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

                                    FORM 10-K

(MARK  ONE)
(  X  )     Annual  Report  pursuant  to  Section  13 or 15(d) of the Securities
            Exchange  Act  of  1934

                      For the year ended December 31, 2002
                                       OR

(    )     Transition  Report  pursuant to Section 13 or 15(d) of the Securities
           Exchange  Act  of  1934

                 For the transition period from ______ to ______

                       Commission File Number:     0-29042

                        SYMONS INTERNATIONAL GROUP, INC.
             (Exact name of registrant as specified in its charter)


INDIANA                                                        35-1707115
(State  or  other  jurisdiction  of                     (I.R.S.  Employer
incorporation                                        Identification  No.)
or  organization)

                4720 KINGSWAY DRIVE, INDIANAPOLIS, INDIANA 46205
          (Address of Principal Executive Offices, Including Zip Code)

       Registrant's telephone number, including area code:  (317) 259-6300

           Securities registered pursuant to Section 12(g) of the Act:

                                 TITLE OF CLASS
                                 --------------
                                  Common Stock
                                 (no par value)

        Securities registered pursuant to Section 12(b) of the Act:  None

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

Indicate  by  check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein and will not be contained, to the best
of  Registrant's  knowledge,  in  definitive  proxy  or  information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form  10-K.  (X)

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

The  aggregate  market  value of the 1,865,925 shares of the Registrant's common
stock  held  by  non-affiliates  as  of  June  3,  2003  was  $55,828.

The  number  of  shares  of  common  stock of the Registrant, without par value,
outstanding  as  of  April  28,  2003  was  10,385,399.

                       DOCUMENTS INCORPORATED BY REFERENCE

Portions  of  the  Registrant's Annual Report to Shareholders for the year ended
December  31,  2002  are  incorporated  by  reference in Parts II and IV hereof.

<PAGE>

                                Table of Contents
ITEM                                                                       PAGE
----                                                                       ----
                                     PART I

1.     Business                                                               4

2.     Properties                                                            21

3.     Legal  Proceedings                                                    21

4.     Submission  of  Matters  to  a  Vote  of  Security  Holders           23

                                     PART II

5.     Market  for  Registrant's  Common  Equity and Related
       Shareholder Matters                                                   23

6.     Selected  Consolidated  Financial  Data                               23

7.     Management's  Discussion  and Analysis of Financial
       Condition and Results  of  Operations                                 24

7A.    Quantitative  and  Qualitative  Disclosures  about
       Market  Risk                                                          24

8.     Financial  Statements  and  Supplementary  Data                       24

9.     Changes  in  and  Disagreements  with  Accountants
       on  Accounting  and  Financial  Disclosure                            24

                                    PART III

10.     Directors  and  Executive  Officers  of  the  Registrant             24

11.     Executive  Compensation                                              25

12.     Security  Ownership  of  Certain Beneficial Owners and Management    31

13.     Certain  Relationships  and  Related  Transactions                   32

14.     Controls  and  Procedures                                            33

                                     PART IV

15.     Exhibits,  Financial Statement Schedules, and Reports on Form 8-K    33

16.     Signatures                                                           41


<PAGE>
                                     PART I

ITEM  1  -  BUSINESS

FORWARD-LOOKING  STATEMENTS

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 the Company's receipt of going concern opinions from
its accountants; (ii) general economic conditions, including prevailing interest
rate  levels and stock market performance; (iii) factors affecting the Company's
nonstandard  automobile  operations  such  as  rate  increase  approval,  policy
renewals,  new  business  written,  and  premium  volume;  and  (iv) the factors
described  in  this  section  and  elsewhere  in  this  report.

OVERVIEW  OF  THE  BUSINESS

Symons  International  Group, Inc. (the "Company") owns insurance companies that
underwrite  and  market nonstandard private passenger automobile insurance.  The
Company's  principal  insurance company subsidiaries are Pafco General Insurance
Company  ("Pafco") and Superior Insurance Company ("Superior"). The Company is a
73.8%  owned  subsidiary  of  Goran  Capital  Inc.  ("Goran").

NONSTANDARD  AUTOMOBILE  INSURANCE

Overview

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

Products

The  Company offers both liability and physical damage coverage in the insurance
marketplace,  with  policies  having  terms  from  three to twelve months.  Most
nonstandard  automobile  insurance  policyholders  choose  the  basic  limits of
liability  coverage  which,  though  varying  from  state to state, generally is
$25,000  per  person and $50,000 per accident for bodily injury to others and in
the  range  of  $10,000  to  $20,000  for  damage  to  cars  or  other property.

Where  permitted, Superior offers a tiered product covering the full spectrum of
automobile  insurance  customers  from  nonstandard  to  ultra-preferred.

Marketing

The  Company's  nonstandard automobile insurance business is concentrated in the
states  of  Florida,  California,  Virginia,  Georgia,  Indiana  and Nevada. The
Company  also  has  the  ability to write nonstandard automobile insurance in 12
additional  states. The Company selects states for expansion or withdrawal based
on  a  number  of  criteria,  including  the  size of the nonstandard automobile
insurance  market,  state-wide  loss results, competition, capitalization of its
companies  and  the  regulatory  climate.  The  following  table  sets forth the
geographic distribution of gross premiums written by the Company for the periods
indicated  sorted  in  descending  order  of  2002  volume.
<TABLE>
<CAPTION>

Gross  Premiums  Written
Years  Ended  December  31,
(in  thousands)

State                      2002      2001      2000
-----------------------  --------  --------  --------
<S>                      <C>       <C>       <C>

Florida . . . . . . . .  $ 45,583  $ 49,162  $ 44,070

California. . . . . . .    20,891    34,287    32,480

Virginia. . . . . . . .    15,661    21,054    20,089

Colorado  (1) . . . . .     7,988    10,112     6,938

Georgia . . . . . . . .     6,565    15,481    13,670

Indiana . . . . . . . .     4,861     6,275    12,804

Nevada. . . . . . . . .     1,493     1,980     3,707

Missouri. . . . . . . .       698       839     1,929

Tennessee . . . . . . .       676     1,696     9,794

Iowa. . . . . . . . . .       504     1,066     2,023

Kentucky. . . . . . . .       406     3,135     5,034

Pennsylvania  (2) . . .       288     9,683         -

Oklahoma. . . . . . . .       274       635     1,090

Arizona . . . . . . . .       169     1,111     4,484
Other states. . . . . .       204     2,972    15,310
                         --------  --------  --------

Total nonstandard auto.   106,261   159,488   173,422

Other property. . . . .     1,514     1,604     1,039
                         --------  --------  --------

Total . . . . . . . . .  $107,775  $161,092  $174,461
                         ========  ========  ========
<FN>

(1)  During  May  2003,  the  Company  ceased  writing  business  in  Colorado.
(2)  All  premiums in Pennsylvania were written by IGF, which has been precluded
     from  writing  other  than  renewal  premium  since  July  30,  2001.
</TABLE>


<PAGE>

The  Company  markets  its  nonstandard products exclusively through independent
agencies.  The Company has several territory managers, each of whom resides in a
specific  marketing  region  and  has  access  to  the  technology  and software
necessary  to  provide  marketing,  rating  and  administrative  support  to the
agencies  in  his  or  her  region.

The  Company  aims  to  foster  strong service relationships with its agents and
customers.  The  Company  has  automated  certain  marketing,  underwriting  and
administrative  functions  and has allowed on-line communication with its agency
force.  In  addition  to  delivering  prompt  service  while ensuring consistent
underwriting,  the  Company  provides  state  of  the  art  point of sale rating
software  to  its agents, which permits them to rate risks in their offices. All
new  business applications are electronically uploaded directly from the agents'
office  to  the  Company through this software. The Company's in-house developed
point  of  sale  product  allows  agents  in most states to order motor vehicle,
credit  and  other  reports  on  line  at  the  time  of  sale.

Most  of  the Company's agents have limited authority to sell and bind insurance
coverages  in  accordance with procedures established by the Company, which is a
common  practice  in the nonstandard automobile insurance business.  The Company
promptly  reviews  all  coverages  bound  by  the  agents  and generally accepts
coverages  that  fall  within its stated underwriting criteria.  The Company has
the  right  within a specified time period to cancel any policy even if the risk
falls  within  its  underwriting criteria. The Company compensates its agents by
paying  a  commission  based  on  a  percentage  of  premiums  produced.

The  Company  believes  its  four insurance companies licensed in various states
allows  it  the flexibility to engage in multi-tiered marketing efforts in which
specialized  automobile insurance products are directed toward specific segments
of  the  market.  Since  certain  state insurance laws prohibit a single insurer
from  offering similar products with different commission structures or, in some
cases premium rates, it is necessary to have multiple licenses in certain states
in  order  to  obtain  the  benefits  of  market  segmentation.

Underwriting

The Company utilizes many factors in determining its premium rates.  Some of the
characteristics  used  are  type,  age  and  location  of the vehicle, number of
vehicles  per policyholder, number and type of convictions and accidents, limits
of  liability,  deductibles,  and,  where  allowed  by law, credit, age, sex and
marital  status  of the insured.  The rate approval process varies from state to
state. Some states allow filing and immediate use of rates, while others require
approval  by  the  state's  insurance  department prior to the use of the rates.

Underwriting  results  of  insurance  companies are frequently measured by their
combined  ratios.  However,  investment  income,  federal income taxes and other
non-underwriting income or expense are not reflected in the combined ratio.  The
profitability  of  property  and  casualty insurance companies depends on income
from  underwriting, investment and service operations.  Underwriting results are
generally  considered  profitable  when  the  combined  ratio  is under 100% and
unprofitable when the combined ratio is over 100%.  See "Management's Discussion
and  Analysis  of  Financial  Condition  and  Results of Operations" for further
discussion  on  the  combined  ratio.

In  an  effort  to  maintain  and  improve  underwriting  profits, the territory
managers  monitor  loss  ratios  of  the  agencies  in  their  regions  and meet
periodically  with  the  agents  in  order to address any adverse trends in loss
ratios  or  other  profitability  indicators.

Claims

The  Company's nonstandard automobile insurance claims departments handle claims
on  a  regional  and  local  basis  from claim offices in Indianapolis, Indiana;
Atlanta,  Georgia;  Tampa and West Palm Beach, Florida; and Anaheim, California.
The  Company  uses a combination of its own adjusters and independent appraisers
and  adjusters  for  estimating  physical  damage claims and limited elements of
investigation.

Claims  settlement authority levels are established for each adjuster or manager
based  on  the  employee's  ability and experience.  Upon receipt, each claim is
reviewed  and  assigned  to  an  adjuster  based on the type and severity of the
claim. A home office supervisor or litigation manager monitors all claim-related
litigation.  The  claims  policy  of  the  Company  emphasizes  prompt  and fair
settlement  of  meritorious claims, appropriate reserving for outstanding claims
and  controlling  claims  adjustment  expenses.

Reinsurance

The  Company  follows the customary industry practice of reinsuring a portion of
its  risks.  Insurance  is ceded principally to reduce the Company's exposure on
large individual risks and to provide protection against large losses, including
catastrophic losses.  Although reinsurance does not legally discharge the ceding
insurer  from  its  primary obligation to pay the full amount of losses incurred
under  policies reinsured, it does render the reinsurer liable to the insurer to
the  extent  provided  by  the  terms of the reinsurance treaty.  As part of its
internal  procedures,  the  Company  evaluates  the  financial condition of each
prospective  reinsurer  before  it cedes business to that carrier.  Based on the
Company's  review  of  its  reinsurers'  financial  health and reputation in the
insurance marketplace, the Company believes its reinsurers are financially sound
and  that  they can meet their obligations to the Company under the terms of the
respective  reinsurance  treaties.

In  2002,  Pafco  and Superior maintained casualty excess of loss reinsurance on
their  nonstandard  automobile  insurance business covering 35.0% of $700,000 of
losses  on  an individual occurrence basis in excess of $300,000 up to a maximum
of  $3,000,000  at  100.0%.

As  of  December  31,  2002,  amounts  recoverable  from  reinsurers relating to
nonstandard  automobile  operations  is  as  follows  (in  thousands):
<TABLE>
<CAPTION>


                                                        Reinsurance
                                                     Recoverables as of
Reinsurers                                          A.M. Best Rating (2)  December 31, 2002(1)
--------------------------------------------------  --------------------  ---------------------
<S>                                                 <C>                   <C>
National Union Fire Insurance Company
Of Pittsburgh, PA. . . . . . . . . . . . . . . . .  A++                   $              43,633
Gerling Global Reinsurance Corporation of America.  B+                                    1,197
Lloyds of London (Various Syndicates). . . . . . .  Not Rated                             2,271
Transatlantic Reinsurance Company. . . . . . . . .  A++                                   1,131
<FN>

(1)  Only  recoverables  greater  than  $200,000  are  shown.  Total nonstandard
     automobile  reinsurance  recoverables  as  of  December  31,  2002  were
     approximately  $47,044,000.
(2)  An  A.M.  Best  Rating  of "A++" is the highest of 15 ratings. An A.M. Best
     Rating  "B+"  is  the  fourth  highest  of  15  ratings.
</TABLE>


Effective  January  1, 2000, Pafco and Superior entered into an automobile quota
share  agreement  with National Union Fire Insurance Company of Pittsburgh.  The
amount  of  cession  for Pafco is variable up to a maximum of 60% or $10 million
and  for  Superior is variable up to a maximum of 75% or $60 million for all new
and  renewal  business.  In  2002,  Pafco  and  Superior  ceded  71%  of  their
nonstandard  automobile  gross  written  premiums  under  this  treaty.

On  April  29,  1996,  Pafco  also  entered  into a 100% quota share reinsurance
agreement  with  Granite Reinsurance Company Ltd. ("Granite Re"), a wholly owned
subsidiary  of  Goran,  (no A.M. Best rating), whereby all of Pafco's commercial
business  from  1996  and  thereafter  was ceded effective January 1, 1996. This
agreement  was  in  effect  during  2002.

Neither  Pafco  nor Superior has any facultative reinsurance with respect to its
nonstandard  automobile  insurance  business.

Competition

The  Company competes with both large national and smaller regional companies in
each  state  in  which  it  operates.  The  Company's  competitors include other
companies that serve the agency market, as well as companies that sell insurance
directly  to  consumers.  Direct writers may have certain competitive advantages
over  agency writers, including increased name recognition, increased loyalty of
their  customer  base and, potentially, reduced acquisition costs. The Company's
primary  competitors  are  Progressive  Casualty Insurance Company and specialty
subsidiaries  of a number of insurance groups, including AIG, Allstate, American
Financial  Group  and  GMAC.  Generally,  these  competitors are larger and have
greater  financial  resources  than  the  Company.

RESERVE  FOR  LOSSES  AND  LOSS  ADJUSTMENT  EXPENSES

Loss reserves are estimates, established at a given point in time based on facts
then  known,  of  an  insurer's  prediction  of  its exposure in connection with
incurred  losses.  Loss adjustment expense ("LAE") reserves are estimates of the
ultimate liability associated with the expense of settling all claims, including
investigation  and  litigation  costs  resulting  from  such claims.  The actual
liability  of an insurer for its loss and LAE reserves at any point in time will
be  greater  or  less  than  these  estimates.

The  Company  maintains reserves for the eventual payment of losses and LAE with
respect to both reported and unreported claims.  Nonstandard automobile reserves
for  reported  claims  are  established  on a case-by-case basis.  The reserving
process  takes into account the type of claim, policy provisions relating to the
type  of  loss  and  historically  paid  loss  and  LAE  for  similar  claims.

Loss  and  LAE  reserves for claims that have been incurred but not reported are
estimated  based  on  many  variables  including  historical  and  statistical
information, inflation, legal developments, economic conditions, trends in claim
severity  and frequency and other factors that could affect the adequacy of loss
reserves.

The  loss  reserve  development  table below illustrates the change over time of
reserves  established  for  loss  and loss expenses as of the end of the various
calendar years for the nonstandard automobile segment of the Company.  The table
includes the loss reserves acquired from the acquisition of Superior in 1996 and
the  related  loss  reserve development thereafter.  The first section shows the
reserves  as  originally  reported  at  the  end of the stated year.  The second
section,  reading  down,  shows  the  cumulative  amounts  paid as of the end of
successive  years  with  respect  to  the reserve liability.  The third section,
reading  down, shows the re-estimates of the original recorded reserve as of the
end  of  each  successive  year  which  is a result of sound insurance reserving
practices of addressing new emerging facts and circumstances which indicate that
a  modification  of the prior estimate is necessary.   The last section compares
the  latest  re-estimated  reserve  to  the  reserve originally established, and
indicates  whether  or  not  the  original reserve was adequate or inadequate to
cover  the  estimated  costs  of  unsettled  claims.

The loss reserve development table is cumulative and, therefore, ending balances
should  not  be added since the amount at the end of each calendar year includes
activity  for  both  the  current  and  prior  years.

The  reserve  for  losses  and loss expenses is an accumulation of the estimated
amounts  necessary to settle all outstanding claims as of the date for which the
reserve  is  stated.  The reserve and payment data shown below have been reduced
for  estimated subrogation and salvage recoveries. The Company does not discount
its reserves for unpaid losses and loss expenses.  No attempt is made to isolate
explicitly the impact of inflation from the multitude of factors influencing the
reserve estimates though inflation is implicitly included in the estimates.  The
Company  regularly  updates  its reserve forecasts by type of claim as new facts
become  known  and  events  occur  which  affect  unsettled  claims.

The  Company's  insurance  subsidiaries  filed  their annual statutory financial
statements as of December 31, 2002 which included the Company's estimate of loss
and  loss reserve expense. In May 2003, pursuant to a reserve analysis completed
by the consulting actuary engaged by BDO Seidman, LLP, the Company's independent
auditor, it was determined that reserves for losses and loss adjustment expenses
for  Superior  and  Pafco  should be increased. These reserve adjustments, along
with  resulting  adjustments to the permitted carrying values of certain assets,
were  recorded  in  the  2002  audited  statutory financial statements filed for
Superior  and  Pafco  with  the  Insurance Department of Florida and the Indiana
Department  of  Insurance,  respectively.

Activity  in  the  liability  for  unpaid  loss and loss adjustment expenses for
nonstandard  automobile  insurance  is  summarized  below,  in  thousands:
<TABLE>
<CAPTION>
                                       2002      2001      2000
                                      -------  --------  ---------
<S>                                   <C>      <C>       <C>
Balance at January 1,. . . . . . . .  $81,142  $108,117  $152,455
       Less reinsurance recoverables   30,600    23,252    13,527
                                      -------  --------  ---------
       Net balance at January 1, . .   50,542    84,865   138,928

Incurred related to:
       Current year. . . . . . . . .   35,413    69,667   127,497
       Prior years . . . . . . . . .   12,775       774   (14,118)
                                      -------  --------  ---------
       Total incurred. . . . . . . .   48,188    70,441   113,379

Paid related to:
       Current year. . . . . . . . .   19,211    46,973    85,334
       Prior years . . . . . . . . .   36,374    57,791    82,108
                                      -------  --------  ---------
       Total paid. . . . . . . . . .   55,585   104,764   167,442

Net balance at December 31,. . . . .   43,145    50,542    84,865
Plus reinsurance balance . . . . . .   24,059    30,600    23,252
                                      -------  --------  ---------
Balance at December 31,. . . . . . .  $67,204  $ 81,142  $108,117
                                      =======  ========  =========
</TABLE>

Reserve  estimates are regularly adjusted in subsequent reporting periods as new
facts  and  circumstances  emerge  to  indicate that a modification of the prior
estimate is necessary.  The adjustment, referred to as "reserve development," is
inevitable  given  the  complexities of the reserving process and is recorded in
the  statements  of  operations  in  the period when the need for the adjustment
becomes  known.  The  foregoing reconciliation indicates unfavorable development
of $12,775,000 on the December 31, 2001 reserves.  A portion of the 2001 reserve
development  was  caused  by  a  larger  than normal number of previously closed
claims  that  reopened  in  2002.  The remainder of the 2001 reserve development
resulted  from  a  higher  than  expected  frequency and severity on nonstandard
automobile  claims.

The  anticipated  effect  of  inflation is implicitly considered when estimating
losses  and  loss  adjustment  expenses  liabilities.  While  anticipated  price
increases  due  to  inflation  are  considered in estimating the ultimate claims
costs,  increases  in average claim severities is caused by a number of factors.
Future  severities  are  projected  based  on  historical  trends  adjusted  for
implemented  changes  in  underwriting  standards,  policy  provisions,  claims
management  practices  and  procedures and general economic trends.  Anticipated
severity trends are monitored relative to actual development and are modified if
necessary.

Liabilities  for  loss  and  loss adjustment expenses have been established when
sufficient  information  has  been  developed  to  indicate the involvement of a
specific insurance policy.  In addition, reserves have been established to cover
additional  exposure  on  both  known  and  unasserted  claims.


<TABLE>
<CAPTION>

Symons  International  Group,  Inc.
Nonstandard  Automobile  Insurance  Only
For  The  Years  Ended  December  31,  (in  thousands)

                   1992      1993      1994      1995      1996       1997       1998       1999       2000      2001      2002
                 --------  --------  --------  --------  ---------  ---------  ---------  ---------  --------  ---------  ------
<S>              <C>       <C>       <C>       <C>       <C>        <C>        <C>        <C>        <C>       <C>         <C>

Gross
Reserves for
Unpaid losses
 and LAE. .  .        .   $27,403   $25,248   $71,748   $79,551   $101,185   $121,661   $141,260   $103,441   $79,047   $ 65,915
---------------------------------------------------------------------------------------------------------------------------------
Deduct
 Reinsurance
 Recoverable. .            12,581    10,927     9,921     8,124     16,378      6,515      3,167     18,709    28,511     22,990
---------------------------------------------------------------------------------------------------------------------------------
Reserve for
 Unpaid losses
 and LAE, net
 of
 reinsurance. . $17,055    14,822    14,321    61,827     71,427     84,807    114,829    138,093    84,732     50,536   42,925
-------------------------------------------------------------------------------------------------------------------------------
Paid
 Cumulative as
 of:
One Year
 Later. . . . .   10,868     8,875     7,455    42,183     59,410     62,962     85,389     81,444    57,696     36,291
-------------------------------------------------------------------------------------------------------------------------------
Two Years
 Later. . . . .   15,121    11,114    10,375    53,350     79,319     89,285    111,042    107,534    79,316
-------------------------------------------------------------------------------------------------------------------------------
Three Years
 Later. . . . .   16,855    13,024    12,040    58,993     86,298     98,469    121,907    118,316        --
-------------------------------------------------------------------------------------------------------------------------------
Four Years
 Later. . . . .   17,744    13,886    12,822    61,650     89,166    102,854    127,390         --        --
-------------------------------------------------------------------------------------------------------------------------------
Five Years
 Later. . . . .   18,195    14,229    13,133    62,621     90,477    105,252         --         --        --
-------------------------------------------------------------------------------------------------------------------------------
Six Years
 Later. . . . .   18,408    14,330    13,375    63,031     91,345         --         --         --        --
-------------------------------------------------------------------------------------------------------------------------------
Seven Years
 Later. . . . .   18,405    14,426    13,418    63,534         --         --         --         --        --
-------------------------------------------------------------------------------------------------------------------------------
Eight Years
 Later. . . . .   18,460    14,386    13,648        --         --         --         --         --        --
-------------------------------------------------------------------------------------------------------------------------------
Nine Years
 Later. . . . .   18,411    14,572        --        --         --         --         --         --        --
-------------------------------------------------------------------------------------------------------------------------------
Ten Years
 Later. . . . .   18,420        --        --        --         --         --         --         --        --
-------------------------------------------------------------------------------------------------------------------------------
Liabilities re
-estimated as
 of:
One Year
 Later. . . . .   17,442    14,788    13,365    59,626     82,011     97,905    131,256    124,012    85,538     63,014
-------------------------------------------------------------------------------------------------------------------------------
Two Years
 Later. . . . .   18,103    13,815    12,696    60,600     91,743    104,821    128,302    121,480    93,483
-------------------------------------------------------------------------------------------------------------------------------
Three Years
 Later. . . . .   18,300    14,051    13,080    63,752     91,641    104,551    127,885    126,321        --
-------------------------------------------------------------------------------------------------------------------------------
Four Years
 Later. . . . .   18,313    14,290    13,485    63,249     91,003    105,012    131,087         --        --
-------------------------------------------------------------------------------------------------------------------------------
Five Years
 Later. . . . .   18,419    14,499    13,441    63,233     91,323    106,813         --         --        --
-------------------------------------------------------------------------------------------------------------------------------
Six Years
 Later. . . . .   18,533    14,523    13,592    63,373     91,874         --         --         --        --
-------------------------------------------------------------------------------------------------------------------------------
Seven Years
 Later. . . . .   18,484    14,584    13,652    63,781         --         --         --         --        --
-------------------------------------------------------------------------------------------------------------------------------
Eight Years
 Later. . . . .   18,508    14,574    13,727        --         --         --         --         --        --
-------------------------------------------------------------------------------------------------------------------------------
Nine Years
 Later. . . . .   18,494    14,615        --        --         --         --         --         --        --
-------------------------------------------------------------------------------------------------------------------------------
Ten Years
 Later. . . . .   18,457        --        --        --         --         --         --         --        --
-------------------------------------------------------------------------------------------------------------------------------
Net
 Cumulative
 (deficiency)
 or
 redundancy . .   (1,402)      207       594    (1,954)   (20,447)   (22,006)   (16,258)    11,772    (8,751)   (12,478)
-------------------------------------------------------------------------------------------------------------------------------
Expressed as
 a percentage
 of unpaid
 losses and
 LAE. . . . . .    (8.2%)      1.4%      4.1%    (3.2%)    (28.6%)    (25.9%)    (14.2%)       8.5%   (10.3%)    (24.7%)
-------------------------------------------------------------------------------------------------------------------------------
<FN>
Revaluation  of  gross  losses
 And  LAE  as  of  year-end
 2002
--------------------------------------------------------------------------------------------------------------------------------
Cumulative  gross  paid  as  of
Year-end 2002                28,231     26,013   74,573     100,359     124,345   131,724     120,166     97,310     64,923
------------------------------------------------------------------------------------------------------------------------------
Gross  liabilities  Re
estimated  as  of
year-end 2002                28,280     26,101   74,857     100,925     126,303   137,704     130,453     115,537    98,478
-------------------------------------------------------------------------------------------------------------------------------
Gross  cumulative
(deficiency) or
redundancy                    (877)      (853)   (3,109)    (21,374)    (25,118)  (16,043)     10,807    (12,096)   (19,431)
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>

RATINGS

A.M.  Best  has currently assigned a "B-" rating to Superior and a "C" rating to
Pafco.  A.M. Best's ratings are based upon a comprehensive review of a company's
financial  performance,  which  is  supplemented  by  certain  data,  including
responses  to  A.M.  Best's  questionnaires,  telephone  conferences  and  other
correspondence between A.M. Best analysts and company management, quarterly NAIC
filings,  state  insurance department examination reports, loss reserve reports,
annual  reports,  company  business  plans  and  other  reports filed with state
insurance  departments.  A.M.  Best  undertakes a quantitative evaluation, based
upon  profitability, leverage and liquidity, and a qualitative evaluation, based
upon  the  composition  of  a  company's book of business or spread of risk, the
amount,  appropriateness  and  soundness  of  reinsurance,  the  quality,
diversification  and  estimated  market value of its assets, the adequacy of its
loss  reserves  and policyholders' surplus, the soundness of a company's capital
structure,  the  extent  of  a  company's market presence and the experience and
competence  of  its  management.  A.M.  Best's  ratings represent an independent
opinion of a company's financial strength and ability to meet its obligations to
policyholders.  A.M.  Best's  ratings  are  not a measure of protection afforded
investors.  "B-"  and  "C"  ratings  are A.M. Best's eighth and eleventh highest
rating  classifications,  respectively, out of fifteen ratings. A "B-" rating is
awarded  to  insurers  which,  in  A.M.  Best's opinion, "have, on balance, fair
financial  strength,  operating  performance and market profile when compared to
the standards established by the A.M. Best Company" and "have an ability to meet
their  current  obligations  to  policyholders,  but their financial strength is
vulnerable  to  adverse changes in underwriting and economic conditions".  A "C"
rating is awarded to insurers which, in A. M. Best's opinion, "have, on balance,
weak  financial strength, operating performance and market profile when compared
to  the  standards established by the A.M. Best Company" and "have an ability to
meet their current obligations to policyholders, but their financial strength is
very  vulnerable  to  adverse  changes in underwriting and economic conditions".

A.M. Best has currently assigned an "E" rating (Under Regulatory Supervision) to
IGF  reflecting the significant regulatory constraint resulting from the Consent
Order  entered  into  between  IGF  and the Indiana Department Of Insurance (see
Regulation-"  Regulatory  Actions").

REGULATION

General

The  Company's  insurance  businesses  are  subject  to  comprehensive, detailed
regulation  throughout  the  United  States,  under  statutes  which  delegate
regulatory,  supervisory  and  administrative  powers  to  state  insurance
commissioners.  The  primary  purpose of such regulations and supervision is the
protection  of  policyholders  and  claimants  rather than shareholders or other
investors.  Depending  on whether an insurance company is domiciled in the state
and whether it is an admitted or non-admitted insurer, such authority may extend
to  such  things as (i) periodic reporting of the insurer's financial condition;
(ii)  periodic  financial examination; (iii) approval of rates and policy forms;
(iv) loss reserve adequacy; (v) insurer solvency; (vi) the licensing of insurers
and  their  agents;  (vii)  restrictions  on  the payment of dividends and other
distributions;  (viii)  approval  of  changes  in control; and (ix) the type and
amount  of  permitted  investments.

The  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 operating subsidiaries. (See "Regulatory Actions",
"Risk-  Based  Capital  Requirements",  and  "RISK  FACTORS").

Regulatory  Actions

On  June  6,  2001,  IGF  sold substantially all of its crop insurance assets to
Acceptance.  On June 24, 2001, following the sale of IGF's crop insurance assets
and  as  a result of losses experienced by IGF in its crop insurance operations,
the  IDOI and IGF entered into a consent order (the "Consent Order") relating to
IGF.  IGF has discontinued writing new business and its operations are presently
in  run  off.  The IDOI has continued to monitor the status of IGF.  The Consent
Order  prohibits  IGF  from  taking  any  of the following actions without prior
written  consent  of  the  IDOI:

-    Sell  or  encumber  any  of  its  assets,  property,  or business in force;
-    Disburse  funds,  except to pay direct unaffiliated policyholder claims and
     normal  operating  expenses  in the ordinary course of business (which does
     not include payments to affiliates except for the reimbursement of costs of
     running  IGF  by  the  Company,  and does not include payments in excess of
     $10,000);

-    Lend  its  funds  or  make  investments,  except  in  specified  types  of
     investments;
-    Incur  debts  or  obligations, except in the ordinary course of business to
     unaffiliated  parties;
-    Merge  or  consolidate  with  another  company;
-    Enter  into  new,  or  amend  existing,  reinsurance  agreements;
-    Complete,  enter  into  or  amend  any  transaction  or arrangement with an
     affiliate,  and
-    Disburse  funds  or  assets  to  any  affiliate.

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

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

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

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

In March 2000, Pafco agreed with the Iowa Department of Insurance ("IADOI") that
it  would  not  write  any new non-standard business in Iowa, until such time as
Pafco has reduced its overall non-standard automobile policy counts in the state
or  has:

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

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

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

On  July  7, 2000, the FDOI issued a notice of its intent to issue an order (the
"Notice") which principally addressed certain policy and finance fee payments by
Superior  to  Superior  Group.  A  formal  administrative  hearing to review the
Notice  and  a  determination  that  the order contemplated by the Notice not be
issued  was  held  in  February  2001.  The  administrative  law judge entered a
recommended  order on June 1, 2001 that was acceptable to the Company. On August
30,  2001,  the  FDOI  rejected the recommended order and issued its final order
which the Company believes improperly characterized billing and policy fees paid
by  Superior to Superior Group.  On September 28, 2001, Superior filed an appeal
of  the  final  order to the Florida District Court of Appeal. On March 4, 2002,
the FDOI filed a petition in the Circuit Court of the Second Judicial Circuit in
and  for  Leon  County,  Florida  seeking  court enforcement of the FDOI's final
order. Superior filed a motion with the FDOI for stay of the FDOI's final order.
Superior  also  filed a motion for stay with the District Court of Appeal, which
was  denied pending a ruling from the FDOI.  On April 5, 2002 the FDOI granted a
stay  of  the final order that was conditional upon the cessation of the payment
of  billing  fees by Superior to Superior Group and the posting of a $15 million
appeal  bond.  Superior  did  not  agree to the conditions imposed by the FDOI's
conditional  stay.  On  May  6,  2002  Superior filed a motion with the District
Court  of Appeal seeking a stay of the final order pending Superior's appeal or,
in  the  alternative,  a consolidation of the FDOI's enforcement action with the
pending appeal.  On June 19, 2002, the District Court of Appeal entered an order
which  struck the FDOI's conditional requirement for the stay that Superior post
a  $15  million  appeal  bond.  However,  the order denied Superior's request to
consolidate  the appeal with the enforcement action.  On September 26, 2002, the
District  Court  of Appeal affirmed the final order of the FDOI.  On October 31,
2002  the  Circuit Court entered a final order which granted the FDOI's petition
for  enforcement of the FDOI's final order and which requires Superior to comply
with  the  FDOI  final  order.

In  accordance  with  the FDOI's final order, Superior ceased payment of finance
and service fees as of October 1, 2002 and has requested repayment from Superior
Group of $15 million of finance and service fees paid from 1997 through 1999 and
additional finance and service fees paid thereafter in the approximate amount of
$20  million.  Without the payment of finance and service fee income to Superior
Group or an amendment to the management agreement or reallocation of operational
responsibilities,  Superior Group could not operate profitably.  Accordingly, on
October  1,  2002,  Superior  Group discontinued the provision of certain claims
services to Superior.  Superior provided a number of proposals to the FDOI in an
effort  to  establish  an acceptable repayment plan in accordance with the final
order.  None  of  the  proposals  were  acceptable  to  the  FDOI.

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

On  September  10,  2002,  the FDOI filed a petition in the Circuit Court of the
Second  Judicial  Circuit  in  and for Leon County, Florida for an order to show
cause  and  notice  of automatic stay which sought the appointment of a receiver
for  the  purpose  of rehabilitation of Superior.  The court entered an order to
show  cause,  temporary injunction and notice of automatic stay on September 13,
2002 and a hearing was held on October 24, 2002.  On November 1, 2002, the court
entered  an order that denied the FDOI's petition for appointment of a receiver.
On  November 8, 2002, the FDOI filed a motion for rehearing, which was denied on
December  17,  2002.

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

On  October  9,  2001,  the  State Corporation Commission of Virginia ("Virginia
Commission")  issued  an  order  to  take  notice  regarding an order suspending
Superior's  license  to write business in that state.  An administrative hearing
for  a  determination  that the suspension order not be issued was held March 5,
2002.  On  May  3,  2002, the hearing examiner issued his report and recommended
that  Superior's  license not be suspended and that Superior file its risk based
capital  plans and monthly and quarterly financial information with the Virginia
Bureau  of  Insurance  ("Bureau").  On  June  19,  2002  the Virginia Commission
entered  an  order which adopted the findings of the hearing examiner, continued
the  matter  until  such time as the Bureau requests further action and requires
the  continued  monitoring of the financial condition of Superior by the Bureau.
On  October  11,  2002,  the Virginia Commission filed an administrative Rule to
Show  Cause.  A hearing was scheduled for November 18, 2002 to determine whether
Superior's  license  to  transact  insurance  business  in  Virginia  should  be
suspended.  Because  of  Superior's  improved  financial condition, the Virginia
Commission  continued  the  hearing  indefinitely.  The  nonstandard  automobile
insurance  policies  written in Virginia by Superior accounted for approximately
13.1%  and  14.5% of the total gross written premiums of the Company in 2001 and
in  2002,  respectively.

Insurance  Holding  Company  Regulation

The  Company  also  is  subject to laws governing insurance holding companies in
Florida  and  Indiana,  the  domicilary  states  of  its  insurance  company
subsidiaries.  These  laws,  among other things, (i) require the Company to file
periodic  information  with  state  regulatory authorities including information
concerning  its  capital  structure,  ownership, financial condition and general
business operations; (ii) regulate certain transactions between the Company, its
affiliates  and  IGF,  Pafco,  Superior, Superior American and Superior Guaranty
(the  Insurers),  including  the amount of dividends and other distributions and
the  terms of surplus notes; and (iii) restrict the ability of any one person to
acquire  certain  levels  of  the  Company's  voting  securities  without  prior
regulatory  approval.

Any  purchaser  of  10% or more of the outstanding shares of common stock of the
Company  would  be presumed to have acquired control of Pafco and IGF unless the
Indiana Commissioner of Insurance ("Indiana Commissioner") upon application, has
determined  otherwise.  In  addition,  any  purchaser  of  5%  or  more  of  the
outstanding  shares  of  common  stock  of  the Company will be presumed to have
acquired  control  of  Superior  unless  the  Florida  Commissioner of Insurance
("Florida  Commissioner"),  upon  application,  has  determined  otherwise.

Dividend  payments  by  the  Company's  insurance  subsidiaries  are  subject to
restrictions  and  limitations  under  applicable  law,  and under those laws an
insurance  subsidiary  may not pay dividends to the Company without prior notice
to,  or  approval  by,  the  subsidiary's domiciliary insurance regulator.  As a
result  of  regulatory  actions taken by the IDOI with respect to Pafco and IGF,
those  subsidiaries  may not pay dividends to the Company without prior approval
by  the  IDOI (see "Recent Regulatory Developments" above).  Further, payment of
dividends  may  be  constrained  by  business and regulatory considerations, and
state  insurance  laws  and regulations require that the statutory surplus of an
insurance  company  following  any  dividend  or distribution by such company be
reasonable  in  relation  to  its  outstanding  liabilities and adequate for its
financial  needs.  Accordingly,  there  can be no assurance that the IDOI or the
FDOI  would  permit any of the Company's insurance subsidiaries to pay dividends
at  this  time  or  in  the  future  (see  "RISK  FACTORS").

While  the  non-insurance  company  subsidiaries are not subject directly to the
dividend  and  other  distribution  limitations,  insurance  holding  company
regulations  govern  the  amount  which  a subsidiary within the holding company
system  may  charge  any of the Insurers for services (e.g., management fees and
commissions).  These  regulations may affect the amount of management fees which
may  be  paid by Pafco and Superior to Superior Group.  The management agreement
between the Company and Pafco was assigned to Superior Group and provides for an
annual  management  fee  equal  to  15%  of gross premiums. A similar management
agreement  with  a  management  fee  of  17%  of gross premiums was entered into
between  Superior and Superior Group.  There can be no assurance that either the
IDOI  or the FDOI will not in the future require a reduction in these management
fees.  In  addition, neither Pafco nor IGF may engage in any transaction with an
affiliate,  including  the  Company, without the prior approval of the IDOI (see
"Regulatory  Actions  "  above).


Underwriting  and  Marketing  Restrictions

During  the  past  several years, various regulatory and legislative bodies have
adopted  or proposed new laws or regulations to deal with the cyclical nature of
the  insurance industry, catastrophic events and insurance capacity and pricing.
These  regulations  include  (i) the creation of "market assistance plans" under
which  insurers  are  induced to provide certain coverages; (ii) restrictions on
the  ability  of  insurers  to  rescind  or otherwise cancel certain policies in
mid-term;  (iii)  advance notice requirements or limitations imposed for certain
policy  non-renewals;  and (iv) limitations upon or decreases in rates permitted
to  be  charged.

Insurance  Regulatory  Information  System

The  NAIC  Insurance  Regulatory  Information  System  ("IRIS")  was  developed
primarily  to  assist  state  insurance departments in executing their statutory
mandate  to oversee the financial condition of insurance companies.  IRIS ratios
consist  of  twelve  ratios with defined acceptable ranges.  They are used as an
initial  screening  process  for  identifying  companies  that may be in need of
special  attention.  Companies that have several ratios that fall outside of the
acceptable  range  are  selected  for  closer  review  by the NAIC.  If the NAIC
determines  that  more  attention  may  be  warranted,  one  of  five  priority
designations  is  assigned and the insurance department of the state of domicile
is  then  responsible  for  follow-up  action.

Based  on  the December 31, 2002 statutory financials filed with the NAIC, Pafco
had  values outside of the acceptable ranges for five IRIS tests. These included
the  two-year overall operating ratio, the investment yield ratio, the change in
surplus  ratio,  the  liabilities  and  liquid  assets  ratio, and the estimated
current  reserve  deficiency  to  policyholders'  surplus  ratio.

Based  on  the  December  31,  2002  statutory  financials  filed with the NAIC,
Superior  had  values outside of the acceptable ranges for six IRIS tests. These
included  the  surplus aid to policyholders' surplus ratio, the two-year overall
operating  ratio,  the change in surplus ratio, the liabilities to liquid assets
ratio, the one-year reserve development to policyholders' surplus ratio, and the
two-year  reserve  development  to  policyholders'  surplus  ratio.

As  of  December  31,  2002, IGF had values outside of the acceptable ranges for
five  IRIS  tests. These included the change in net writings ratio, the two-year
overall  operating ratio, the change in surplus ratio, the liabilities to liquid
assets  ratio,  and  the  agent's  balances  to  policyholders'  surplus  ratio.

Risk-Based  Capital  Requirements

In  order  to enhance the regulation of insurer solvency, the NAIC has adopted a
formula  and  model law to implement risk-based capital ("RBC") requirements for
property  and  casualty  insurance  companies designed to assess minimum capital
requirements  and  to  raise  the  level  of  protection  that statutory surplus
provides  for  policyholder obligations.  Indiana and Florida have substantially
adopted  the  NAIC  model law and Indiana directly, and Florida indirectly, have
adopted  the  NAIC  model  formula.  The  RBC  formula for property and casualty
insurance  companies  measures  four  major  areas  of  risk facing property and
casualty  insurers: (i) underwriting, which encompasses the risk of adverse loss
developments  and inadequate pricing; (ii) declines in asset values arising from
credit  risk;  (iii) declines in asset values arising from investment risks; and
(iv)  off-balance sheet risk arising from adverse experience from non-controlled
assets,  guarantees  for  affiliates,  contingent  liabilities  and  reserve and
premium  growth.  Pursuant  to  the  model  law,  insurers having less statutory
surplus  than  that  required  by the RBC calculation will be subject to varying
degrees  of  regulatory  action,  depending  on the level of capital inadequacy.

The  RBC  model law provides for four levels of regulatory action. The extent of
regulatory  intervention  and  action  increases  as the level of surplus to RBC
decreases.  The  first level, the Company Action Level (as defined by the NAIC),
requires  an  insurer to submit a plan of corrective actions to the regulator if
surplus  falls  below  200%  of  the  RBC  amount.  The  Regulatory Action Level
requires  an insurer to submit a plan containing corrective actions and requires
the  relevant insurance commissioner to perform an examination or other analysis
and issue a corrective order if surplus falls below 150% of the RBC amount.  The
Authorized  Control  Level  gives the relevant insurance commissioner the option
either  to  take  the aforementioned actions or to rehabilitate or liquidate the
insurer  if  surplus falls below 100% of the RBC amount. The fourth action level
is the Mandatory Control Level that requires the relevant insurance commissioner
to  rehabilitate  or liquidate the insurer if surplus falls below 70% of the RBC
amount.

At the time of filing the annual statutory financial statements of the Company's
insurance  subsidiaries  as of December 31, 2002, the RBC calculations for Pafco
and  Superior were in excess of 200% which concluded that no action is required.
The RBC calculation for IGF as of December 31, 2002 was in excess of 100%, which
is  above  the  Authorized  Control  Level.  (See "Regulatory Actions").  In May
2003, pursuant to a reserve analysis completed by the consulting actuary engaged
by  BDO  Seidman, LLP, the Company's independent auditor, it was determined that
reserves  for  losses and loss adjustment expenses for Superior and Pafco should
be increased. These reserve adjustments, along with resulting adjustments to the
permitted  carrying  values of certain assets, were recorded in the 2002 audited
statutory  financial  statements filed for Superior and Pafco with the Insurance
Department  of  Florida  and  the Indiana Department of Insurance, respectively.
Based  on  the  adjusted audited statutory financial statements, the surplus for
Superior  fell  below  70% of the RBC amount and the surplus level for Pacfo was
above  150%  of  the  RBC  amount.

Guaranty  Funds;  Residual  Markets

The  insurance  company  subsidiaries also may be required under the solvency or
guaranty laws of most states in which they do business to pay assessments (up to
certain  prescribed  limits)  to  fund  policyholder  losses  or  liabilities of
insolvent  or  rehabilitated  insurance  companies.  These  assessments  may  be
deferred  or  forgiven  under  most  guaranty  laws  if  they  would threaten an
insurer's  financial  strength  and, in certain instances, may be offset against
future  premium  taxes.  Some  state  laws  and  regulations  further  require
participation by the insurance company subsidiaries in pools or funds to provide
some  types  of  insurance  coverage that they would not ordinarily accept.  The
Company  recognizes  its  obligations  for  guaranty  fund  assessments  when it
receives  notice  that an amount is payable to the fund.  The ultimate amount of
these  assessments  may  differ  from  that  which  has  already  been assessed.

It  is  not  possible to predict the future impact of changing state and federal
regulation  on  the Company's operations and there can be no assurance that laws
and regulations enacted in the future will not be more restrictive than existing
laws.

Employees

At  March  1,  2003, the Company and its subsidiaries employed approximately 218
full and part-time employees.  None of the Company's employees is represented by
either  unions  or  collective  bargaining agreements. The Company believes that
relations  with  its  employees  are  excellent.

RISK  FACTORS

The  following  factors,  in addition to the other information contained in this
report  should  be  considered  in  evaluating  the  Company  and its prospects.

The  Financial  Condition  of  the  Company  Has  Continued  to  Decline

The  Company reported losses from continuing operations of $(35,260,000) for the
year  2002,  $(30,736,000)  for  2001  and $(71,384,000) for 2002.  Results from
continuing  operations before the effects of income taxes, minority interest and
amortization expense were losses of $(19,065,000) and $(15,759,000) for 2002 and
2001, respectively.  Further, the deficit in shareholder's equity increased from
$(144,012,000)  at  December  31,  2001  to $(178,879,000) at December 31, 2002.
There  can  be  no  assurance that the Company can continue in business if these
operating  losses  continue

The  Company's  Accountants  Have  Issued  Going  Concern  Opinions

The  Company's  accountants  have  issued  reports  on  their  audits  of  the
Consolidated  Financial  Statements  of  the Company as of December 31, 2001 and
December 31, 2002 which express doubt as to the Company's ability to continue as
a  going concern given the recurring operating losses experienced by the Company
over  the  past  few  years  and  the  Company's  net  capital  deficiency.

Regulatory  Actions  May  Affect  the  Company's  Future  Operations

The  Company's  insurance  company  subsidiaries, their business operations, and
their  transactions  with  affiliates,  including  the  Company,  are subject to
extensive  regulation  and  oversight  by  the  IDOI, the FDOI and the insurance
regulators  of  other  states  in which the insurance company subsidiaries write
business.  Moreover,  the insurance company subsidiaries' losses, adverse trends
and  uncertainties discussed in this report have been and continue to be matters
of  concern  to  the domiciliary and other insurance regulators of the Company's
insurance  company  subsidiaries  and  have  resulted  in  enhanced scrutiny and
regulatory  action  by several regulators including the FDOI's current proceding
seeking  to  suspend  or  revoke  Superior's  Certificate  of  Authority.  (See
"Regulatory  Actions"  and  "Risk-Based  Capital  Requirements").  The  primary
purpose  of  insurance regulation is the protection of policyholders rather than
shareholders.  Failure  to  resolve  issues with the IDOI and the FDOI, and with
other  regulators,  in  a  manner  satisfactory  to the Company could impair the
Company's  ability  to  execute  its  business  strategy  or cause the Company's
subsidiaries  to  cease writing insurance or result in future regulatory actions
or  proceedings  that  could  otherwise  materially  and  adversely  affect  the
Company's  operations.

The  Company  is  Subject  to  a  Number  of  Pending  Legal  Proceedings

As  discussed  elsewhere  in this report, in addition to regulatory actions, the
Company  is involved in a number of pending civil legal proceedings  (see Part I
-  Item  3, "Legal Proceedings"). Although the Company believes that many of the
allegations of wrongdoing are without merit and intends to vigorously defend the
claims  brought against it, there can be no assurance that such proceedings will
not  have  a  material  adverse  effect  on  the Company's financial position or
results  of operations. Furthermore, the existence of these lawsuits diverts the
time  and  attention  of  management,  and  they  are  expensive  to  defend.

The  Terms  of the Trust Preferred Securities May Restrict The Company's Ability
to  Act

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

The  Company  May  Not  Be Able to Satisfy Its Obligations to the Holders of the
Trust  Preferred  Securities

The  Company  may  continue  to defer semi-annual interest payments for up to an
aggregate  of  five  (5)  years  as permitted by the indenture for the Preferred
Securities.  All  of  the  deferred  interest (approximately $84 million, if all
payments  due  in  2003  and  2004  are deferred) will become due and payable in
February 2005.  The Company relies on the payment of finance and service fees by
its  subsidiaries  to  fund its operations, including its payment of interest on
the  Preferred  Securities.  Certain  state regulators, including the FDOI, have
issued  orders  prohibiting  the Company's subsidiaries from paying such fees to
the  Company.  In  the  event  such  orders  continue,  the Company may not have
sufficient revenue to fund its operations or to pay the deferred interest on the
Preferred  Securities.  Such  failure to pay could result in a default under the
indenture  and  acceleration  of  the  payment  of  the  Preferred  Securities.

<PAGE>

Uncertain  Pricing  and  Profitability

One of the distinguishing features of the property and casualty industry is that
its  products  are  priced before losses are reported and final costs are known.
Premium  rate  levels  are  related  in  part  to  the availability of insurance
coverage,  which  varies  according  to  the  level  of surplus in the industry.

Increases  in  surplus  have  generally  been  accompanied  by  increased  price
competition  among  property  and casualty insurers.  The nonstandard automobile
insurance  business,  in  recent years, has experienced very competitive pricing
conditions  and there can be no assurance as to the Company's ability to achieve
adequate  pricing.  Changes  in  case  law,  the  passage of new statutes or the
adoption  of  new  regulations  relating  to  the  interpretation  of  insurance
contracts  can  retroactively and dramatically affect the liabilities associated
with  known  risks  after  an  insurance contract is in place. New products also
present special issues in establishing appropriate premium levels in the absence
of  experience  with  such products' performance.  The level of claims cannot be
accurately determined for periods after the sale of policies, therefore reserves
are  estimated  and these estimates are used to set price. If they are low, then
resulting  rates  could  be  inadequate.

The  number  of  competitors  and the similarity of products offered, as well as
regulatory  constraints,  limit the ability of property and casualty insurers to
increase  prices  in  response  to  declines  in  profitability.  In states that
require  prior  approval  of  rates, it may be more difficult for the Company to
achieve  premium  rates  that  are  commensurate with the Company's underwriting
experience with respect to risks located in those states. Accordingly, there can
be  no  assurance that these rates will be sufficient to produce an underwriting
profit.

The reported profits and losses of a property and casualty insurance company are
also  determined, in part, by the establishment of, and adjustments to, reserves
reflecting  estimates as to the amount of losses and LAE that will ultimately be
incurred  in  the  settlement  of  claims.  In  May  2003, pursuant to a reserve
analysis  completed  by  the consulting actuary engaged by BDO Seidman, LLP, the
Company's  independent  auditor,  it was determined that reserves for losses and
loss  adjustment  expenses  for  Superior  and  Pafco should be increased. These
reserve  adjustments, along with resulting adjustments to the permitted carrying
values  of certain assets, were recorded in the 2002 audited statutory financial
statements filed for Superior and Pafco with the Insurance Department of Florida
and  the  Indiana Department of Insurance, respectively and are included in this
report.

The  ultimate  liability  of  the insurer for all losses and LAE reserved at any
given  time  will  likely  be greater or less than these estimates, and material
differences in the estimates may have a material adverse effect on the insurer's
financial  position  or  results  of  operations  in  future  periods.

Uncertainty  Associated  with  Estimating  Reserves  for  Unpaid  Losses and LAE

The reserve for unpaid losses and LAE reflected in this report is an estimate of
amounts needed to pay reported and unreported claims and related loss adjustment
expenses  based  on facts and circumstances then known. These reserves are based
on  estimates  of  trends in claims severity, judicial theories of liability and
other  factors.

Although the nature of the Company's insurance business is primarily short-tail,
the  establishment  of  adequate  reserves  is  an inherently uncertain process,
provides no assurance that the ultimate liability will not materially exceed the
Company's  reserves for losses and LAE and have a material adverse effect on the
Company's  results  of  operations  and financial condition. Due to the inherent
uncertainty  of  estimating  these  amounts, it has been necessary, and may over
time continue to be necessary, to revise estimates of the Company's reserves for
losses  and  LAE.  The historical development of reserves for losses and LAE may
not  necessarily  reflect  future  trends  in  the development of these amounts.
Accordingly,  it  may  not  be  appropriate  to  extrapolate  redundancies  or
deficiencies  based  on  historical  information.

Nature  of  Nonstandard  Automobile  Insurance  Business

The  nonstandard  automobile insurance business is affected by many factors that
can  cause  fluctuation  in the results of operations of this business.  Many of
these  factors  are  not  subject  to  the  control  of  the  Company.

The size of the nonstandard market can be significantly affected by, among other
factors,  the  underwriting  capacity  and  underwriting  criteria  of  standard
automobile  insurance carriers.  In addition, an economic downturn in the states
in  which  the  Company  writes business could result in fewer new car sales and
less  demand  for automobile insurance. These factors, together with competitive
pricing  and other considerations, could result in fluctuations in the Company's
underwriting  results.

Highly  Competitive  Business

Nonstandard  automobile insurance is a highly competitive business.  Many of the
Company's  competitors  have  substantially greater financial resources than the
Company  and  there can be no assurance that the Company will be able to compete
effectively  against  such  competitors  in  the  future.

The  Company  competes  with  both  large  national writers and smaller regional
companies.  The  Company's  competitors  include other companies which, like the
Company,  serve  the independent agency market and companies that sell insurance
directly  to  consumers.  Direct writers may have certain competitive advantages
over  agency  writers,  including  increased  name  recognition,  loyalty of the
customer  base  to  the  insurer,  and potentially reduced acquisition costs. In
addition,  certain  competitors  of the Company have from time to time decreased
their  prices  in  an  apparent  attempt to gain market share.  Also, in certain
states,  assigned  risk  plans  may  provide  nonstandard  automobile  insurance
products  at  a  lower  price  than  private  insurers. In addition, because the
Company's  insurance  products  are  only marketed through independent insurance
agencies,  which  represent  more  than one insurance company, the Company faces
competition  within  each  agency.

Reliance  on  Independent  Insurance  Agents

The  Company  markets  and  sells  its  insurance  products through independent,
non-exclusive  insurance  agents  and  brokers. The agents and brokers also sell
competitors' insurance products. The Company's business depends, in part, on the
marketing  efforts  of  those  agents  and  brokers  and  the Company must offer
insurance  products  that  meet  the  requirements  of their customers. If those
agents  and  brokers  fail  to  market  the Company's products successfully, the
Company's  business  may  be  adversely  impacted.

Reliance  upon  Reinsurance

In  order  to reduce risk and to increase its underwriting capacity, the Company
purchases reinsurance.  Reinsurance does not relieve the Company of liability to
its insureds for the risks ceded to reinsurers.  As such, the Company is subject
to  credit  risk  with  respect  to the risks ceded to reinsurers.  Although the
Company  places  its  reinsurance  with  reinsurers  that  the Company generally
believes  to  be  financially  stable,  a  significant reinsurer's insolvency or
inability  to make payments under the terms of a reinsurance treaty could have a
material  adverse  effect  on  the  Company's  financial condition or results of
operations.

The  amount  and  cost  of  reinsurance  available  to companies specializing in
property  and casualty insurance is subject, in large part, to prevailing market
conditions  beyond  the  control  of  such  companies.  The Company's ability to
provide  insurance  at  competitive  premium  rates  and  coverage  limits  on a
continuing  basis  depends  upon  its  ability to obtain adequate reinsurance in
amounts  and  at  rates that will not adversely affect its competitive position.

Due  to  continuing  market  uncertainties  regarding  reinsurance  capacity, no
assurances  can  be  given  as  to the Company's ability to maintain its current
reinsurance  facilities,  which  generally are subject to annual renewal. If the
Company  is  unable  to  renew  such  facilities  upon  their  expiration and is
unwilling to bear the associated increase in net exposures, the Company may need
to  reduce  the  level  of  its  underwriting  commitments.

ITEM  2  -  PROPERTIES

Headquarters

The  headquarters  for  the  Company  is  located  at  4720  Kingsway  Drive,
Indianapolis,  Indiana.  All corporate administration, accounting and management
functions are contained at this location. Pafco is also located at 4720 Kingsway
Drive,  Indianapolis,  Indiana in a building that is owned 100% by Pafco with no
encumbrances.  The  building  is  an  80,000  square  foot multilevel structure;
approximately  50%  of  which  is  utilized by the Company, its subsidiaries and
Goran.  Superior  Group  leases  office  space  in the building. Goran subleases
office space in that building from Superior Group. The remaining space is leased
to  third  parties  at  a  price  of approximately $10 per square foot per annum

Superior

Superior's  operations  are  conducted at leased facilities in Atlanta, Georgia;
Anaheim,  California; and Tampa and West Palm Beach, Florida. Under a lease term
that  extends  through  2003,  Superior leases an office at 280 Interstate North
Circle, N.W., Suite 500, Atlanta, Georgia.  Superior leases an office located at
5483  West  Waters Avenue, Suite 1200, Tampa, Florida for a lease term extending
through  December  2007.  Superior occupies a leased office located at 1745 West
Orangewood,  Anaheim,  California  for  a lease term extending through May 2006.
Superior  occupies  a  leased  office  at  4500 PGA Blvd., Suite 304A, West Palm
Beach,  Florida  for  a  lease  term  extending  through  September  2003.

Claims  activities  are  performed  in Atlanta, Indianapolis, Tampa, and Anaheim
locations.  Underwriting,  customer  service,  and accounting and administration
activities  are performed at the headquarters location in Indianapolis, Indiana.

The  Company  considers  all  of  its  properties  suitable and adequate for its
current  operations.

ITEM  3  -  LEGAL  PROCEEDINGS

Superior  Guaranty  is  a defendant in a case filed on November 26, 1996, in the
Circuit  Court  for  Lee County, Florida entitled Raed Awad v. Superior Guaranty
Insurance  Company,  et  al.,  Case No. 96-9151 CA LG.  The case purported to be
brought on behalf of a class consisting of purchasers of insurance from Superior
Guaranty.  The plaintiffs alleged that Superior Guaranty charged premium finance
service  charges  in violation of Florida law.  The parties have reached a class
settlement  which  has been approved by the court which will not have a material
effect  on  the  financial  condition  of  Superior  Guaranty.

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

Approximately  $29  million  was paid through December 31, 2002 in settlement of
legal proceedings and policyholder claims related to the AgPI Program.  All AgPI
policyholder  claims  were  settled  during 2000. However, on January 12, 2001 a
case  was  filed in the Superior Court of California, County of Fresno, entitled
S&W  Seed Company, Dudley Silveira, Ric Blanchard and Darrell Silveira v. Mutual
Service  Casualty  Insurance  Company,  IGF  Insurance  Company,  and  Dibuduo &
Defendis  Insurance  Agency, Inc.; Case No. OICE CG 00137.  The case was brought
by four AgPI policyholders who had previously settled their AgPI claims pursuant
to  binding  settlement  agreements  who  now  seek  additional  compensation by
asserting through litigation that IGF and the third party carrier paid less than
the  policy  limits  they  were promised when they purchased the policy and that
each  settling  policyholder was forced to accept the lesser amount due to their
economic  duress  -  a legal theory recognized in California if certain elements
can  be  established.  The plaintiff's amended their complaint four times during
2002.  A  demurrer to the fourth amended complaint was filed by MSI and a motion
to  strike  was filed by IGF, which were denied.  IGF filed a motion for summary
judgment  to  dismiss  the claims in the plaintiff's fourth amended complaint on
the basis that releases previously executed by the plaintiffs are binding, which
was  granted.  The  cross  claims  between  the  selling brokers and MSI and IGF
remain  pending.  The  trial  is  scheduled  to  begin  in  August  2003.

Superior  Guaranty  is  a  defendant  in a case filed on October 8, 1999, in the
Circuit  Court for Manatee County, Florida entitled Patricia Simmons v. Superior
Guaranty  Insurance  Company,  Case  No. 1999 CA-4635.  The case purported to be
brought on behalf of a class consisting of purchasers of insurance from Superior
Guaranty.  The  Plaintiff  alleged  that  the  defendant  charged  interest  in
violation  of  Florida law.  The parties have settled the case in an amount that
was  not  material  to  the  financial  condition  of  Superior  Guaranty.

The  Company  is a defendant in a case filed on February 23, 2000, in the United
States District Court for the Southern District of Indiana entitled Robert Winn,
et  al. v. Symons International Group, Inc., et al., Cause No. IP 00-0310-C-B/S.
Other  parties  named as defendants are Goran, three individuals who were or are
officers or directors of the Company or of Goran, PricewaterhouseCoopers LLP and
Schwartz  Levitsky  Feldman, LLP. The case purports to be brought on behalf of a
class  consisting  of  purchasers of the Company's stock or Goran's stock during
the  period  February  27,  1998,  through  and  including  November  18,  1999.
Plaintiffs  allege,  among  other  things,  that  defendants  misrepresented the
reliability  of the Company's reported financial statements, data processing and
financial reporting systems, internal controls and loss reserves in violation of
Section  10(b)  of  the Securities Exchange Act of 1934 (the "1934 Act") and SEC
Rule 10b-5 promulgated thereunder. The individual defendants are also alleged to
be  liable  as  "controlling  persons"  under  Sec.20  (a)  of the 1934 Act.  As
previously  reported in the Company's September 30, 2002 Form 10-Q, the Company,
Goran  and  the  individual  defendants  entered  into  an  agreement  with  the
plaintiffs  for  settlement.  The  settlement  is  subject  to certain terms and
conditions  and  court  approval.

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

Superior  was  a  defendant  in a case filed on May 8, 2001 in the United States
District  Court  Southern  District of Florida entitled The Chiropractic Centre,
Inc.  v. Superior Insurance Company, Case No. 01-6782.  The case purported to be
brought  on behalf of a class consisting of healthcare providers improperly paid
discounted  rates  on  services  to  patients  based  upon  a preferred provider
contract  with  a  third  party.  The plaintiff alleged that Superior breached a
third  party  beneficiary  contract, committed fraud and engaged in racketeering
activity  in  violation of federal and Florida law by obtaining discounted rates
offered  by  a  third  party  with  whom  the plaintiff contracted directly.  On
September 30, 2002, the court issued an administrative order which dismissed the
case.  The court's order administratively closing the case could be temporary or
permanent.  Superior  believes  that the allegations of wrongdoing as alleged in
the  complaint  were  without  merit  and  in  the event the order is temporary,
Superior  intends  to  vigorously  defend  the  claims  brought  against  it.

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

See  footnote  12,  "Regulatory  Matters",  and  footnote  13,  "Commitment  and
Contingencies", to the Company's consolidated financial statements in Part II of
this  report,  incorporated  herein  by reference, for additional legal matters.
The  Company's insurance subsidiaries are parties to other litigation arising in
the  ordinary  course of business which the Company does not believe will have a
material  adverse  effect  upon  the  Company's  and  its  affiliates  financial
conditions  or results.   The Company, through its claims reserves, reserves for
both  the  amount  of  estimated  damages attributable to these lawsuits and the
estimate  costs  of  litigation.

ITEM  4  -  SUBMISSION  OF  MATTERS  TO  A  VOTE  OF  SECURITY  HOLDERS

None.

                                     PART II

ITEM  5  -  MARKET  FOR  THE  REGISTRANT'S COMMON EQUITY AND RELATED SHAREHOLDER
MATTERS

Information  regarding  the  trading  market for the Company's common stock, the
range of selling prices for each quarterly period since January 1, 2000, and the
approximate  number of holders of common stock as of December 31, 2002 and other
matters  is included under the caption "Market and Dividend Information" on page
42  of  the  2002  Annual  Report,  included as Exhibit 13, which information is
incorporated  herein  by  reference.  No  securities  were  issued in the fourth
quarter  of  2002.

                                      DRAFT

The  following  table  sets  forth  certain  information as of December 31, 2002
regarding  securities  of  the  Registrant  authorized  for  issuance  under the
Company's  equity  compensation  plans.  As  of  December  31,  2002, all of the
Company's equity compensation plans were approved by the Company's shareholders.
<TABLE>
<CAPTION>

                                                                         NUMBER OF SECURITIES
                                                                         REMAINING AVAILABLE FOR
                                                                         FUTURE ISSUANCE UNDER
                                                                         EQUITY COMPENSATION
                           NUMBER OF SECURITIES TO  WEIGHTED-AVERAGE     PLANS (EXCLUDING
                           BE ISSUED UPON EXERCISE  EXERCISE PRICE OF    SECURITIES REFLECTED IN
PLAN CATEGORY              OF OUTSTANDING OPTIONS   OUTSTANDING OPTIONS     COLUMN (A))
                           ----------------------  --------------------  -----------------------
<S>                        <C>                     <C>                   <C>
Equity compensation plans
 approved by shareholders               1,145,000  $             0.5503      355,000
                           ----------------------  --------------------  -----------
Equity compensation plans
 not approved by
 shareholders . . . . . .                      --                    --           --
                           ----------------------  --------------------  -----------
Total . . . . . . . . . .               1,145,000  $             0.5503      355,000
-------------------------  ----------------------  --------------------  -----------
</TABLE>

The  Company's  Stock  Option  Plan  provides  it  with  the  authority to grant
nonqualified  stock  options  and  incentive  stock  options to officers and key
employees  of the Company and its subsidiaries and nonqualified stock options to
non-employee  directors  of the Company and Goran.  Options have been granted at
an  exercise price equal to the fair market value of the Company's stock at date
of  grant.  All  of the outstanding stock options vest and become exercisable in
three  equal  installments  on  the first, second and third anniversaries of the
date  of  grant.

ITEM  6  -  SELECTED  FINANCIAL  DATA

The  data  included on page 4 of the 2002 Annual Report, included as Exhibit 13,
under  "Selected  Financial  Data"  is  incorporated  herein  by  reference.



ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF  OPERATIONS

The  discussion  entitled  "Management's  Discussion  and  Analysis of Financial
Condition and Results of Operations" included in the 2002 Annual Report on pages
5  through  14  included  as  Exhibit  13  is  incorporated herein by reference.

ITEM  7A  -  QUANTITATIVE  AND  QUALITATIVE  DISCLOSURES  ABOUT  MARKET  RISK

The  discussion  entitled "Quantitative and Qualitative Disclosures About Market
Risk"  included  in  the  2002  Annual Report on pages 12 through 14 included as
Exhibit  13  is  incorporated  herein  by  reference.

ITEM  8  -  FINANCIAL  STATEMENTS  AND  SUPPLEMENTARY  DATA

The  Consolidated  Financial  Statements  in the 2002 Annual Report, included as
Exhibit  13,  and  listed  in  Item 15 of this Report are incorporated herein by
reference.

ITEM  9-  CHANGES  IN  AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON  ACCOUNTING AND
FINANCIAL  DISCLOSURE.

None.

                                    PART III

ITEM  10  -  DIRECTORS  AND  EXECUTIVE  OFFICERS  OF  THE  REGISTRANT

DIRECTORS  OF  THE  REGISTRANT

The  following  table  sets  forth  certain  information  as  of  April 30, 2003
regarding  current  directors  of  the  Company:


Name                             Age               Director  Since

G.  Gordon  Symons               81                    1987
Douglas  H.  Symons              50                    1987
Terry  W.  Anker                 37                    2001
Michael  D.  Puckett             50                    2002

G.  Gordon  Symons  has  been  Chairman of the Board of Directors of the Company
since  its  formation in 1987.  Mr. Symons founded the predecessor to Goran, the
73.8%  shareholder of the Company, in 1964 and has served as the Chairman of the
Board  of  Goran  since  its  formation  in 1986.  Mr. Symons also served as the
President  of  Goran  until  1992 and the Chief Executive Officer of Goran until
1994.  Mr.  Symons  currently serves as a director of Symons International Group
Ltd.  ("SIGL"),  a  Canadian  corporation controlled by him, which together with
members  of  the  Symons  family,  controls  Goran.  Mr.  Symons  also serves as
Chairman  of  the  Board  of Directors of all of the subsidiaries of Goran.  Mr.
Symons  is  the  father  of  Douglas  H.  Symons.

Douglas H. Symons served as the Company's Chief Operating Officer from July 1996
until  he  became its Chief Executive Officer in November 1999.  Mr. Symons also
served as Chief Executive Officer of the Company from 1989 until July 1996.  Mr.
Symons  has  been  a  director  of Goran since 1989 and  served as Goran's Chief
Operating Officer and Vice President from 1989 until May 31, 2002 when he became
Chief  Executive  Officer  and  President.  Mr.  Symons  is the son of G. Gordon
Symons.

Terry  W.  Anker  is the chairman of the board of Anthology Companies, a holding
company  consisting  of  Keystone  Lighting and Keystone's Light Lab, retail and
wholesale  residential  lighting  distribution businesses.  Mr. Anker previously
led  the  Marion  County,  Indiana Regulatory Review Commission, an organization
charged  with  streamlining  city-county government bureaucracy in Indianapolis,
Indiana.  Mr.  Anker  also  developed  the  I.T.S.  technology  for  electronic
submission  of  court  filings  for  HPS,  Inc.

Michael  D.  Puckett  is  President  and  Chief  Executive Officer of CFG Wealth
Management  Services,  Inc.,  an SEC Registered Investment Advisor authorized to
transact  business  in  all  50  states.  Mr.  Puckett  is a Certified Financial
Planner.

COMPLIANCE  WITH  SECTION  16(A)  OF  THE  SECURITIES  ACT  OF  1934

Section  16(a)  of  the  Securities  Exchange Act of 1934 requires the Company's
officers  and  directors,  as  well  as  persons  who  own  more than 10% of the
outstanding  common shares of the Company, to file reports of ownership with the
Securities  and  Exchange  Commission.  Officers, directors and greater than 10%
shareholders  are  required  to  furnish  the Company with copies of all Section
16(a)  forms  they  file.  Based  solely  on  its review of copies of such forms
received  by  it, or written representations from certain reporting persons that
no  reports  were  required  for those persons, the Company believes that during
2002,  all filing requirements applicable to its officers, directors and greater
than  10%  shareholders  were  met.

EXECUTIVE  OFFICERS  OF  THE  REGISTRANT

Presented  below  is certain information regarding the executive officers of the
Company  who  are not also directors. Their respective ages and their respective
positions  with  the  Company  are  listed  as  follows:

NAME                    AGE      POSITION

Bruce  K.  Dwyer        53       Chief  Financial  Officer

Gregg  F.  Albacete     41       Vice President and Chief Information Officer
of  the  Company

David N. Hafling        55       Vice President and Chief Actuary of the Company

Mr.  Dwyer  has  served  as interim Chief Financial Officer of the Company since
September  2002.  Mr.  Dwyer also served as Chief Financial Officer of Goran and
the  Company  in  1999  and 2000 and in a similar position in Goran from 1981 to
1996.  Since 2000 Mr. Dwyer also has had a consulting practice which he also had
from  1996  to  1999.

Mr.  Albacete  has served as Vice President and Chief Information Officer of the
Company  since  January  2000.  Mr.  Albacete served as Vice President and Chief
Information Officer of Leader Insurance from December 1987 to January 2000. From
March  1982 to February 1985 Mr. Albacete worked for Transport Insurance.  Prior
to  March  1982,  Mr.  Albacete  was  a  self-employed  consultant.

Mr.  Hafling has served as Vice President and Chief Actuary of the Company since
December  1998.  Prior  to  joining the Company, Mr. Hafling spent 26 years with
American  States  Insurance  Company,  with  his last seven years as Senior Vice
President-Actuary.  He has been a fellow of the Casualty Actuarial Society since
1979  and  is  a  member  of  the  American  Actuarial  Society.

ITEM  11  -  EXECUTIVE  COMPENSATION

The  following  table  shows the cash compensation paid by the Company or any of
its  subsidiaries  and  other  compensation  paid during the last three calendar
years  to  the  Company's  Chief Executive Officer during 2002 and the Company's
four other most highly paid executive officers during 2002 (the "named executive
officers").


<TABLE>
<CAPTION>

SUMMARY  COMPENSATION  TABLE

                                          ANNUAL COMPENSATION
                                          -------------------
                                                                      LONG TERM
                                                                    COMPENSATION
                                                                        AWARDS
                                                                      SECURITIES         ALL
                                                                      UNDERLYING        OTHER
NAME AND PRINCIPAL POSITION           YEAR           SALARY    BONUS    OPTIONS   COMPENSATION
-----------------------------  -------------------  --------  --------  --------  -------------
<S>                            <C>                  <C>       <C>       <C>       <C>

Douglas H. Symons . . . . . .        2002           $186,218  $ 25,368         0  $     17,5261
Chief Executive Officer and .        2001           $375,000  $      0         0  $      1,6512
President . . . . . . . . . .        2000           $375,000  $      0   210,000  $     45,8463
                               -------------------  --------  --------  --------  -------------
                                     2002           $235,105  $      0         0  $    262,3715
Gene S. Yerant4 . . . . . . .        2001           $500,000  $    912         0  $     11,2236
Executive Vice President. . .        2000           $500,000  $250,000         0  $     21,6357
                               -------------------  --------  --------  --------  -------------
Bruce Dwyer, Chief Financial
Officer8. . . . . . . . . . .        2002           $      0  $      0         0       $ 6,5349
                               -------------------  --------  --------  --------
                                     2002           $152,367  $  5,000         0  $      1,9812
David N. Hafling. . . . . . .        2001           $135,230  $      0         0  $      1,7432
Vice President, Chief Actuary        2000           $118,846  $      0     2,000  $        3002
                               -------------------  --------  --------  --------  -------------
Gregg F. Albacete . . . . . .        2002           $196,226  $      0         0  $      1,9812
Vice President, Chief . . . .        2001           $184,875  $ 37,986         0  $      1,7472
Information  Officer. . . . .        2000           $175,000  $ 50,000    10,000  $    19,32510
-----------------------------  -------------------  --------  --------  --------  -------------
<FN>

1    Includes  $1,981  of  health  and  life  insurance premiums and $15,545 for
     reimbursement  of  medical  expenses.
2    Health  and  life  insurance  premiums.
3    Includes  $43,510  of  accrued  vacation  and  $2,336  of  health  and life
     insurance  premiums.
4    Mr.  Yerant's  employment  terminated  May  20,  2002.
5    Includes  a  severance  payment  of  $250,000 and health, life and property
     insurance  premiums  of  $12,371.
6    Includes  $1,990  of  health  and  life  insurance  premiums.
7    Includes  $19,067  of  relocation  expenses  and  $2,568 of health and life
     insurance  premiums.
8    Since  October  2002,  Mr.  Dwyer has been serving as the Company's interim
     Chief  Financial  Officer.
9    Consulting  fee.
10   Includes  $17,362  of  relocation  expenses  and  $1,963 of health and life
     insurance  premiums.
</TABLE>


OPTION  EXERCISES  AND  YEAR-END  VALUES

The  following table shows unexercised stock options held by the Company's named
executive  officers  at December 31, 2002.  In addition, this table includes the
number  of shares covered by both exercisable and non-exercisable stock options.
The  closing  OTC  stock price as of December 31, 2002 was $.03, which was lower
than  the  option  exercise  prices;  therefore,  there  were  no  unexercised
in-the-money  options.  There  were  no  exercises of stock options by the named
executive  officers  during  2002.




AGGREGATED  OPTION  EXERCISES  IN  2002
AND  DECEMBER  31,  2002  OPTION  VALUES
<TABLE>
<CAPTION>
                   NUMBER OF SHARES UNDERLYING   VALUE OF UNEXERCISED
                   UNEXERCISED OPTIONS AT        IN-THE-MONEY OPTIONS AT
NAME               DECEMBER 31, 2002             DECEMBER 31, 2002
                  -------------------------------------------------------
                   Exercisable  Unexercisable  Exercisable  Unexercisable
                   -----------  -------------  -----------  -------------
<S>                <C>          <C>            <C>          <C>
Douglas H. Symons      210,000              0            0              0
                   -----------  -------------  -----------  -------------
Gene S. Yerant. .            0              0            0              0
                   -----------  -------------  -----------  -------------
Alan G. Symons. .            0              0            0              0
                   -----------  -------------  -----------  -------------
David N. Hafling.        6,667          3,333            0              0
                   -----------  -------------  -----------  -------------
Gregg F. Albacete        6,667          3,333            0              0
                   -----------  -------------  -----------  -------------
Bruce Dwyer . . .            0              0            0              0
-----------------  -----------  -------------  -----------  -------------
<FN>

11   Based  on  the December 31, 2002 closing OTC stock price which was $.03 per
     share.
</TABLE>

STOCK  OPTION  GRANTS

There  were no grants of stock options to the Company's named executive officers
in  2002.

LONG  TERM  INCENTIVE  PLAN  AWARDS  IN  2002

There  were  no long-term incentive plan awards to the Company's named executive
officers  in  2002.

Report  of  the  Compensation  Committee

The  Committee  regularly  reviews the Company's executive compensation policies
and  practices  and  approves  of  the  compensation of executive officers.  The
Committee's  executive  compensation  policy is designed to attract, retain, and
motivate highly talented individuals at the executive level of the organization.
Executive  compensation  is based on the level of job responsibility, individual
performance,  and  Company performance.  Compensation also reflects the value of
the  job  in  the marketplace.  To attract and retain highly skilled executives,
the  Company must remain competitive with the pay of other premier employers who
compete  with the Company for talent.  The Committee believes that the Company's
executive  compensation  program  reflects these principles and gives executives
strong  incentives  to  maximize  Company  performance  and  therefore  enhance
shareholder value.  The policy consists of both annual and long-term components,
which should be considered together in assessing whether the policy is attaining
its  objectives.

To  align  the  interest  of  employees  with those of shareholders, the Company
provides  employees  the  opportunity for equity ownership through the Plan. The
Compensation Committee makes recommendations to the board for the award of stock
options  pursuant to the Plan.  The objectives of the Plan are to align employee
and shareholder long-term interests by creating a strong and direct link between
employee  compensation and shareholder return and to enable employees to develop
and  maintain  a  long-term ownership position in the Company's common stock.  A
total  of  1,500,000 shares of the Company's common stock have been reserved for
issuance  under  the  Plan.  As of April 17, 2003, 615,000 shares were available
for  grant  of  options  pursuant  to the Plan.  There were no grants of options
during  2002.

The  Company's  total  compensation program for officers includes base salaries,
bonuses  and  the  grant  of  stock options pursuant to the Plan.  The Company's
primary  objective  is  to  achieve  above-average  performance by providing the
opportunity  to  earn  above-average  total compensation (base salary, bonus and
value  derived from stock options) for above-average performance. The program is
designed  to attract, motivate, reward and retain the management talent required
to  serve  shareholder,  customer  and employee interests.  The Company believes
that  this  program  also motivates the Company's officers to acquire and retain
appropriate  levels  of  stock ownership.  It is the opinion of the Compensation
Committee  that  the  total  compensation earned by Company officers during 2002
achieves  these  objectives  and  is  fair  and  reasonable.

The  compensation  of Douglas H. Symons, Chief Executive Officer of the Company,
was  approved  by  the Compensation Committee in March, 1999.  Effective May 31,
2002,  Goran  Capital  Inc.  agreed to pay the salary of Douglas H. Symons.  The
Committee has reviewed the salary of Douglas H. Symons subsequent to the date he
became  Chief  Executive Officer.  The Compensation Committee has reviewed other
compensation  paid  to  Douglas  H.  Symons  during  2002.

Federal income tax law disallows corporate deductibility for "compensation" paid
in  excess  of $1 million, unless such compensation is payable solely on account
of  achievement  of  an  objective  performance  goal.  As  part of its on-going
responsibilities  with  respect  to  executive  compensation,  the  Compensation
Committee  will  monitor this issue to determine what actions, if any, should be
taken  as  a  result  of  the  limitation  on  deductibility.

The  Compensation  Committee

Terry  W.  Anker,  Chairman
Michael  D.  Puckett
Douglas  H.  Symons

Compensation  Committee  Interlocks  and  Insider  Participation

Prior  to  May 31, 2002, the Company's Compensation Committee consisted of Terry
W.  Anker,  Robert  C. Whiting and Douglas H. Symons.  Mr. Whiting resigned as a
director  of  the  Company  on  May  31,  2002.  Michael  D.  Puckett joined the
Company's  Compensation Committee on November 13, 2002.  Neither Mr. Whiting nor
Mr.  Puckett  has  any  interlocks reportable under Item 402(j)(3) of Regulation
S-K.  Douglas  H.  Symons  has served as a director and executive officer of the
Company  since  its formation in 1987 and as a director and executive officer of
Goran, the majority owner of the Company, since 1989.  Douglas H. Symons is also
an  executive  officer of each of the Company's subsidiaries.  G. Gordon Symons,
Chairman of the Company, is a director of each of the Company's subsidiaries and
is  empowered  to  determine  the  compensation of the executive officers of the
Company's subsidiaries.  Alan G. Symons was an executive officer and director of
the  Company  and  its  subsidiaries  until  May  31,  2002.

Compensation  of  Directors

Directors  of the Company who are not employees of the Company or its affiliates
receive  an annual retainer of $10,000.  In addition, the Company reimburses its
directors  for  reasonable travel expenses incurred in attending board and board
committee meetings.  Each director of the Company who is not also an employee of
the  Company  receives  a  meeting  fee  of  $1,000  for  each committee meeting
attended,  with  committee  chairs  receiving  an additional $1,500 per quarter.
EMPLOYMENT  AGREEMENTS

Certain  of  the  Company's officers have entered into employment contracts with
the  Company  or  one  of  its  subsidiaries.

Douglas  H.  Symons,  Chief  Executive  Officer of the Company, is subject to an
employment  agreement, with such agreement calling for a base salary of not less
than  $500,000  per  year.  This  agreement became effective on May 31, 2002 and
continues  in effect for an initial period of two years.  Upon the expiration of
the initial two-year period, the term of the agreement is automatically extended
from  year  to  year thereafter and is cancelable upon six months' notice.  This
agreement  contains  customary  restrictive covenants respecting confidentiality
and  non-competition during the term of employment and for a period of two years
after  the  termination of the agreement.  In addition to annual salary, Douglas
H.  Symons  may earn a bonus in an amount ranging from 0 to 100% of base salary.
At  the  discretion  of  the board, bonus awards may be greater than the amounts
indicated  if  agreed  upon  financial  targets  are exceeded.  Upon a change of
control  of the Company or Goran and in the event of a non-renewal of Douglas H.
Symons'  employment  agreement,  Douglas  H.  Symons  is entitled to a severance
amount  equal to two years salary.  On May 31, 2002 Douglas H. Symons became the
Chief  Executive  Officer and President of Goran, and Goran approved the payment
of  Goran's  and  the  Company's  annual salary obligations under the employment
agreement.

The Company and Goran entered into an employment agreement with David N. Hafling
under  which  he serves as Vice President and Chief Actuary of the Company.  The
agreement  became effective on October 15, 2001 and continues until December 31,
2004.  The  agreement  is  automatically renewed for one year periods thereafter
unless  earlier  terminated upon 60 days advance notice.  The agreement provides
that  Mr.  Hafling will receive a base salary of not less than $150,000 annually
and  an  annual  bonus  of  up  to  $30,000.

The  Company  and  Goran  entered  into  an  employment  agreement with Gregg F.
Albacete,  Vice  President  and  Chief  Information Officer of the Company.  The
agreement  became  effective  on  January  26, 2000 for an initial term of three
years  and  was  automatically  renewable for one-year periods thereafter unless
sooner  terminated.  The  agreement  provided for a base salary of not less than
$175,000  annually  and  an  annual  bonus  of  up  to  $75,000.  This agreement
terminated  on  January  31,  2003.

The  Company  and Goran entered into an employment agreement with Gene S. Yerant
under  which  he served as Executive Vice President of the Company and President
of  Superior  Insurance  Group, Inc., a subsidiary of the Company. The agreement
became  effective  on  January 10, 2000 and was terminated on May 20, 2002.  The
agreement  provided  for a base salary of $500,000 annually and a bonus of up to
100%  of  salary  based  upon  achievement  of  certain  performance objectives.
Following  the  termination of the employment of Gene S. Yerant on May 20, 2002,
the  Company  and Goran entered into an agreement with Mr. Yerant which provided
for  two  separation  payments  of  $250,000 each, both of which were paid as of
January  31,  2003.

The  Company,  Goran,  and  Granite  Reinsurance  Company Ltd. ("Granite Re"), a
wholly-owned subsidiary of Goran, have entered into an employment agreement with
G.  Gordon  Symons,  Chairman  of the Board of the Company, pursuant to which G.
Gordon  Symons is entitled to receive from Granite Re an annual sum of $150,000.
Upon  a  change of control of the Company or Goran, G. Gordon Symons is entitled
to a payment in the amount of $1,125,000.  In the event Granite Re shall fail to
pay  the  amounts  due under the agreement, the Company and Goran become jointly
and  severally  liable  for  such  amounts.

The  Company, Goran, Granite Re, Goran Management Bermuda Ltd. ("Goran Bermuda")
and G. Gordon Symons have entered into a consulting agreement, pursuant to which
Goran  Bermuda is entitled to receive from Granite Re an annual sum of $250,000.
Upon a change of control of the Company or Goran, Goran Bermuda is entitled to a
payment  in the amount of $1,875,000.  In the event Granite Re shall fail to pay
the  amounts  due  under the agreement, the Company and Goran become jointly and
severally  liable  for  such  amounts.

PERFORMANCE  GRAPH

The following performance graph compares the cumulative total shareholder return
on  the  Company's  common  stock with Standard & Poor's 500 Stock Index and the
Company's  peer  group  for  the  years  1996  through  2002.

Notwithstanding  anything  to  the  contrary  set  forth in any of the Company's
previous filings under the Securities Act of 1933, as amended, or the Securities
Exchange Act of 1934, as amended, that may incorporate future filings (including
this proxy statement, in whole or in part), the preceding Compensation Committee
and  Audit  Committee Reports and the stock price performance graph shall not be
incorporated  by  reference  in  any  such  filings.


Notwithstanding  anything  to  the  contrary  set  forth in any of the Company's
previous filings under the Securities Act of 1933, as amended, or the Securities
Exchange Act of 1934, as amended, that may incorporate future filings (including
this proxy statement, in whole or in part), the preceding Compensation Committee
and  Audit  Committee Reports and the stock price performance graph shall not be
incorporated  by  reference  in  any  such  filings.


                               [GRAPHIC  OMITED]


ITEM  12  -  SECURITY  OWNERSHIP  OF  CERTAIN  BENEFICIAL  OWNERS AND MANAGEMENT

SECURITY  OWNERSHIP  OF  CERTAIN  BENEFICIAL  OWNERS  AND  MANAGEMENT

The  following  table  shows, as of April 21, 2003, the number and percentage of
shares  of  common stock of the Company held by each person known to the Company
to  own beneficially more than five percent of the issued and outstanding common
stock  of  the  Company,  and  the  ownership interests of each of the Company's
directors and named executive officers, and all directors and executive officers
of  the Company as a group, in the common stock of the Company and in the common
stock  of the Company's 73.8% shareholder, Goran.  Unless otherwise indicated in
a  footnote  to the following table, each beneficial owner possesses sole voting
and  investment  power  with  respect  to  the  shares  owned.
<TABLE>
<CAPTION>
                                              SYMONS INTERNATIONAL GROUP, INC.    GORAN CAPITAL INC.
                                              --------------------------------    -------------------
                                                  AMOUNT AND                     AMOUNT AND
                                                  NATURE OF                      NATURE OF
                                                  BENEFICIAL     PERCENT OF      BENEFICIAL     PERCENT OF
NAME                                              OWNERSHIP      CLASS           OWNERSHIP      CLASS
----------------------------------------------------------------------------------------------------------
<S>                                                 <C>          <C>                  <C>         <C>
G. Gordon Symons1 . . . . . . . . . .               520,000       4.8%            2,375,524        42.1%
                                       --------------------------------  -------------------  ----------
Douglas H. Symons3. . . . . . . . . .               245,500       2.3%              311,455         5.7%
                                       --------  ----------------------  -------------------  ----------
Alan G. Symons2 . . . . . . . . . . .                72,691          *              568,065        10.5%
                                       --------------------------------  -------------------  ----------
Gene S. Yerant. . . . . . . . . . . .                     0          0                    0           0
                                       --------------------------------  -------------------  ----------
David N. Hafling4 . . . . . . . . . .                10,000          *                3,333           *
                                       ---------- ---------------------  -------------------  ----------
Gregg F. Albacete6. . . . . . . . . .                10,000          *                6,666           *
                                       --------------------------------  -------------------  ----------
Bruce Dwyer . . . . . . . . . . . . .                     0          0               21,666           *
                                       -------------------------------  -------------------  ----------  -
Terry W. Anker. . . . . . . . . . . .                     0          0                    0           0
                                       --------------------------------  -------------------  ----------
Michael D. Puckett. . . . . . . . . .                     0          0                    0           0
                                       --------------------------------  -------------------  ----------
Goran Capital Inc. 5. . . . . . . . .             7,666,283      73.8%                    0           0
                                       --------------------------------  -------------------  ----------
All executive officers and directors
 as a group (9 persons) . . . . . . .               858,191       7.7%            3,286,709        57.3%
-------------------------------------  --------------------------------  -------------------  ----------
<FN>

*     Less  than  1%  of  class.
1    With respect to the shares of the Company, 10,000 shares are owned directly
     and  510,000  shares  may  be  purchased pursuant to stock options that are
     exercisable  within  60  days. With respect to the shares of Goran, 479,111
     shares are held by trusts of which Mr. Symons is the beneficiary, 1,646,413
     of  the  shares  indicated are owned by Symons International Group Ltd., of
     which  Mr.  Symons  is  the controlling shareholder, and 250,000 shares are
     subject  to  options  exercisable  within  60  days.
2    With respect to the shares of Goran, 387,215 are held by a trust over which
     Mr.  Symons  exercises  limited  direction, and 180,850 are owned directly.
3    With respect to shares of the Company, 35,500 shares are owned directly and
     210,000  shares  may  be  purchased  pursuant  to  stock  options  that are
     exercisable within 60 days. With respect to shares of Goran, 251,455 shares
     are  owned  directly  and  60,000  shares  are  subject to options that are
     exercisable  within  60  days.
4    With  respect  to  shares  of  the  Company  10,000 shares may be purchased
     pursuant to stock options that are exercisable within 60 days. With respect
     to shares of Goran, 3,333 shares may be purchased pursuant to stock options
     exercisable  within  60  days.
5    Goran's  office  address  is 2 Eva Road, Suite 200, Toronto, Ontario Canada
     M9C  2A8.
6    With  respect  to  shares  of  the  Company  10,000 shares may be purchased
     pursuant to stock options that are exercisable within 60 days. With respect
     to shares of Goran, 6,666 shares may be purchased pursuant to stock options
     exercisable  within  60  days.
</TABLE>


ITEM  13  -  CERTAIN  RELATIONSHIPS  AND  RELATED  TRANSACTIONS

The  Company  has  made  the  following  personal  loans  to Alan G. Symons, who
resigned  as  an  executive officer and director of the Company on May 31, 2002,
which  were  outstanding  during  2002:
<TABLE>
<CAPTION>
                      LARGEST LOAN BALANCE    BALANCE AS OF
DATE OF LOAN               DURING 2002       MARCH 31, 2003   INTEREST RATE
--------------------  ---------------------  ---------------  --------------
<S>                   <C>                    <C>              <C>

February 24, 1988(2)  $              27,309  $        27,309            None
                      ---------------------  ---------------  --------------
March 19, 1998(3). .  $              15,293  $        15,293           5.85%
                      ---------------------  ---------------  --------------
October 28, 1999(5).  $             119,500  $       121,125           6.50%
--------------------  ---------------------  ---------------  --------------
</TABLE>

The  Company  has  made the following personal loans to Douglas H. Symons, which
were  outstanding  during  2002:
<TABLE>
<CAPTION>


                       LARGEST LOAN BALANCE    BALANCE AS OF
DATE OF LOAN                DURING 2002       MARCH 31, 2003   INTEREST RATE
---------------------  ---------------------  ---------------  --------------
<S>                    <C>                    <C>              <C>

February 24, 1988(1).  $               2,219  $         2,219            None
                       ---------------------  ---------------  --------------
Prior to 1997(1). . .  $              66,256  $        66,256            None
                       ---------------------  ---------------  --------------
September 29, 1999(4)  $             119,500  $       121,125            6.5%
                       ---------------------  ---------------  --------------
June 28, 2000(1). . .  $              80,000  $        80,000            None
                       ---------------------  ---------------  --------------
June 4, 2001(1) . . .  $              50,000  $        50,000            None
---------------------  ---------------------  ---------------  --------------
<FN>

(1)  The  loan  by the Company represents an advance and does not bear interest.
(2)  The  loans  by  the Company to Alan G. Symons in 1986 and 1988 were made to
     facilitate the purchase of common shares of the Company, are collateralized
     by  a  pledge  of the common shares of the Company acquired, are payable on
     demand  and  are  interest  free.
(3)  The  loan  by  SIG  to Alan G. Symons on March 19, 1998 was made to satisfy
     obligations  to  third  parties.  Such  loan was erroneously referred to in
     Goran's 2002 Proxy Statement as a loan by Goran. Such loan was secured by a
     pledge  of  his  options  to  purchase  shares  in Superior Insurance Group
     Management, Inc. (formerly, GGS Management Holdings, Inc.), a subsidiary of
     the  Corporation,  and  bore  interest  at  the rate of 5.85% per year. The
     principal  of  the  loan  was  repaid  during  1999.  The balance remaining
     represents  interest  on  the  loan.
(4)  The loan by the Company to Douglas H. Symons on September 29, 1999 was made
     to  satisfy  indebtedness  to  third parties. Such loan is unsecured, bears
     interest  at  the  rate  of  6.5%  per  year  and  is  payable  on  demand.
(5)  The  loan  by the Company to Alan G. Symons on October 28, 1999 was made to
     satisfy indebtedness to third parities, is unsecured, bears interest at the
     rate  of  6.5%  and  is  payable  on  demand.
</TABLE>


On  December  28,  2001,  Superior  Insurance  Group,  Inc., a subsidiary of the
Company,  obtained  a  line  of  credit  from  Granite  Reinsurance Company Ltd.
("Granite Re"), a wholly-owned subsidiary of Goran, in the amount of $2,500,000.
On  October 23, 2002, Superior Insurance Group, Inc. obtained an additional line
of  credit of up to $1,000,000 from Granite Re.  Both of the loans bear interest
at  a  rate  equal  to  the  prime  rate  plus 5 %.  The total principal balance
outstanding  on  the  loans  as  of  April  17,  2003  was  $2,030,000.

In  1997,  the  Company  guaranteed  a personal loan by an unrelated third party
lender  to  Douglas  H. Symons in the amount of $250,000.  During 2002, the loan
was  renewed  by the unrelated third party lender, and the Company did not renew
its  guarantee.

Pafco  General  Insurance  Company  ("Pafco"),  an  insurance  subsidiary of the
Company,  engaged  in  reinsurance  transactions  with  Granite  Re during 2002.
Granite  Re  is  a  wholly  owned  subsidiary  of  Goran.

On  an  ongoing  basis,  Pafco  also  reinsures  with  Granite Re non-automobile
business  written  by  Pafco  and  originated through Symons International Group
(Florida),  Inc.,  a subsidiary of Goran. Pafco did not cede premiums to Granite
Re  under  this  reinsurance  agreement in 2002.  Those reinsurance arrangements
have  been  continued  for  2003.

During  2002,  IGF paid $500,000 to Granite Re as consideration for an indemnity
provided  to  a  third  party  by  Granite  Re  for  the  benefit  of  IGF.

The  Company  paid  $12,967  to  Stargate  Solutions  Group,  Inc.  in  2002 for
consulting  and  other  services  relative  to  the  conversion to the Company's
non-standard  automobile  operating  system.  Stargate Solutions Group, Inc., is
owned  by Kirk Symons, son of G. Gordon Symons and brother of Alan G. Symons and
Douglas  H.  Symons.

During  2002,  the  Company  paid David G. Symons approximately $7,076 for legal
services.  David  G.  Symons  is  the  son  of  Alan  G.  Symons.

Superior Insurance Group, Inc., a wholly owned subsidiary of the Company, owns a
less  than  1% limited partnership interest in Monument Capital Partners I.  The
amount  of  the  investment  was  $100,000.  Larry S. Wechter, a director of the
Company  until August 12, 2002, is Managing Director and Chief Executive Officer
of  Monument  Advisors, Inc. and Alan G. Symons, a director of the Company until
May 31, 2002, is a director of Monument Advisors, Inc.   Monument Advisors, Inc.
is  the  general  partner  of  Monument  Capital  Partners  I.

                                     PART IV

ITEM  14  -  CONTROLS  AND  PROCEDURES

(a)  Evaluation  of  disclosure  controls  and  procedures.  The Company's chief
executive  officer  and  chief  financial  officer,  after  evaluating  the
effectiveness of the Company's disclosure controls and procedures (as defined in
Sections  13a-14(c)  and  15d-14(c)  of  the Securities Exchange Act of 1934, as
amended),  as of a date (the "Evaluation Date") within 90 days before the filing
date  of  this annual report, have concluded that as of the Evaluation Date, the
Company's  disclosure  controls and procedures were adequate and are designed to
ensure  that  material  information  relating to the Company is timely gathered,
analyzed  and  disclosed to such officers within the Company, as appropriate, to
allow  timely  decisions  regarding required disclosure in the Company's reports
filed  under  the  Securities  Exchange  Act  of  1934,  as  amended.

(b) Changes in internal controls.  There have been no significant changes in the
Company's  internal controls or in other factors that could significantly affect
the  Company's  internal  controls  subsequent  to  the  Evaluation  Date.

ITEM  15  -  EXHIBITS,  FINANCIAL  STATEMENT  SCHEDULES  AND REPORTS ON FORM 8-K

The  documents  listed  below  are  filed  as  a  part of this Report, except as
otherwise  indicated:

1.     Financial  Statements.  The  following  described  consolidated financial
statements  found  on  the  pages  of the 2002 Annual Report indicated below are
incorporated  into  Item  8  of  this  Report  by  reference.

Description  of Financial Statement Item          Location in 2002 Annual Report
----------------------------------------          ------------------------------

Report  of  Independent  Accountants                              Page  45

Consolidated  Balance  Sheets,  December  31,
2002  and  2001                                                   Page  17

Consolidated  Statements  of  Operations,  Years
Ended  December  31,  2002,  2001  and  2000                      Page  18

Consolidated  Statements  of  Changes  In
Shareholders'  Equity  (Deficit),  Years  Ended
December  31,  2002,  2001  and  2000                             Page  19

Consolidated  Statements  of  Cash  Flows,
Years  Ended  December  31,  2002,  2001  and  2000               Page  20

Notes  to  Consolidated  Financial  Statements,
Years  Ended  December  31,  2002,
2001  and  2000   Pages 21 through                                      44

2.   Financial  Statement Schedules. The following financial statement schedules
     are  included  beginning  on  page  27.

Report  of  Independent  Accountants

Schedule  II  -  Condensed  Financial  Information  of  Registrant

Schedule  IV  -  Reinsurance

Schedule  V  -  Valuation  and  Qualifying  Accounts

Schedule  VI - Supplemental Information Concerning Property - Casualty Insurance
Operations

3.   Exhibits.  The Exhibits set forth on the Index to Exhibits are incorporated
     herein  by  reference  to  the  Index.

4.   Reports  on  Form  8-K: No reports on Form 8-K were filed during the fourth
     quarter  of  2002.

<PAGE>
BOARD  OF  DIRECTORS  AND  SHAREHOLDERS  OF
SYMONS  INTERNATIONAL  GROUP,  INC.  AND  SUBSIDIARIES

The  audit  referred  to  in  our  report  dated  May  9,  2003, relating to the
consolidated  financial  statements  of  Symons  International  Group,  Inc. and
subsidiaries,  which is incorporated in Item 8 of this Form 10-K by reference to
the  annual report to shareholders for the year ended December 31, 2002 included
the audit of the financial statement schedules listed in the accompanying index.
These  financial  statement  schedules  are  the responsibility of the Company's
management.  Our  responsibility  is  to  express  an opinion on these financial
statement  schedules  based  upon  our  audits.

In  our  opinion,  such  financial  statement  schedules  present fairly, in all
material  respects,  the  information  set  forth  therein.

/s/  BDO  Seidman,  LLP

BDO  SEIDMAN,  LLP
Grand  Rapids,  Michigan
May  9,  2003

<PAGE>
SYMONS  INTERNATIONAL  GROUP,  INC.
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES.

The  information  required  by  this  schedule is included in Note 3 of Notes to
Consolidated  Financial  Statements.
<TABLE>
<CAPTION>

SYMONS  INTERNATIONAL  GROUP,  INC.  -  CONSOLIDATED
SCHEDULE  II  -  CONDENSED  FINANCIAL  INFORMATION  OF  REGISTRANT
(Parent  Company)
Balance  Sheets
As  of  December  31,  2002  and  2001
(In  thousands,  except  share  data)
                                                             2002        2001
                                                          ----------  ----------
<S>                                                       <C>         <C>
ASSETS
Investments in and advances to related parties . . . . .  $   7,921   $  25,509
Cash and cash equivalents. . . . . . . . . . . . . . . .          -         267
Property and equipment . . . . . . . . . . . . . . . . .         26          40
Investments. . . . . . . . . . . . . . . . . . . . . . .        249          77
Other. . . . . . . . . . . . . . . . . . . . . . . . . .         85           -
Intangible assets. . . . . . . . . . . . . . . . . . . .      4,205       4,376
                                                          ----------  ----------
Total Assets . . . . . . . . . . . . . . . . . . . . . .  $  12,486   $  30,269
                                                          ==========  ==========

LIABILITIES AND SHAREHOLDERS' EQUITY
Accrued distributions on preferred securities. . . . . .  $  49,227   $  33,203
Federal income tax payable . . . . . . . . . . . . . . .      4,326       1,639
Other. . . . . . . . . . . . . . . . . . . . . . . . . .      2,812       4,439
                                                          ----------  ----------
Total Liabilities. . . . . . . . . . . . . . . . . . . .     56,365      39,281
                                                          ----------  ----------
Mandatorily redeemable
Preferred securities . . . . . . . . . . . . . . . . . .    135,000     135,000
                                                          ----------  ----------
Shareholders' Equity:
Common stock, no par value, 100,000,000 shares
Authorized, 10,385,399 and 10,385,399 issued and
outstanding. . . . . . . . . . . . . . . . . . . . . . .     38,136      38,136
Additional paid-in capital . . . . . . . . . . . . . . .      5,851       5,851
Unrealized loss on investments (net of deferred taxes of
 $nil in 2002 and 2001 . . . . . . . . . . . . . . . . .     (2,220)     (2,613)
Retained earnings. . . . . . . . . . . . . . . . . . . .   (220,646)   (185,386)
                                                          ----------  ----------
Total Shareholders' Deficit. . . . . . . . . . . . . . .   (178,879)   (144,012)
                                                          ----------  ----------
Total Liabilities and Shareholders' Equity . . . . . . .  $  12,486   $  30,269
                                                          ==========  ==========
</TABLE>


<TABLE>
<CAPTION>

SYMONS  INTERNATIONAL  GROUP,  INC.  -  CONSOLIDATED
SCHEDULE  II  -  CONDENSED  FINANCIAL  INFORMATION  OF  REGISTRANT
Statements  of  Operations
For  The  Years  Ended  December  31,  2002,  2001  and  2000
(In  thousands)
                                                                   2002        2001        2000
                                                                ----------  ----------  ----------
<S>                                                             <C>         <C>         <C>
Fee income . . . . . . . . . . . . . . . . . . . . . . . . . .  $   1,675   $   1,175   $     600
Net investment income. . . . . . . . . . . . . . . . . . . . .      6,329       6,335       6,456
                                                                ----------  ----------  ----------
Total revenue. . . . . . . . . . . . . . . . . . . . . . . . .      8,004       7,510       7,056
                                                                ----------  ----------  ----------
Expenses:
    Policy acquisition and general and administrative expenses        156       3,104      39,032
    Interest expense . . . . . . . . . . . . . . . . . . . . .        171           -           -
                                                                ----------  ----------  ----------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . .        327       3,104      39,032
                                                                ----------  ----------  ----------
Income before taxes and minority interest. . . . . . . . . . .      7,677       4,406     (31,976)
Provisions for income taxes. . . . . . . . . . . . . . . . . .      2,687       1,542       1,393
                                                                ----------  ----------  ----------
Net income (loss) before minority interest . . . . . . . . . .      4,990       2,864     (33,369)
Minority interest:
    Equity in consolidated subsidiaries. . . . . . . . . . . .    (24,225)    (20,950)    (41,469)
    Distributions on preferred securities, net of tax. . . . .    (16,025)    (14,806)    (13,587)
                                                                ----------  ----------  ----------
Net loss for the period. . . . . . . . . . . . . . . . . . . .    (35,260)    (32,892)    (88,425)
Change in unrealized gains (losses) on securities. . . . . . .        393       1,325         960
Equity (deficit), beginning of year. . . . . . . . . . . . . .   (144,012)   (112,445)    (24,980)
                                                                ----------  ----------  ----------
Equity (deficit), end of year. . . . . . . . . . . . . . . . .  $(178,879)  $(144,012)  $(112,445)
                                                                ==========  ==========  ==========
</TABLE>


<PAGE>
<TABLE>
<CAPTION>

SYMONS  INTERNATIONAL  GROUP,  INC.
SCHEDULE  II  -  CONDENSED  FINANCIAL  INFORMATION  OF  REGISTRANT
Statements  of  Cash  Flow
For  The  Years  Ended  December  31,  2002,  2001  and  2000
(In  thousands)

                                                            2002       2001       2000
                                                          ---------  ---------  ---------
<S>                                                       <C>        <C>        <C>
Net loss . . . . . . . . . . . . . . . . . . . . . . . .  $(35,260)  $(32,892)  $(88,425)
Cash flows from operating activities:
Adjustments to reconcile net cash provided by (used in)
    Operations:
    Equity in net loss of  subsidiaries. . . . . . . . .    24,225     20,950     41,469
Accrued Distributions on Preferred Securities. . . . . .    16,025     14,806     13,587
    Depreciation of property and equipment . . . . . . .        15         15         17
    Amortization of intangible assets. . . . . . . . . .       171        171     34,977
Stock issuance from Demutualization. . . . . . . . . . .      (175)         -          -
Net changes in operating assets and liabilities:
    Other assets . . . . . . . . . . . . . . . . . . . .       (85)         -       (210)
    Federal income taxes . . . . . . . . . . . . . . . .     2,687       (277)    (1,853)
    Other liabilities. . . . . . . . . . . . . . . . . .    (1,628)     3,582        622
                                                          ---------  ---------  ---------
Net cash provided by (used in) operations. . . . . . . .     5,975      6,355        184
                                                          ---------  ---------  ---------
Cash flows used in investing activities:
    Purchase of property and equipment . . . . . . . . .         -        (90)         -
                                                          ---------  ---------  ---------
Net cash (used in) investing activities: . . . . . . . .         -        (90)         -
                                                          ---------  ---------  ---------
Cash flows provided by financing activities:
    Contributions of capital or dividends received from
       Subsidiaries. . . . . . . . . . . . . . . . . . .    (6,242)    (6,033)    (5,037)
    Loans (to)/from related parties. . . . . . . . . . .         -        (50)         -
                                                          ---------  ---------  ---------
Net cash provided by (used in) financing activities. . .    (6,242)    (6,083)    (5,037)
                                                          ---------  ---------  ---------
Increase (decrease) in cash and cash equivalents . . . .      (267)       182     (4,853)
Cash and cash equivalents - beginning of year. . . . . .       267         85      4,938
                                                          ---------  ---------  ---------
Cash and cash equivalents - end of year. . . . . . . . .  $      -   $    267   $     85
                                                          =========  =========  =========
</TABLE>



<PAGE>
SYMONS  INTERNATIONAL  GROUP,  INC.  -  CONSOLIDATED
SCHEDULE  II  -  CONDENSED  FINANCIAL  INFORMATION  OF  REGISTRANT
For  The  Years  Ended  December  31,  2002,  2001  and  2000

BASIS  OF  PRESENTATION

The  condensed  financial  information  should  be  read in conjunction with the
consolidated  financial  statements  of  Symons  International  Group, Inc.  The
condensed  financial  information  includes  the  accounts and activities of the
parent company which acts as the holding company for the insurance subsidiaries.
<TABLE>
<CAPTION>

SYMONS  INTERNATIONAL  GROUP,  INC.  -  CONSOLIDATED
SCHEDULE  IV  -  REINSURANCE
For  The  Years  Ended  December  31,  2002,  2001  and  2000
(In  thousands)


PROPERTY AND LIABILITY INSURANCE       2002        2001       2000
                                     ---------  ----------  ---------
<S>                                  <C>        <C>         <C>
Direct amount . . . . . . . . . . .  $107,708   $ 159,821   $168,626
Assumed from other companies. . . .        67       1,271      5,835
Ceded to other companies. . . . . .   (77,291)   (105,158)   (78,621)
                                     ---------  ----------  ---------
Net amounts . . . . . . . . . . . .  $ 30,484   $  55,934   $ 95,840
                                     =========  ==========  =========
Percentage of amount assumed to net       0.2%        2.3%       6.1%
</TABLE>



<PAGE>
<TABLE>
<CAPTION>

SYMONS  INTERNATIONAL  GROUP,  INC.  -  CONSOLIDATED
SCHEDULE  V  -  VALUATION  AND  QUALIFYING  ACCOUNTS
For  The  Years  Ended  December  31,  2002,  2001  and  2000
(In  Thousands)

                                         2002               2001               2000
                                   Allowance  for      Allowance  for     Allowance  for
                                   Doubtful Accounts   Doubtful Accounts  Doubtful Accounts
                                   ------------------  ------------------  ------------------
<S>                                <C>                 <C>                 <C>
Additions:

Balance at beginning of period. .  $            1,526  $            1,940  $            1,479

Charged to costs and expenses (1)               1,448               6,122               9,623

Charged to other accounts . . . .                   -                   -                   -

Deductions from reserves. . . . .               2,730               6,536               9,162
                                   ------------------  ------------------  ------------------

Balance at end of period. . . . .  $              244  $            1,526  $            1,940
                                   ==================  ==================  ==================
<FN>

(1)  The  Company  monitors  the adequacy of its allowance for doubtful accounts
     monthly  and  believes  the balance of such allowance at December 31, 2002,
     2001  and  2000  was  adequate.
</TABLE>



<PAGE>
<TABLE>
<CAPTION>

SYMONS  INTERNATIONAL  GROUP,  INC.  -  CONSOLIDATED
SCHEDULE  VI  -  SUPPLEMENTAL  INFORMATION  CONCERNING
PROPERTY  -  CASUALTY  INSURANCE  OPERATIONS
For  The  Years  Ended  December  31,  2002,  2001  and  2000
(In  thousands)


CONSOLIDATED  PROPERTY  -  CASUALTY  ENTITIES

                      Reserves
                        For
                       Unpaid                                                 Amorti-
                       Claims                                                 zation of
        Deferred    And                                                       Deferred   Paid Claims
         Policy    Claim                          Net        Claims and       Policy     and Claim
        Acquisi-   Adjust-                       Invest  Adjustment Expenses  Acqui-     Adjust-
          tion      ment    Unearned   Earned     ment        Incurred        sition     Ment        Premium
Year      Costs   Expense   Premiums   Premiums  Income      Related to:      Costs      Expense      Written
---- ---------------------------------------------------------------------------------------------------------------
<S>       <C>      <C>         <C>       <C>      <C>       <C>                <C>        <C>           <C>
                                                           Current   Prior
                                                            Years    Years
                                                           -------   ------
2000      6,454  108,117    62,386    137,706    10,074    127,497  (14,118)  37,453    167,442     174,461
2001        763   81,142    59,216     76,947     6,286     69,667      774   33,747    104,764     161,092
2002        -     67,204    35,797     37,662     4,139     35,413   12,775   19,624     55,585      107,775
<FN>

Note:  All  amounts  in  the above table are net of the effects of reinsurance and related commission income, except for net
investment income regarding which reinsurance is not applicable, premiums written liabilities for losses and loss adjustment
expenses,  and  unearned  premiums  which  are  stated  on  a  gross  basis.

<PAGE>
</TABLE>


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

     Symons  International  Group,  Inc.

                                         /s/  Douglas  H.  Symons
                                         ------------------------
June  3,  2003                      By:  Douglas  H.  Symons
                        President  and  Chief  Executive  Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has  been signed below by the following persons on June 3 2003, on behalf of the
Registrant  in  the  capacities  indicated:

(1)  Principal  Executive  Officer:

/s/  Douglas  H.  Symons
------------------------
Douglas  H.  Symons
President  and  Chief  Executive  Officer
(Principal  Executive  Officer)

(2)  Principal  Financial  Officer:

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


(3)  The  Board  of  Directors:


/s/  G.  Gordon  Symons
-----------------------
G.  Gordon  Symons
Chairman  of  the  Board

/s/  Douglas  H.  Symons
------------------------
Douglas  H.  Symons
Director

/s/  Terry  W.  Anker
---------------------
Terry  W.  Anker
Director

/s/  Michael  D.  Puckett
-------------------------
Michael  D.  Puckett
Director


<PAGE>

                               CERTIFICATE OF THE
                         PRINCIPAL EXECUTIVE OFFICER OF
                        SYMONS INTERNATIONAL GROUP, INC.

     I,  Douglas  H.  Symons,  certify  that:

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

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

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

4.   I  am  responsible for establishing and maintaining disclosure controls and
     procedures  (as  defined  in  Exchange Act Rules 13a-14 and 15d-14) for the
     Company,  and  we  have:

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

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

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

5.   I  have  disclosed,  based  on  my most recent evaluation, to the Company's
     auditors  and  the  audit committee of the Company's board of directors (or
     persons  performing  the  equivalent  functions):

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

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

6.   I  have  indicated  in  this  annual  report  whether  or  not  there  were
     significant  changes  in  internal  controls or in other factors that could
     significantly  affect  internal controls subsequent to the date of our most
     recent  evaluation,  including  any  corrective  actions  with  regard  to
     significant  deficiencies  and  material  weaknesses.

Dated:  June  3,  2003                         By:  /s/  Douglas  H.  Symons
                                                    ------------------------
                                                    Douglas  H.  Symons
                                                   Chief  Executive  Officer

<PAGE>

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

     I,  Bruce  K.  Dwyer,  certify  that:

1.   I  have  reviewed  this  annual report on Form 10-K of Symons International
     Group,  Inc.
2.   Based  on  my  knowledge,  this  annual  report does not contain any untrue
     statement  of a material fact or omit to state a material fact necessary to
     make  the  statements  made, in light of the circumstances under which such
     statements  were made, not misleading with respect to the period covered by
     this  annual  report.

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

4.   I  am  responsible for establishing and maintaining disclosure controls and
     procedures  (as  defined  in  Exchange Act Rules 13a-14 and 15d-14) for the
     Company,  and  we  have:

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

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

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

5.   I  have  disclosed,  based  on  my most recent evaluation, to the Company's
     auditors  and  the  audit committee of the Company's board of directors (or
     persons  performing  the  equivalent  functions):

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

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

6.   I  have  indicated  in  this  annual  report  whether  or  not  there  were
     significant  changes  in  internal  controls or in other factors that could
     significantly  affect  internal controls subsequent to the date of our most
     recent  evaluation,  including  any  corrective  actions  with  regard  to
     significant  deficiencies  and  material  weaknesses.

Dated:  June  3,  2003                    By:     /s/Bruce  K.  Dwyer
                                                  -------------------
                                                  Bruce  K.  Dwyer
                                            Chief  Financial  Officer

<PAGE>

                                  EXHIBIT INDEX

REFERENCE  TO     SEQUENTIAL
                           Regulation S-K          Page
                          ---------------          ----
                      Exhibit No. Document          Number
                      --------------------          ------

2.1  The  Strategic  Alliance  Agreement  by  and  between  Continental Casualty
     Company  and  IGF  Insurance  Company,  IGF  Holdings,  Inc.  and  Symons
     International  Group,  Inc.  dated  February  28,  1998  is incorporated by
     reference  to  Exhibit  2.1  of  the  Registrant's  1997  Form  10-K.

2.2  The  MPCI  Quota  Share  Reinsurance  Contract  by  and between Continental
     Casualty  Company  and IGF Insurance Company, IGF Holdings, Inc. and Symons
     International  Group,  Inc.  dated  February  28,  1998  is incorporated by
     reference  to  Exhibit  2.2  of  the  Registrant's  1997  Form  10-K.

2.3  The  MPCI  Quota  Share  Reinsurance  Agreement  by and between Continental
     Casualty  Company  and IGF Insurance Company, IGF Holdings, Inc. and Symons
     International  Group,  Inc.  dated  February  28,  1998  is incorporated by
     reference  to  Exhibit  2.3  of  the  Registrant's  1997  Form  10-K.

2.4  The  Crop  Hail  Insurance  Quota Share Contract by and between Continental
     Casualty  Company  and IGF Insurance Company, IGF Holdings, Inc. and Symons
     International  Group,  Inc.  dated  February  28,  1998  is incorporated by
     reference  to  Exhibit  2.4  of  the  Registrant's  1997  Form  10-K.

2.5  The  Crop  Hail  Insurance Quota Share Agreement by and between Continental
     Casualty  Company  and IGF Insurance Company, IGF Holdings, Inc. and Symons
     International  Group,  Inc.  dated  February  28,  1998  is incorporated by
     reference  to  Exhibit  2.5  of  the  Registrant's  1997  Form  10-K.

2.6  The  Crop  Hail  Insurance  Services and Indemnity Agreement by and between
     Continental  Casualty Company and IGF Insurance Company, IGF Holdings, Inc.
     and  Symons  International  Group,  Inc.  dated  February  28,  1998  is
     incorporated  by  reference  to  Exhibit  2.6 of the Registrant's 1997 Form
     10-K.

2.7  The  Multiple  Peril Crop Insurance Services and Indemnity Agreement by and
     between  Continental  Casualty  Company  and  IGF  Insurance  Company,  IGF
     Holdings, Inc. and Symons International Group, Inc. dated February 28, 1998
     is  incorporated  by reference to Exhibit 2.7 of the Registrant's 1997 Form
     10-K.

2.8  The  Stock  Purchase  Agreement  between  IGF Holdings, Inc. and 1911 CORP,
     dated  July  7,  1998  is  incorporated  by reference to Exhibit 2.9 of the
     Registrant's  1998  Form  10-K.

3.1  The  Registrant's  Restated  Articles  of Incorporation are incorporated by
     reference to Exhibit 3.1 of the Registrant's Registration Statement on Form
     S-1,  Reg.  No.  333-9129.

<PAGE>

3.2  Registrant's  Restated  Code  of  Bylaws,  as  amended,  is incorporated by
     reference  to  Exhibit  1  of  the  Registrant's  1996  Form  10-K.

4.1(1)  The  Senior  Subordinated  Indenture between Symons International Group,
     Inc.  as  issuer  and  Wilmington  Trust Company as trustee for SIG Capital
     Trust  I dated August 12, 1997 is incorporated by reference to Exhibit 4 of
     the  Registrant's  Registration  Statement on Form S-4, Reg. No. 333-35713.

4.1(2)  First  Supplemental  Senior  Subordinated  Indenture  between  Symons
     International  Group,  Inc.  and  Wilmington  Trust  Company Related to SIG
     Capital  Trust  I  dated  January  15, 1998 is incorporated by reference to
     Exhibit  4.3(2)  of  the  Registrant's  1997  Form  10-K.

10.1 The  Management  Agreement  among  Superior  Insurance  Company,  Superior
     American  Insurance  Company,  Superior  Guaranty Insurance Company and GGS
     Management,  Inc.  dated  April  30,  1996  is incorporated by reference to
     Exhibit  10.5  of the Registrant's Registration Statement on Form S-1, Reg.
     No.  333-9129.

10.2 The  Management  Agreement  between  Pafco  General  Insurance  Company and
     Registrant dated May 1, 1987, as assigned to GGS Management, Inc. effective
     April  30,  1996,  is  incorporated  by  reference  to  Exhibit 10.6 of the
     Registrant's  Registration  Statement  on  Form  S-1,  Reg.  No.  333-9129.

10.3 The  Administration  Agreement between IGF Insurance Company and Registrant
     dated  February  26,  1990,  as  amended,  is  incorporated by reference to
     Exhibit  10.7  of the Registrant's Registration Statement on Form S-1, Reg.
     No.  333-9129.

10.4 The  Agreement  between IGF Insurance Company and Registrant dated November
     1,  1990  is  incorporated by reference to Exhibit 10.8 of the Registrant's
     Registration  Statement  on  Form  S-1,  Reg.  No.  333-9129.

10.5 The Registration Rights Agreement between Goran Capital Inc. and Registrant
     dated  May  29,  1996  is incorporated by reference to Exhibit 10.13 of the
     Registrant's  Registration  Statement  on  Form  S-1,  Reg.  No.  333-9129.

10.6*  The Employment Agreement between Goran Capital Inc., Symons International
     Group,  Inc.  and Douglas H. Symons effective March 8, 1999 is incorporated
     by  reference  to  Exhibit  10.5  of  the  Registrant's  2000  Form  10-K.

10.7*  The Employment Agreement between Goran Capital Inc., Symons International
     Group,  Inc. and David N. Hafling dated October 15, 2002 is incorporated by
     reference  to  Exhibit  10.7  to  Registrant's  2001  Form  10-K.

10.8* The Employment Agreement between Symons International Group, Inc. and Mark
     A.  Paul dated July 30, 2001is incorporated by reference to Exhibit 10.8 to
     Registrant's  2001  Form  10-K.

10.9 The GGS Management Holdings, Inc. 1996 Stock Option Plan is incorporated by
     reference  to  Exhibit  10.21 of the Registrant's Registration Statement on
     Form  S-1,  Reg.  No.  333-9129.

10.10  The  Registrant's  1996 Stock Option Plan is incorporated by reference to
     Exhibit  10.22 of the Registrant's Registration Statement on Form S-1, Reg.
     No.  333-9129.

10.11  The  Registrant's Retirement Savings Plan is incorporated by reference to
     Exhibit  10.24 of the Registrant's Registration Statement on Form S-1, Reg.
     No.  333-9129.

10.12  The  Insurance  Service Agreement between Mutual Service Casualty Company
     and  IGF  Insurance Company dated May 20, 1996 is incorporated by reference
     to  Exhibit  10.25  of the Registrant's Registration Statement on Form S-1,
     Reg.  No.  333-9129.

10.13(2)  The  Crop  Hail  Quota  Share  Reinsurance Contract and Crop Insurance
     Service Agreement between Pafco General Insurance Company and IGF Insurance
     Company  is  incorporated  by  reference  to  Exhibit  10.27(2)  of  the
     Registrant's  Registration  Statement  on  Form  S-1,  Reg.  No.  333-9129.

10.13(3)  The  Automobile  Third Party Liability and Physical Damage Quota Share
     Reinsurance  Contract  between  IGF  Insurance  Company  and  Pafco General
     Insurance  Company  is incorporated by reference to Exhibit 10.27(3) of the
     Registrant's  Registration  Statement  on  Form  S-1,  Reg.  No.  333-9129.

10.13(5)  The  Standard  Reinsurance  Agreement  between  Federal Crop Insurance
     Corporation and IGF Insurance Company dated July 1, 1997 is incorporated by
     reference  to  Exhibit  10.13(6)  to  the  Registrant's  1999  Form  10-K.

10.13(9)  Amendment  No. 1 to the 1998 Standard Reinsurance Agreement dated July
     29,  1998  is  incorporated  by  reference  to  Exhibit  10.18(8)  to  the
     Registrant's  1999  Form  10-K.

10.13(11)  Quota  Share Reinsurance Agreement between Superior Insurance Company
     and  its  Wholly  -Owned  Insurance  Subsidiaries  and  National Union Fire
     Insurance  Company  of  Pittsburgh,  PA  effective  January  1,  2000  is
     incorporated  by  reference  to  Exhibit 10.13(11) to the Registrant's 2001
     Form  10-K.

10.13(12)  Quota  Share  Reinsurance  Agreement  between Pafco General Insurance
     Company  and  National  Union  Fire  Insurance  Company  of  Pittsburgh, PA
     effective January 1, 2000 is incorporated by reference to Exhibit 10.13(12)
     to  the  Registrant's  2001  Form  10-K.

10.13(14)  Addendum No. 2 to Quota Share Reinsurance Agreement effective January
     1,  2000  between Superior Insurance Company and its Wholly-Owned Insurance
     Subsidiaries  and  National  Union Fire Insurance Company of Pittsburgh, PA
     effective  December  30,  2000  is  incorporated  by  reference  to Exhibit
     10.13(14)  to  Registrant's  2001  Form  10-K.

10.13(15)  Addendum No. 2 to Quota Share Reinsurance Agreement effective January
     1,  2000  between  Pafco  General Insurance Company and National Union Fire
     Insurance  Company  of  Pittsburgh,  PA  effective  December  30,  2000  is
     incorporated  by  reference  to Exhibit 10.13(15) to Registrant's 2001 Form
     10-K.

10.13(16)  Addendum No. 3 to Quota Share Reinsurance Agreement effective January
     1,  2000  between Superior Insurance Company and its Wholly-Owned Insurance
     Subsidiaries  and  National  Union Fire Insurance Company of Pittsburgh, PA
     effective  January  1,  2002.

10.13(17)  Addendum No. 3 to Quota Share Reinsurance Agreement effective January
     1,  2000  between  Pafco  General Insurance Company and National Union Fire
     Insurance  Company  of  Pittsburgh,  PA  effective  January  1,  2002.

10.13(18)  Addendum No. 4 to Quota Share Reinsurance Agreement effective January
     1,  2000  between Superior Insurance Company and its Wholly-Owned insurance
     subsidiaries and National Union Fire Insurance Company of Pittsburgh, PA
     dated  January  1,  2002.

10.13(19)  Addendum No. 4 to Quota Share Reinsurance Agreement effective January
     1,  2000  between  Pafco  General Insurance Company and National Union Fire
     Insurance  Company  of  Pittsburgh,  PA  effective  January  1,  2002.

10.13(20)  Addendum No. 5 to Quota Share Reinsurance Agreement effective January
     1,  2000  between Superior Insurance Company and its Wholly-Owned insurance
     subsidiaries and National Union Fire Insurance Company of Pittsburgh, PA
     dated  September  26,  2002.

10.14(1)  The  SIG  Capital  Trust  I  9  %  Trust Preferred Securities Purchase
     Agreement  dated  August  7,  1997  is  incorporated  by  reference  in the
     Registrant's  Registration  Statement  on  Form  S-4,  Reg.  No. 333-35713.

10.14(2)  The  Registration  Rights  Agreement among Symons International Group,
     Inc.,  SIG  Capital  Trust  I  and  Donaldson, Lufkin & Jenrette Securities
     Corporation,  Goldman,  Sachs  &  Co., CIBC Wood Gundy Securities Corp. and
     Mesirow  Financial, Inc. dated August 12, 1997 is incorporated by reference
     in the Registrant's Registration Statement on Form S-4, Reg. No. 333-35713.

10.14(3) The Declaration of Trust of SIG Capital Trust 1 dated August 4, 1997 is
     incorporated  by  reference  in  the Registrant's Registration Statement on
     Form  S-4,  Reg.  No.  333-35713.

10.14(4)  The  Amended  and Restated Declaration of Trust of SIG Capital Trust I
     dated  August  12,  1997  is  incorporated by reference in the Registrant's
     Registration  Statement  on  Form  S-4,  Reg.  No.  333-35713.

10.15* The Employment Agreement between Goran Capital Inc., Symons International
     Group,  Inc.  and Gene S. Yerant effective January 10, 2000 is incorporated
     by reference to Exhibit 10.15 of the Registrant's March 31, 2000 Form 10-Q.

10.16*  The Employment Agreement between Symons International Group, Inc., Goran
     Capital  Inc.  and  Gregg  F.  Albacete  effective  January  26,  2000  is
     incorporated  by  reference  to Exhibit 10.16 of the Registrant's March 31,
     2000  Form  10-Q.

10.17  The  Asset Purchase Agreement by and among Acceptance Insurance Companies
     Inc., American Growers Insurance Company, American Agrisurance, Inc., Goran
     Capital  Inc., Symons International Group, Inc., IGF Holdings, Inc. and IGF
     Insurance  Company dated Mary 23, 2001 incorporated by reference to Exhibit
     10.9  of  the  Registrant's  June  30,  2001  Form  10-Q.

10.18  First  Amendment  to  Asset  Purchase  Agreement  by and among Acceptance
     Insurance  Companies  Inc.  American  Growers  Insurance  Company, American
     Agrisurance,  Inc.,  Goran  Capital Inc., Symons International Group, Inc.,
     IGF  Holdings,  Inc.  and  IGF  Insurance  Company  dated  June  5,  2001
     incorporated  by  reference  to  Exhibit 10.10 of the Registrant's June 30,
     2001  Form  10-Q.

10.19  Assignment  and  Assumption  Agreement  by  IGF  Holdings,  Inc.  and IGF
     Insurance  Company  and  Acceptance  Insurance Companies Inc. dated May 23,
     2001  incorporated  by  reference to Exhibit 10.11 of the Registrant's June
     30,  2001  Form  10-Q.

10.20  IGF/Acceptance Retrocession Agreement by and between Acceptance Insurance
     Company  and  IGF  Insurance  Company  dated  May  23, 2001 incorporated by
     reference  to  Exhibit  10.13  of the Registrant's June 30, 2001 Form 10-Q.

10.21  Consulting  and  Non-competition  Agreement  by  and  between  Symons
     International Group, Inc. and Acceptance Insurance Companies Inc. dated May
     23,  2001  incorporated  by  reference to Exhibit 10.15 of the Registrant's
     June  30,  2001  Form  10-Q.
10.22*  Addendum  to  Employment  Agreement  between  Goran Capital Inc., Symons
     International Group, Inc. and G. Gordon Symons effective January 1, 1998 is
     incorporated  by  reference  to Exhibit 10.23 of the Registrant's 2001 Form
     10-K.

10.23*  The  Employment Agreement dated May 31, 2002 between Goran Capital Inc.,
     Symons  International  Group, Inc. and Douglas H. Symons.

10.24*  Addendum  to  Consulting  Agreement dated January 1, 1998 by and between
     Goran  Capital  Inc.,  the  Company, Granite Reinsurance Company Ltd., Goan
     Management  Bermuda  Ltd.  and  G.  Gordon  Symons.

13   2002  Annual  Report  of  Symons  International  Group,  Inc.

99.1 Certifcation  pursuant  to  section  906 of the Sarbanes -Oxley Act of 2002

99.2 Certifcation  pursuant  to  section  906 of the Sarbanes -Oxley Act of 2002

*    Compensation  Related  Agreement