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: 000-24366

                               GORAN CAPITAL INC.
             (Exact name of registrant as specified in its charter)



CANADA                                                          NOT  APPLICABLE
(State  or  other  jurisdiction  of                           (I.R.S.  Employer
incorporation  or  organization)                           Identification  No.)

                                   2 Eva Road
                                    Suite 200
                            Toronto, Ontario M9C 2A8

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

  Registrant's telephone number, including area code:    (416) 622-0660 (Canada)
                                                         (317) 259-6300 (U.S.)

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 November 4, 2002, there were 5,393,698 shares of Registrant's no par value
common  stock  issued  and  outstanding.



<TABLE>
<CAPTION>


                                 FORM 10-Q INDEX
                    FOR THE QUARTER ENDED SEPTEMBER 30, 2002

                                                                            Page
PART  I    FINANCIAL INFORMATION                                          Number
               <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 Statement of Stockholder's Equity
          (Deficit) for the  Nine Months  ended  September  30,  2002
           and  2001                                                           6

           Unaudited  Consolidated  Statements of Cash Flows for
           the Nine Months Ended  September  30,  2002  and  2001              7

           Condensed  Notes  to Unaudited Consolidated Financial
           Statements                                                          8

Item  2    Management's  Discussion  and  Analysis  of  Financial
           Condition and  Results  of  Operations                             16

Item  3    Qualitative  and  Quantitative  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                    24

Item  3    Defaults  Upon  Senior  Securities                                 24

Item  4    Submission  of  Matters  to  a  Vote of Security Holders           24

Item  5    Other  Information                                                 24

Item  6    Exhibits  and  Reports  on  Form  8-K                              24

GORAN  CAPITAL  INC.,  Analysis  of  Loss  Per  Share                         25

SIGNATURES                                                                    26

CERTIFICATIONS                                                                27

EXHIBIT  INDEX                                                                29

EXHIBITS                                                                      30
</TABLE>


<TABLE>
<CAPTION>
PART  I  -  FINANCIAL  INFORMATION
ITEM  1.  FINANCIAL  STATEMENTS
GORAN  CAPITAL  INC.
CONSOLIDATED  BALANCE  SHEETS
(CANADIAN  GAAP,  stated  in  thousands  of  U.S.  dollars)

                                                                       September 30,
                                                                          2002      December 31,
                                                                       (Unaudited)      2001
                                                                       ------------------------
<S>                                                                          <C>         <C>
ASSETS:
Investments:
    Fixed maturities. . . . . . . . . . . . . . . . . . . . . . . . . . .  $  64,757   $  77,325
    Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . .     14,589      21,610
    Short-term investments, at amortized cost, which approximates market.      7,419      13,266
    Other invested assets . . . . . . . . . . . . . . . . . . . . . . . .        788       1,594
                                                                           ----------  ----------
Total Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . .     87,553     113,795
Investments in and advances to related parties. . . . . . . . . . . . . .        204       1,130
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . .      3,264      11,263
Receivables, net of allowances of $315 and $1,526 . . . . . . . . . . . .     28,765      47,441
Reinsurance recoverable on paid and unpaid losses, net. . . . . . . . . .     26,753      29,284
Prepaid reinsurance premiums. . . . . . . . . . . . . . . . . . . . . . .     26,675      40,039
Deferred policy acquisition costs . . . . . . . . . . . . . . . . . . . .          -         763
Property and equipment, net of accumulated depreciation . . . . . . . . .      7,674       9,907
Preferred securities issuance costs, net of amortization. . . . . . . . .      2,171       4,376
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      5,245       2,421
Assets of discontinued operations . . . . . . . . . . . . . . . . . . . .     10,361     115,900
                                                                           ----------  ----------
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 198,665   $ 376,319
                                                                           ==========  ==========

LIABILITIES AND STOCKHOLDER'S DEFICIT:
LIABILITIES:
    Losses and loss adjustment expenses . . . . . . . . . . . . . . . . .  $  71,024   $  84,876
    Unearned premiums . . . . . . . . . . . . . . . . . . . . . . . . . .     37,992      59,216
    Reinsurance payables. . . . . . . . . . . . . . . . . . . . . . . . .     42,284      58,868
    Distributions payable on preferred securities . . . . . . . . . . . .     22,994      23,252
    Deferred Income . . . . . . . . . . . . . . . . . . . . . . . . . . .      5,000       7,250
    Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     19,428      21,563
    Liabilities of discontinued operations. . . . . . . . . . . . . . . .     10,361     115,900
                                                                           ----------  ----------
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . .    209,083     370,925
                                                                           ----------  ----------
MINORITY INTEREST:
Company-obligated mandatorily redeemable preferred stock of trust
Subsidiary holding solely parent debentures . . . . . . . . . . . . . . .     67,994      94,540
                                                                           ----------  ----------
STOCKHOLDERS' DEFICIT:
Common Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     18,502      18,502
Contributed surplus . . . . . . . . . . . . . . . . . . . . . . . . . . .     70,864      42,465
Cumulative translation adjustment . . . . . . . . . . . . . . . . . . . .       (753)       (763)
Retained (deficit). . . . . . . . . . . . . . . . . . . . . . . . . . . .   (167,025)   (149,350)
                                                                           ----------  ----------
TOTAL STOCKHOLDERS' (DEFICIT) . . . . . . . . . . . . . . . . . . . . . .    (78,412)    (89,146)
                                                                           ----------  ----------
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) . . . . . . . . . . . . . .  $ 198,665   $ 376,319
                                                                           ==========  ==========
<FN>

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


<TABLE>
<CAPTION>

GORAN  CAPITAL  INC.
UNAUDITED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(CANADIAN  GAAP,  stated  in  thousands  of  U.S.  dollars,  except  per  share  data)

                                                                            Three Months Ended
                                                                              September 30,
                                                                           -------------------
                                                                              2002      2001
                                                                            --------  --------
<S>                                                                           <C>       <C>
Gross premiums written . . . . . . . . . . . . . . . . . . . . . . . . . .  $17,618   $27,348
Less ceded premiums. . . . . . . . . . . . . . . . . . . . . . . . . . . .   13,281    12,664
                                                                            --------  --------
Net premiums written . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 4,337   $14,684
                                                                            ========  ========

Net premiums earned. . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 7,757   $22,943
Fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    2,357     4,220
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . .    1,150     1,715
Other Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      750         -
Net realized capital gain (loss) . . . . . . . . . . . . . . . . . . . . .      543       793
                                                                            --------  --------
Total revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   12,557    29,671
                                                                            --------  --------
Expenses:
  Losses and loss adjustment expenses. . . . . . . . . . . . . . . . . . .    8,458    19,859
  Policy acquisition and general and administrative expenses . . . . . . .    5,300    15,696
  Amortization of intangibles. . . . . . . . . . . . . . . . . . . . . . .       42       674
                                                                            --------  --------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   13,800    36,229
                                                                            --------  --------
Loss from continuing operations before income taxes and minority interest.   (1,243)   (6,558)
                                                                            --------  --------
Total income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . .        -         -
                                                                            --------  --------
Loss from continuing operations before minority interest . . . . . . . . .   (1,243)   (6,558)
Minority interest:
  Distributions on preferred securities, net of tax of $0 in both
  2002 and 2001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    2,079     2,483
                                                                            --------  --------
Loss from continuing operations. . . . . . . . . . . . . . . . . . . . . .   (3,322)   (9,041)
                                                                            --------  --------
Discontinued operations:
  Income (loss) from operations of discontinued segment, less applicable
  income taxes of $0 in both 2002 and 2001 . . . . . . . . . . . . . . . .        -         -
                                                                            --------  --------

Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $(3,322)  $(9,041)
                                                                            ========  ========
Weighted average shares outstanding - basic and fully diluted. . . . . . .    5,394     5,772
                                                                            ========  ========
Net loss from continuing operations per share - basic and fully diluted. .  $ (0.62)  $ (1.57)
                                                                            ========  ========
Net loss of discontinued operations per share - basic and fully diluted. .  $  0.00   $ (0.00)
                                                                            ========  ========
Net loss per share - basic and fully diluted . . . . . . . . . . . . . . .  $ (0.62)  $ (1.57)
                                                                            ========  ========
<FN>

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



<TABLE>
<CAPTION>

GORAN  CAPITAL  INC.
UNAUDITED  CONSOLIDATED  STATEMENTS  OF  OPERATIONS
(CANADIAN  GAAP,  stated  in  thousands  of  U.S.  dollars,  except  per  share  data)

                                                                              Nine Months Ended
                                                                                September 30,
                                                                             ------------------
                                                                              2002       2001
                                                                            ---------  --------
<S>                                                                            <C>        <C>
Gross premiums written . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 86,326   $125,636
Less ceded premiums. . . . . . . . . . . . . . . . . . . . . . . . . . . .    60,224     66,305
                                                                            ---------  ---------
Net premiums written . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 26,102   $ 59,331
                                                                            =========  =========

Net premiums earned. . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ 32,742   $ 68,198
Fee income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     7,347     10,876
Net investment income. . . . . . . . . . . . . . . . . . . . . . . . . . .     3,889      5,236
Other Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     2,250          -
Net realized capital gain (loss) . . . . . . . . . . . . . . . . . . . . .      (804)      (283)
                                                                            ---------  ---------
Total revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    45,424     84,027
                                                                            ---------  ---------
Expenses:
  Losses and loss adjustment expenses. . . . . . . . . . . . . . . . . . .    35,762     59,494
  Policy acquisition and general and administrative expenses . . . . . . .    21,142     38,634
  Amortization of intangibles. . . . . . . . . . . . . . . . . . . . . . .       128        733
                                                                            ---------  ---------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    57,032     98,861
                                                                            ---------  ---------
Loss from continuing operations before income taxes and minority interest.   (11,608)   (14,834)
                                                                            ---------  ---------
Total income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . .         -          -
                                                                            ---------  ---------
Loss from continuing operations before minority interest . . . . . . . . .   (11,608)   (14,834)
Minority interest:
  Distributions on preferred securities, net of tax of $0 in both
  2002 and 2001. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     6,067      7,694
                                                                            ---------  ---------
Loss from continuing operations. . . . . . . . . . . . . . . . . . . . . .   (17,675)   (22,528)
                                                                            ---------  ---------
Discontinued operations:
  Income (loss) from operations of discontinued segment, less applicable
  Income taxes of $0 in both 2002 and 2001 . . . . . . . . . . . . . . . .         -     (2,156)
                                                                            ---------  ---------

Net loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $(17,675)  $(24,684)
                                                                            =========  =========
Weighted average shares outstanding - basic and fully diluted. . . . . . .     5,394      5,775
                                                                            =========  =========
Net loss from continuing operations per share - basic and fully diluted. .  $  (3.28)  $  (3.90)
                                                                            =========  =========
Net loss of discontinued operations per share - basic and fully diluted. .  $   0.00   $  (0.37)
                                                                            =========  =========
Net loss per share - basic and fully diluted . . . . . . . . . . . . . . .  $  (3.28)  $  (4.28)
                                                                            =========  =========
<FN>

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


<TABLE>
<CAPTION>

GORAN  CAPITAL  INC.
UNAUDITED  CONSOLIDATED  STATEMENTS  OF  STOCKHOLDERS'  EQUITY  (DEFICIT)
(CANADIAN  GAAP,  stated  in  thousands  of  U.S.  dollars)

                                                           Cumulative     Retained         Total
                                    Common   Contributed   Translation     Earnings     Stockholders'
                                    Stock      Surplus     Adjustment     (Deficit)     Equity  (Deficit)
                                    -----      -------     ----------     ---------     -----------------
<S>                                  <C>        <C>           <C>            <C>               <C>
Balance at December 31, 2000
                                    $19,132   $23,748        $(291)       $(115,257)         $(72,668)
Purchase of Common Shares
                                       (109)        -            -                -              (109)
Purchase of Preferred Securities
                                          -    19,344            -                -            19,344
Change in cumulative translation
Adjustment
                                          -         -         (215)               -              (215)
Net loss
                                          -         -            -          (24,684)          (24,684)
                                    --------  -------        ------       ----------         ---------
Balance at September 30, 2001 . . . $19,023   $43,092        $(506)       $(139,941)         $(78,332)
                                    ========  =======        ======       ==========         =========


Balance at December 31, 2001
                                    $18,502   $42,465        $(763)       $(149,350)         $(89,146)

Purchase of Preferred Securities
                                               28,399                                          28,399
Change in cumulative translation
Adjustment
                                                                10                                 10
Net loss
                                          -         -            -          (17,675)          (17,675)
                                   --------   -------        ------       ----------         ---------
Balance at September 30, 2002
                                    $18,502   $70,864        $(753)       $(167,025)         $(78,412)
                                   ========   =======        ======       ==========         =========
<FN>

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



<TABLE>
<CAPTION>

GORAN  CAPITAL  INC.
UNAUDITED  CONSOLIDATED  STATEMENTS  OF  CASH  FLOWS
(CANADIAN  GAAP,  stated  in  thousands  of  U.S.  dollars)

                                                                                  Nine Months Ended
                                                                                    September  30,
                                                                                   2002       2001
                                                                                 ---------  --------
<S>                                                                                  <C>        <C>
Cash flows from operating activities:
 Net loss for the period . . . . . . . . . . . . . . . . . . . . . .  . . . . .  $(17,675)  $(24,684)
  Adjustments to reconcile net loss to net cash provided by (used in) operations:
  Depreciation, amortization, impairment and other. . . . . . . . . . . . . . .     2,767      2,595
  Net realized capital loss . . . . . . . . . . . . . . . . . . . . . . . . . .     1,415        281
 Net changes in operating assets and liabilities:
  Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    18,676      4,486
  Reinsurance recoverable on paid and unpaid losses . . . . . . . . . . . . . .     2,531      21325
  Prepaid reinsurance premiums. . . . . . . . . . . . . . . . . . . . . . . . .    13,364     (4,013)
  Deferred policy acquisition costs . . . . . . . . . . . . . . . . . . . . . .       763      2,918
  Other assets and liabilities. . . . . . . . . . . . . . . . . . . . . . . . .    (4,959)     7,869
  Loss and loss adjustment expense reserves . . . . . . . . . . . . . . . . . .   (13,852)   (22,373)
  Unearned premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (21,224)    (1,884)
  Reinsurance payables. . . . . . . . . . . . . . . . . . . . . . . . . . . . .   (16,584)   (19,373)
  Distribution payable on preferred securities. . . . . . . . . . . . . . . . .     3,672      4,686
  Deferred income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    (2,250)     8,000
  Net assets from discontinued operations . . . . . . . . . . . . . . . . . . .    (3,483)     1,577
                                                                                 ---------  ---------
Net cash (used in) operations . . . . . . . . . . . . . . . . . . . . . . . . .   (36,839)   (18,590)
                                                                                 ---------  ---------

Cash flows from investing activities, net of assets acquired:
  Net sale of short-term investments. . . . . . . . . . . . . . . . . . . . . .     5,847      4,995
  Proceeds from sales, calls and maturities of fixed maturities . . . . . . . .    29,790     60,658
  Purchase of fixed maturities. . . . . . . . . . . . . . . . . . . . . . . . .   (15,014)   (12,443)
  Proceeds from sale of equity securities . . . . . . . . . . . . . . . . . . .     9,343     17,336
  Purchase of equity securities . . . . . . . . . . . . . . . . . . . . . . . .    (3,625)   (14,486)
  Proceeds from repayment of mortgage loans . . . . . . . . . . . . . . . . . .         -      1,870
  Purchase of property and equipment. . . . . . . . . . . . . . . . . . . . . .      (294)    (1,216)
  Net investing activities from discontinued operations . . . . . . . . . . . .     3,912     (1,322)
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       779       (104)
                                                                                 ---------  ---------
Net cash provided by investing activities . . . . . . . . . . . . . . . . . . .    30,738     55,288
                                                                                 ---------  ---------

Cash flows from financing activities, net of assets acquired:
  Redemption of share capital . . . . . . . . . . . . . . . . . . . . . . . . .         -       (109)
  Purchase of subsidiary's preferred securities . . . . . . . . . . . . . . . .    (2,395)    (1,870)
  Repayment of related party loans. . . . . . . . . . . . . . . . . . . . . . .       926      1,304
  Net financing activities from discontinued operations . . . . . . . . . . . .      (429)       429
                                                                                 ---------  ---------
Net cash provided by (used in) financing activities . . . . . . . . . . . . . .    (1,898)      (246)
                                                                                 ---------  ---------

Increase in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . .    (7,999)    36,452
Cash and cash equivalents, beginning of period. . . . . . . . . . . . . . . . .    11,263      3,230
                                                                                 ---------  ---------
Cash and cash equivalents, end of period. . . . . . . . . . . . . . . . . . . .  $  3,264   $ 39,682
                                                                                 =========  =========
<FN>

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



                               GORAN CAPITAL INC.
            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)
                  FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2002

1.     BASIS  OF  PRESENTATION
Goran  Capital  Inc. ("the Company") is the parent company of the Goran group of
companies.  The  consolidated  financial  statements  are prepared in accordance
with  Canadian  Generally  Accepted  Accounting  Principles.  In  addition,  the
consolidated  financial  statements  are  also  used  to  satisfy  the Company's
financial  filing  requirements  in  the  U.S.  Consequently,  the  consolidated
financial statements include disclosures that are not necessarily required under
Canadian  GAAP  and  contain  references to U.S. GAAP accounting pronouncements.
Note  8,  presents  a reconciliation of Canadian and U.S. GAAP. 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.

The  consolidated  financial statements include the accounts, after intercompany
eliminations,  of  the  Company  and  its  wholly owned subsidiaries as follows:

-     Granite  Reinsurance Company Ltd. ("Granite Re") a finite risk reinsurance
company  domiciled  in  Barbados.

-     Granite  Insurance  Company  ("Granite")  a  Canadian  federally  licensed
insurance  company.

-     Symons  International  Group  (Florida)  Inc.  ("SIGF") a Florida domestic
corporation.

Symons  International  Group, Inc. ("SIG") is a 73.1% owned subsidiary of Goran.
SIG's  subsidiaries  are  as  follows:

-     Superior  Insurance  Group Management, Inc ("Superior Group Management") a
holding  company  for  the  nonstandard  automobile  operations  which includes:
-     Superior Insurance Group, Inc. ("Superior Group") a management company for
the  nonstandard  automobile  operations;
-     Superior  Insurance Company ("Superior") an insurance company domiciled in
Florida;
-     Superior  American  Insurance  Company  ("Superior American") an insurance
company  domiciled  in  Florida;
-     Superior  Guaranty  Insurance  Company  ("Superior Guaranty") an insurance
company  domiciled  in  Florida;
-     Pafco  General  Insurance Company ("Pafco") an insurance company domiciled
in  Indiana;
-     IGF  Holdings,  Inc.  ("IGFH")  a  holding  company
-     IGF  Insurance  Company  ("IGF") an insurance company domiciled in Indiana
(See  Note  23);

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

2.     PREFERRED  SECURITIES
On  August  12,  1997,  SIG'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  SIG  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 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.  SIG  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  SIG's  nonstandard  automobile management company, which
receives  management  and  billing  fees from its insurance subsidiaries. In the
event  SIG'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,  SIG  is  permitted to defer
semi-annual  interest  payments  for  up to five years. SIG elected to defer the
interest  payments  due  in  February  and  August  2000,  2001 and 2002 and may
continue  this  practice  through January 2005.  SIG plans to defer the interest
payments  due  in  February  2003.

The  trust  indenture  for the Preferred Securities contains certain restrictive
covenants  including  covenants  based upon SIG's consolidated coverage ratio of
earnings  before  interest,  taxes, depreciation and amortization ("EBITDA"). If
SIG'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:

-     SIG  may  not  incur  additional  indebtedness  or  guarantee  additional
indebtedness.
-     SIG  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.
-     SIG  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 SIG's consolidated coverage ratio was
(0.70)  at  September  30,  2002,  and  will  continue  to  apply  until  SIG's
consolidated  coverage ratio complies with the terms of the trust indenture. SIG
was  in  compliance with these additional restrictions as of September 30, 2002.

3.     REGULATORY  AFFAIRS
Two of the SIG'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 SIG 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  SIG,  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:

1.     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.

2.     Reduce  its monthly auto premium writings, or obtain additional statutory
capital  or surplus, such that the ratio of gross written premium to surplus and
net  written  premium  to surplus does not exceed 4.0 and 2.4, respectively; and
provide  the  IDOI  with  regular  reports  demonstrating  compliance with these
monthly  writings  limitations.

Continue  to  comply  with  prior IDOI agreements and orders to correct business
practices  under  which  Pafco  must provide monthly financial statements to the
IDOI,  obtain  prior  IDOI  approval  of reinsurance arrangements and affiliated
party  transactions,  submit  business  plans to the IDOI that address levels of
surplus  and net premiums written, and consult with the IDOI on a monthly basis.


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

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

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

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


<PAGE>
Superior  and  Pafco provide monthly financial information to the departments of
insurance  in certain states in which they write business as such information is
requested  by  those  states.

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 SIG. On August 30,
2001,  the  FDOI rejected the recommended order and issued its final order which
SIG  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. Superior and Superior Group
are seeking to identify operational alternatives and a repayment plan that would
be  acceptable  to  the  FDOI.  Some  of the alternatives being considered would
require  the  approval  of  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 on November 18, 2002 to determine whether
Superior's  license  to  transact  insurance  business  in  Virginia  should  be
suspended.  Because  of  Superior's  improved  financial condition, 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 SIG in 2001 and through
September  30,  2002,  respectively.


SIG's  operating subsidiaries, their business operations, and their transactions
with  affiliates,  including  SIG and 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. SIG 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  SIG  and  the  Company.

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

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

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

SIG'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).  SIG  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 SIG's subsidiaries.
SIG,  in establishing its loss reserves, has considered these actions. There can
be no assurance that the ultimate disposition of these lawsuits will not have an
adverse  material  affect  upon  SIG's  operations  or  financial  position.

5.     LOSS  DEVELOPMENT  ON  PRIOR  ACCIDENT  YEARS
During  the  three  months  ended September 30, 2002 SIG experienced unfavorable
development  on  its  year-end  2001 loss and LAE reserves in the amount of $1.2
million.  This  was  the  result of unfavorable settlement of outstanding claims
which  increased  the  loss  and  LAE  ratio  for  the  quarter  by  15.5%.

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

7.
<PAGE>
MATERIAL  CONTRACT  WITH  FORMER  CHIEF  EXECUTIVE  OFFICER
As  previously  reported, the Company's CEO retired effective May 31, 2002.  The
Company  entered  into a consulting agreement with an entity owned by the former
CEO  during  the  third  quarter  of  2002.  The  agreement provides for certain
specified  services  to  be  rendered  as  and when requested by the Company  in
exchange  for  an  annual fee of $500,000.  The agreement renews annually unless
either  the  Company  or  the  former  CEO  elects  otherwise.

8.     LOSS  PER  SHARE
Basic  and  diluted  net  loss  per  share  is  computed by dividing net loss as
reported  by  the  average  number  of  shares  outstanding  as  follows:

<TABLE>
<CAPTION>

                                          Three Months Ended   Nine Months Ended
(in  thousands)                             September  30         September  30

                                               2002   2001         2002   2001
                                               -----  -----       -----  -----
<S>                                            <C>    <C>          <C>    <C>
Basic:
  Weighted-average common shares outstanding   5,394  5,776       5,394  5,776
                                               =====  =====       =====  =====

Diluted:
  Weighted-average common shares outstanding   5,394  5,776       5,394  5,776
                                               =====  =====       =====  =====
<FN>
The  Company  had  847,187  stock  options outstanding as of September 30, 2002.
Common  stock  equivalents are anti-dilutive.  Therefore, fully diluted loss per
share  is  the  same  as  basic  loss  per  share.
</TABLE>

9.     UNITED  STATES  ACCOUNTING  PRINCIPLES
These  unaudited  consolidated  financial  statements  have  been  prepared  in
accordance  with  Canadian (CDN) GAAP. There are no differences between CDN GAAP
and  US  GAAP for both the net loss and the net loss per share.  The differences
between  CDN  GAAP  and  US  GAAP for stockholders' (deficit) are as follows (in
thousands):


<TABLE>
<CAPTION>


(in thousands)                                          September 30, 2002    December 31, 2001
                                                       --------------------  -------------------
<S>                                                              <C>                   <C>
Stockholders (deficit) in accordance with
Canadian GAAP . . . . . . . . . . . . . . . . . . . .  $           (78,362)  $          (89,146)

Add (deduct) effect of difference in accounting for:
     Receivable from sale of capital stock. . . . . .               (1,258)              (1,258)
     Unrealized gain (loss) on investments. . . . . .               (5,200)              (2,246)
                                                       --------------------  -------------------
Stockholders' (deficit) in accordance with
US GAAP . . . . . . . . . . . . . . . . . . . . . . .  $           (84,820)  $          (92,650)
                                                       ====================  ===================
</TABLE>


10.     DISCONTINUED  OPERATIONS
In  December  2000, SIG 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  SIG 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 and SIG each 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 expenses. 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 SIG's receipt of a going concern opinion from its
independent  auditor;  (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
Goran  Capital,  Inc.  ("the Company") owns 73.1% of Symons International Group,
Inc.  ("SIG").  SIG  owns  insurance  companies  that  underwrite  and  market
nonstandard  private  passenger automobile insurance.  SIG's principal insurance
company  subsidiaries are Pafco General Insurance Company ("Pafco") and Superior
Insurance  Company  ("Superior"). Additionally, the Company owns 100% of Granite
Reinsurance  Company  Ltd. ("Granite Re"), Granite Insurance Company ("Granite")
and  Symons  International  Group  (Florida)  Inc.  ("SIGF").

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.  SIG  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,  SIG sold its crop insurance operations to Acceptance
Insurance  Companies  Inc.  ("Acceptance")  on  June 6, 2001. The crop insurance
business  was  written  through  SIG'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."

Granite  Re  is  a  finite  risk  reinsurance  company  based  in  Barbados.

Granite  is  a Canadian federally licensed insurance company that ceased writing
new  insurance  policies  on  January  1,  1990.

SIGF  is  a  Florida  domestic corporation engaged in several lines of business,
including  a  property/casualty  insurance  brokerage  and  a  flood  insurance
brokerage.

SIGNIFICANT  LOSSES  HAVE  BEEN  REPORTED  AND  ARE  LIKELY  TO  CONTINUE
The net loss from continuing operations for the three months ended September 30,
2002  was  $(3,322,000).  The  net loss from continuing operations for the three
months  ended  September 30, 2001 was $(9,041,000). The net loss from continuing
operations  for the nine months ended September 30, 2002 was $(17,675,000).  The
net loss from continuing operations for the nine months ended September 30, 2001
was  $(22,528,000).  The  net  loss  from  continuing  operations for the twelve
months  ended December 31, 2001 was $(31,937,000).  The net loss from continuing
operations for the twelve months ended December 31, 2000 was $(63,224,000).  The
net loss from continuing operations for the nine months ended September 30, 2002
decreased from the net loss from continuing operations for the nine months ended
September 30, 2001 primarily 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  U.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 U.S. insurance company subsidiaries
write  business.  Moreover,  the  U.S.  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 U.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, the FDOI and
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 and/or its
subsidiaries,  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

SIG  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 and bear
interest  at  an  annual rate of 9.5%, payable semi-annually. The obligations of
the  Preferred  Securities  were  expected  to  be funded from SIG's nonstandard
automobile  insurance  management company.  SIG 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.  The indenture
contains  a  number  of  covenants that may restrict SIG's ability to act in the
future.  These  covenants  include  restrictions  on  SIG'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  SIG.




CASH  FLOW  CONSTRAINTS  TO SUPERIOR GROUP MAY ADVERSELY AFFECT SIG'S ABILITY TO
FUND OPERATIONS AND TO SERVICE THE OBLIGATIONS OF THE TRUST PREFERRED SECURITIES
Under  SIG's  present structure, claims, agent commissions and premium taxes are
paid  directly by SIG's insurance company subsidiaries. However, pursuant to the
terms of the management agreement Superior Group is responsible for all payroll,
facilities,  data processing, computer systems and other functions necessary for
the  operations of the Company and its subsidiaries. The insurance companies pay
for such services through management fees that are calculated as a percentage of
gross  written  premiums.  Therefore,  declines  in  written  premiums result in
reduced  cash  flow  to  Superior  Group.

As discussed in "ITEM 1- Business - Recent Developments" in the Company's annual
report on Form 10-K for 2001, SIG 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 significantly higher than what SIG
management  had  originally  anticipated. Unless SIG 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, "ITEM 2 - 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  affect  on  SIG'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 was $(3,322,000) or
$(0.62)  per  share (basic and diluted). The net loss for the three months ended
September  30,  2001  was $(9,041,000) or $(1.57) per share (basic and diluted).
The  net  loss for the nine months ended September 30, 2002 was $(17,675,000) or
$(3.28)  per  share  (basic and diluted). The net loss for the nine months ended
September  30,  2001 was $(24,684,000) or $(4.28) per share (basic and diluted).
The decreased loss is due primarily to lower volume, corresponding actions taken
to  reduce  operating  expenses and the loss from discontinued operations in the
nine  months  ended  September  30,  2001.  There  was  no  loss on discontinued
operations  for  the  nine months ended September 30, 2002. There was no loss on
discontinued operations for the three months ended September 30, 2001.  The loss
on  discontinued  operations  for  the  nine months ended September 30, 2001 was
$(2,156,000).  Refer  to  Note  9,  "Discontinued  Operations", of the Condensed
Notes  to  Consolidated  Financial  Statements  for  additional  information.

GROSS  PREMIUMS  WRITTEN
Gross premiums written decreased 35.58% for the three months ended September 30,
2002  compared  to  the  three  months  ended September 30, 2001. Gross premiums
written  decreased  31.29% for the nine months ended September 30, 2002 compared
to  the  nine  months  ended  September  30, 2001.  The primary reasons for this
decline  in  volume  are SIG's withdrawal from certain competitive markets and a
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 U.S. insurance subsidiaries and to
manage  overall risk retention, in 2000 SIG 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
September 30, 2002, SIG ceded 76.1% of its gross written premiums.  For the nine
months  ended September 30, 2002, SIG ceded 72.7% of its gross written premiums.

NET  PREMIUMS  EARNED
Net  premiums  earned  decreased 66.19% and 51.99% 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
premiums  and  policies  in  force.

FEE  INCOME
Fee  income  is derived from installment billings and other services provided to
policyholders.  Fee  income  decreased  44.15% and 32.45% for the three and nine
months  ended  September 30, 2002, respectively, as compared to the same periods
in  2001.  The  decreases are attributable to the reduction in policies in force
and  the  overall  decline  in  written  premium  in  2002.

NET  INVESTMENT  INCOME
Net  investment income decreased 32.94% and 25.73% for the three and nine months
ended September 30, 2002, respectively, as compared to the same periods in 2001.
The  decreases reflect the decline in invested assets during the periods and the
liquidation  of investments to pay current year and prior year losses settled in
2002.

NET  REALIZED  CAPITAL  GAINS  (LOSSES)
Net realized capital gains were $543,000 and $793,000 for the three months ended
September  30,  2002  and  2001,  respectively. Net realized capital losses were
$(804,000) and $(283,000) for the nine months ended September 30, 2002 and 2001,
respectively.  Capital  losses  resulted  primarily  from  the  liquidation  of
investments  to  fund  operations  and  claim  payments under unfavorable market
conditions.

LOSSES  AND  LOSS  ADJUSTMENT  EXPENSES
The loss and LAE ratio for SIG for the three and nine months ended September 30,
2002, was 109.2% and 111.2%, respectively, of net premiums earned.  The loss and
LAE  ratio  for  SIG for the three and nine months ended September 30, 2001, was
83.5%  and  88.4%, respectively, of net premiums earned.  The loss and LAE ratio
for  SIG  for  the  year ended December 31, 2001 was 91.5%.  The ratio increases
during  2002 are primarily attributable to unfavorable development on SIG's loss
and  LAE  reserves  for  accidents  occurring  in  2001  and  prior.


POLICY  ACQUISITION  AND  GENERAL  AND  ADMINISTRATIVE  EXPENSES
Policy  acquisition  and general and administrative expenses were $5,485,000 and
$15,696,000  for  the  three  months  ended  September  30,  2002  and  2001,
respectively.  Policy  acquisition  and general and administrative expenses were
$21,327,000  and  $38,634,000  for  the nine months ended September 30, 2002 and
2001, respectively.  As a percentage of gross premiums earned, SIG experienced a
decrease  in  its operating expense ratio, net of fee income, from 40.5% for the
three  months  ended  September  30,  2001  to  21.9% for the three months ended
September  30,  2002.  The  decreases reflect the decline in SIG's gross written
premiums and SIG's overall operating expense reduction initiatives. The decrease
in  SIG's  expense  ratio  is  the result of overall operating expense reduction
initiatives  during  2002.


INCOME  TAXES
At September 30, 2002 the Company's net deferred tax assets were fully offset by
a  100%  valuation  allowance  that resulted in no tax benefit for the three and
nine  months  ended September 30, 2002, respectively.  At September 30, 2001 the
Company's  net  deferred  tax  assets  were  fully  offset  by  a 100% valuation
allowance  that  resulted  in no tax benefit for the three and nine months ended
September  30,  2001,  respectively.

REVIEW  OF  CONSOLIDATED  FINANCIAL  CONDITION

CASH  AND  INVESTMENTS
Total  cash  and  investments were $90,817,000 and $125,058,000 at September 30,
2002  and  December  31, 2001, respectively. The decrease results from continued
liquidations  to  fund  claim  payments  and  operating  expenses in a period of
declining  premium  volume.

REINSURANCE  RECEIVABLES  AND  PAYABLES
SIG  negotiated  a  third-party  quota  share  reinsurance agreement that became
effective  January  1,  2000.  Under  the  quota share agreement, SIG may cede a
portion  of  its  non-standard  automobile insurance premiums and related losses
based  on  a  variable  percentage of up to 75% of Superior's and Pafco's earned
premiums.  SIG's ceding percentage for the three months ended September 30, 2002
totaled  72.7%.  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, decreased by
$18,676,000,  or  39.37%,  from  December  31,  2001 to September 30, 2002. This
decrease  is  primarily  attributable  to a decrease in billable premiums due to
lower  written  premiums  in  the three and nine months ended September 30, 2002
compared  to  the  fourth  quarter of 2001.  The allowance for doubtful accounts
decreased by $1,211,000, or 79.36, from December 31, 2001 to September 30, 2002,
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 LAE reserves decreased by $13,852,000, or 16.32%, from December
31,  2001  to  September  30,  2002.  This  decrease  is  consistent  with SIG's
declining  volume  of  business.

UNEARNED  PREMIUMS
Unearned premiums decreased by $21,224,000, or 35.84%, from December 31, 2001 to
September  30,  2002.  This  decrease  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 and SIG each 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  the  three-year  period.

STOCKHOLDERS'  (DEFICIT)
Stockholders'  (deficit) was $(78,362,000) and $(89,146,000) as of September 30,
2002  and December 31, 2001, respectively. This increase is primarily the result
of  the  net loss of $(17,625,000) for the nine months ended September 30, 2002,
offset  by an increase in combined surplus of $28,399,000 due to the purchase by
the  Company  of  SIG's  Preferred  Securities.

LIQUIDITY  AND  CAPITAL  RESOURCES

The  primary  sources  of  funds  for  the  Company are dividends and loans from
Granite  Re.

The  primary  source  of  funds available to SIG are fees from policyholders and
management  fees  and  dividends  from  its  insurance  company  subsidiaries.

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

The  nonstandard automobile insurance subsidiaries' primary 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, SIG
maintains  investment programs intended to provide adequate funds to pay claims.
During  2000,  2001 and the first three quarters of 2002, due to reduced premium
volume,  SIG  has  liquidated  investments  to pay claims.  SIG 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 SIG to shorten
the  duration  of  its  investments.  SIG  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,  SIG  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, SIG has borrowed $3.5 million from Granite Re, a related
party.  Under  the  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,  SIG  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.
SIG may redeem the Preferred Securities in whole or in part after 10 years.  SIG
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%. SIG 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 SIG 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 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>


The trust indenture contains certain restrictive covenants including those based
upon  SIG's  consolidated  coverage  ratio  of  earnings before interest, taxes,
depreciation  and  amortization  (EBITDA). If SIG'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:

-     SIG  may  not  incur  additional  indebtedness  or  guarantee  additional
indebtedness.
-     SIG  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.
-     SIG  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 SIG's consolidated coverage ratio was
(0.70)  at  September  30,  2002,  and  will  continue  to  apply  until  SIG's
consolidated  coverage ratio complies with the terms of the trust indenture. SIG
was  in  compliance with these additional restrictions as of September 30, 2002.

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

-     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,  SIG 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,  SIG  now expects a decline ranging from 30% to 35% in
gross  written  premiums  for  calendar  year  2002  from  2001  levels  with  a
corresponding  decrease  in  management fees payable to Superior Group. In April
2002,  SIG  eliminated  approximately  60  full-time positions, primarily in its
claims  and  underwriting  departments,  representing  approximately  17% of its
employees before the layoffs. In addition, SIG has undertaken other cost savings
initiatives  and  process  changes  in  order  to  reduce  operating  expenses.


<PAGE>
Net cash used by operating activities during the nine months ended September 30,
2002  and  2001 were $(36,839,000) and $(18,590,000), respectively. The decrease
is  primarily  due  to SIG's lower premium volume in 2002, the increase in SIG's
ceding  percentage,  unfavorable  development on SIG's loss and LAE reserves for
2001  and  prior  claims  and  the  receipt  in  2001  of  $9.0  million for the
non-compete  agreement  with Acceptance. See Note 8 "Discontinued Operations" in
the  Condensed  Notes  to  the  Financial  Statements.

SIG's  present  projected  level  of  cash  flow from premium volume, investment
income  and  billing fees will be insufficient to fund its operating expenses at
their  present  levels  through  the end of 2002. SIG is considering alternative
sources  of  working capital which may be available in order to fund operations.
Among  the  alternate  sources contemplated by SIG are capital contributions and
loans  from the Company and its affiliates. In addition, SIG continues to reduce
operating  expenses  commensurate  with  cash  inflows and has decreased premium
volume  in the third and fourth quarters of 2002 in certain states in an attempt
to  ensure  that  new  business written generates an underwriting profit. In the
event  SIG'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 $(78.27) million at September 30,
2002,  which  does  not  reflect  the  statutory  surplus upon which the Company
conducts  its  U.S.  insurance  operations.  The  Company's  U.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 SIG over the past several
years  as  described  above,  SIG's independent auditors issued an opinion based
upon  their  audit  of SIG's December 31, 2001 Consolidated Financial Statements
which  includes an emphasis paragraph that raises the question of whether or not
SIG  can  continue  as a going concern. SIG'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 Part I, 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
The  Company  and  SIG  maintain  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 the 90 days prior to the
date  of  filing this Quarterly Report on Form 10-Q, the Company and SIG carried
out  evaluations,  under  the  supervision  and  with  the  participation of the
Company's  and SIG's management, including the Company's CEO,  The Company's CFO
and SIG's CFO, of the effectiveness of the design and operation of the Company's
and  SIG's  disclosure  controls  and  procedures  pursuant to Exchange Act Rule
13a-14.  Based  upon  that  evaluation, the Company's CEO, the Company's CFO and
SIG's  CFO  concluded  that  the  Company's  and  SIG's  disclosure controls and
procedures  are  effective  in  timely  alerting  them  to  material information
relating  to  the  Company  and  SIG (including their consolidated subsidiaries)
required to be included in the Company's periodic SEC filings. Subsequent to the
date of that evaluation, there have been no significant changes in the Company's
or  SIG's  internal controls or in other factors that could significantly affect
internal  controls,  nor  were  any  corrective  actions required with regard to
significant  deficiencies  and  material  weaknesses.


PART  II  -     OTHER  INFORMATION

ITEM  1.     LEGAL  PROCEEDINGS
As previously reported, IGF, which is a wholly owned subsidiary of SIG, had been
a  party  to  a  number  of  pending  legal  proceedings  and claims relating to
agricultural  production  interruption  insurance  policies (the "AgPI Program")
which  were sold during 1998. All of the policies of insurance which were issued
in the AgPI Program were issued by and under the name of Mutual Service Casualty
Insurance  Company  ("MSI"), a Minnesota corporation with its principal place of
business  located  in  Arden Hills, Minnesota. Sales of this product resulted in
large  underwriting  losses  by  IGF.

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

SIG  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 the Company, three individuals who were or are
officers  or  directors of the Company or of SIG, 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 SIG'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
SIG'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, SIG 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.

SIG'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).  SIG  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 SIG's subsidiaries.
SIG, 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 SIG'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.


<PAGE>
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

             a.  Exhibits

                 10.29     Consulting  Agreement  between  Goran  Capital  Inc.
                 and AGS  Capital  Ltd.  effective  May  1,  2002.

                 99.1     Certification pursuant to Section 906 of the
                 Sarbanes-Oxley Act of 2002 (CEO)

                 99.2     Certification pursuant to Section 906 of the
                 Sarbanes-Oxley Act of 2002  (CFO)

             b.  Reports  on  Form  8-K

                 None


<TABLE>
<CAPTION>

Goran  Capital  Inc.  -  Consolidated
Analysis  of  Loss  Per  Share
US  GAAP  -  Treasury  Method

                                                              Nine Months          Nine Months
                                                                 Ended                 Ended
                                                          September 30, 2002    September 30, 2001
                                                         --------------------  -------------------
<S>                                                                 <C>                   <C>
Average Price (US $). . . . . . . . . . . . . . . . . .                 N/A                    N/A

Proceeds from Exercise of Warrants and Options (US $) .                 Nil                    Nil

Shares Repurchased - Treasury Method. . . . . . . . .                .  Nil                    Nil

Shares Outstanding - Weighted Average . . . . . . . . .           5,393,698              5,775,000

Add:  Options and Warrants Outstanding (1). . . . . . .                 Nil                    Nil

Less:  Treasury Method - Shares Repurchased . . . . . .                 Nil                    Nil

Shares Outstanding for US GAAP Purposes . . . . . . . .           5,393,698              5,775,000

Net Loss in Accordance with US GAAP . . . . . . . . . .    $    (17,675,000)    $     (24,684,000)

Net Loss Per Share - US GAAP - Basic and Fully Diluted.    $          (3.28)    $           (4.28)

<FN>

(1)  Only  those  options  with  a  dilutive  effect  were included above for the nine months ended
September  30,  2002  and  2001.
</TABLE>


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
                                                        ------------------------
                                                             Douglas  H.  Symons
                                                       Chief  Executive  Officer
                                                 (principal  executive  officer)

                                                       By:  /s/  John  G.  Pendl
                                                            --------------------
                                                                 John  G.  Pendl
                                                       Chief  Financial  Officer
                                (principal  financial  and  accounting  officer)



<PAGE>
     CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002


CERTIFICATION

I,  Douglas  H.  Symons,  certify  that:

1.   I  have  reviewed  this quarterly report on Form 10-Q of Goran Capital 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>
     CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002


CERTIFICATION

I,  John  G.  Pendl,  certify  that:

1.     I have reviewed this quarterly report on Form 10-Q of  Goran Capital 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/  John  G.  Pendl
        -------------------                              --------------------
                                                         John  G.  Pendl
                                                    Chief  Financial  Officer





                                  EXHIBIT INDEX
REFERENCE  TO
REGULATION  S-K
EXHIBIT  NO.  DOCUMENT

10.29*     Consulting  Agreement between Goran Capital Inc. and AGS Capital Ltd.
effective  May  1,  2002.

99.1     Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(CEO)

99.2     Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(CFO)


*  Compensation  related  agreement





                                       30

                                  EXHIBIT 10.29

CONSULTING  AGREEMENT  with  an  effective  date  of  May  31,  2002


BETWEEN:     GORAN CAPITAL INC., a body politic and corporate duly incorporated,
having  its head office in Toronto Canada and  GRANITE REINSURANCE COMPANY LTD.,
a  body  politic  and corporate duly incorporated, having its office at Bishop's
Court  Hill,  P.O.  Box  111,  St.  Michael,  Barbados, West Indies (hereinafter
referred  to  as  the  "Companies")

AND:     AGS  CAPITAL LTD., a body politic and corporate duly incorporated, with
offices  at  20 Eagle Road, Toronto Ontario M82 4HS, (hereinafter referred to as
the  "Consultant")

     WHEREAS  the  Companies actively engaged internationally in the business of
insurance  and  reinsurance;

     WHEREAS  the  Consultant, through its President, has expertise in the field
of  insurance  and  reinsurance  and is desirous of entering into this Agreement
with  respect  to  providing  international consulting services on demand to the
Companies  as  outlined  in Appendix A and additional appendix as maybe attached
hereto  in  writing;

     WHEREAS  the  Companies  wishes  to  engage  the  services  offered  by the
Consultant  and  the Consultant is willing to enter into an agreement to provide
services  on  the  terms  and  conditions  described  herein:

NOW,  THEREFORE,  BE  IT  AGREED  AS  FOLLOWS:

1.   PREAMBLE The whereas clauses mentioned above shall form an integral part of
     this  Agreement  as  it  fully-recited  at  length  herein.

2.   ENGAGEMENT

2.1  The  Companies  hereby  retains  the  services  of  the  Consultant and the
     Consultant  hereby  accepts  such  engagement.

2.2  During the term of this Agreement, the Consultant shall, at its sole costs,
     make  available  to  the  Companies  and  provide  upon  its request a duly
     qualified  representative  for  purposes  of  fulfilling  the  Consultant's
     obligations  under  this  Agreement.
3.     TERM
(A)  This  is  an  annual  renewable  contract, unless notice is given by either
     party at least 90 days before June 1st of any year. The contract shall then
     expire on the 1st of June following notice. At any time prior to the 90-day
     notice  period,  the  Company,  at  it's  option, may choose to extend this
     contract  for  an  additional  one-year  term.

(B)  Change  of  control,  should  Gordon Symons and or Douglas Symons no longer
     control  the  appointment  of board members of Goran, and in order to cause
     continuity  of  these  very  important  projects,  this  contract  shall
     automatically extend for a further two year term, from the date of the last
     renewal.
4.   NATURE  OF  CONSULTING  SERVICES
4.1  The  Consultant  agrees  to  provide  consulting  services on behalf of the
     Companies  as  and  when requested by the Companies during the term of this
     Agreement and, without limiting the generality of such services, to furnish
     a  representative to oversee and supervise the business activities outlined
     in  Appendix  A.  The essence of this contract is to utilize the experience
     and knowledge of Alan G. Symons, his previous duties with the Companies and
     personnel.  Alan  G.  Symons shall be assigned as the consultant performing
     the  services  to  the Companies, however, it is understood and agreed that
     certain  work  may  be performed by others under the control of AGS Capital
     Ltd.  At all times, Alan G. Symons shall effect direct supervision over the
     work  performed. Any substitution of Alan G. Symons to perform the services
     being  contracted  for  under this agreement without the written consent of
     the  Companies  shall  render  the  contract  null  and  void.

4.2  The  Consultant  and its representative warrant to perform such services as
     requested  to  the best of its talents, efforts and abilities in accordance
     with  standard  business  practices.

4.3  This  agreement  may  not  be  assigned  by  either  party.

5.   COMPENSATION  The  Companies  shall  compensate the Consultant for services
     rendered  under  this  Agreement at an annual rate of FIVE HUNDRED THOUSAND
     dollars  (U.S.)  ($500,000.00 U.S.), payable in equal monthly installments,
     in  arrears,  and  in each successive calendar year of the term, the annual
     rate shall be increased by the greater of (1) 2.5% or (2) the U.S. consumer
     price  index  for  the  immediately  preceding calendar year. The Companies
     shall  not  be  responsible  to  the  Consultant for any ordinary operating
     expenses  of  the  Consultant  such as general administrative, rent, staff,
     overhead,  etc.

5.   INSURANCE The Companies will continue to provide for the Consultant and one
     assistant  to  participate  in  the  life,  medical and dental plans of its
     subsidiary,  Symons  International  Group,  Inc.  ("SIG").
7.   REIMBURSEMENT  FOR OUT-OF-POCKET EXPENSES The parties recognize that in the
     course  of  performing  its  services  hereunder,  the Consultant may incur
     out-of-pocket  expenses.  The  Consultant  agrees  to submit, at designated
     intervals  to  be  determined by the parties hereto, invoices with original
     vouchers attached thereto, to the Companies. The Consultant agrees that the
     said  expenses  shall  be  reasonable  and necessary, in the opinion of the
     Companies, as well as be incurred in the direct performance of its services
     hereunder,  failing  which  they  may  not be reimbursed to the Consultant.

8.   BONUS  In  addition  to  the  forgoing,  the  Companies  will  pay  a bonus
     immediately  upon  completion of certain projects and the financial benefit
     to  the  Companies  has been received as outlined in the attached or future
     appendix  to  this  agreement.

9.   INDEPENDENT CONSULTANT 9.1 It is understood that the Consultant is retained
     by the Companies only for the purposes set forth herein and its relation to
     the  Companies  shall  be  of  an  independent  Consultant.

9.2  The  Consultant agrees that it shall not be considered under the provisions
     of  this  Agreement  or  otherwise as having a joint venture or partnership
     status  with  the  Companies or being entitled to participate in any plans,
     arrangements,  benefits,  or  distributions  of  the  Companies.

9.3  Notwithstanding  items  9.1  and  9.2,  the consultant is engaged to render
     services  in  accordance with the terms of this agreement in an expeditious
     and  professional  manner  and  to keep the Companies fully informed of the
     status  of  the matters entrusted to them for their assistance on a monthly
     basis.
10.  CONFIDENTIALITY  As an essential condition of the Agreement, the Consultant
     warrants  that  it  shall  not, at any time, either during the term of this
     Agreement  or  thereafter,  divulge to any competitor person, or competitor
     corporation,  any  information  or  documentation received by it during the
     course  of  its  engagement and all such information shall be kept strictly
     confidential  and  shall not in any manner be revealed to competitor person
     or  competitor  corporation.  At  the  termination  of  this Agreement, the
     Consultant  agrees if requested of same to return and give to the Companies
     all  documentation  relating  to  the  Companies  in  its possession and/or
     control.

11.  TERMINATION  The  Companies  shall have the right to terminate the services
     hereunder  of the Consultant "for cause" at any time which shall be defined
     and  limited  to  acts  of  dishonesty,  fraud  or  gross negligence of the
     Consultant  or  its  representative  committed from and after the effective
     date  of  this  agreement.

12.  INTEREST  ON  MONIES DUE Any balance due either party past due greater than
     30  days  shall  bear  interest at 1% per month or part thereof until fully
     paid.

13.  NOTICE All notices called for or contemplated hereunder shall be in writing
     and  shall  be  sent  by  certified or registered mail or by courier to the
     addresses  mentioned  in the heading of this Agreement. All notices will be
     deemed  given  when  received  if delivered by courier, and if sent by mail
     then  five  (5)  business days after mailing. Either party may change their
     address  by  written  notice  to  the  other  party.

14.  SET  OFF  There  shall be no right of set off against the base compensation
     included under Section 5, but up to 50% of any additional compensation such
     as that contemplated under Section 8 can be at the Company's option set off
     against  balances  due  the  Companies.

15.  ENTIRE  AGREEMENT  This  Agreement  constitutes  the  entire  understanding
     between  the parties with respect to the subject matter hereof, superseding
     all  negotiations, previous agreements, verbal or written, and no variation
     hereof  shall  be  of  any  force  and effect unless reduced to writing and
     signed  by  the  parties  hereto.
WHEREOF,  THE  PARTIES  HAVE  SIGNED  HEREIN  BELOW:

GRANITE  REINSURANCE  COMPANY  LTD.       AGS  CAPITAL  LTD.

PER:  /S/  G.  GORDON  SYMONS             PER:   /S/  ALAN  G.  SYMONS
      -----------------------                    ---------------------

DATE:  MAY  31,  2002                     DATE:  MAY  31,  2002
       --------------                            --------------


GORAN  CAPITAL,  INC.

PER:  /s/ DOUGLAS  H.  SYMONS
      -----------------------

DATE:  MAY  31,  2002
       --------------


WITNESS:                                  WITNESS:

___________________________________       ___________________________


                                   APPENDIX A


The  consultant  is  hereby  engaged for the following projects on behalf of the
Companies.  The  consultant  shall not represent the Company with respect to any
other  matters  other  than  the  following  without  prior  written  consent.

(A)  The  Consultant  shall: Assist the management of IGF Insurance Company with
     respect  to the run-off of its crop insurance operations and the collection
     of  debts  and  obligations  due  to  IGF.

(B)  Manage the litigation known as AgPi. Should the litigation result in IGF or
     other  affiliates to IGF including but not limited to Granite Re and Goran,
     being  awarded  compensation  of a calculated value, the Consultant will be
     entitled  to  10%  on  the  net  proceeds  over  $1  million  (U.
S.)

(C)  Manage  the  litigation between Toronto Dominion Bank and Granite Insurance
     Company.  Should  the  litigation  result  in  compensation of a calculated
     value,  the  Consultant  will be entitled to a bonus of 10% on net proceeds
     over  $1  million  (CAN).

(D)  At  the  request  of the Company, the Consultant shall work with designated
     representatives  of  the  Companies  to  acquire or restructure outstanding
     trust  preferred  securities  due  2027  and  shall  not assist directly or
     indirectly any other person or entity other than the Companies with respect
     to  all  matters associated with the purchase or restructuring of the trust
     preferred  securities.

<PAGE>
                                  EXHIBIT 99.1

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

I,  Douglas  H.  Symons,  Chief  Executive  Officer  of  Goran Capital Inc. (the
"Company"),  certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002,
18  U.S.C.  Section  1350,  that  to  the  best  of  my  knowledge:

(1)the  Quarterly  Report  on  Form 10-Q of the Company for the quarterly period
ended  September 30, 2002 (the "Report") fully complies with the requirements of
Section  13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or
78o(d));  and

(2)  the  information  contained  in the Report fairly presents, in all material
respects,  the  financial  condition  and  results of operations of the Company.


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

<PAGE>
                                  EXHIBIT 99.2

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

I, John G. Pendl, Chief Financial Officer of Goran Capital Inc. (the "Company"),
certify,  pursuant  to  Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C.
Section  1350,  that  to  the  best  of  my  knowledge:

(1)the  Quarterly  Report  on  Form 10-Q of the Company for the quarterly period
ended  September 30, 2002 (the "Report") fully complies with the requirements of
Section  13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or
78o(d));  and

(2)  the  information  contained  in the Report fairly presents, in all material
respects,  the  financial  condition  and  results of operations of the Company.

Dated:     November  14,  2002                         By:  /s/  John  G.  Pendl
                                                            --------------------
                                                                 John  G.  Pendl
                                                       Chief  Financial  Officer