UNITED STATES

                       SECURITIES AND EXCHANGE COMMISSION

                           Washington, D.C. 20549-1004

                                    FORM 10-Q

Mark  One

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

     For  the  quarterly  period  ended  March  31,  2003
                                         ----------------

[ ]             TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
                      THE SECURITIES 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  Identification  No.)
incorporation  or  organization)

           2 Eva Road, Suite 200, Etobicoke, Ontario, M9C 2A8, Canada
           ----------------------------------------------------------
             4720 Kingsway Drive, Indianapolis, Indiana, 46205, USA
             ------------------------------------------------------
                    (Address of Principal Executive Offices)
                                   (Zip Code)

                  (416) 622-0660 (Canada); (317) 259-6300 (USA)
                  ---------------------------------------------
               Registrant's telephone number, including area code

           __________________________________________________________
   (Former name, former address and former fiscal year, if changed since last
                                    report)

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

Indicate  by  check  mark  whether  the  Registrant  is an accelerated filer (as
defined  in  Rule  12b-2  of  the  Exchange  Act).                    Yes  No  X

As  of  June  30, 2003, 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 MARCH 31, 2003
                                                                           Page
                                                                         Number
<S>        <C>                                                              <C>
                        PART I     FINANCIAL INFORMATION

Item  1     Financial  Statements

            Consolidated  Balance Sheets at March 31, 2003
            (unaudited) and December 31, 2002                                  3

            Unaudited  Consolidated Statements of Operations
            for the Three Months Ended March  31,  2003  and  2002             4

            Unaudited  Consolidated Statement of Stockholder's  Equity
           (Deficit) for the Three Months ended March  31, 2003 and 2002       5

            Unaudited  Consolidated Statements of Cash Flows for the
            Three Months Ended March 31, 2003 and 2002                         6

            Condensed  Notes  to Unaudited Consolidated Financial Statements   7

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

Item  3     Quantitative  and  Qualitative  Disclosures  about
            Market  Risk                                                      19

Item  4     Controls  and  Procedures                                         19


                          PART II     OTHER INFORMATION

Item  1     Legal  Proceedings                                                19

Item  2     Changes  in  Securities  and  Use  of  Proceeds                   21

Item  3     Defaults  Upon  Senior  Securities                                21

Item  4     Submission  of  Matters  to  a  Vote of Security Holders          21

Item  5     Other  Information                                                21

Item  6     Exhibits  and  Reports  on  Form  8-K                             21

SIGNATURES                                                                    21

Sarbanes-Oxley  Act  Section  302  Certifications                             22


</TABLE>


<PAGE>
<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)

                                                                        March 31,
                                                                          2003       December 31,
                                                                       (Unaudited)      2002
                                                                       -----------  -----------
<S>                                                                        <C>           <C>
ASSETS:
Investments:
  Fixed maturities                                                       $26,643       $36,035
  Equity securities                                                       9,339         10,778
  Short-term investments, at amortized cost, which approximates market    8,693         8,495
  Other invested assets                                                   3,102         3,171
                                                                       -----------  --------------
Total investments                                                        47,777         58,479
Investments in and advances to related parties                             83             83
Cash and cash equivalents                                                 3,003         2,131
Receivables, net of allowances of $752 and $319                          28,887         28,302
Reinsurance recoverable on paid and unpaid losses, net                   28,045         24,628
Prepaid reinsurance premiums                                             28,292         25,470
Property and equipment, net of accumulated depreciation                   6,347         7,084
Deferred securities issuance costs                                        2,096         2,119
Other assets                                                              2,057         3,309
Assets of discontinued operations                                         8,105         10,361
                                                                       -----------  --------------
TOTAL ASSETS                                                             154,692       $161,966
                                                                       ===========  ==============

LIABILITIES AND STOCKHOLDER'S DEFICIT:
LIABILITIES:
  Losses and loss adjustment expenses                                    $69,339       $72,809
  Unearned premiums                                                      39,298         35,797
  Reinsurance payables                                                   13,061         17,128
  Distributions payable on preferred securities                          26,877         24,793
  Deferred income                                                         3,500         4,250
  Other                                                                  16,874         15,673
  Liabilities of discontinued operations                                 12,256         14,274
                                                                       -----------  --------------
TOTAL LIABILITIES                                                        181,205       184,724
                                                                       -----------  --------------
MINORITY INTEREST:
Company-obligated mandatorily redeemable preferred stock of trust
Subsidiary holding solely parent debentures                              67,994         67,994
                                                                       -----------  --------------
STOCKHOLDERS' DEFICIT:
Common stock                                                             18,502         18,502
Contributed surplus                                                      70,864         70,864
Cumulative translation adjustment                                        (1,179)       (1,023)
Retained (deficit)                                                      (182,694)     (179,095)
                                                                       -----------  --------------
TOTAL STOCKHOLDERS' (DEFICIT)                                           (94,507)       (90,752)
                                                                       -----------  --------------
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT)                           $154,692       $161,966
                                                                       ===========  ==============
<FN>



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


<PAGE>
<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
                                                                                      March 31,
                                                                                --------------------
                                                                                   2003            2002
                                                                           --------------------  --------
<S>                                                                        <C>                   <C>
Gross premiums written. . . . . . . . . . . . . . . . . . . . . . . . . .  $            27,952   $45,082
Less ceded premiums . . . . . . . . . . . . . . . . . . . . . . . . . . .               20,949    30,973
                                                                           --------------------  --------
Net premiums written. . . . . . . . . . . . . . . . . . . . . . . . . . .  $             7,003   $14,109
                                                                           ====================  ========

Net premiums earned . . . . . . . . . . . . . . . . . . . . . . . . . . .  $             6,196   $13,093
Fee income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                2,687     2,814
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . .                  337     1,338
Other income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  750       750
Net realized capital loss . . . . . . . . . . . . . . . . . . . . . . . .                  245      (722)
                                                                           --------------------  --------
Total revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               10,215    17,273
                                                                           --------------------  --------
Expenses:
Losses and loss adjustment expenses . . . . . . . . . . . . . . . . . . .                5,905    13,948
Policy acquisition and general and administrative expenses. . . . . . . .                5,803     7,293
Amortization of intangibles . . . . . . . . . . . . . . . . . . . . . . .                   22        43
                                                                           --------------------  --------
Total expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               11,730    21,284
                                                                           --------------------  --------
Loss from continuing operations before income taxes and minority interest               (1,515)   (4,011)
                                                                           --------------------  --------
Total income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . .                    -         -
                                                                           --------------------  --------
Loss from continuing operations before minority interest. . . . . . . . .               (1,515)   (4,011)
                                                                           --------------------  --------
Minority interest:
Distributions on preferred securities, net of tax of nil in both
2003 and 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                2,084     1,956
                                                                           --------------------  --------
Loss from continuing operations . . . . . . . . . . . . . . . . . . . . .               (3,599)   (5,967)
                                                                           --------------------  --------
Discontinued operations:
Income (loss) from operations of discontinued segment, less applicable
income taxes of nil in both 2003 and 2002 . . . . . . . . . . . . . . . .                    -         -
                                                                           --------------------  --------

Net loss. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $            (3,599)  $(5,967)
                                                                           ====================  ========
Weighted average shares outstanding - basic and fully diluted . . . . . .                5,394     5,394
                                                                           ====================  ========
Net loss from continuing operations per share - basic and fully diluted .  $             (0.67)  $ (1.11)
                                                                           ====================  ========
Net loss of discontinued operations per share - basic and fully diluted .  $                 -   $     -
                                                                           ====================  ========
Net loss per share - basic and fully diluted. . . . . . . . . . . . . . .  $             (0.67)  $ (1.11)
                                                                           ====================  ========
<FN>



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



<PAGE>
<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, 2001
                                                            $18,502   $ 42,465   $      (763)  $(149,350)  $        (89,146)
Purchase of Preferred Securities
                                                                  -     28,399             -           -             28,399
Change in cumulative translation
Adjustment . . . . . . . . . . . . . . . . . . . . . . . .        -          -           (36)          -                (36)
Net loss . . . . . . . . . . . . . . . . . . . . . . . . .        -          -             -      (5,967)            (5,967)
                                                            --------  ---------  ------------  ----------  ----------------
Comprehensive income (loss).                                            28,399           (36)     (5,967)            22,396
                                                            --------  ---------  ------------  ----------  ----------------
Balance at March 31, 2002. . . . . . . . . . . . . . . . .  $18,502   $ 70,864   $      (799)  $(155,317)  $        (66,750)
                                                            ========  =========  ============  ==========  =================


Balance at December 31, 2002
                                                            $18,502   $ 70,864   $    (1,023)  $(179,095)  $        (90,752)
Change in cumulative translation
Adjustment . . . . . . . . . . . . . . . . . . . . . . . .                              (156)                          (156)
Net loss . . . . . . . . . . . . . . . . . . . . . . . . .        -          -             -      (3,599)            (3,599)
                                                            --------  ---------  ------------  ----------  -----------------
Comprehensive income (loss).                                                            (156)     (3,599)            (3,755)
                                                            --------  ---------  ------------  ---------   -----------------
Balance at March 31, 2003. . . . . . . . . . . . . . . . .  $18,502   $ 70,864   $    (1,179)  $(182,694)  $        (94,507)
                                                            ========  =========  ============  ==========  =================
<FN>



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




<PAGE>
<TABLE>
<CAPTION>

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


                                                                             Three Months Ended
                                                                                  March 31,
                                                                           2003            2002
                                                                   --------------------  ---------
<S>                                                                <C>                   <C>
Cash flows from operating activities:
Net loss for the period . . . . . . . . . . . . . . . . . . . . .  $            (3,599)  $ (5,967)
Adjustments to reconcile net loss to net cash used in operations:
Depreciation and amortization . . . . . . . . . . . . . . . . . .                  796        876
Net realized capital loss . . . . . . . . . . . . . . . . . . . .                 (245)       722
     Net changes in operating assets and liabilities:
  Receivables . . . . . . . . . . . . . . . . . . . . . . . . . .                 (585)    (5,781)
  Reinsurance recoverable on paid and unpaid losses . . . . . . .               (3,417)    (4,340)
  Prepaid reinsurance premiums. . . . . . . . . . . . . . . . . .               (2,822)    (3,893)
  Deferred policy acquisition costs . . . . . . . . . . . . . . .                   --       (160)
  Other assets and liabilities. . . . . . . . . . . . . . . . . .                2,453      1,790
  Loss and loss adjustment expense reserves . . . . . . . . . . .               (3,470)    (2,727)
  Unearned premiums . . . . . . . . . . . . . . . . . . . . . . .                3,501      5,046
  Reinsurance payables. . . . . . . . . . . . . . . . . . . . . .               (4,067)     6,642
  Distribution payable on preferred securities. . . . . . . . . .                2,084     (4,369)
  Deferred income . . . . . . . . . . . . . . . . . . . . . . . .                 (750)      (750)
  Net assets from discontinued operations . . . . . . . . . . . .                  102          -
                                                                   --------------------  ---------
Net cash (used in) operations . . . . . . . . . . . . . . . . . .              (10,019)   (12,911)
                                                                   --------------------  ---------

Cash flows from investing activities, net of assets acquired:
Net sale (purchase) of short-term investments . . . . . . . . . .                 (198)     2,918
Proceeds from sales, calls and maturities of fixed maturities . .               10,001      9,746
Purchase of fixed maturities. . . . . . . . . . . . . . . . . . .                 (382)    (4,292)
Proceeds from sale of equity securities . . . . . . . . . . . . .                1,430      5,475
Purchase of equity securities . . . . . . . . . . . . . . . . . .                   --     (1,263)
Purchase of property and equipment. . . . . . . . . . . . . . . .                  (85)      (134)
Net investing activities from discontinued operations . . . . . .                  136         --
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  (11)      (125)
                                                                   --------------------  ---------
Net cash provided by investing activities . . . . . . . . . . . .               10,891     12,325
                                                                   --------------------  ---------

Cash flows from financing activities, net of assets acquired:
Purchase of subsidiary's preferred securities . . . . . . . . . .                   --      1,535
Repayment of related party loans. . . . . . . . . . . . . . . . .                   --        392
Net financing activities from discontinued operations . . . . . .                   --         --
                                                                   --------------------  ---------
Net cash provided by (used in) financing activities . . . . . . .                   --      1,927
                                                                   --------------------  ---------

Increase in cash and cash equivalents . . . . . . . . . . . . . .                  872      1,341
Cash and cash equivalents, beginning of period. . . . . . . . . .                2,131     11,263
                                                                   --------------------  ---------
Cash and cash equivalents, end of period. . . . . . . . . . . . .  $             3,003   $ 12,604
                                                                   ====================  =========
<FN>



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



<PAGE>
                               GORAN CAPITAL INC.
            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)
                    For the Three Months Ended March 31, 2003


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 ("CDN GAAP"). 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 CDN
     GAAP  and contain references to United States Generally Accepted Accounting
     Principles  ("U.S.  GAAP") accounting pronouncements. Note 6, United States
     Accounting Principles, presents a reconciliation of CDN GAAP and U.S. GAAP.

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

1.   Symons  International  Group,  Inc.  ("SIG") is a 73.8% 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  ;
2.   Granite  Reinsurance  Company Ltd. ("Granite Re") a finite risk reinsurance
     company  domiciled  in  Barbados.

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

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

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."

The  financial statements included in this report are the consolidated financial
statements  of  the  Company  and  its  subsidiaries. The consolidated financial
statements  have  been  prepared  pursuant  to  the rules and regulations of the
Securities  and  Exchange  Commission  ("SEC").  In  management's opinion, these
financial  statements  include  all  adjustments  (consisting  only  of  normal,
recurring  adjustments)  necessary  for  a  fair  presentation of the results of
operations  for  the  interim  periods  presented.  Pursuant  to  SEC  rules and
regulations,  certain  information and footnote disclosures normally included in
financial  statements  prepared in accordance with Generally Accepted Accounting
Principles ("GAAP") 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  should be read in conjunction with the financial statements and notes for
the year ended December 31, 2002 included in the Company's 2002 Annual Report on
Form  10-K.  Results  for  any  interim period are not necessarily indicative of
results  to  be  expected  for  the  year.

2.     PREFERRED  SECURITIES
On  August  12,  1997,  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 10 years after the
issue  date.

SIG  elected  to  defer  the  semi-annual  interest payments due in February and
August  2000,  2001 and 2002 and in February 2003.  SIG expects to continue this
practice  through 2003 and 2004.  The unpaid interest installment amounts accrue
interest  at  9.5%.

SIG  may  continue to defer semi-annual interest payments for up to an aggregate
of  five  years as permitted by the indenture for the Preferred Securities.  All
of the deferred interest (approximately $84 million, if all payments due in 2003
and  2004  are deferred) will become due and payable in February 2005 along with
the semi-annual interest due at that time.  SIG relies on the payment of finance
and  service  fees  by  its  subsidiaries  to fund its operations, including its
payment  of  interest  on  the  Preferred Securities.  Certain state regulators,
including  the  FDOI,  have  issued  orders  prohibiting SIG's subsidiaries from
paying  such  fees  to  SIG.  There  can  be  no  assurance  that  SIG will have
sufficient  revenue  to fund its operations and pay the deferred interest on the
Preferred  Securities.  Such  failure  to  pay could result in default under the
indenture  and  acceleration  of  the  payment  of  the  Preferred  Securities.

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
(0.42)  at  March  31, 2003, and will continue to apply until SIG's consolidated
coverage ratio complies with the terms of the trust indenture. SIG complied with
these  additional  restrictions  as  of  December  31,  2001  and 2002 and is in
compliance  as  of  June  30,  2003.

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

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

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

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

At  March  31,  2003,  Pafco's  gross written premium to surplus and net written
premium  to  surplus exceeded the ratios allowed under the agreed order. SIG has
reduced  written  premium  and will be in compliance at December 31, 2003. Pafco
has  agreed  with  the  IDOI  to maintain its surplus above $2.5 million through
August  2003.

In March 2000, Pafco agreed with the Iowa Department of Insurance ("IADOI") that
it  would  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:

-    as  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.

On  June 30, 2003 the Missouri Department of Insurance instituted proceedings to
suspend  Pafco's  certificate  of  authority  in  Missouri. Pafco had previously
ceased  writing  new business in Missouri and has initiated discussions with the
Missouri  Department  of  Insurance  intended  to  identify  alternatives to the
pending  proceeding.

Superior  and  Pafco provide monthly financial information to the departments of
insurance  in  certain  states  in  which  they  write  business  at the states'
request(s).

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 to comply with the FDOI final
order.

In  accordance  with  the FDOI's final 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 could not operate profitably.  Accordingly, on
October  1,  2002,  Superior  Group discontinued the provision of certain claims
services to Superior.  Superior provided a number of proposals to the FDOI in an
effort  to  establish  an acceptable repayment plan in accordance with the final
order.  None  of  the  proposals  were  acceptable  to  the  FDOI.

On  March  21,  2003  the  FDOI  filed  a  Motion for Enforcement of Final Order
Granting Petition to Enforce Agency Action (the "Motion for Enforcement") in the
Circuit Court which seeks to hold Superior in contempt for failing to obtain the
immediate  repayment  of approximately $15 million from Superior Group. Superior
Group  presently  does not have the ability to make a $15 million repayment, and
Superior  believes  that this petition seeks to fashion a remedy not intended by
the  Circuit  Court's  November  1,  2002  order  and  contravenes the spirit of
numerous  discussion  between the FDOI and Superior to resolve the issues during
the  pendency  of  Superior's  appeal  to  the  District Court of Appeal and the
original enforcement action. On May 7, 2003 a hearing was held on the Motion for
Enforcement,  and  an  order  has  not  yet  been  issued.

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, which was denied on
December  17,  2002.

On  November  20,  2002,  the FDOI issued a notice and order to show cause which
seeks to suspend or revoke Superior's certificate of authority principally based
upon  allegations  that  Superior did not comply with the FDOI's August 30, 2001
final order during the pendency of the appeal of the order to the District Court
of  Appeal.  Superior  believes  that  it has fully and timely complied with the
final  order  and that the action brought by the FDOI is barred by res judicata.
A  formal  administrative  hearing to review the notice and a determination that
the  order or administrative action contemplated by the notice not be issued was
held  in May 2003. A recommended order, which the FDOI may accept or reject, has
not  been  issued.

The FDOI has engaged an actuary to perform a review of Superior's reserves as of
May  31,  2003.

On  October  9,  2001,  the  State Corporation Commission of Virginia ("Virginia
Commission")  issued  an  order  to  take  notice  regarding an order suspending
Superior's  license  to write business in that state.  An administrative hearing
for  a  determination  that the suspension order not be issued was held March 5,
2002.  On  May  3,  2002, the hearing examiner issued his report and recommended
that  Superior's  license not be suspended and that Superior file its risk based
capital  plans and monthly and quarterly financial information with the Virginia
Bureau  of  Insurance  ("Bureau").  On  June  19,  2002  the Virginia Commission
entered  an  order which adopted the findings of the hearing examiner, continued
the  matter  until  such time as the Bureau requests further action and requires
the  continued  monitoring of the financial condition of Superior by the Bureau.
On  October  11,  2002,  the Virginia Commission filed an administrative Rule to
Show  Cause.  A hearing was scheduled for November 18, 2002 to determine whether
Superior's  license  to  transact  insurance  business  in  Virginia  should  be
suspended.  The  Virginia  Commission  continued  the  hearing  indefinitely.
Superior has provided additional financial information to and continues to be in
contact with the Virginia Commission.  On July 10, 2003, the Virginia Commission
entered  an  order  which  directs Superior to stop writing business in Virginia
until its surplus is at least $3 million.  Although Superior's surplus as of May
31,  2003  is  above $3 million, the order also requires Superior to provide the
Virginia  commission  with  an  interim  audited  financial statement.  Superior
anticipates  that  it  will  meet the conditions set forth in the order prior to
July  31,  2003.  The  nonstandard  automobile  insurance  policies  written  in
Virginia  by Superior accounted for approximately 16.0% and 14.5% of SIG's total
gross  written  premiums  through  March  31,  2003  and  December  31,  2002,
respectively.

On  April  21,  2003 the Alabama Department of Insurance issued an order to show
cause  to  Superior  for  suspension  of  Superior's certificate of authority in
Alabama  due to the decline in Superior's surplus.  Superior is in communication
with and providing additional financial information to the Alabama Department of
Insurance.  An  administrative  hearing  has  not  been  scheduled.  Policies of
insurance  written  in  Alabama  account  for  less  than 1% of Superior's gross
written  premiums.

Due to the losses experienced by Superior, it is in regular ongoing contact with
the  departments  of insurance of Florida, Virginia and California and insurance
regulators  in  other  states  in  which  it  writes business.  Superior closely
monitors  its  risk  based  capital  based  upon  its  financial  projections.

4.     COMMITMENTS  AND  CONTINGENCIES
Superior  is  a defendant in a case filed June 16, 2003 in the Superior Court of
Muscogee  County,  Georgia  entitled  Kenneth  P.  Chung  v.  Superior Insurance
Company.  The  case  purports  to  be  brought  on  behalf of former and current
insureds  of  Superior who presented first party physical damage coverage claims
during  the  six  year  period  preceding  June  16,  2003.  The plaintiff seeks
recovery  of alleged diminution in vehicle value from physical damage.  Superior
believes  that  the  allegations  of wrongdoing as alleged in the complaint were
without  merit  and  intends to vigorously defend the claims brought against it.

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 December 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 sought 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.  IGF filed a motion for summary judgment to dismiss the claims
in  the  plaintiff's  fourth  amended  complaint  on  the  basis  that  releases
previously executed by the plaintiffs are binding, which was granted.  The cross
claims between the selling brokers and MSI and IGF remain pending.  The trial is
scheduled  to  begin  in  August  2003.

The  Company  is a defendant in a case filed on February 23, 2000, in the United
States District Court for the Southern District of Indiana entitled Robert Winn,
et  al. v. Symons International Group, Inc., et al., Cause No. IP 00-0310-C-B/S.
Other  parties  named  as  defendants are SIG, 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
the  Company's  reported  financial  statements,  data  processing and financial
reporting  systems,  internal controls and loss reserves in violation of Section
10(b) of the Securities Exchange Act of 1934 (the "1934 Act") and SEC Rule 10b-5
promulgated thereunder.  The individual defendants are also alleged to be liable
as  "controlling  persons"  under  Sec.20  (a)  of  the 1934 Act.  As previously
reported in the Company's September 30, 2002 Form 10-Q, 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.

SIG  and  two  of  its  subsidiaries, IGFH and IGF, were 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  filed on June 4, 2001 and 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.  Discovery  is
proceeding.  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.

Superior  was  a  defendant  in a case filed on May 8, 2001 in the United States
District  Court  Southern  District of Florida entitled The Chiropractic Centre,
Inc.  v. Superior Insurance Company, Case No. 01-6782.  The case 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.  On
September 30, 2002, the court issued an administrative order which dismissed the
case.  The court's order administratively closing the case could be temporary or
permanent.  Superior  believes  that the allegations of wrongdoing as alleged in
the  complaint  were  without  merit  and  in  the event the order is temporary,
Superior  intends  to  vigorously  defend  the  claims  brought  against  it.

IGF  is a defendant in a case filed on December 31, 2002 in the Circuit Court of
Greene County, Missouri entitled Kevin L. Stevens v. Wilkerson Insurers, et al.,
Case  No.  102CC5135.  Other  parties  named  as defendants are the Company, the
Company's  subsidiaries,  Symons International Group (Florida), Inc. and Granite
Re,  Superior  Group Management, Superior, Superior American, Superior Guaranty,
Pafco and three individuals who were or are officers or directors of the Company
and/or  SIG. The Company, Granite Re, Symons International Group (Florida), Inc,
Superior  Group  Management,  Superior, Superior American, Superior Guaranty and
certain  individual  defendants  filed  motions  to dismiss for lack of personal
jurisdiction  which were denied. The case purports to be brought on behalf of an
IGF  insured  seeking  to  recover  alleged  damages based on allegations of bad
faith,  negligent claims handling and breach of fiduciary duties with respect to
a  claim  which  arose from an accident caused by the IGF insured.  IGF believes
that the allegations of wrongdoing as alleged in the complaint are without merit
and  intends  to  vigorously  defend  the  claims  brought  against  it.

See  Note  3,  "Regulatory  Actions,"  for  additional  legal  matters.

The  Company's insurance subsidiaries are parties to other litigation arising in
the  ordinary  course of business which the Company does not believe will have a
material  adverse  effect  upon  the  Company's  and  its  affiliates  financial
conditions  or results.   The Company, through its claims reserves, reserves for
both  the  amount  of  estimated  damages attributable to these lawsuits and the
estimate  costs  of  litigation.

<PAGE>
<TABLE>
<CAPTION>

5.     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 (in thousands):

                                                  Three Months Ended
                                                       March 31,
                                                     2003         2002
                                              ------------------  -----
<S>                                           <C>                 <C>
Basic:
  Weighted-average common shares outstanding               5,394  5,394
                                              ==================  =====

Diluted:
  Weighted-average common shares outstanding               5,394  5,394
                                              ==================  =====

</TABLE>


The  Company has 428,750 stock options outstanding as of March 31, 2003.  Common
stock equivalents are anti-dilutive.  Therefore, fully diluted loss per share is
the  same  as  basic  loss  per  share.

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

                                         March 31, 2003   December 31, 2002
                                       ----------------   -----------------
<S>                                           <C>              <C>
Stockholders (deficit) in accordance with
Canadian GAAP. . . . . . . . . . . .        $  (94,507)     $  (90,752)

Deduct effects of difference in accounting for:
  Receivable from sale of capital stock         (1,258)         (1,258)
  Unrealized (loss) on investments              (3,443)         (2,366)
                                              ----------       ----------

Stockholders' (deficit) in accordance with
 U.S. GAAP                                  $  (99,208)     $  (94,376)
                                              ==========      =========

U.S. GAAP requires the presentation of a statement of comprehensive income (loss).
CDN GAAP does not require a similar disclosure. The Company's comprehensive (loss)
Is as follows (in thousands):
                                       Three Months       Twelve Months
                                           Ended.          Ended .
                                      March 31, 2003 .  December 31, 2002
                                      --------------    ----------------
<S>                                        <C>                    <C>
Net (Loss) per Statement of Operations  $  (3,599)        $  (29,745)
Purchase of Preferred Securities              --              28,399
Change in cumulative translation adjustment  (156)              (260)
Unrealized (loss) on investments           (3,443)            (2,366)
                                          --------           --------
Comprehensive (Loss)                    $  (7,198)        $   (3,972)
                                        ==========          =========
</TABLE>


7.     STOCK-BASED  COMPENSATION
The  Company  accounts for stock-based employee compensation using the intrinsic
value  method  under APB Opinion 25, "Accounting for Stock Issued to Employees,"
and  related  interpretations  as  permitted  under  SFAS  148,  "Accounting for
Stock-Based  Compensation - Transition and Disclosure" ("SFAS 148"). Accordingly
no  compensation  expense  is  recognized  if the market price of the underlying
stock  does  not  exceed  the  exercise  price  at  the  date  of  grant.

If  the  Company  had applied the fair value recognition provisions of SFAS 123,
"Accounting  for Stock-Based Compensation," to stock-based employee compensation
and  non-employee director compensation, the effect on net loss and net loss per
share  attributable  to  common  stockholders  would not be materially affected.

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

Forward  Looking  Statements
All  statements, trend analyses, and other information herein contained relative
to  markets  for  the  Company's  products  and/or  the  Company's operations or
financial  results  constitute  forward-looking statements within the meaning of
the  Private Securities Litigation Reform Act of 1995 (the Act). Forward-looking
statements  include statements which are predictive in nature, which depend upon
or  refer to future events or conditions, which include words such "anticipate,"
"could,"  "feel(s),"  "believes,"  "plan,"  "estimate,"  "expect,"  "should,"
"intend,"  "will,"  and other similar expressions .  In addition, any statements
concerning  future  financial  performance,  ongoing  business  strategies  or
prospects  and  possible  future  Company  actions  which  may  be  provided  by
management  are  also  forward-looking  statements  as  defined  by  the  Act.
Forward-looking  statements  are  based  on current expectations and projections
about  future  events  and 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, but
are  not  limited to,  the effect on customers, agents, employees and others due
to  SIG's  and  its  subsidiaries'  receipt of going concern opinions from their
accountants;  general  economic  conditions,  including prevailing interest rate
levels and stock market performance; factors affecting the Company's nonstandard
automobile  operations  such  as  rate  increase  approval, policy renewals, new
business  written, and premium volume; and the factors described in this section
and  elsewhere  in  this  report.  These  forward-looking  statements  are  not
guaranties  of  future  performance and the Company has no specific intention to
update  these  statements.

Overview  of  Business
Goran  Capital  Inc.  ("Goran"  or  the  "Company")  is  a  Canadian  federally
incorporated holding company principally engaged in the business of underwriting
property  and  casualty  insurance  through its nonstandard automobile insurance
subsidiaries  Pafco  General  Insurance Company ("Pafco") and Superior Insurance
Company  ("Superior"),  which  maintain  their  headquarters  in  Indianapolis,
Indiana.  Goran  owns  approximately  73.8%  of  a  U.S. holding company, Symons
International  Group,  Inc.  ("SIG").  SIG  owns IGF Holdings, Inc. ("IGFH") and
Superior  Insurance Group Management, Inc. ("Superior Management") which are the
holding  companies  for  the  insurance subsidiaries.   Superior Management owns
Superior  Insurance  Group,  Inc.  ("Superior  Group")  which  is the management
company  for the insurance subsidiaries. SIG's revenue represents  approximately
90%  of  Goran's  consolidated  revenues. Goran's other subsidiaries are Granite
Reinsurance  Company Ltd. ("Granite Re"), Granite Insurance Company ("Granite"),
and  Symons  International  Group  (Florida)  Inc.  ("SIGF").

Granite  Re is a specialized reinsurance company that underwrites niche products
such  as  nonstandard automobile, crop, property casualty reinsurance and offers
(on  a  non-risk  bearing,  fee basis), rent-a-captive facilities for Bermudian,
Canadian  and  U.S.  reinsurance  companies.  Through  a rent-a-captive program,
Granite  Re  offers  the  use  of its capital and its underwriting facilities to
write  specific  programs  on  behalf of its clients, including certain programs
ceded  from  IGF  and  Pafco.  Granite  Re  alleviates  the need for a client to
establish its own insurance company and also offers this facility in an offshore
environment.

Granite,  a  Canadian  federally  licensed  insurance  company, sold its book of
business  in  January  1990  to  an  affiliate  which subsequently sold to third
parties in June 1990.  Granite currently has one outstanding claim and maintains
an  investment  portfolio  sufficient  to  support  this claim liability.  Goran
anticipates  that  the  outstanding  claim  will  be  resolved  by  2004.

SIGF,  a  Florida  corporation,  is  primarily  engaged  in  the  operation of a
property/casualty  insurance  brokerage  and  a  flood  insurance  brokerage.

Strategic  Alignment
As  previously  announced, in the fourth quarter of 2000, management initiated a
strategic  review  of  the  Company's U.S. operations. This review resulted in a
plan  to  divest of the Company's crop insurance segment, allowing management to
focus  on  nonstandard  automobile insurance. In June 2001, the Company sold its
crop  insurance  segment  and  adopted  a  plan  to wind-down the remaining crop
insurance  segment  obligations.  Accordingly,  financial  results  of  the crop
insurance  segment  are  presented  as  discontinued operations in the Company's
financial  statements. Continuing operations of the Company consist primarily of
the  nonstandard  automobile  insurance  segment.


<PAGE>
Significant  Losses  Have  Been  Reported  and  are  Likely  to  Continue
The  net  loss  from  continuing operations for the three months ended March 31,
2003  was  $(3,599,000).  The  net loss from continuing operations for the three
months  ended  March 31, 2002 was $(5,967,000). The Company reported losses from
continuing  operations  of  $(29,745,000),  $(31,937,000)  and $(63,224,000) for
2002,  2001  and 2000, respectively. Losses from continuing operations increased
in  2002  from  2001  due  to  significant  adverse  development on new business
generated  in the first quarter of 2002, primarily due to increased frequency of
losses.  The  Company's  losses  continued  for the period ending March 31,2003;
however,  the  Company  continues  to work towards operational improvements. The
financial condition of the company's U.S. insurance subsidiaries continues to be
of concern to the insurance regulators and has resulted in heightened regulatory
oversight.  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 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  IDOI, the FDOI and the insurance
regulators  of  other  states  in which the 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
Actions,"  in  the  condensed  notes  to  the  consolidated financial statements
above).  The  primary  purpose  of  insurance  regulation  is  the protection of
policyholders  rather than shareholders. Failure to resolve issues with the IDOI
and the FDOI, and with other regulators, in a manner satisfactory to the Company
could impair the Company's ability to execute its business strategy or result in
future  regulatory  actions  or  proceedings that could otherwise materially and
adversely  affect  the  Company's  operations.

The  Company  is  Subject  to  a  Number  of  Pending  Legal  Proceedings
As  discussed  elsewhere in this report, the Company and/or its subsidiaries are
involved  in  a number of pending civil legal proceedings  (see Part II, Item 1.
"Legal Proceedings"). Although the Company believes that many of the allegations
of  wrongdoing  are  without  merit  and intends to vigorously defend the claims
brought  against  it,  there  can be no assurance that such proceedings will not
have a material adverse effect on the Company's financial position or results of
operations.  Furthermore,  the  existence of these lawsuits diverts the time and
attention  of  management,  and  they  are  costly to defend, whether or not the
Company  is  ultimately  successful.

The  Terms  of  the Trust Preferred Securities May Restrict SIG's Ability to Act
SIG  has  issued  through a wholly owned trust subsidiary $135 million aggregate
principal  amount  in  trust  originated  preferred  securities  ("Preferred
Securities").  The  Preferred  Securities  have  a  term of 30 years with annual
interest at 9.5% paid semi-annually. The obligations of the Preferred Securities
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 the payment due in February 2003
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) approximating $84
million  will  become  due  and  payable  in February 2005. Although there is no
present  default  under  the  indenture that would accelerate the payment of the
Preferred  Securities,  the  indenture  contains  a number of covenants that may
restrict  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  and  the  Company.

Review  Of  Consolidated  Operations

Net  Loss
The  net  loss  for  the  three  months ended March 31, 2003 was $(3,599,000) or
$(0.67)  per share (basic and diluted).  The net loss for the three months ended
March  31,  2002 was $(5,967,000) or $(1.11) per share (basic and diluted).  The
decreased  loss  is  due  primarily to reduced loss and loss adjustment expenses
(LAE).  There  was no loss on discontinued operations for the three months ended
March  31,  2003  and  2002,  respectively.


<PAGE>
Gross  Premiums  Written
Gross premiums written decreased 38.0% for the first quarter of 2003 compared to
the  first  quarter of 2002.  The primary reasons for this decline in volume are
the  withdrawal  from  certain  competitive  markets  and  other  underwriting
initiatives  intended  to  increase  profitability.

Net  Premiums  Written
Net  premiums  written represent the portion of premiums that are being retained
by  the  Company  after  consideration  for  risk  sharing  through  reinsurance
contracts.  As  a result of losses in the Company's U.S. insurance subsidiaries,
the growth in retained deficit and to manage overall risk retention, 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 March 31, 2003, SIG ceded approximately 75% of
its  gross  written  premiums.

Net  Premiums  Earned
Net  premiums  earned decreased 52.7% for the three months ended March 31, 2003,
as  compared  to  the same period in 2002.  Premiums are earned ratably over the
term  of  the  underlying  insurance contracts and the reduction in net premiums
earned  is  a  result of the decrease 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 4.5% for the three months ended March 31,
2003,  as  compared  to  the  same  period  in  2002  .

Net  Investment  Income
Net  investment income for the three months ended March 31, 2003 was 74.8% lower
than  for  the  three  months  ended March 31, 2002.  This decrease reflects the
decline  in  invested  assets  during  a  period  of  declining premiums and the
liquidation of investments during 2002 to pay prior year losses settled in 2002.

Net  Realized  Capital  Gain  (Loss)
Net  realized  capital  gain  for  the  three  months  ended  March 31, 2003 was
$245,000.  Net realized capital (loss) for the three months ended March 31, 2002
was  $(722,000).  The net capital gain for the three months ended March 31, 2003
resulted  from a shift in management investing approach toward a secure and less
risky  bond  market.  Also  in  the  first quarter of 2003, the fixed maturities
investment  portfolio  generated  net  capital  gain  attributable  to the fixed
maturities' positive yields as opposed to the highly volatile stock market.  The
net  capital  loss  for the three months ended March 31, 2002 resulted primarily
from  the  liquidation  of  longer  duration fixed income securities in order to
rebalance the investment positions in the portfolio. These transactions resulted
in  higher  cash  proceeds  that  were reinvested in shorter duration investment
instruments.  The  net capital loss was also caused by the continued liquidation
of  investments  to  fund operations and claim payments under unfavorable market
conditions.

Losses  and  LAE
SIG's  loss and LAE ratio for the three months ended March 31, 2003 was 90.1% of
net  premiums earned.  SIG's loss and LAE ratio for the three months ended March
31,  2002  was  107.7% of net premiums earned.  SIG's loss and LAE ratio for the
twelve  months  ended  December  31,  2002  was  127.9%  of net premiums earned.

Policy  Acquisition  and  General  and  Administrative  Expense
Policy  acquisition and general and administrative expenses for the three months
ended  March  31,  2003  were  $5,803,000.  Policy  acquisition  and general and
administrative  expenses  for  the  three  months  ended  March  31,  2002  were
$7,293,000.  This  decrease  reflects  the decline in gross written premiums, an
increase  in  ceding  commissions  associated  with  the quota share reinsurance
contract,  and  overall  operating  expense  reduction  initiatives.

Provision  (Benefit)  for  Income  Taxes
At  March  31, 2003 the Company's net deferred tax assets were fully offset by a
100%  valuation  allowance  that resulted in no tax benefit for the three months
ended  March  31, 2003.  At March 31, 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  months  ended  March  31,  2002.


<PAGE>
Review  Of  Consolidated  Financial  Condition

Cash  and  Investments
Total  cash  and  investments  at  March  31,  2003  and  December 31, 2002 were
$50,780,000  and $60,610,000, respectively. The decrease resulted from continued
liquidations  to  fund  claim  payments  and  operating expenses, as well as the
portfolio  rebalancing  discussed  in PART I, Item 2, "Net Realized Capital Gain
(Loss)"  above.

Reinsurance  Receivables  and  Payables
SIG  negotiated  a  third-party  quota  share  reinsurance agreement that became
effective  January  1,  2001.  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 up to 75% of
Pafco's  earned premiums.  SIG's ceding percentage for the first quarter of 2003
totaled  75%  for  Superior  and  60%  for Pafco.  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
Net  receivables  increased  by  $585,000, or 2.1%, from December 31, 2002. This
increase  is  primarily  attributable to an increase in billable premiums due to
higher  written  premiums in the first quarter of 2003 versus the fourth quarter
of  2002.  The  allowance  for  doubtful  accounts  increased  by  $433,000 from
December  31,  2002.

Loss  and  LAE  Reserves
Total  loss  and LAE reserves decreased from $72,809,000 as of December 31, 2002
to  $69,339,000  as  of  March  31,  2003.  This decrease is consistent with the
Company's  declining  volume  of  business.

Unearned  Premiums
Unearned  premiums  increased  from  $35,797,000  as  of  December  31,  2002 to
$39,298,000 as of March 31, 2003.  This increase is consistent with the increase
in  receivables  discussed  above.

Deferred  Income
In connection with the sale of the crop insurance book of business to Acceptance
on June 6, 2002, 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 $(94,507,000) as of March 31, 2003.  Stockholders'
(deficit)  was  $(90,752,000) as of December 31, 2002. The increased deficit was
primarily  the result of the net loss of $(4,138,000) for the three months ended
March  31,  2003.

Liquidity  And  Capital  Resources
The primary source of funds for Goran is through dividend and loans from Granite
Re.

The  primary sources of funds for SIG are fees from policyholders and management
fees  from  its  subsidiaries.

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


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

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 10 years after the
issue  date.

SIG  elected  to  defer  the  semi-annual  interest payments due in February and
August  2000,  2001  and  2002  and  February 2003. SIG expects to continue this
practice  through  2003 and 2004. The unpaid interest installment amounts accrue
interest  at  9.5%.

SIG  may  continue  to  defer  the  semi-annual  interest  payments for up to an
aggregate  of  five  years  as  permitted  by  the  indenture  for the Preferred
Securities.  All  of  the  deferred  interest (approximately $84 million, if all
payments  due  in  2003  and  2004  are deferred) will become due and payable in
February  2005 along with the semi-annual interest due at that time.  SIG relies
on  the  payment  of  finance  and  service fees by its subsidiaries to fund its
operations,  including  its  payment  of  interest  on the Preferred Securities.
Certain  state  regulators,  including  the FDOI, have issued orders prohibiting
SIG's  subsidiaries  from  paying  such  fees  to SIG.  In the event such orders
continue,  SIG  may not have sufficient revenue to fund its operations or to pay
the  deferred  interest  on the Preferred Securities.  Such failure to pay could
result  in  default  under  the indenture and acceleration of the payment of the
Preferred  Securities.

The  trust  indenture  contains  certain  restrictive 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  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
(0.42)  at  March  31, 2003, and will continue to apply until SIG's consolidated
coverage ratio complies with the terms of the trust indenture. SIG complied with
these  additional  restrictions  as  of  December  31,  2001 and 2002 and was in
compliance  as  of  June  30,  2003.

Net  cash  used  by  the  Company's operating activities during the three months
ended March 31, 2003 was $(10,019,000). Net cash used by the Company's operating
activities  during  the three months ended March 31, 2002 was $(12,911,000). Net
cash  used  by  the  Company's  operating  activities  in  2002  and  2001was
$(68,801,000)  and  $(23,490,000),  respectively.

As reported in the Company's December 31, 2002 Form 10-K, during 2002 SIG took a
number  of  actions  to  improve  its  financial  condition.


<PAGE>
ITEM  3.  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK
Information  related  to  Qualitative  and Quantitative Disclosures about Market
Risk  was  included  under  Part  II,  Item  7A  "  Quantitative And Qualitative
Disclosures About Market Risk" in the Company's December 31, 2002 Form 10-K.  No
material  changes  have  occurred  in  market  risk  since  this information was
disclosed  in  the  Company's  December  31,  2002  Form  10-K.

ITEM  4.  CONTROLS  AND  PROCEDURES
Evaluation  Of  Disclosure  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.

Changes  In  Internal  Controls
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,
subsequent  to  the  date  of  the  evaluation described above (Part I, Item 4 -
"Evaluation Of Disclosure Controls And Procedures").  No corrective actions were
required  with  regard  to  significant  deficiencies  and  material weaknesses.

                           PART II - OTHER INFORMATION

ITEM  1.  LEGAL  PROCEEDINGS
Superior  is  a defendant in a case filed June 16, 2003 in the Superior Court of
Muscogee  County,  Georgia  entitled  Kenneth  P.  Chung  v.  Superior Insurance
Company.  The  case  purports  to  be  brought  on  behalf of former and current
insureds  of  Superior who presented first party physical damage coverage claims
during  the  six  year  period  preceding  June  16,  2003.  The plaintiff seeks
recovery of alleged diminution in vehicle value from physical damage .  Superior
believes  that  the  allegations  of wrongdoing as alleged in the complaint were
without  merit  and  intends to vigorously defend the claims brought against it.

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

Approximately  $29  million  was paid through December 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.  The plaintiff's amended their complaint four times during
2002.  A  demurrer to the fourth amended complaint was filed by MSI and a motion
to  strike  was filed by IGF, which were denied.  IGF filed a motion for summary
judgment  to  dismiss  the claims in the plaintiff's fourth amended complaint on
the basis that releases previously executed by the plaintiffs are binding, which
was  granted.  The  cross  claims  between  the  selling brokers and MSI and IGF
remain  pending.  The  trial  is  scheduled  to  begin  in  August  2003.

The  Company  is a defendant in a case filed on February 23, 2000, in the United
States District Court for the Southern District of Indiana entitled Robert Winn,
et  al. v. Symons International Group, Inc., et al., Cause No. IP 00-0310-C-B/S.
Other  parties  named  as  defendants are SIG, 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
the  Company's  reported  financial  statements,  data  processing and financial
reporting  systems,  internal controls and loss reserves in violation of Section
10(b) of the Securities Exchange Act of 1934 (the "1934 Act") and SEC Rule 10b-5
promulgated thereunder.  The individual defendants are also alleged to be liable
as  "controlling  persons"  under  Sec.20  (a)  of  the 1934 Act.  As previously
reported  in the Company's December 31, 2002 Form 10-K, 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.

SIG  and  two  of  its  subsidiaries, IGFH and IGF, were parties to a "Strategic
Alliance  Agreement"  dated  February  28,  1998  (the  "SAA")  with Continental
Casualty  Company ("CNA"), pursuant to which IGF acquired certain crop insurance
operations  of CNA.  The obligations of the Company, IGFH, IGF and CNA under the
SAA  are  the  subject  of an action filed on June 4, 2001 and pending in United
States  District  Court  for  the  Southern  District  of  Indiana, Indianapolis
Division.  Claims  have  also been asserted in the action against Goran, Granite
Re,  Pafco,  Superior  and  certain  members of the Symons family.  Discovery is
proceeding.  Although  SIG  continues  to believe that it has claims against CNA
and  defenses to CNA's claims which may offset or reduce amounts owing by SIG or
its affiliates to CNA, there can be no assurance that the ultimate resolution of
the  claims  asserted  by  CNA  against  SIG  and its affiliates will not have a
material  adverse  effect  upon  the  Company's  and  its  affiliates' financial
condition  or  results  of  operations.

Superior  was  a  defendant  in a case filed on May 8, 2001 in the United States
District  Court  Southern  District of Florida entitled The Chiropractic Centre,
Inc.  v. Superior Insurance Company, Case No. 01-6782.  The case 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.  On
September 30, 2002, the court issued an administrative order which dismissed the
case.  The court's order administratively closing the case could be temporary or
permanent.  Superior  believes  that the allegations of wrongdoing as alleged in
the  complaint  were  without  merit  and  in  the event the order is temporary,
Superior  intends  to  vigorously  defend  the  claims  brought  against  it.

IGF  is a defendant in a case filed on December 31, 2002 in the Circuit Court of
Greene County, Missouri entitled Kevin L. Stevens v. Wilkerson Insurers, et al.,
Case  No.  102CC5135.  Other  parties  named  as  defendants  are Goran, Goran's
subsidiaries,  Symons  International  Group  (Florida),  Inc.  and  Granite  Re,
Superior Group Management, Superior, Superior American, Superior Guaranty, Pafco
and  three  individuals  who  were  or are officers or directors of the Company.
Goran,  Granite  Re,  Symons  International Group (Florida), Inc, Superior Group
Management,  Superior,  Superior  American,  Superior  Guaranty  and  certain
individual  defendants  have  filed  motions  to  dismiss  for  lack of personal
jurisdiction which are pending.  The case purports to be brought on behalf of an
IGF  insured  seeking  to  recover  alleged  damages based on allegations of bad
faith,  negligent claims handling and breach of fiduciary duties with respect to
a  claim  which  arose from an accident caused by the IGF insured.  IGF believes
that the allegations of wrongdoing as alleged in the complaint are without merit
and  intends  to  vigorously  defend  the  claims  brought  against  it.

See  Note  3, "Regulatory Actions," and Note 4, "Commitments and Contingencies,"
to  the  Company's  consolidated  financial statements in Part I, Item 1 of this
report,  incorporated  herein  by  reference  for  additional  legal  matters.

The  Company's insurance subsidiaries are parties to other litigation arising in
the  ordinary  course of business which the Company does not believe will have a
material  adverse  effect  upon  the  Company's  and  its  affiliates  financial
conditions  or results.   The Company, through its claims reserves, reserves for
both  the  amount  of  estimated  damages attributable to these lawsuits and the
estimated  costs  of  litigation.


<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  required  by  Item  601  of  Regulation  S-K
               The  Exhibits  set  forth  on  the  Index to Exhibits
               are incorporated herein by  reference.

          (b)  Reports  on  Form  8-K
               None



                                   SIGNATURES

Pursuant  to  the requirements of Section 13 or 15(d) of the Securities Exchange
Act  of  1934,  the  Registrant  has duly caused this report to be signed on its
behalf  by  the  undersigned,  thereunto  duly  authorized  on  July  16,  2003.





                                                   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:  July  16,  2003                            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:  July  16,  2003                         By:  /s/  John  G.  Pendl
        ---------------                              --------------------
                                                     John  G.  Pendl
                                                     Chief  Financial  Officer