in  the  design  or operation of internal
controls  which  could  adversely  affect  the  registrant's  ability to record,
process,  summarize  and  report  financial  data  and  have  identified for the
registrant's  auditors  any  material  weaknesses  in  internal  controls;  and

b)     any  fraud,  whether  or  not material, that involves management or other
employees who have a significant role in the registrant's internal controls; and

6.     The  registrant's  other certifying officers and I have indicated in this
quarterly  report whether there were significant changes in internal controls or
in other factors that could significantly affect internal controls subsequent to
the  date  of  our most recent evaluation, including any corrective actions with
regard  to  significant  deficiencies  and  material  weaknesses.


Dated:  November  14,  2002
        -------------------
                                                        By:  /s/Bruce  K.  Dwyer
                                                             -------------------
                                                                Bruce  K.  Dwyer
                                                       Chief  Financial  Officer




                                       27


                                  EXHIBIT INDEX

REFERENCE  TO
REGULATION  S-K
EXHIBIT  NO.  DOCUMENT


10.26     Promissory  Note  dated December 28, 2001 by Superior Insurance Group,
          Inc. to  Granite  Reinsurance  Company,  Ltd.

10.27     Promissory  Note  dated  October  23,  2002 made by Superior Insurance
          Group, Inc.  to  Granite  Reinsurance  Company,  Ltd.


<PAGE>
                                EXHIBIT NO. 10.26


PROMISSORY  NOTE  -  $2,500,000


     FOR  VALUE  RECEIVED,  the  undersigned,  Superior Insurance Group, Inc., a
Delaware  corporation  (hereinafter  called the "Maker"), promises to pay to the
order  of Granite Reinsurance Company, Ltd., a Barbados corporation (hereinafter
referred to as "Payee"), or order, the principal sum of Two Million Five Hundred
Thousand  Dollars  ($2,500,000) (or such amount as Maker shall borrow hereunder)
with  interest at the annualized rate (adjusted monthly) equal to the sum of the
following  (the  "Effective  Rate"):  (i) the prime rate of interest (the "Prime
Rate",  as  determined  below), plus (ii) five and one-quarter percent (5 1/4%);
provided,  however,  that  the  Effective Rate shall not exceed eighteen percent
(18%)  per  annum.  This  Note  shall  be  paid  as  follows:

(1)     Payments  of  interest  accrued  on this Note shall be paid on the first
business  day  of  the  month  following any month during which any principal or
interest  on  this Note is outstanding.  Interest for any one month period shall
be calculated by applying the Effective Rate (as of the 1st day of the month) on
the  principal  amount  outstanding  during  such  month.  The  first payment of
interest  under  this  Note  shall  be  February  1,  2002.

(2)     All principal and interest under this Note, if not sooner paid, shall be
due  and  payable  on  December  20,  2004.

(3)     In  the  event any installment of principal or interest is not paid when
due, interest shall be paid on the amount in default at a rate equal to eighteen
percent  (18%) per annum (but in no event to exceed the maximum rate of interest
permitted  by  law).

     The  Effective  Rate for each month shall be determined on the first day of
such  month.  The  Prime Rate shall be determined on the first day of each month
and  shall  be  the prime rate as quoted in the Wall Street Journal on the first
day  of  such  month  or the first day of such month for which the prime rate is
published in the Wall Street Journal.  Maker shall have the right to borrow from
Payee  under  this Note, from time to time prior to December 20, 2003, an amount
equal  to  a  maximum of Two Million Five Hundred Thousand Dollars ($2,500,000).

      If  any  check  tendered  to the Payee by Maker for payment of any sum due
hereunder  is  not honored and is returned to the Payee by the Maker's bank, for
insufficient  funds  or  otherwise,  Payee  may,  at its option and upon written
notice  to  Maker,  require  that  all  future payments by Maker be made by wire
transfer,  cashier's check or other certified funds acceptable to the Payee.  If
Payee  elects  to  require  payment  by  wire transfer, cashier's check or other
certified  funds,  Payee  shall have the right to return any subsequent payments
that  are  not  made  by  such wire transfer, cashier's check or other certified
funds,  and, in such case, such payment shall be deemed not to have been made by
Maker.  Acceptance  of any payment not made by wire transfer, cashier's check or
certified  funds  shall  not  constitute a waiver of Payee's continuing right to
require  further  payments by wire transfer, cashier's check or certified funds.
In the event any installment of principal or interest or any part thereof is not
paid within ten (10) days of the due date thereof, such event shall constitute a
default  hereunder and, irrespective of whether Payee issues or records a notice
of  default,  Maker  agrees  to  pay  a "late charge" in an amount equal to five
percent  (5%) of such unpaid payment, together with interest on such payment and
late  charge  at  the  same  rate  of  interest as provided in this Note.  Maker
acknowledges  that  in  addition  to lost interest, the late payment by Maker to
Payee  of  amounts  due  as  set forth above will cause Maker to incur costs not
contemplated  under  this Note, including processing, administrative, accounting
and  other  charges  and costs, the exact amount of which will be impractical or
extremely  difficult  to  ascertain.  Accordingly, the parties hereto agree that
the foregoing late charge represents a fair and reasonable estimate of the costs
that  Payee  will incur by reason of any late payment by Maker and shall be paid
to  Payee  as  liquidated  damages related to such processing and administrative
costs.  The  parties  addition-ally  acknowledge and agree that late charges are
distinct  and  separate  from  the  payment of interest on amounts in default as
addressed  above.

     The  installments due hereunder are to be paid at the office of Payee or at
such  other place as Payee or the holder hereof may from time to time designate.

     Nothing herein contained shall be so construed or operate as to require the
Maker  to  pay  interest on this Note at a rate greater than that allowed by the
laws  of  the  State  of  Indiana, and if any provisions herein contained do, or
would  presently  or prospectively operate to make this Note or any part thereof
void,  voidable,  or  ineffective,  then those provisions only shall be held for
naught  and  as  though not herein contained and shall be without effect upon or
prejudice  to  the  remaining  provisions,  which  shall  nevertheless  remain
operative.

     Time is of the essence of this Note.  In the event of default in payment of
any installment when due, the Payee may at its option declare the unpaid balance
of  said  debt  due,  payable  and collectible.  Failure to exercise this option
shall not constitute a waiver of the right to exercise it at any other time when
a  default  shall  exist  or  continue.

     Maker,  as  well  as any sureties and guarantors, severally waive notice of
default,  demand  for  payment and diligence in filing suit, and agree that time
for  payment of any installment may be extended from time to time without notice
at  the  option  of  the  holder  hereof.

     In  the  event  of  default  in  payment  of this Note or of default in any
document given as security for this Note, and if the same is placed in the hands
of  an attorney for collection or foreclosure, the undersigned agrees to pay the
holder's  attorneys'  fee  and  all  costs  of  collection.

     In  the  event of default in the performance of any covenant, condition, or
agreement  contained  in  any document or agreement securing the payment of this
Note,  or  in  the  event of a default by Maker or any affiliate of Maker on any
indebtedness  for  which  the  assets of Maker may be applied in satisfaction of
such  indebtedness,  then  the  holder of this Note shall have the unconditional
right,  without demand, notice, or other action, to declare the unpaid principal
balance  of  this  Note, together with interest accrued thereon, at once due and
payable and to foreclose each lien securing the payment hereof, either under any
power of sale contained in such documents or agreements or by court proceedings,
as  such  holder  elects.

     In  addition,  a  default under this Note shall include, but not be limited
to,  the  sale,  transfer,  assignment,  mortgage,  pledge,  hypothecation  or
encumbrance  (whether  volun-tary  or  involuntary)  of, or the execution of any
agree-ment  to  sell,  transfer,  assign,  mortgage,  pledge,  hypothe-cate  or
encum-ber of the whole or any portion of maker's right, title or interest in and
to  the  collateral  -without  the  prior  written  consent  of the Payee unless
otherwise  permitted  herein.

     If  Maker  shall  sell,  convey,  transfer,  assign or further encumber any
collateral  or  any  part  thereof  or  any  interest  therein, whether legal or
equita-ble,  in  any  manner (whether voluntarily or involuntarily), without the
written  consent of Payee, which consent Payee shall have no obligation to give,
Payee  shall  have  the  right,  at  its option, to declare the indebtedness and
obligations  represented hereby immedi-ately due and payable irrespective of the
maturity date specified in this Note.  Any consent by Payee to the trans-fer may
be  predicated  upon  any  terms,  conditions  and covenants deemed advisable or
necessary  in the sole option of Payee, including, but not limited to, the right
to  require  of  the  transferee  assumption  of  personal liability on the debt
represented  by this Note, to approve the form and substance of all transfer and
assumption  documents,  and  to  change  the interest rate, date of maturity and
monthly payments of the debt represented by this Note, and may be conditioned on
the  receipt  of  a  fee based on a percentage of the original sum of this Note.
The  granting  of  permission  for  a  transferee  to  assume  the existing loan
agreement,  security  agreement  and  other  related  documents shall not in any
manner  be  deemed  a consent to any subsequent transfer, and Payee shall retain
the  right  of consent to such transfer or transfers on the terms and conditions
stated  above.  Consent,  whether  expressed or implied, to one such transaction
shall  not  be  deemed to be a waiver of the right of such consent to further or
successive transactions.  Any por-tion of this covenant which may be held by any
court  of  competent jurisdiction to be un-enforceable shall be deemed severable
and  the  balance  of this covenant shall be fully enforceable.  Consent to such
sale  or  transfer or to any subsequent sale or trans-fer shall not be deemed to
constitute consent to any subse-quent sale or transfer or a waiver of any rights
of  Payee  not  to  so  consent.

     DATED:  December  28,  2001

                                               Superior  Insurance  Group,  Inc.


                                                 By:____________________________
                                                    Gene  S.  Yerant,  President









<PAGE>
                                EXHIBIT NO. 10.27


PROMISSORY  NOTE  -  $1,000,000


     FOR  VALUE  RECEIVED,  the  undersigned,  Superior Insurance Group, Inc., a
Delaware  corporation  (hereinafter  called the "Maker"), promises to pay to the
order  of Granite Reinsurance Company, Ltd., a Barbados corporation (hereinafter
referred  to  as  "Payee"),  or  order, the principal sum of One Million Dollars
($1,000,000)  (or  such  lesser  amount  as  Maker  shall borrow hereunder) with
interest  at  the  annualized  rate  (adjusted  monthly) equal to the sum of the
following  (the  "Effective  Rate"):  (i) the prime rate of interest (the "Prime
Rate",  as  determined  below), plus (ii) five and one-quarter percent (5 1/4%);
provided,  however,  that  the  Effective Rate shall not exceed eighteen percent
(18%)  per  annum.  This  Note  shall  be  paid  as  follows:

(4)     Payments  of  interest  accrued  on this Note shall be paid on the first
business  day  of  the  month  following any month during which any principal or
interest  on  this Note is outstanding.  Interest for any one month period shall
be calculated by applying the Effective Rate (as of the 1st day of the month) on
the  principal  amount  outstanding  during  such  month.  The  first payment of
interest  under  this  Note  shall  be  December  1,  2002.

(5)     All principal and interest under this Note, if not sooner paid, shall be
due  and  payable  on  November  30,  2004.

(6)     In  the  event any installment of principal or interest is not paid when
due, interest shall be paid on the amount in default at a rate equal to eighteen
percent  (18%) per annum (but in no event to exceed the maximum rate of interest
permitted  by  law).

     The  Effective  Rate for each month shall be determined on the first day of
such  month.  The  Prime Rate shall be determined on the first day of each month
and  shall  be  the prime rate as quoted in the Wall Street Journal on the first
day  of  such  month  or the first day of such month for which the prime rate is
published in the Wall Street Journal.  Maker shall have the right to borrow from
Payee  under  this Note, from time to time prior to December 20, 2002, an amount
equal  to  a  maximum  of  One  Million  Dollars  ($1,000,000).

      If  any  check  tendered  to the Payee by Maker for payment of any sum due
hereunder  is  not honored and is returned to the Payee by the Maker's bank, for
insufficient  funds  or  otherwise,  Payee  may,  at its option and upon written
notice  to  Maker,  require  that  all  future payments by Maker be made by wire
transfer,  cashier's check or other certified funds acceptable to the Payee.  If
Payee  elects  to  require  payment  by  wire transfer, cashier's check or other
certified  funds,  Payee  shall have the right to return any subsequent payments
that  are  not  made  by  such wire transfer, cashier's check or other certified
funds,  and, in such case, such payment shall be deemed not to have been made by
Maker.  Acceptance  of any payment not made by wire transfer, cashier's check or
certified  funds  shall  not  constitute a waiver of Payee's continuing right to
require  further  payments by wire transfer, cashier's check or certified funds.

In the event any installment of principal or interest or any part thereof is not
paid within ten (10) days of the due date thereof, such event shall constitute a
default  hereunder and, irrespective of whether Payee issues or records a notice
of  default,  Maker  agrees  to  pay  a "late charge" in an amount equal to five
percent  (5%) of such unpaid payment, together with interest on such payment and
late  charge  at  the  same  rate  of  interest as provided in this Note.  Maker
acknowledges  that  in  addition  to lost interest, the late payment by Maker to
Payee  of  amounts  due  as  set forth above will cause Maker to incur costs not
contemplated  under  this Note, including processing, administrative, accounting
and  other  charges  and costs, the exact amount of which will be impractical or
extremely  difficult  to  ascertain.  Accordingly, the parties hereto agree that
the foregoing late charge represents a fair and reasonable estimate of the costs
that  Payee  will incur by reason of any late payment by Maker and shall be paid
to  Payee  as  liquidated  damages related to such processing and administrative
costs.  The  parties  addition-ally  acknowledge and agree that late charges are
distinct  and  separate  from  the  payment of interest on amounts in default as
addressed  above.

     The  installments due hereunder are to be paid at the office of Payee or at
such  other place as Payee or the holder hereof may from time to time designate.

     Nothing herein contained shall be so construed or operate as to require the
Maker  to  pay  interest on this Note at a rate greater than that allowed by the
laws  of  the  State  of  Indiana, and if any provisions herein contained do, or
would  presently  or prospectively operate to make this Note or any part thereof
void,  voidable,  or  ineffective,  then those provisions only shall be held for
naught  and  as  though not herein contained and shall be without effect upon or
prejudice  to  the  remaining  provisions,  which  shall  nevertheless  remain
operative.

     Time is of the essence of this Note.  In the event of default in payment of
any installment when due, the Payee may at its option declare the unpaid balance
of  said  debt  due,  payable  and collectible.  Failure to exercise this option
shall not constitute a waiver of the right to exercise it at any other time when
a  default  shall  exist  or  continue.

     Maker,  as  well  as any sureties and guarantors, severally waive notice of
default,  demand  for  payment and diligence in filing suit, and agree that time
for  payment of any installment may be extended from time to time without notice
at  the  option  of  the  holder  hereof.

     In  the  event  of  default  in  payment  of this Note or of default in any
document given as security for this Note, and if the same is placed in the hands
of  an attorney for collection or foreclosure, the undersigned agrees to pay the
holder's  attorneys'  fee  and  all  costs  of  collection.

     In  the  event of default in the performance of any covenant, condition, or
agreement  contained  in  any document or agreement securing the payment of this
Note,  or  in  the  event of a default by Maker or any affiliate of Maker on any
indebtedness  for  which  the  assets of Maker may be applied in satisfaction of
such  indebtedness,  then  the  holder of this Note shall have the unconditional
right,  without demand, notice, or other action, to declare the unpaid principal
balance  of  this  Note, together with interest accrued thereon, at once due and
payable and to foreclose each lien securing the payment hereof, either under any
power of sale contained in such documents or agreements or by court proceedings,
as  such  holder  elects.

     In  addition,  a  default under this Note shall include, but not be limited
to,  the  sale,  transfer,  assignment,  mortgage,  pledge,  hypothecation  or
encumbrance  (whether  volun-tary  or  involuntary)  of, or the execution of any
agree-ment  to  sell,  transfer,  assign,  mortgage,  pledge,  hypothe-cate  or
encum-ber of the whole or any portion of maker's right, title or interest in and
to  the  collateral  -without  the  prior  written  consent  of the Payee unless
otherwise  permitted  herein.

     If  Maker  shall  sell,  convey,  transfer,  assign or further encumber any
collateral  or  any  part  thereof  or  any  interest  therein, whether legal or
equita-ble,  in  any  manner (whether voluntarily or involuntarily), without the
written  consent of Payee, which consent Payee shall have no obligation to give,
Payee  shall  have  the  right,  at  its option, to declare the indebtedness and
obligations  represented hereby immedi-ately due and payable irrespective of the
maturity date specified in this Note.  Any consent by Payee to the trans-fer may
be  predicated  upon  any  terms,  conditions  and covenants deemed advisable or
necessary  in the sole option of Payee, including, but not limited to, the right
to  require  of  the  transferee  assumption  of  personal liability on the debt
represented  by this Note, to approve the form and substance of all transfer and
assumption  documents,  and  to  change  the interest rate, date of maturity and
monthly payments of the debt represented by this Note, and may be conditioned on
the  receipt  of  a  fee based on a percentage of the original sum of this Note.
The  granting  of  permission  for  a  transferee  to  assume  the existing loan
agreement,  security  agreement  and  other  related  documents shall not in any
manner  be  deemed  a consent to any subsequent transfer, and Payee shall retain
the  right  of consent to such transfer or transfers on the terms and conditions
stated  above.  Consent,  whether  expressed or implied, to one such transaction
shall  not  be  deemed to be a waiver of the right of such consent to further or
successive transactions.  Any por-tion of this covenant which may be held by any
court  of  competent jurisdiction to be un-enforceable shall be deemed severable
and  the  balance  of this covenant shall be fully enforceable.  Consent to such
sale  or  transfer or to any subsequent sale or trans-fer shall not be deemed to
constitute consent to any subse-quent sale or transfer or a waiver of any rights
of  Payee  not  to  so  consent.

     DATED:  October  23,  2002

                                              Superior  Insurance  Group,  Inc.


                                              By:_______________________________
                                                 Douglas  H.  Symons,  President