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  MARCH  31,  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 April 30, 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 March 31, 2002
        (unaudited) and December 31, 2001 . . . . . . . . . . .                                                   3

        Unaudited Consolidated Statements of Operations
        for the Three Months Ended
        March 31, 2002 and 2001 . . . . . . . . . . . .                                                           4

        Unaudited Consolidated Statements of Cash Flows for the
        Three Months Ended March 31, 2002 and 2001. . . . . . .                                                   5

        Condensed Notes to Unaudited Consolidated Financial
        Statements. . . . . . . . . . . . . . . . . . . . . . .                                                   6

Item 2. Management's Discussion and Analysis of Financial
        Condition and Results of Operations . .. . . . .                                                         14

Item 3. Quantitative and Qualitative Disclosures about Market Risk                                               21

PART II OTHER INFORMATION                                                                                        21

Item 1. Legal Proceedings                                                                                        21

Item 2. Changes in Securities and Use of Proceeds                                                                22

Item 3. Defaults Upon Senior Securities                                                                          22

Item 4. Submission of Matters to a Vote of Security Holders                                                      22

Item 5. Other Information                                                                                        22

Item 6. Exhibits and Reports on Form 8-K                                                                         22

SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . .                                                        23
</TABLE>


<TABLE>
<CAPTION>

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

                                                                        March 31,
                                                                          2002       December 31,
                                                                       (Unaudited)     2001
                                                                      ------------  -----------
<S>                                                                        <C>          <C>
ASSETS
Investments available for sale:
   Fixed maturities, at market . . . . . . . . . . . . . . . . . . ..  $   73,991      $   77,896
   Equity securities, at market. . . .  . . . . . . . . . . . . . . .       9,696          14,396
   Short-term investments, at amortized cost, which approximates market.   10,348          13,266
   Other invested assets . . . . . .. . . . . . . . . . . . . . . . .       1,454           1,469
                                                                       -----------  --------------
Total investments . . . .   . . . . . . . . . . . . . . . . . . . . .      95,489         107,027
Cash and cash equivalents . .   . . . . . . . . . . . . . . . . . . .       7,951           3,385
Receivables, net of allowance of $248 and $1,526, respectively. .   .      50,341          44,688
Reinsurance recoverable on paid and unpaid losses . . . . . . . . . .      35,661          31,546
Prepaid reinsurance premiums. .   . . . . . . . . . . . . . . . . . .      43,931          40,039
Deferred policy acquisition costs . . . . . . . . . . . . . . . . . .         923             763
Property and equipment, net of accumulated depreciation .   . . . . .       9,175           9,890
Intangible assets . . . . . . . . . . . . . . . . . . .   . . . . . .       4,333           4,376
Other assets. . . . . . . . . . . . . . . . . . . . . .   . . . . . .       2,615           2,418
                                                                       -----------  --------------
Total Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $  250,419   $     244,132
                                                                       ===========  ==============

LIABILITIES AND SHAREHOLDERS' (DEFICIT)
Liabilities:
   Loss and loss adjustment expense reserves . . . . . . . .. . . . .  $   78,070   $      81,142
   Unearned premiums . . . . . . . . . . . . . . . . . . . .. . . . .      64,262          59,216
   Reinsurance payables. . . . . . . . . . . . . . . . . . .. . . . .      63,784          58,226
   Distributions payable on preferred securities . . . . . .. . . . .      37,039          33,203
   Deferred income . . . . . . . . . . . . . . . . . . . . .. . . . .       3,250           3,625
   Payable to affiliates . . . . . . . . . . . . . . . . . .. . . . .         471             596
   Other liabilities . . . . . . . . . . . . . . . . . . . .. . . . .      20,835          17,136
                                                                       -----------  --------------
Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . .     267,711         253,144
                                                                       -----------  --------------
Minority interest:
   Company-obligated mandatorily redeemable preferred stock of trust
    subsidiary holding solely parent debentures .. . . . . . . . . .      135,000         135,000
                                                                       -----------  --------------
Shareholders' (Deficit):
   Common stock, no par value, 100,000,000 shares authorized,
    10,385,399 shares issued and outstanding in both 2002 and 2001. .      38,136          38,136
   Additional paid-in capital. . . . . . . . . . . . . . . . . . . .        5,851           5,851
   Unrealized loss on investments available for sale . . . . . . . .       (3,164)         (2,613)
   Retained (deficit). . . . . . . . . . . . . . . . . . . . . . . .     (193,115)       (185,386)
                                                                       -----------  --------------
Total Shareholders' (Deficit) . . . . . . . . . . . . . . . . . . . .    (152,292)       (144,012)
                                                                       -----------  --------------
Total Liabilities and Shareholders' (Deficit) . . . . . . . . . . . .  $  250,419   $     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
                                                                                       March  31
                                                                                  -----------------
                                                                                   2002       2001
                                                                                 ---------  ---------
<S>                                                                                 <C>        <C>
Gross premiums written. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 43,755   $ 48,222
Less ceded premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (30,973)   (31,393)
                                                                                 ---------  ---------
Net premiums written. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 12,782   $ 16,829
                                                                                 =========  =========
Net premiums earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 11,766   $ 18,728
Fee income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     2,643      2,926
Other income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       375          -
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     1,244      1,598
Net realized capital (loss) . . . . . . . . . . . . . . . . . . . . . . . . . .      (748)      (769)
                                                                                 ---------  ---------
Total revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    15,280     22,483
                                                                                 ---------  ---------
Expenses:
  Losses and loss adjustment expenses . . . . . . . . . . . . . .   . . . . . .    12,671     17,745
  Policy acquisition and general and administrative expenses. . . ..  . . . . .     6,459     10,518
  Amortization of intangibles . . . . . . . . . . . . . . . . . . . . . . . . .        43         43
                                                                                 ---------  ---------
Total expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    19,173     28,306
                                                                                 ---------  ---------
Loss from continuing operations before income taxes and minority interest . . .    (3,893)    (5,823)
                                                                                 ---------  ---------
Total income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         -          -
                                                                                 ---------  ---------
Loss from continuing operations before minority interest. . . . . . . . . . . .    (3,893)    (5,823)
                                                                                 ---------  ---------
Minority interest:
  Distributions on preferred securities, net of tax of nil in both .                3,836      3,609
  2002 and 2001
                                                                                 ---------  ---------
Loss from continuing operations . . . . . . . . . . . . . . . . . . . . . . . .    (7,729)    (9,432)
Discontinued operations:
  Loss from operations of discontinued segment, less applicable income
  taxes of nil in both 2002 and 2001 . . .  . . . . . . . . . . . . . . . . . .         -          -
                                                                                 ---------  ---------

Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ (7,729)  $ (9,432)
                                                                                 =========  =========
Weighted average shares outstanding - basic and fully diluted . . . . . . . . .    10,385     10,385
                                                                                 =========  =========
Net loss from continuing operations per share - basic and fully diluted . . . .  $  (0.74)  $  (0.91)
                                                                                 =========  =========
Net loss of discontinued operations per share-basic and fully diluted . . . . .  $      -   $      -
                                                                                 =========  =========
Net loss per share - basic and fully diluted. . . . . . . . . . . . . . . . . .  $  (0.74)  $  (0.91)
                                                                                 =========  =========
<FN>

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


<TABLE>
<CAPTION>

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

                                                                     Three Months Ended
                                                                          March  31
                                                                      -----------------
                                                                       2002      2001
                                                                     --------  ---------
<S>                                                                     <C>       <C>
Cash flows from operating activities:
  Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $(7,729)  $ (9,432)
   Adjustments to reconcile net loss to net cash
    provided by (used in) operations:
    Depreciation, amortization, impairment and other. .   . . . . .      911      1,119
    Net realized capital loss . . . . . . . . . . . . .  .. . . . .      748        769
  Net changes in operating assets and liabilities:
   Receivables . . . . . . . . . . . . . . . . . . . . . .  . . . .   (5,653)   (11,059)
   Reinsurance recoverable on losses, net. . . . . . . . .  . . . .   (4,115)   (16,394)
   Prepaid reinsurance premiums. . . . . . . . . . . . . .  . . . .   (3,892)   (10,635)
   Deferred policy acquisition costs . . . . . . . . . . .  . . . .     (160)       459
   Loss and loss adjustment expense reserves . . . . . . .  . . . .   (3,072)    (8,058)
   Unearned premiums . . . . . . . . . . . . . . . . . . .  . . . .    5,046      8,636
   Reinsurance payables. . . . . . . . . . . . . . . . . .  . . . .    5,558     25,707
   Distribution payable on preferred securities. . . . . .  . . . .    3,836      3,609
   Other assets and liabilities. . . . . . . . . . . . . .  . . . .    3,120      6,322
   Net assets from discontinued operations . . . . . . . .  . . . .   (1,327)      (872)
                                                                     --------  ---------
Net cash (used in) operations . . . . . . . . . . . . . . . . . . .   (6,729)    (9,829)
                                                                     --------  ---------

Cash flows from investing activities, net of assets acquired:
   Net sales of short-term investments . . . . . . . . . . . . .  .    2,917      5,500
   Proceeds from sales, calls and maturities of fixed maturities  .    7,356      7,338
   Purchase of fixed maturities. . . . . . . . . . . . . . . . .  .   (4,293)      (756)
   Proceeds from sales of equity securities. . . . . . . . . . . .     4,796      3,802
   Purchase of equity securities . . . . . . . . . . . . . . . . .      (562)    (4,475)
   Purchase of property and equipment. . . . . . . . . . . . . . .      (121)    (1,114)
   Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         -        (13)
Net investing activities from discontinued operations . . . . . . .    1,434        604
                                                                     --------  ---------
Net cash provided by investing activities . . . . . . . . . . . . .   11,527     10,886
                                                                     --------  ---------

Cash flows from financing activities, net of assets acquired:
   Loans from and (repayment to) related parties . . . . . . .. . .     (125)       272
   Net financing activities from discontinued operations . . .. . .     (107)      (317)
                                                                     --------  ---------
Net cash (used in) financing activities . . . . . . . . . . . . . .     (232)       (45)
                                                                     --------  ---------
Increase in cash and cash equivalents . . . . . . . . . . . . . . .    4,566      1,012
Cash and cash equivalents, beginning of period. . . . . . . . . . .    3,385      1,363
                                                                     --------  ---------
Cash and cash equivalents, end of period. . . . . . . . . . . . . .  $ 7,951   $  2,375
                                                                     ========  =========
<FN>

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


                        SYMONS INTERNATIONAL GROUP, INC.
            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                  (UNAUDITED)
                    For the Three Months Ended March 31, 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").


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".


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


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
per  year  must  be  funded from the Company's nonstandard automobile management
company,  which  receives  management  and  billing  fees  from  its  insurance
subsidiaries.  Under  the  terms  of  the indenture, the Company is permitted to
defer semi-annual interest payments for up to five years. The Company elected to
defer  the  interest  payments  due  in  February  and  August 2000 and 2001 and
February  2002  and  may  continue  this  practice  through  2004.

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  (0.77)  at  March  31, 2002, and will continue to apply until the Company's
consolidated  coverage ratio complies with the terms of the trust indenture. The
Company  complied with these additional restrictions as of December 31, 2001 and
is in compliance as of March 31, 2002. Upon completion of the audit for 2001, it
was  discovered that the Company was not in compliance with the covenant dealing
with  the  percentage  of  investment  in  other than "Permitted Investments" as
defined  by  the  indenture.  The indenture allows for no more than 15% of total
invested  assets  to  be  in  non-investment  grade securities as defined in the
indenture.  At  December 31, 2001, approximately 21% of the Company's investment
portfolio  was invested in equity securities and non-investment grade bonds. The
Company  rectified  the  situation  as  of  March  29,  2002 through the sale of
approximately $8 million of the non-investment grade securities, the proceeds of
which  were  invested  in  Permitted  Investments.


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.

<PAGE>
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  Mutual Service Casualty Insurance Company and with Continental
Casualty  Company,  statutory  reserves,  number  of  non-standard  automobile
insurance  policies  in-force  by  state,  and reports of all non-claims related
disbursements.  IGF's  failure  to comply with the Consent Order could cause the
IDOI  to  begin  proceedings to have a rehabilitator or liquidator appointed for
IGF  to  extend  the  provisions  of  the  Consent  Order.

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

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

Pafco's inability or failure to comply with any of the above 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.

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

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

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

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

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

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
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. The
nonstandard  automobile  insurance  policies  written  in  Virginia  by Superior
accounted  for  approximately  13.1%  of the total gross written premiums of the
Company  in  2001.

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

4.  COMMITMENTS  AND  CONTINGENCIES

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

Approximately $29 million was paid through March 31, 2002 in settlement of legal
proceedings  and claims related to the AgPI Program.  The Company has retained a
reserve  of  approximately $3 million as a provision for expenses and settlement
of  ongoing  litigation.

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 IGF
filed another demurrer, contending that plaintiffs failed to make the amendments
required by the court's previous rulings. This latest demurrer is to be heard on
May  24,  2002.  Discovery  is  proceeding.

As previously reported in the Company's December 31, 2001 Form 10-K, MSI and IGF
are  arbitrating  their  dispute  over  responsibility  for  claims  paid to MSI
insureds.  Also as previously reported, an action was filed against the Company,
IGF,  IGF  Holdings,  Inc. ("IGFH"), Granite Reinsurance Company, Ltd. ("Granite
Re"),  a wholly owned subsidiary of Goran, Goran and certain affiliates of those
companies,  as  well  as certain members of the Symons family, and Acceptance in
the  United  States  District  Court  for the Southern District of Indiana which
alleges  that  the  June  6,  2001  sale  of  IGF's assets to Acceptance and the
payments by Acceptance to the Company, Goran and Granite Re violated Indiana law
and  are voidable.  On April 18 and 19, 2002, the parties engaged in a mediation
session  and  reached  an  agreement  to  settle  the  disputed  claims  in  the
arbitration proceeding and the federal court action. The settlement contemplates
execution  of  a  written  agreement  that  is  currently being drafted. Pending
execution  of the written agreement, the mediator has reported to the court that
a  settlement  has  been  reached.

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  December  31,  2001  Form  10-K.

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.  The Company
and the individual defendants filed a motion to dismiss the amended consolidated
complaint  for  failure  to  state  a  claim  and  for  failure  to  plead  with
particularity  as  required  by  Fed.  R. Civ. P.9(b) and the Private Securities
Litigation  Reform  Act  of  1995.  The  accounting  firms also filed motions to
dismiss.  On  February  19, 2002 the court entered an order granting in part and
denying  in  part defendants' motion to dismiss.  On March 15, 2002, the Company
and  the individual defendants filed a motion for reconsideration of the court's
ruling  on  the  motion  to  dismiss,  or  alternatively to certify an order for
appeal,  which  was denied on May 1, 2002.  Discovery in the case is proceeding.

As  previously  reported, an action has been brought in Florida against Superior
which  purports  to  be  brought  on  behalf of a class consisting of healthcare
providers  improperly paid discounted rates on services to patients based upon a
preferred  provider  contract  with  a  third party.  The plaintiff alleges that
Superior  breached  a  third  party  beneficiary  contract,  committed fraud and
engaged  in  racketeering  activity  in  violation of federal and Florida law by
obtaining  discounted  rates  offered  by  a third party with whom the plaintiff
contracted  directly.  Superior  believes  that the allegations of wrongdoing as
alleged  in the complaint are without merit and intends to vigorously defend the
claims  brought against it.  There have been no material developments since last
reported  in  the  Company's  December  31,  2001  Form  10-K.

IGF  is  a  defendant in a declaratory action entitled Kevin L. Stevens, Bank of
America,  Conservator  of the Estate of Samuel Jay Ramsey and Gael Ramsey v. IGF
Insurance  Company originally filed on February 21, 2001 in the Circuit Court of
Green  County,  Missouri.  The  action  was  subsequently removed to the Federal
District  Court  for the Western District of Missouri.  On October 11, 2001, the
Missouri  District  Court granted declaratory judgment in favor of the Company's
insured,  Stevens,  and held that IGF was responsible for payment of the premium
attributable  to  a  $15,000,000 appeal bond for Steven's appeal from a judgment
against  him in a related personal injury action.  On April 23, 2002, the United
States  Court  of  Appeals  for the Eighth Circuit vacated the judgment and held
that Stevens need not post a bond to appeal the adverse judgment; therefore, IGF
was  not  obligated  to  pay  the  bond  premium.

As  previously  reported, an action has been brought in Florida against Superior
which  purports  to  be  brought  on  behalf of a class consisting of healthcare
providers that rendered treatment to and obtained a valid assignment of benefits
from Superior.  The plaintiff alleges that Superior reduced or denied claims for
medical  expenses  payable  to  the  plaintiff without first obtaining a written
report  in  violation  of Florida law.  The plaintiff also alleges that Superior
inappropriately  reduced  the  amount  of  benefits  payable to the plaintiff in
breach  of  Superior's  contractual  obligations  to  the  plaintiff.  Superior
believes the allegations of wrongdoing in violation of law are without merit and
intends  to vigorously defend the claims brought against it.  There have been no
material  developments  since  last  reported in the Company's December 31, 2001
Form  10-K.

As  previously  reported, an action has been brought against Superior in Florida
by  a  purported  class  consisting  of  (i)  healthcare providers that rendered
treatment  to Superior insureds and claimants of Superior insureds and (ii) such
insureds  and claimants.  The plaintiff alleges that Superior improperly reduced
medical  benefits  payable  and  improperly  calculated interest in violation of
Florida  law.  The  Company  believes  the claim is without merit and intends to
vigorously  defend  the  charges brought against it. There have been no material
developments  since  last reported in the Company's December 31, 2001 Form 10-K.

As  previously  reported,  actions have been brought in Florida against Superior
Guaranty  purporting  to be on behalf of a class of purchasers of insurance from
Superior  Guaranty  allegedly charged service or finance charges in violation of
Florida  law.  Superior  Guaranty believes that the allegations of wrongdoing as
alleged  in the complaint are without merit and intends to vigorously defend the
claims  brought against it.  There have been no material developments since last
reported  in  the  Company's  December  31,  2001  Form  10-K.

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  March  31,  2002.

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

5.  LOSS  DEVELOPMENT  ON  PRIOR  ACCIDENT  YEARS

During  the  first  quarter  of  2002,  the  Company  experienced  unfavorable
development  on  its  year-end  2001 loss and LAE reserves in the amount of $1.5
million.  This was primarily due to unfavorable settlement of outstanding claims
that  resulted  in an increase in the loss and loss adjustment expense ratio for
the  first  quarter  by  13.1  percentage  points.

6.  RECLASSIFICATIONS

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

7.  LOSS  PER  SHARE

<TABLE>
<CAPTION>

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

                                             Three Months Ended
                                                 March  31
                                              ----------------
(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 1,890,000 stock options outstanding as of March 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  to  Granite Re under a multi-year reinsurance
treaty whereby Granite Re has agreed to reinsure a portion of the crop insurance
business  of  Acceptance and provide an indemnity on behalf of IGF.  The results
of  the  crop insurance segment have been reflected as "Discontinued Operations"
in  the  accompanying  unaudited consolidated financial statements in accordance
with  Accounting  Principles  Board  Opinion  No.  30  "Reporting the Results of
Operations --- Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary,  Unusual  and  Infrequently  Occurring  Events and Transactions."

<PAGE>

Summarized  results  of  operations for discontinued operations were as follows:


<TABLE>
<CAPTION>

  STATEMENTS  OF  OPERATIONS:
  (in  thousands)
                                                         Three  Months  Ended
                                                               March  31
                                                          ------------------
                                                              2002     2001
                                                             ------  --------
<S>                                                            <C>     <C>
Gross premiums written. . . . . . . . . . . . . . . . . . .  $   -   $94,390
                                                             ======  ========
Net premiums written. . . . . . . . . . . . . . . . . . . .  $   2   $ 7,888
                                                             ======  ========

   Net premiums earned . . . . . . . . . . . . . .. . . . .  $   2   $ 2,798
   Net investment and fee income . . . . . . . . .. . . . .    189      (316)
   Net realized capital gain (loss). . . . . . . .. . . . .   (123)        2
                                                             ------  --------
Total revenues. . . . . . . . . . . . . . . . . . . . . . .     68     2,484
                                                             ------  --------

   Loss and loss adjustment expenses . .. . . . . . . . . .    (19)    5,871
   Policy acquisition and general and administrative
   expenses.                                                    87    (3,623)
   Interest and amortization expense . . . . . . . . . .. .      -       236
                                                             ------  --------
Total expenses. . . . . . . . . . . . . . . . . . . . . . .     68     2,484
                                                             ------  --------

Earnings before income taxes. . . . . . . . . . . . . . . .      -         -

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

Net earnings from discontinued operations . . . . . . . . .  $   -   $     -
                                                             ======  ========
</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").

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".

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.

SIGNIFICANT  LOSSES  HAVE  BEEN  REPORTED  AND  ARE  LIKELY  TO  CONTINUE

The Company has reported net losses on a quarterly basis since the third quarter
of  1998.  Net losses from continuing operations for the quarter ended March 31,
2002 totaled $(7,729,000) compared to losses of $(9,432,000) for the same period
in  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 decreased in 2001 from
2000  largely  due  to  lower  volume  and corresponding actions taken to reduce
operating expenses and the recognition in 2000 of approximately $33.5 million of
goodwill  impairment.  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  IDOI, the 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
they  are  expensive  to  defend,  whether  or  not  the  Company  is ultimately
successful.

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

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

REVIEW  OF  CONSOLIDATED  OPERATIONS

NET  LOSS

The  net  loss for the three months ended March 31, 2002 totaled $(7,729,000) or
$(.74)  per  share (basic and diluted). This is an improvement of  $1,703,000 or
$0.17  per  share  from the net loss for the same period in 2001.  The decreased
net  loss is due primarily to lower premiums earned in 2002 and decreased policy
acquisition  and  general  and  administrative expenses offset by higher losses.
There  was  no  loss on discontinued operations for the three months ended March
31,  2002 and 2001, respectively.  Refer to Note 8. "Discontinued Operations" of
the  Condensed  Notes  to  Consolidated  Financial  Statements  for  additional
information.

GROSS  PREMIUMS  WRITTEN

Gross  premiums written decreased 9.3% for the three months ended March 31, 2002
compared  to the three months ended March 31, 2001. The primary reasons for this
decline  in volume are the withdrawal from certain competitive markets and other
underwriting  initiatives  intended  to  increase  profitability.

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  losses  in the Company's insurance subsidiaries and the corresponding growth
in  the  Company's  retained  deficit  and to manage overall risk retention, the
Company  entered  into  a  reinsurance  agreement to cede a portion of its gross
written  premiums to National Union Fire Insurance Company of Pittsburgh, PA, an
unrelated  third  party.  For the three months ended March 31, 2002, the Company
ceded  approximately  71.4%  of  its  gross  written  premiums.

NET  PREMIUMS  EARNED

Net  premiums  earned  decreased 37.2% or $6,962,000 for the quarter ended March
31,  2002  as  compared  to the same period 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.  In  the  first  quarter  of  2002,  fee income was 9.7% lower as
compared to the same period in 2001. The reduction in fee income is attributable
to the reduction in policies in force and the overall decline in written premium
in  the  first  quarter  of  2002.

NET  INVESTMENT  INCOME

Net  investment income decreased 22.2% for the three months ended March 31, 2002
as  compared  to  the  same  period  in 2001. This decrease is reflective of the
decline  in  invested  assets  during  a  period  of  declining premiums and the
liquidation  of  investments  to  pay  prior  year  losses  settled  in  2002.

NET  REALIZED  CAPITAL  (LOSSES)

Net  realized  capital  losses  were $(748,000) for the first quarter of 2002 as
compared  to  net  realized capital losses of  $(769,000) for the same period in
2001.  Capital losses resulted primarily from the liquidation of longer duration
fixed  income  securities in the first quarter of 2002 in order to rebalance the
investment  positions  in  the  portfolio. These transactions resulted in higher
cash  proceeds  that were reinvested in shorter duration investment instruments.
Capital  losses  were  also  realized  due  to  the  continued  liquidation  of
investments  to  fund  operations  and  claim  payments under unfavorable market
conditions.

LOSSES  AND  LOSS  ADJUSTMENT  EXPENSES

The  loss and loss adjustment expense ratio for the Company for the three months
ended  March 31, 2002 was 107.7% of net premiums earned as compared to 94.8% for
first  quarter  2001  and to 91.5% for the entire year of 2001. During the first
quarter of 2002, the Company experienced unfavorable development on its loss and
loss adjustment expense reserves for accidents occurring in 2001 and prior which
increased  the  loss  and  loss adjustment expense ratio for the quarter by 13.1
percentage  points.

POLICY  ACQUISITION  AND  GENERAL  AND  ADMINISTRATIVE  EXPENSE

The  Company  reduced policy acquisition and general and administrative expenses
for the first quarter of 2002 to $6,459,000 from $10,518,000 for the same period
in  2001,  a reduction of approximately 39%. This reduction is reflective of the
decline  in gross written premiums, an increase in ceding commissions associated
with  the  quota  share  reinsurance  contract,  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  first  quarter of 2001 to 32.4% for 2002.  This decrease in the
expense  ratio  is  the  result of reduced operating expenses and an increase in
ceding  commissions  earned  under  the  quota  share  reinsurance  contract.

INCOME  TAXES

At  March  31, 2002, the Company's net deferred tax assets are fully offset by a
100%  valuation  allowance that resulted in no tax benefit in the first quarters
of  both  2002  and  2001.

REVIEW  OF  CONSOLIDATED  FINANCIAL  POSITION

CASH  AND  INVESTMENTS

Total  cash  and  investments at March 31, 2002 and December 31, 2001 was $103.4
million  and  $110.4  million,  respectively.  The  decline  in  invested assets
resulted  from  continued  liquidations  to  fund  claim  payments and operating
expenses  as  well  as  the portfolio rebalancing mentioned above. Refer to "Net
Realized  Capital  (Losses)" above for a discussion of other changes in cash and
investment  balances.

REINSURANCE  RECEIVABLES  AND  PAYABLES

The  Company  negotiated  a  third-party  quota share reinsurance agreement that
became  effective January 1, 2000.  Under the quota share agreement, the Company
may  cede a portion of its nonstandard automobile insurance premiums and related
losses  based  on a variable percentage of up to 75% of Superior's and up to 75%
of  Pafco's  earned  premiums.  The  Company's  ceding  percentage for the first
quarter of 2002 totaled 71.4%. The decrease in the amount of premiums and losses
ceded  under  this contract directly affect reinsurance balances due and payable
on  the  face  of  the  financial  statements.

RECEIVABLES

Receivables, exclusive of the allowance for doubtful accounts, have increased by
approximately  $4.4  million,  or 9.5%, from December 31, 2001. This increase is
primarily attributable to an increase in billable premiums due to higher written
premiums  in  the  first  quarter of 2002 versus the fourth quarter of 2001. The
allowance  for  doubtful  accounts  was  reduced in the first quarter of 2002 by
approximately  $1.2  million,  or  83.8%,  for  permanent  write-offs.

LOSS  AND  LOSS  ADJUSTMENT  EXPENSE  RESERVES

Total loss and loss adjustment expense reserves decreased from $81,142,000 as of
December  31,  2001  to  $78,070,000  as  of  March  31,  2002,  a  reduction of
approximately  $3.1  million.  This  decrease  is  consistent with the Company's
declining  volume  of  business.

UNEARNED  PREMIUMS

At March 31, 2002, unearned premiums were $64,262,000, an increase of $5,046,000
from  December  31,  2001.  This  is consistent with the increase 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.

SHAREHOLDERS'  (DEFICIT)

Shareholders'  (deficit)  has  increased by $(8,280,000) from December 31, 2001.
This  increase  is  primarily the result of the net loss of $(7,729,000) for the
three  months ended March 31, 2002 coupled with an unrealized loss of $(551,000)
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 primary
subsidiaries.

Superior  Insurance Group, Inc. ("Superior Group") collects billing fees charged
to  policyholders  who  elect  to  make  their premium payments in installments.
Superior Group also receives management fees under its management agreement with
its  insurance  subsidiaries.  When the Florida Department of Insurance ("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 Indiana Department of Insurance ("IDOI") with respect to
Pafco  and  IGF, those subsidiaries may not pay dividends without prior approval
by  the  IDOI.  Pafco  cannot pay extraordinary dividends, within the meaning of
the  Indiana Insurance Code, without the prior approval of the Indiana Insurance
Commissioner.  The  management  fees  charged  to  Pafco,  Superior  and IGF are
subject  to  review  by  the  IDOI  and  FDOI.

The  nonstandard  automobile  insurance subsidiaries' primary source of funds is
premiums,  investment  income and proceeds from the maturity or sale of invested
assets.  Such  funds  are used principally for the payment of claims, payment of
claims  settlement  costs,  operating  expenses  (primarily  management  fees),
commissions  to independent agents, premium taxes, dividends and the purchase of
investments.  There  is  variability  in  cash outflows because of uncertainties
regarding  settlement dates for liabilities for unpaid losses.  Accordingly, the
Company  maintains investment programs intended to provide adequate funds to pay
claims.  During  the  first  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.

The  Company had $1.2 million available at March 31, 2002 under its $2.5 million
revolving credit facility ("Facility") with Granite Reinsurance Company, Ltd., a
related  party.  An  additional  $750,000  was  drawn on the line in April 2002,
leaving  $450,000  available at May 15, 2002. The terms of the Facility call for
monthly  interest  payments  at  the  prime  rate (as printed in the Wall Street
Journal  on the first business day of each month) plus 5.25% (the total rate was
10.0%  at  May  1,  2002)  computed on an annual basis and not to exceed 18% per
annum  calculated on the average principal outstanding each month. All principal
borrowed  under  the  Facility  is  due  on  December  20,  2004.

On  August  12, 1997, the Company issued through a wholly owned trust subsidiary
$135 million aggregate principal amount in trust originated preferred securities
(the  "Preferred  Securities"). The Preferred Securities have a term of 30 years
with  semi-annual  interest payments of $6.4 million that commenced February 15,
1998.  The Company may redeem the Preferred Securities in whole or in part after
10  years.

The  Company  may  defer  interest  payments in accordance with the terms of the
trust  indenture  for  a  period  of  up  to  five  years.  The  unpaid interest
installment  amounts  accrue  interest  at  9.5%.  The  Company  deferred  the
semi-annual  interest  payments  due  in  February  and August 2000 and 2001 and
February 2002 and may continue this deferral practice for all remaining payments
due  in  2002,  2003,  and  2004.

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

<TABLE>
<CAPTION>

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

</TABLE>



                                       13

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  (0.77) in 2002, and will continue to apply until the Company's consolidated
coverage  ratio  complies  with  the  terms  of the trust indenture. The Company
complied with these additional restrictions as of March 31, 2002. In March 2002,
the  Company  discovered  it  did  not comply with the covenant dealing with the
percentage of investment in other than "Permitted Investments" as defined by the
indenture. The indenture allows for no more than 15% of total invested assets to
be  in  non-investment  grade securities as defined above. At December 31, 2001,
approximately  21%  of the Company's investment portfolio was invested in equity
securities  and  non-investment grade bonds. The Company rectified the situation
as  of  March  29,  2002  through  the  sale  of approximately $8 million of the
non-investment  grade  securities,  the  proceeds  of  which  were  invested  in
Permitted  Investments.

Net  cash  used  by operating activities in the first quarter of 2002 aggregated
$(6,729,000)  compared  to  $(9,829,000)  for  the  same  period  in  2001.  The
improvement  is primarily due to the lower net loss in the first quarter of 2002
and  lower  premium  volume.

The  Company  believes  cash  flows from premiums, investment income and billing
fees  are sufficient to meet obligations to policyholders and operating expenses
for  the  foreseeable  future.  This  is  due  primarily to the lag time between
receipt  of  premiums and the payment of claims. Accordingly, while there can be
no assurance as to the sufficiency of the Company's cash flow in future periods,
the  Company  believes  that its cash flow will be sufficient to meet all of the
Company's  operating  expenses  and  operating  debt  service (not including the
Preferred  Securities)  for  the  foreseeable  future.

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

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

As  previously reported in the Company's December 31, 2001 Annual Report on Form
10-K,  the  Company  expected  the  above  actions  to  result  in  a decline of
approximately  10  to  15%  in gross written premiums from 2001 levels. Based on
actual  results through April 2002, the Company now expects a decline of from 20
to  25% in gross written premiums for calendar year 2002 from 2001 levels with a
corresponding  decrease  in  management fees payable to Superior Group. In April
2002,  the Company eliminated approximately 60 full-time positions, primarily in
its  claims  and  underwriting departments. This represents approximately 17% of
the  Company's  employees  before  the  layoffs.  In  addition,  the Company has
undertaken other cost savings initiatives and process changes in order to reduce
operating  expenses.

Shareholders'  equity  reflected  a deficit of $(152) million at March 31, 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  $17.7  million  at  March  31,  2002.

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

ITEM  3.  QUALITATIVE  AND  QUANTITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

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

PART  II  -  OTHER  INFORMATION
ITEM  1.  LEGAL  PROCEEDINGS

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

Approximately $29 million was paid through March 31, 2002 in settlement of legal
proceedings  and  claims related to the AgPI Program. The Company has retained a
reserve  of  approximately $3 million as a provision for expenses and settlement
of  ongoing  litigation.

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 IGF filed another demurrer,
contending that plaintiffs failed to make the amendments required by the court's
previous rulings. This latest demurrer is to be heard on May 24, 2002. Discovery
is  proceeding.

As previously reported in the Company's December 31, 2001 Form 10-K, MSI and IGF
are  arbitrating  their  dispute  over  responsibility  for  claims  paid to MSI
insureds.  Also as previously reported, an action was filed against the Company,
IGF,  IGF  Holdings,  Inc. ("IGFH"), Granite Reinsurance Company, Ltd. ("Granite
Re"),  a wholly owned subsidiary of Goran, Goran and certain affiliates of those
companies,  as  well  as certain members of the Symons family, and Acceptance in
the  United  States  District  Court  for the Southern District of Indiana which
alleges  that  the  June  6,  2001  sale  of  IGF's assets to Acceptance and the
payments by Acceptance to the Company, Goran and Granite Re violated Indiana law
and  are voidable.  On April 18 and 19, 2002, the parties engaged in a mediation
session  and  reached  an  agreement  to  settle  the  disputed  claims  in  the
arbitration proceeding and the federal court action. The settlement contemplates
execution  of  a  written  agreement  that  is  currently being drafted. Pending
execution  of the written agreement, the mediator has reported to the court that
a  settlement  has  been  reached.

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. The Company
and the individual defendants filed a motion to dismiss the amended consolidated
complaint  for  failure  to  state  a  claim  and  for  failure  to  plead  with
particularity  as  required  by  Fed.  R. Civ. P.9(b) and the Private Securities
Litigation  Reform  Act  of  1995.  The  accounting  firms also filed motions to
dismiss.  On  February 19, 2002, the court entered an order granting in part and
denying  in  part  defendants' motion to dismiss. On March 15, 2002, the Company
and  the individual defendants filed a motion for reconsideration of the court's
ruling  on  the  motion  to  dismiss,  or  alternatively to certify an order for
appeal,  which  was  denied on May 1, 2002. Discovery in the case is proceeding.

IGF  is  a  defendant in a declaratory action entitled Kevin L. Stevens, Bank of
America,  Conservator  of the Estate of Samuel Jay Ramsey and Gael Ramsey v. IGF
Insurance  Company originally filed on February 21, 2001 in the Circuit Court of
Green  County,  Missouri.  The  action  was  subsequently removed to the Federal
District  Court  for  the Western District of Missouri. On October 11, 2001, the
Missouri  District  Court granted declaratory judgment in favor of the Company's
insured,  Stevens,  and held that IGF was responsible for payment of the premium
attributable  to  a  $15,000,000 appeal bond for Steven's appeal from a judgment
against  him  in a related personal injury action. On April 23, 2002, the United
States  Court  of  Appeals  for the Eighth Circuit vacated the judgment and held
that Stevens need not post a bond to appeal the adverse judgment; therefore, IGF
was  not  obligated  to  pay  the  bond  premium.

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
December  31,  2001  Form  10-K.

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
             None

             Reports  on  Form  8-K
             None



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  May  14,  2002.



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


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