UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                          Washington, D.C. 20549-1004

                                  FORM  10-Q

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

             FOR  THE  QUARTERLY  PERIOD  ENDED  MARCH  31,  2002

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

           For the transition period from _________ to ____________



                    Commission  File  Number:  000-24366

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



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

                                    2 Eva Road
                                    Suite 200
                            Toronto, Ontario M9C 2A8

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

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

Indicate by check mark whether the Registrant (1) has filed all reports required
to  be  filed  by  Section  13  or 15 (d) of the Securities Exchange Act of 1934
during  the  preceding 12 months (or for such shorter period that the Registrant
was  required  to  file  such  reports), and (2) has been subject to such filing
requirements  for  the  past  90  days.  Yes  [X]       No

As  of  March 31, 2002, there were 5,393,698 shares of Registrant's no par value
common  stock  issued  and  outstanding.


<TABLE>
<CAPTION>


                                                     FORM 10-Q INDEX
                                           FOR THE QUARTER ENDED MARCH 31, 2002


                                                                                            Page
                                                                                           Number
<S>                           <C>                                                            <C>
PART I. .FINANCIAL INFORMATION

Item 1. .Financial Statements

         Consolidated Balance Sheets at March 31, 2002
         (unaudited) and December 31, 2001 . . . . . . . . . . .                                 3

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

         Unaudited Consolidated Statement of Stockholder's
         Equity (Deficit) for the Three Months ended
         March 31, 2002 and 2001 . . .                                                           5

         Unaudited Consolidated Statements of Cash Flows for the
         Three Months Ended March 31, 2002 and 2001. . . . . . .                                 6

         Condensed Notes to Unaudited Consolidated Financial
         Statements. . . . . . . . . .                                                           7

Item 2. .Management's Discussion and Analysis of Financial
         Condition and Results of Operations                                                    15

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

PART II .OTHER INFORMATION                                                                      21

Item 1. .Legal Proceedings                                                                      21

Item 2. .Changes in Securities and Use of Proceeds                                              22

Item 3. .Defaults Upon Senior Securities                                                        22

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

Item 5. .Other Information                                                                      22

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

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

GORAN CAPITAL INC., Analysis of Loss Per Share. . . . . .                                       24
</TABLE>


<TABLE>
<CAPTION>

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

                                                                            March 31,
                                                                              2002       December 31,
                                                                           (Unaudited)      2001
                                                                          ------------  -----------
<S>                                                                             <C>          <C>
ASSETS:
Investments:
    Fixed maturities. . . . . . . . . . . . . . . . . . . . . . . . . . .  $   74,115   $      77,325
    Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . .      16,809          21,610
    Short-term investments, at amortized cost, which approximates market.      10,348          13,266
    Other invested assets . . . . . . . . . . . . . . . . . . . . . . . .       1,704           1,594
                                                                           -----------  --------------
Total Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . .     102,976         113,795
Investments in and advances to related parties. . . . . . . . . . . . . .         738           1,130
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . .      12,604          11,263
Receivables, net of allowances of $288 and $1,526 . . . . . . . . . . . .      50,367          47,441
Reinsurance recoverable on paid and unpaid losses, net. . . . . . . . . .      36,479          29,284
Prepaid reinsurance premiums. . . . . . . . . . . . . . . . . . . . . . .      43,932          40,039
Deferred policy acquisition costs . . . . . . . . . . . . . . . . . . . .         923             763
Property and equipment, net of accumulated depreciation . . . . . . . . .       9,205           9,907
Intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .       2,256           4,376
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       2,851           2,421
Assets of discontinued operations . . . . . . . . . . . . . . . . . . . .      20,878         115,900
                                                                           -----------  --------------
TOTAL ASSETS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     283,209   $     376,319
                                                                           ===========  ==============

LIABILITIES AND STOCKHOLDER'S DEFICIT:
LIABILITIES:
    Losses and loss adjustment expenses . . . . . . . . . . . . . . . . .  $   82,149   $      84,876
    Unearned premiums . . . . . . . . . . . . . . . . . . . . . . . . . .      64,262          59,216
    Reinsurance payables. . . . . . . . . . . . . . . . . . . . . . . . .      65,510          58,868
    Distributions payable on preferred securities . . . . . . . . . . . .      18,883          23,252
    Deferred Income . .        . . . . . . . . . . . . . . . . . . . . .        6,500           7,250
    Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      23,783          21,563
    Liabilities of discontinued operations. . . . . . . . . . . . . . . .      20,878         115,900
                                                                           -----------  --------------
TOTAL LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . .     281,965         370,925
                                                                           -----------  --------------
MINORITY INTEREST:
Company-obligated mandatorily redeemable preferred stock of trust
Subsidiary holding solely parent debentures . . . . . . . . . . . . . . .      67,994          94,540
                                                                           -----------  --------------
STOCKHOLDERS' DEFICIT:
Common Stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      18,502          18,502
Contributed surplus . . . . . . . . . . . . . . . . . . . . . . . . . . .      70,864          42,465
Cumulative translation adjustment . . . . . . . . . . . . . . . . . . . .        (799)           (763)
Retained (deficit). . . . . . . . . . . . . . . . . . . . . . . . . . . .    (155,317)       (149,350)
                                                                           -----------  --------------
TOTAL STOCKHOLDERS' (DEFICIT) . . . . . . . . . . . . . . . . . . . . . .     (66,750)        (89,146)
                                                                           -----------  --------------
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) . . . . . . . . . . . . . .  $  283,209   $     376,319
                                                                           ===========  ==============
<FN>

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



<TABLE>
<CAPTION>

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


                                                                                  Three Months Ended
                                                                                        March 31,
                                                                                  --------------------
                                                                                   2002            2001
                                                                           --------------------  --------
<S>                                                                        <C>                   <C>
Gross premiums written. . . . . . . . . . . . . . . . . . . . . . . . . .  $            45,082   $48,338
Less ceded premiums . . . . . . . . . . . . . . . . . . . . . . . . . . .               30,973    31,393
                                                                           --------------------  --------
Net premiums written. . . . . . . . . . . . . . . . . . . . . . . . . . .  $            14,109   $16,945
                                                                           ====================  ========

Net premiums earned . . . . . . . . . . . . . . . . . . . . . . . . . . .  $            13,093   $18,844
Fee income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                2,814     2,962
Net investment income . . . . . . . . . . . . . . . . . . . . . . . . . .                1,338     1,809
Other Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  750         -
Net realized capital loss . . . . . . . . . . . . . . . . . . . . . . . .                 (722)     (703)
                                                                           --------------------  --------
Total revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               17,273    22,912
                                                                           --------------------  --------
Expenses:
   Losses and loss adjustment expenses . . . . . . . . . . . . . . .. . .               13,948    17,745
   Policy acquisition and general and administrative expenses. . . .. . .                7,293    11,673
   Amortization of intangibles . . . . . . . . . . . . . . . . . . .. . .                   43        46
                                                                           --------------------  --------
Total expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               21,284    29,464
                                                                           --------------------  --------
Loss from continuing operations before income taxes and minority interest               (4,011)   (6,552)
                                                                           --------------------  --------
Total income taxes. . . . . . . . . . . . . . . . . . . . . . . . . . . .                    -         -
                                                                           --------------------  --------
Loss from continuing operations before minority interest. . . . . . . . .               (4,011)   (6,552)
                                                                           --------------------  --------
Minority interest:
   Distributions on preferred securities, net of tax of nil in both.. . .                1,956     2,995
   2002 and 2001                                                           --------------------  --------
Loss from continuing operations . . . . . . . . . . . . . . . . . . . . .               (5,967)   (9,547)
                                                                           --------------------  --------
Discontinued operations:
   Income (loss) from operations of discontinued segment, less applicable. .                 -         -
   income taxes of nil in both 2002 and 2001                                -------------------  --------

Net loss                                                                   $            (5,967)  $(9,547)
                                                                           ====================  ========
Weighted average shares outstanding - basic and fully diluted . . . . . .                5,394     5,776
                                                                           ====================  ========
Net loss from continuing operations per share - basic and fully diluted .  $             (1.11)  $ (1.65)
                                                                           ====================  ========
Net loss of discontinued operations per share - basic and fully diluted .  $                 -   $     -
                                                                           ====================  ========
Net loss per share - basic and fully diluted. . . . . . . . . . . . . . .  $             (1.11)  $ (1.65)
                                                                           ====================  ========
<FN>
See  condensed  notes  to  consolidated  financial  statements.
</TABLE>



<TABLE>
<CAPTION>

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

                                                                               Cumulative     Retained        Total
                                                      Common     Contributed   Translation    Earnings     Stockholders'
                                                      Stock      Surplus       Adjustment     (Deficit)   Equity (Deficit)
                                                     --------    ---------     ------------  ----------  -----------------
<S>                                                    <C>         <C>             <C>           <C>           <C>

Balance at December 31, 2000                          $ 19,132   $ 23,748        $ (291)      $ (115,257)     $ (72,668)
Repurchase of common shares                              -          -             -           -                  -
Purchase of Preferred Securities                         -          -             -           -                  -
Change in cumulative translation
Adjustment                                               -          -              (241)      -                    (241)
Net loss                                                 -          -             -              (9,547)         (9,547)
                                                     --------  ---------    ------------      ----------     -----------  -
Balance at March 31, 2001  . . . . . . . . . . . . .  $19,132   $ 23,748       $ (5322)        $(124,804)    $   (82,456)
                                                     ========   =========      =========       ==========      ==========


Balance at December 31, 2001                          $18,502   $ 42,465       $  (763)        $(149,350)     $  (89,146)
Purchase of Common Shares
Purchase of Preferred Securities                                   28,399                                         28,399
Change in cumulative translation
Adjustment                                                                         (36)                              (36)
Net loss                                                       -          -             -         (5,967)          (5,967)
                                                      --------  ---------  -   - ----------     ----------      ----------

Balance at March 31, 2002                             $18,502   $ 70,864      $  (799)        $(155,317)      $  (66,750)
                                                      ========  =========      =========      ==========       ==========
<FN>
See condensed notes to consolidated financial statements.
</TABLE>


<TABLE>
<CAPTION>

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


                                                                             Three Months Ended
                                                                                    March 31,
                                                                                 2002      2001
                                                                   --------------------  ---------
<S>                                                                              <C>      <C>
Cash flows from operating activities:
  Net loss for the period . . . . . . . . . . . . . . . . . . . . .         $  (5,967)  $ (9,547)
  Adjustments to reconcile net loss to net cash used in operations:
  Depreciation and amortization . . . . . . . . . . . . . . . . . .                876      1,112
  Net realized capital loss . . . . . . . . . . . . . . . . . . . .                722        703
  Net changes in operating assets and liabilities:
  Receivables . . . . . . . . . . . . . . . . . . . . . . . . . .               (5,781)   (10,901)
  Reinsurance recoverable on paid and unpaid losses . . . . . . .               (4,340)   (15,806)
  Prepaid reinsurance premiums. . . . . . . . . . . . . . . . . .               (3,893)   (10,634)
  Deferred policy acquisition costs . . . . . . . . . . . . . . .                 (160)       459
  Other assets and liabilities. . . . . . . . . . . . . . . . . .                1,790      2,275
  Loss and loss adjustment expense reserves . . . . . . . . . . .               (2,727)    (9,472)
  Unearned premiums . . . . . . . . . . . . . . . . . . . . . . .                5,046      8,636
  Reinsurance payables. . . . . . . . . . . . . . . . . . . . . .                6,642     25,490
  Distribution payable on preferred securities. . . . . . . . . .               (4,369)     6,743
  Deferred income . . . . . . . . . . . . . . . . . . . . . . . .                 (750)         -
  Net assets from discontinued operations . . . . . . . . . . . .                    -       (872)
                                                                   --------------------  ---------
Net cash (used in) operations . . . . . . . . . . . . . . . . . .              (12,911)   (11,814)
                                                                   --------------------  ---------

Cash flows from investing activities, net of assets acquired:
  Net sale of short-term investments. . . . . . . . . . . . . . .                2,918      2,989
  Proceeds from sales, calls and maturities of fixed maturities .                9,746     11,736
  Purchase of fixed maturities. . . . . . . . . . . . . . . . . . .             (4,292)      (756)
  Proceeds from sale of equity securities . . . . . . . . . . . . .              5,475      3,765
  Purchase of equity securities . . . . . . . . . . . . . . . . . .             (1,263)    (4,475)
  Proceeds from repayment of mortgage loans . . . . . . . . . . . .                  -         30
  Purchase of property and equipment. . . . . . . . . . . . . . . .               (134)    (1,114)
  Net investing activities from discontinued operations . . . . . .                  -        604
  Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               (125)       (42)
                                                                    -------------------  ---------
Net cash provided by investing activities . . . . . . . . . . . .               12,325     12,737
                                                                   --------------------  ---------

Cash flows from financing activities, net of assets acquired:
  Purchase of subsidiary's preferred securities . . . . . . . . .                1,535          -
  Repayment of related party loans. . . . . . . . . . . . . . . .                  392        819
  Net financing activities from discontinued operations . . . . .                    -       (317)
                                                                   --------------------  ---------
Net cash provided by (used in) financing activities . . . . . . .                1,927        502
                                                                   --------------------  ---------

Increase in cash and cash equivalents . . . . . . . . . . . . . .                1,341      1,425
Cash and cash equivalents, beginning of period. . . . . . . . . .               11,263      3,230
                                                                   --------------------  ---------
Cash and cash equivalents, end of period. . . . . . . . . . . . .  $            12,604   $  4,655
                                                                   ====================  =========
<FN>

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


                               GORAN CAPITAL INC.
            CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                   (UNAUDITED)
                    For the Three Months Ended March 31, 2002


1.     BASIS  OF  PRESENTATION
Goran  Capital  Inc. ("the Company") is the parent company of the Goran group of
companies.  The  consolidated  financial  statements  are prepared in accordance
with  Canadian  Generally  Accepted  Accounting  Principles.  In  addition,  the
consolidated  financial  statements  are  also  used  to  satisfy  the Company's
financial  filing  requirements  in  the  U.S.  Consequently,  the  consolidated
financial statements include disclosures that are not necessarily required under
Canadian  GAAP  and  contain  references to U.S. GAAP accounting pronouncements.
Note  8,  presents  a reconciliation of Canadian and U.S. GAAP. The consolidated
financial statements have been prepared pursuant to the rules and regulations of
the  Securities and Exchange Commission ("SEC").  In management's opinion, these
financial  statements  include  all  adjustments  (consisting  only  of  normal,
recurring  adjustments)  necessary  for  a  fair  presentation of the results of
operations  for  the  interim  periods  presented.  Pursuant  to  SEC  rules and
regulations,  certain  information and footnote disclosures normally included in
financial  statements  prepared in accordance with generally accepted accounting
principles  have  been  condensed  or  omitted  from  these  statements,  unless
significant  changes  have  taken  place since the end of the most recent fiscal
year.  For  this  reason, the accompanying consolidated financial statements and
notes  thereto  should  be read in conjunction with the financial statements and
notes for the year ended December 31, 2001 included in the Company's 2001 Annual
Report  on  Form  10-K.  Results  for  any  interim  period  are not necessarily
indicative  of  results  to  be  expected  for  the  year.

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

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

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

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

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

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

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

2.     PREFERRED  SECURITIES
On  August  12,  1997,  SIG's  trust subsidiary issued $135 million in preferred
securities  ("Preferred Securities") bearing interest at an annual rate of 9.5%.
The  principal  assets  of the trust subsidiary are senior subordinated notes of
SIG  in  the principal amount of $135 million with an interest rate and maturity
date  substantially identical to those of the Preferred Securities.  Expenses of
the  issue  aggregated  $5.1  million  and  are  amortized  over the term of the
Preferred  Securities.

The  Preferred  Securities  represent  company-obligated  mandatorily redeemable
securities  of  a  trust  subsidiary holding solely parent debentures and have a
term  of 30 years with semi-annual interest payments that commenced February 15,
1998.  SIG  may  redeem  the  Preferred  Securities in whole or in part after 10
years.  The  annual  Preferred Security obligations of approximately $13 million
per  year  must  be funded from SIG's nonstandard automobile management company,
which  receives  management  and  billing  fees from its insurance subsidiaries.
Under the terms of the indenture, SIG is permitted to defer semi-annual interest
payments for up to five years. SIG elected to defer the interest payments due in
February  and  August  2000  and  2001  and  February 2002 and may continue this
practice  through  2004.

The  trust  indenture  for the Preferred Securities contains certain restrictive
covenants  including  covenants  based 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
(0.77)  at  March  31, 2002, 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 is in compliance as of
March  31,  2002.  Upon completion of the audit for 2001, it was discovered that
SIG  was  not  in  compliance  with  the covenant dealing with the percentage of
investment  in  other  than "Permitted Investments" as defined by the indenture.
The  indenture  allows  for  no  more than 15% of total invested assets to be in
non-investment  grade  securities  as  defined by the indenture. At December 31,
2001,  approximately  21%  of  SIG's investment portfolio was invested in equity
securities  and  non-investment grade bonds. SIG cured the covenant violation as
of March 29, 2002 via the sale of approximately $8 million of the non-investment
grade  securities and the reinvestment of the proceeds in Permitted Investments.

3.     REGULATORY  AFFAIRS
Pafco  and  IGF  are  domiciled in Indiana and prepare their statutory financial
statements  in  accordance  with accounting practices prescribed or permitted by
the  Indiana  Department of Insurance ("IDOI").  While neither Pafco nor IGF has
surplus from which to pay dividends, statutory requirements place limitations on
the  amount of funds that can be remitted to SIG from Pafco and IGF. The Indiana
statute  allows 10% of surplus in regard to policyholders or 100% of net income,
whichever is greater, to be paid as dividends only from earned surplus; however,
the  Consent  Orders with the IDOI, described below, prohibit the payment of any
dividends  by  Pafco  and IGF. Superior, Superior American and Superior Guaranty
are  domiciled  in  Florida  and prepare their statutory financial statements in
accordance  with  accounting  practices  prescribed  or permitted by the Florida
Department of Insurance ("FDOI").  The Florida statute also contains limitations
with regard to the payment of dividends. Superior may pay dividends of up to 10%
of  surplus  or  100%  of net income, whichever is greater, from earned surplus.
Prescribed  statutory  accounting practices include a variety of publications of
the  National  Association of Insurance Commissioners ("NAIC"), as well as state
laws,  regulations,  and  general  administrative  rules.  The  NAIC adopted the
Codification of Statutory Accounting Principles guidance ("Codification") as the
NAIC's  primary guidance on statutory accounting effective January 1, 2001.  The
IDOI  and  FDOI  have  adopted  Codification.  Permitted  statutory  accounting
practices  encompass  all  accounting  practices  not  so  prescribed.

On  June  6,  2001  IGF  sold  substantially all of its crop insurance assets to
Acceptance.  On June 24, 2001, following the sale of IGF's crop insurance assets
and  as  a result of losses experienced by IGF in its crop insurance operations,
the  IDOI and IGF entered into a Consent Order (the "Consent Order") relating to
IGF.  IGF has discontinued writing new business and its operations are presently
in  run  off.

The  IDOI  has  continued  to  monitor  the  status  of  IGF.  The Consent Order
prohibits  IGF  from  taking  any of the following actions without prior written
consent  of  the  IDOI:

-    Sell  or  encumber  any  of  its  assets,  property, or business in force;
-    Disburse funds, except to pay direct unaffiliated policyholder claims and
     normal operating  expenses  in  the  ordinary  course  of business (which
     does not include  payment  to  affiliates  except for the reimbursement of
     costs for running  IGF  by  SIG, and does not include payments in excess of
     $10,000);
-    Lend its funds or make investments, except in specified types of
     investments;
-    Incur debts or obligations, except in the ordinary course of business to
     unaffiliated parties;
-    Merge  or  consolidate  with  another  company;
-    Enter  into  new,  or  amend  existing,  reinsurance  agreements;
-    Complete, enter into or amend any transaction or arrangement with an
     affiliate, and
-    Disburse  funds  or  assets  to  any  affiliate.

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

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

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

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

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

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

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

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

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

In  1999,  Superior ceased writing business in Illinois and agreed to obtain the
approval  of  the  Illinois  Department  of  Insurance  prior to writing any new
business  in  Illinois.  In  July  2001,  Superior agreed with the Department of
Insurance  in Texas to obtain its prior approval before writing any new business
in that state.  On October 9, 2001, the State Corporation Commission of Virginia
issued  an order to take notice regarding an order suspending Superior's license
to  write business in that state.  An administrative hearing for a determination
that the suspension order not be issued was held March 5, 2002.  On May 3, 2002,
the  hearing  examiner issued his report and recommended that Superior's license
not be suspended and that Superior file its Risk Based Capital plans and monthly
and  quarterly financial information with the Virginia Bureau of Insurance.  The
nonstandard  automobile  insurance  policies  written  in  Virginia  by Superior
accounted  for approximately 13.1% of the total gross written premiums of SIG in
2001.

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

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

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

All  AgPI  policyholder claims had been settled during 2000. However, on January
12, 2001 a case was filed in the Superior Court of California, County of Fresno,
entitled  S&W  Seed Company, Dudley Silveira, Ric Blanchard and Darrell Silveira
v. Mutual Service Casualty Insurance Company, IGF Insurance Company, and Dibuduo
& Defendis Insurance Agency, Inc.; Case No. OICE CG 00137.  The case was brought
by four AgPI policyholders who had previously settled their AgPI claims pursuant
to  binding  settlement  agreements  who  now  seek  additional  compensation by
asserting through litigation that IGF and the third party carrier paid less than
the  policy  limits  they  were promised when they purchased the policy and that
each  settling  policyholder was forced to accept the lesser amount due to their
economic  duress  -  a legal theory recognized in California if certain elements
can  be  established.  On  January 16, 2002, the court entered an order granting
IGF's  motion  for  judgment on the pleadings and required plaintiffs to show an
insurable  interest.  Plaintiffs amended their complaint attempting to allege an
insurable  interest,  and on March 19, 2002, the court granted IGF's demurrer to
the  amended  complaint.  In  granting  the  demurrer  the  court  held that any
recovery  payable  to plaintiff would be limited to their actual economic losses
regardless  of  how  much  plaintiffs  thought  they  had  been  promised  (i.e.
plaintiffs  cannot  be  paid  policy  limits  without  regard  to  actual losses
incurred).  The plaintiffs then filed their third amended complaint to which IGF
filed another demurrer, contending that plaintiffs failed to make the amendments
required by the court's previous rulings. This latest demurrer is to be heard on
May  24,  2002.  Discovery  is  proceeding.

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

As  previously  reported,  SIG  and  two  of its subsidiaries, IGFH and IGF, are
parties  to a "Strategic Alliance Agreement" dated February 28, 1998 (the "SAA")
with  Continental  Casualty  Company  ("CNA"),  pursuant  to  which IGF acquired
certain crop insurance operations of CNA.  The obligations of SIG, IGFH, IGF and
CNA under the SAA are the subject of an action pending in United States District
Court  for the Southern District of Indiana, Indianapolis Division.  Claims have
also  been  asserted  in  the  action  against  the  Company, Granite Re, Pafco,
Superior  and  certain  members  of  the  Symons  family.  Although  the Company
continues to believe that it has claims against CNA and defenses to CNA's claims
which  may  offset  or  reduce amounts owing by the Company or its affiliates to
CNA,  there  can  be  no  assurance  that  the ultimate resolution of the claims
asserted  by CNA against the Company and its affiliates will not have a material
adverse  effect  upon  the  Company's and its affiliates' financial condition or
results  of  operations.  There  have  been  no material developments since last
reported  in  the  Company's  December  31,  2001  Form  10-K.

The  Company  is a defendant in a case filed on February 23, 2000, in the United
States District Court for the Southern District of Indiana entitled Robert Winn,
et  al. v. Symons International Group, Inc., et al., Cause No. IP 00-0310-C-B/S.
Other  parties  named  as  defendants are SIG, three individuals who were or are
officers  or  directors of SIG or of the Company, PricewaterhouseCoopers LLP and
Schwartz  Levitsky Feldman, LLP.  The case purports to be brought on behalf of a
class  consisting of purchasers of SIG's stock or the Company's stock during the
period  February  27, 1998, through and including November 18, 1999.  Plaintiffs
allege,  among  other  things, that defendants misrepresented the reliability of
SIG's  reported  financial  statements,  data processing and financial reporting
systems,  internal  controls  and loss reserves in violation of Section 10(b) of
the  Securities Exchange Act of 1934 ("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.  SIG and the individual
defendants  filed  a  motion  to  dismiss the amended consolidated complaint for
failure to state a claim and for failure to plead with particularity as required
by Fed. R. Civ. P.9(b) and the Private Securities Litigation Reform Act of 1995.
The  accounting  firms  also filed motions to dismiss.  On February 19, 2002 the
court  entered  an order granting in part and denying in part defendants' motion
to dismiss.  On March 15, 2002, SIG and the individual defendants filed a motion
for  reconsideration  of  the  court's  ruling  on  the  motion  to  dismiss, or
alternatively  to  certify an order for appeal, which was denied on May 1, 2002.
Discovery  in  the  case  is  proceeding.

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

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

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

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

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

SIG  is  a  50%  owner in a limited liability corporation ("LLC") established to
provide business services to SIG, the Company and an unrelated third party.  The
fair  market  value  of  the LLC's operating assets approximated its outstanding
debt  at  March  31,  2002.

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

5.     LOSS  DEVELOPMENT  ON  PRIOR  ACCIDENT  YEARS
During  the first quarter of 2002 SIG experienced unfavorable development on its
year-end  2001  loss  and  LAE reserves in the amount of $1.5 million.  This was
primarily  due  to unfavorable settlement of outstanding claims that resulted in
an  increase  in the loss and LAE ratio for the first quarter by 13.1 percentage
points.

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

7.     LOSS  PER  SHARE

<TABLE>
<CAPTION>

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


                                                    Three Months Ended
(in thousands)                                             March 31
                                                      2002       2001
                                                     -------    -----
<S>                                                    <C>      <C>
Basic:
  Weighted-average common shares outstanding.         5,394     5,776
                                                     ======     =====

Diluted:
  Weighted-average common shares outstanding.         5,394    5,776
                                                      =====    =====

</TABLE>

The  Company has 788,187 stock options outstanding as of March 31, 2002.  Common
stock equivalents are anti-dilutive.  Therefore, fully diluted loss per share is
the  same  as  basic  loss  per  share.


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


<TABLE>
<CAPTION>



(in thousands)                                          March 31, 2002    December 31, 2001
                                                       ----------------  -------------------
<S>                                                    <C>               <C>
Stockholders (deficit) in accordance with
Canadian GAAP . . . . . . . . . . . . . . . . . . . .  $       (64,673)  $          (89,146)

Add (deduct) effect of difference in accounting for:
     Receivable from sale of capital stock. . . . . .           (1,258)              (1,258)
     Unrealized gain (loss) on investments. . . . . .           (3,091)              (2,246)
                                                       ----------------  -------------------
Stockholders' (deficit) in accordance with
US GAAP . . . . . . . . . . . . . . . . . . . . . . .  $       (69,022)  $          (92,650)
                                                       ================  ===================
</TABLE>


9.     DISCONTINUED  OPERATIONS
In  December  2000, SIG initiated the divestiture of its crop insurance segment.
This  business  was  predominantly  written  through  IGF.  The  transaction was
completed  in  June  2001  and transferred ownership of substantially all of the
crop  insurance  assets  of  SIG and IGF, effective with the 2001 crop cycle, to
Acceptance.  Upon  completion  of  the  sale, the net assets of the discontinued
operations  were  reduced to zero. IGF and its affiliates received approximately
$27.4  million  at  closing  and  Acceptance  assumed  all of the crop insurance
in-force  policies  for  the 2001 crop year.  For agreeing not to compete in the
crop  insurance  industry for a period of three years from the date of sale, the
Company and SIG each received $4.5 million at closing that is being amortized to
income  on a straight-line basis over three years. An additional $9.0 million in
reinsurance  premium  is  payable  to  Granite Re under a multi-year reinsurance
treaty whereby Granite Re has agreed to reinsure a portion of the crop insurance
business  of  Acceptance and provide an indemnity on behalf of IGF.  The results
of  the  crop insurance segment have been reflected as "Discontinued Operations"
in  the  accompanying  unaudited consolidated financial statements in accordance
with  Accounting  Principles  Board  Opinion  No.  30  "Reporting the Results of
Operations --- Reporting the Effects of Disposal of a Segment of a Business, and
Extraordinary,  Unusual  and  Infrequently  Occurring  Events and Transactions."

<PAGE>

Summarized  results  of  operations for discontinued operations were as follows:


<TABLE>
<CAPTION>

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

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

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

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

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

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



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

FORWARD  LOOKING  STATEMENTS  AND  CERTAIN  RISKS
All  statements, trend analyses, and other information herein contained relative
to  markets for the Company's products and/or trends in the Company's operations
or  financial  results,  as  well  as  other  statements including words such as
"anticipate,"  "could,"  "feel(s),"  "believes,"  "plan,"  "estimate," "expect,"
"should,"  "intend,"  "will,"  and  other  similar  expressions,  constitute
forward-looking statements under the Private Securities Litigation Reform Act of
1995.  These  forward-looking statements are subject to known and unknown risks;
uncertainties  and other factors which may cause actual results to be materially
different  from  those  contemplated  by  the  forward-looking statements.  Such
factors  include,  among  other  things:  (i)  the  effect on customers, agents,
employees  and  others  due to SIG's receipt of a going concern opinion from its
independent  auditors;  (ii)  general  economic conditions, including prevailing
interest  rate  levels and stock market performance; (iii) factors affecting the
Company's  nonstandard  automobile  operations  such  as rate increase approval,
policy  renewals,  new  business  written,  and premium volume; (iv) the factors
described  in this section and elsewhere in this report; and (v) adverse actions
by  insurance  regulatory  officials.

OVERVIEW  OF  THE  COMPANY
Goran  Capital,  Inc.  ("the Company") owns 73.1% of Symons International Group,
Inc.  ("SIG").  SIG  owns  insurance  companies  that  underwrite  and  market
nonstandard  private  passenger automobile insurance.  SIG's principal insurance
company  subsidiaries  are  Pafco  General Insurance Company ("Pafco"), Superior
Insurance Company ("Superior") and IGF Insurance Company ("IGF").  Additionally,
the  Company  owns  100%  of  Granite  Reinsurance  Company Ltd. ("Granite Re"),
Granite  Insurance  Company ("Granite") and Symons International Group (Florida)
Inc.  ("SIGF").

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."

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

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

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

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

SIGNIFICANT  LOSSES  HAVE  BEEN  REPORTED  AND  ARE  LIKELY  TO  CONTINUE
The  net  loss  from  continuing operations for the three months ended March 31,
2002  was  $(5,967,000).  The  net loss from continuing operations for the three
months  ended  March  31,  2001  was $(9,547,000).  The net loss from continuing
operations for the twelve months ended December 31, 2001 was $(31,937,000).  The
net  loss  for  the  twelve  months  ended  December 31, 2000 was $(63,224,000).
Losses  from  continuing  operations  have decreased after 2000 primarily due to
lower  volume  and  corresponding actions taken to reduce operating expenses and
the  recognition  in 2000 of a one-time charge for the impairment of goodwill of
$33.5  million.  Although  the  Company has taken a number of actions to address
factors  contributing  to  these  past  losses,  there  can be no assurance that
operating  losses  will  not  continue.

RECENT  AND FURTHER REGULATORY ACTIONS MAY ADVERSELY AFFECT THE COMPANY'S FUTURE
OPERATIONS
The  Company's  U.S.  insurance company subsidiaries, their business operations,
and  their  transactions  with affiliates, including the Company, are subject to
extensive  regulation  and  oversight  by  the  Indiana  Department of Insurance
("IDOI"),  the  Florida  Department  of  Insurance  ("FDOI"),  and the insurance
regulators  of  other  states  in  which the U.S. insurance company subsidiaries
write  business.  Moreover,  the  U.S.  insurance  company subsidiaries' losses,
adverse trends and uncertainties discussed in this report have been and continue
to  be  matters  of concern to the domiciliary and other insurance regulators of
the  Company's U.S. insurance company subsidiaries and have resulted in enhanced
scrutiny,  suspensions,  orders  and  other  regulatory  actions  by  several
regulators.  The  primary  purpose  of insurance regulation is the protection of
policyholders rather than stockholders.  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 strategies or result
in  future  regulatory actions or proceedings that could have a material adverse
effect  on  the  Company's  operations.

THE  COMPANY  IS  SUBJECT  TO  A  NUMBER  OF  PENDING  LEGAL  PROCEEDINGS
The  Company  is involved in a number of pending legal proceedings (see Part II,
Item  1,  "Legal  Proceedings").  Although the Company believes that many of the
allegations of wrongdoing are without merit and intends to vigorously defend the
claims  brought  against  it  and/or its subsidiaries, there can be no assurance
that  such  proceedings will not have a material adverse effect on the Company's
financial position or results of operations. Furthermore, the existence of these
lawsuits  diverts the time and attention of management and they are expensive to
defend,  whether  or  not  the  Company  is  ultimately  successful.

THE  TERMS  OF THE TRUST PREFERRED SECURITIES MAY RESTRICT THE COMPANY'S ABILITY
TO  ACT
SIG  has issued, through a wholly owned trust subsidiary, $135 million aggregate
principal  amount  in  Trust  Originated  Preferred  Securities  (the "Preferred
Securities").  The  Preferred  Securities  have  a  term of 30 years with annual
interest  payments of 9.5% paid semi-annually.  The obligations of the Preferred
Securities  are  funded  from  SIG's non-standard automobile management company.
SIG  elected  to  defer  the  semi-annual  interest payments due in February and
August  2000  and  2001 and the payment due in February 2002 and may continue to
defer  such  payments  for  up to an aggregate of five years as permitted by the
indenture  for  the  Preferred Securities.  All of the deferred interest (if all
payments  due  in 2002, 2003 and 2004 are deferred) of approximately $84 million
will  become  due  and  payable  in February 2005.  Although there is no present
default  under  the indenture that would accelerate the payment of the Preferred
Securities, the indenture contains a number of covenants that may restrict SIG's
ability  to  act  in  the future.  These covenants include restrictions on SIG's
ability  to incur or guarantee debt, make payments to affiliates, repurchase its
common  stock,  pay  dividends  on common stock or increase its level of certain
investments  in 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.

REVIEW  OF  CONSOLIDATED  OPERATIONS

NET  LOSS
The  net  loss  for  the  three  months ended March 31, 2002 was $(5,967,000) or
$(1.11)  per share (basic and diluted).  The net loss for the three months ended
March  31,  2002 was $(9,547,000) or $(1.65) per share (basic and diluted).  The
decreased  loss  is due primarily to lower premiums earned in 2002 and decreased
policy  acquisition  and  general  and  administrative expenses offset by higher
losses.  There was no loss on discontinued operations for the three months ended
March  31,  2002  and  2001,  respectively.  Refer  to  Note  9.,  "Discontinued
Operations"  of  the  Condensed  Notes  to Consolidated Financial Statements for
additional  information.

<PAGE>

GROSS  PREMIUMS  WRITTEN
Gross  premiums written decreased 6.7% for the first quarter of 2002 compared to
the  first  quarter of 2001.  The primary reasons for this decline in volume are
the  withdrawal  from  certain  competitive  markets  and  other  underwriting
initiatives  intended  to  increase  profitability.

NET  PREMIUMS  WRITTEN
Net  premiums  written represent the portion of premiums 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
a  third  party.  For  the  three  months  ended  March  31,  2002,  SIG  ceded
approximately  71.4%  of  its  gross  written  premiums.

NET  PREMIUMS  EARNED
Net  premiums  earned decreased 30.5% for the three months ended March 31, 2002,
as  compared  to  the same period in 2001.  Premiums are earned ratably over the
term  of  the  underlying  insurance contracts and the reduction in net premiums
earned  is  a  result of the 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  for  the three months ended March 31, 2002 was 5.0%
lower  than  for  the  three  months  ended  March  31,  2001.  The  decrease is
attributable  to  the  reduction in policies in force and the overall decline in
written  premium  in  the  three  months  ended  March  31,  2002.

NET  INVESTMENT  INCOME
Net  investment income for the three months ended March 31, 2002 was 26.0% lower
than  for  the  three  months  ended March 31, 2001.  This decrease reflects the
decline  in  invested  assets  during  a  period  of  declining  premiums,  the
liquidation  of  investments  to  pay  prior  year  losses  settled  in 2002 and
unrealized  losses  on  equity  investments.

NET  REALIZED  CAPITAL  GAINS  AND  (LOSSES)
Net  realized  capital  (losses)  were  $(722,000)  and $(703,000) for the three
months  ended  March  31,  2002  and 2001, respectively.  The net capital losses
resulted  primarily  from  the  liquidation  of  longer  duration  fixed  income
securities  in  the  first  quarter of 2002 in order to rebalance the investment
positions  in the portfolio. These transactions resulted in higher cash proceeds
that  were reinvested in shorter duration investment instruments. Capital losses
were  also  realized  due  to  the  continued liquidation of investments to fund
operations  and  claim  payments  under  unfavorable  market  conditions.

LOSSES  AND  LOSS  ADJUSTMENT  EXPENSES
The  loss  and  loss adjustment expense (LAE) ratio for SIG for the three months
ending March 31, 2002 was 107.7% of net premiums earned as compared to 94.8% for
the  similar  period of 2001, and to 91.5% for the entire year 2001.  During the
first  quarter  of 2002, SIG experienced unfavorable development on its loss and
LAE  reserves  for accidents occurring in 2001and prior which increased the loss
and  LAE  ratio  for  the  quarter  by  13.1  percentage  points.

POLICY  ACQUISITION  AND  GENERAL  AND  ADMINISTRATIVE  EXPENSE
Policy  acquisition  and general and administrative expenses were $7,293,000 and
$11,673,000  for  the  three months ended March 31, 2002 and 2001, respectively.
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.  As  a  percentage of gross
premiums  earned, SIG experienced a decrease in its operating expense ratio, net
of fee income, from 40.5% for the first quarter of 2001 to 32.4% for 2002.  This
decrease in the expense ratio is the result of reduced operating expenses and an
increase  in  ceding  commissions  earned  under  the  quota  share  reinsurance
contract.

PROVISION  (BENEFIT)  FOR  INCOME  TAXES
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.  At March 31, 2001 the Company's net deferred tax assets
were  fully offset by a 100% valuation allowance that resulted in no tax benefit
for  the  three  months  ended  March  31,  2001.

REVIEW  OF  CONSOLIDATED  FINANCIAL  CONDITION

CASH  AND  INVESTMENTS
Total  cash  and  investments  at  March  31,  2002  and  December 31, 2001 were
$115,580,000 and $125,058,000, respectively. The decrease results from continued
liquidations  to  fund  claim  payments  and  operating expenses, as well as the
portfolio rebalancing mentioned above.  Refer to "Net Realized Capital Gains and
(Losses)"  above  for a discussion of other changes on cash investment balances.

REINSURANCE  RECEIVABLES  AND  PAYABLES
SIG  negotiated  a  third-party  quota  share  reinsurance agreement that became
effective  January  1,  2000.  Under  the  quota share agreement, SIG may cede a
portion  of  its  non-standard  automobile insurance premiums and related losses
based  on  a  variable  percentage  of  up to 75% of Superior's and up to 90% of
Pafco's  earned premiums.  SIG's ceding percentage for the first quarter of 2002
totaled  71.4%.  The  decrease  in the amount of premiums and losses ceded under
this  contract  directly affect reinsurance balances due and payable on the face
of  the  financial  statements.

RECEIVABLES
Gross receivables increased by $1,688,000, or 3.4%, from December 31, 2001. This
increase  is  primarily  attributable to an increase in billable premiums due to
higher  written  premiums in the first quarter of 2002 versus the fourth quarter
of 2001.  The allowance for doubtful accounts decreased by $1,238,000, or 81.1%,
from  December  31,  2001  as  a  result  of  permanent  write-offs.

LOSS  AND  LOSS  ADJUSTMENT  EXPENSE  RESERVES
Total  loss  and LAE reserves decreased from $84,876,000 as of December 31, 2001
to  $82,149,000  as  of  March  31,  2002.  This decrease is consistent with the
Company's  declining  volume  of  business.

UNEARNED  PREMIUMS
Unearned  premiums  increased  from  $59,216,000  as  of  December  31,  2001 to
$64,262,000 as of March 31, 2002.  This decrease 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 $(64,673,000) and $(89,146,000) as of March 31, 2002
and December 31, 2001, respectively. This increase is the result of the net loss
of $(5,967,000) for the three months ended March 31, 2002, offset by an increase
in  combined surplus of $30,440,000 due primarily to the purchase by the Company
of  SIG's  Preferred  Securities.

LIQUIDITY  AND  CAPITAL  RESOURCES

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

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

Superior  Insurance Group, Inc. ("Superior Group") collects billing fees charged
to  policyholders  who  elect  to  make  their premium payments in installments.
Superior Group also receives management fees under its management agreement with
its  insurance  subsidiaries.  When the Florida Department of Insurance ("FDOI")
approved the acquisition of Superior by Superior Group Management, 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,  IGF  and Superior are
subject  to  review  by  the  IDOI  and  FDOI.

The  nonstandard  automobile  insurance subsidiaries' primary source of funds is
premiums,  investment  income and proceeds from the maturity or sale of invested
assets.  Such  funds  are used principally for the payment of claims, payment of
claims  settlement  costs,  operating  expenses  (primarily  management  fees),
commissions  to independent agents, premium taxes, dividends and the purchase of
investments.  There  is  variability  in  cash outflows because of uncertainties
regarding  settlement dates for liabilities for unpaid losses.  Accordingly, SIG
maintains  investment programs intended to provide adequate funds to pay claims.
During  the  first  quarter  of  2002  and  during 2001 and 2000, due to reduced
premium  volume, 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 has and will continue to cause SIG to shorten
the  duration  of  its  investments.  SIG  may incur additional costs in selling
longer  bonds to pay claims, as claim payments tend to lag premium receipts. Due
to  the  decline  in  premium  volume,  SIG  has  experienced a reduction in its
investment  portfolio,  but to date has not experienced any problems meeting its
obligations  for  claims  payments.

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

On  August  12,  1997,  SIG  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
semi-annual  interest payments of $6.4 million that commenced February 15, 1998.
SIG  may  redeem  the  Preferred  Securities in whole or in part after 10 years.

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

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


<TABLE>
<CAPTION>

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


The trust indenture contains certain restrictive covenants including those based
upon  SIG's  consolidated  coverage  ratio  of  earnings before interest, taxes,
depreciation  and  amortization (EBITDA).  If SIG's EBITDA falls below 2.5 times
consolidated  interest  expense (including Preferred 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 loans or advances
to  affiliates,  common  stock  repurchases  or  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
(0.77)  in  2002,  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 March 31, 2002.  In March 2002, SIG discovered it
was  not  in  compliance  with  the  covenant  dealing  with  the  percentage of
investment  in  other  than "Permitted Investments" as defined by the indenture.
The  indenture  allows  for  no  more than 15% of total invested assets to be in
non-investment  grade  securities  as  defined by the indenture. At December 31,
2001,  approximately  21%  of  SIG's investment portfolio was invested in equity
securities  and  non-investment grade bonds. SIG cured the covenant violation as
of  March  29,  2002  via the sale of approximately $8 million of non-investment
grade  securities and the reinvestment of the proceeds in Permitted Investments.

During  the  first  quarter  of  2002, Granite Re purchased Preferred Securities
bearing  a  principal  amount  of $26,546,000. During 2001, Granite Re purchased
Preferred  Securities  bearing  a  principal amount of $17,460,000. During 2000,
Granite  Re and Granite purchased Preferred Securities bearing principal amounts
of $18,000,000 and $5,000,000, respectively.  As a result, the Company's balance
sheet  as  of  March  31,  2001  presents  a net Preferred Securities balance of
$67,994,000. The Company's total purchases of Preferred Securities resulted in a
$68,089,000  increase  to  the Company's consolidated stockholders' equity as of
March  31,  2001.

Net  cash  used  by operating activities in the first quarter of 2002 aggregated
$(12,911,000)  compared  to  $(11,814,000)  in  the  first  quarter  of  2001.

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

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

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

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

Stockholders' equity reflected a deficit of $(64.673) million at March 31, 2002,
which does not reflect the statutory surplus upon which the Company conducts its
U.S.  insurance  operations.  The  Company's  U.S.  insurance  subsidiaries, not
including  IGF,  after  the  effects  of  codification, had statutory surplus of
approximately  $17.7  million  at  March  31,  2002.

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

ITEM  3.  QUALITATIVE  AND  QUANTITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

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

PART  II  -     OTHER  INFORMATION

ITEM  1.     LEGAL  PROCEEDINGS

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

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

All  AgPI  policyholder claims had been 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.  Discovery  is proceeding.  On January 16, 2002, the court
entered  an  order  granting  IGF's  motion  for  judgment  on the pleadings and
required  plaintiffs  to  show  an insurable interest.  Plaintiffs amended their
complaint  attempting to allege an insurable interest and on March 19, 2002, the
court granted IGF's demurrer to the amended complaint.  In granting the demurrer
the court held that any recovery payable to plaintiffs would be limited to their
actual  economic  losses regardless of how much plaintiffs thought they had been
promised  (i.e. plaintiffs cannot be paid policy limits without regard to actual
losses  incurred).  The  plaintiffs  then filed their third amended complaint to
which  IGF filed another demurrer, contending that plaintiffs failed to make the
amendments  required by the court's previous rulings. This latest demurrer is to
be  heard  on  May  24,  2002.  Discovery  is  proceeding.

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

The  Company  is a defendant in a case filed on February 23, 2000, in the United
States District Court for the Southern District of Indiana entitled Robert Winn,
et  al. v. Symons International Group, Inc., et al., Cause No. IP 00-0310-C-B/S.
Other  parties  named  as  defendants are SIG, three individuals who were or are
officers  or  directors of SIG or of the Company, PricewaterhouseCoopers LLP and
Schwartz  Levitsky Feldman, LLP.  The case purports to be brought on behalf of a
class  consisting of purchasers of SIG's stock or the Company's stock during the
period  February  27, 1998, through and including November 18, 1999.  Plaintiffs
allege,  among  other  things, that defendants misrepresented the reliability of
SIG's  reported  financial  statements,  data processing and financial reporting
systems,  internal  controls  and loss reserves in violation of Section 10(b) of
the  Securities Exchange Act of 1934 ("1934 Act") and SEC Rule 10b-5 promulgated
thereunder.  The  individual  defendants  are  also  alleged  to  be  liable  as
"controlling persons" under Sec.20(a) of the 1934 Act.  The Company, SIG and the
individual  defendants  filed  a  motion  to  dismiss  the  amended consolidated
complaint  for  failure  to  state  a  claim  and  for  failure  to  plead  with
particularity  as  required  by  Fed.  R. Civ. P.9(b) and the Private Securities
Litigation  Reform  Act  of  1995.  The  accounting  firms also filed motions to
dismiss.  On  February  19, 2002 the court entered an order granting in part and
denying  in part defendants' motion to dismiss.  On March 15, 2002, the Company,
SIG  and  the  individual  defendants  filed a motion for reconsideration of the
court's  ruling  on  the motion to dismiss, or alternatively to certify an order
for  appeal,  which  was  denied  on  May  1,  2002.  Discovery  in  the case is
proceeding.

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

Except as set forth above, there have been no other material developments in any
of  the  pending  legal  proceedings  previously  reported by the Company in the
December  31,  2001  Form  10K.

ITEM  2.     CHANGES  IN  SECURITIES  AND  USE  OF  PROCEEDS
             None

ITEM  3.     DEFAULTS  UPON  SENIOR  SECURITIES
             None

ITEM  4.     SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS
             None

ITEM  5.     OTHER  INFORMATION
             None

ITEM  6.     EXHIBITS  AND  REPORTS  ON  FORM  8-K

             Exhibits:  None

             Reports  on  Form  8-K:  None



<PAGE>

SIGNATURES

Pursuant  to  the requirements of Section 13 or 15(d) of the Securities Exchange
Act  of  1934,  the  Registrant  has duly caused this report to be signed on its
behalf  by  the  undersigned,  thereunto  duly  authorized  on  May  14,  2002.





                                                     By:  /s/  Alan  G.  Symons
                                                          ---------------------
                                                          Alan  G.  Symons
                                                      Chief  Executive  Officer
                                                (principal  executive  officer)




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





                                       24

<TABLE>
<CAPTION>

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

                                                            Three Months     Three Months
                                                               Ended             Ended
                                                          March 31, 2002     March 31, 2001
                                                         ----------------  ----------------
<S>                                                                 <C>               <C>
Average Price (US $). . . . . . . . . . . . . . . . . .              N/A               N/A

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

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

Shares Outstanding - Weighted Average . . . . . . . . .        5,393,698         5,776,398

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

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

Shares Outstanding for US GAAP Purposes . . . . . . . .        5,393,698         5,776,398

Net Loss in Accordance with US GAAP . . . . . . . . . .  $    (5,967,000)  $    (9,547,000)

Net Loss Per Share - US GAAP - Basic and Fully Diluted.  $         (1.11)  $         (1.65)

<FN>

(1)  Only  those  options  with  a dilutive effect were included above for the three months
     ended  March  31,  2002  and  2001.
</TABLE>