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, 2000

(   )    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 Identification No.)
         Incorporation or organization)

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

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

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

         Securities registered pursuant to Section 12(g) of the Act:
                                                                    Common Stock
                                                               without par value
                                                                (Title of Class)

         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)

         The aggregate  market value of the 2,605,108 shares of the Registrant's
common stock held by non-affiliates, as of March 30, 2001 was $1,424,734.

         The number of shares of common  stock of the  Registrant,  without  par
value, outstanding as of March 30, 2001 was 10,385,399.

                       DOCUMENTS INCORPORATED BY REFERENCE

         Portions of the Registrant's Annual Report to Shareholders for the year
ended December 31, 2000 are incorporated by reference in Parts II and IV hereof.
Portions of the  Registrant's  Proxy Statement are  incorporated by reference in
Part III hereof.



<PAGE>


SYMONS INTERNATIONAL GROUP INC.
ANNUAL REPORT ON FORM 10-K
December 31, 2000


PART I
                                                                           PAGE

Item 1.      Business                                                         3

Item 2.      Properties                                                      19

Item 3.      Legal Proceedings                                               20

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


PART II

Item 5.      Market for Registrant's Common Equity and Related Shareholder
             Matters                                                         22

Item 6.      Selected Consolidated Financial Data                            22

Item 7.      Management's Discussion and Analysis of Financial Condition
             and Results of Operations                                       22

Item 7A.     Quantitative and Qualitative Disclosures About Market Risk      22

Item 8.      Financial Statements and Supplementary Data                     23

Item 9.      Changes in and Disagreements with Accountants on Accounting and
             Financial Disclosure                                            23


PART III

Item 10.     Directors and Executive Officers of the Registrant              23

Item 11.     Executive Compensation                                          23

Item 12.     Security Ownership of Certain Beneficial Owners and Management  23

Item 13.     Certain Relationships and Related Transactions                  23


PART IV

Item 14.     Exhibits, Financial Statement Schedules, and Reports
             on Form 8-K                                                     23


SIGNATURES                                                                   33


<PAGE>


PART I

ITEM 1 - BUSINESS

Forward-Looking Statement

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

Overview of Business

          Symons  International  Group,  Inc.  (the  "Company")  owns  insurance
companies which underwrite and market nonstandard  private passenger  automobile
insurance.  The Company's  principal  insurance  company  subsidiaries are Pafco
General Insurance Company ("Pafco"), Superior Insurance Company ("Superior") and
IGF Insurance  Company  ("IGF").  The Company is a 73% owned subsidiary of Goran
Capital Inc. ("Goran").

         As previously announced,  the Company is currently pursuing the sale of
its crop insurance  operations.  Management  expects to complete the sale during
the second  quarter of 2001.  The financial  statements  included in this report
reflect the results of the crop insurance segment as "discontinued operations".

Nonstandard Automobile Insurance

         Pafco,  IGF,  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,  driving
experience or violations,  particular occupation or type of vehicle. The Company
offers several different policies,  which are directed towards different classes
of risk within the nonstandard  market.  Premium rates for nonstandard risks are
higher than for standard risk. Since it can be viewed as a residual market,  the
size of the nonstandard  private passenger  automobile  insurance market changes
with the insurance environment and grows when the standard coverage becomes more
restrictive.  Nonstandard  policies have relatively short policy periods and low
limits of liability.  Due to the low limits of coverage, the period of time that
elapses  between the  occurrence  and  settlement  of losses  under  nonstandard
policies  is  shorter  than  many  other  types of  insurance.  Also,  since the
nonstandard  automobile insurance business typically  experiences lower rates of
retention than standard  automobile  insurance,  the number of new policyholders
underwritten  by  nonstandard   automobile   insurance  carriers  each  year  is
substantially  greater  than the  number of new  policyholders  underwritten  by
standard carriers.

Products

         The Company offers both liability and physical  damage  coverage in the
insurance  marketplace,  with policies  having terms of three to twelve  months.
Most nonstandard  automobile insurance  policyholders choose the basic limits of
liability  coverage  which,  though  varying from state to state,  generally are
$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 other parties' cars or property.

          The  Company  offers two  policies,  each  directed  toward  different
classes of risk within the nonstandard market. The Superior Choice policy offers
insured a lower cost alternative in exchange for restricted  coverage terms. The
Superior  Standard policy is intended for risks who desire more traditional auto
coverage.

                  Where permitted,  Superior offers a five tier product covering
the  full  spectrum  of  automobile  insurance  customers  from  nonstandard  to
ultra-preferred.   The  focus  of  the  Company's  marketing,  however,  is  the
nonstandard auto insurance agent.

Marketing

         The Company's nonstandard automobile insurance business is concentrated
in the states of Florida, California, Virginia, Indiana and Georgia. The Company
also writes nonstandard  automobile  insurance in fifteen 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 for the Company for the periods indicated.
<TABLE>
<CAPTION>

         Symons International Group, Inc.
         Year Ended December 31,
         (in thousands)


<S>                                           <C>            <C>            <C>
State                                         1998           1999           2000
-----------------------------------       --------       --------       --------

Arizona                                   $  6,228       $ 10,912       $  4,484

Arkansas                                     1,383            804            297

California                                  48,181         29,993         32,480

Colorado                                     8,115          8,238          6,938

Florida                                    107,746         67,459         45,104

Georgia                                     21,575         22,945         13,670

Illinois                                     2,908          1,795            206

Indiana                                     18,735         23,599         12,804

Iowa                                         6,951          4,028          2,023

Kentucky                                     8,108          5,768          5,034

Mississippi                                  5,931          3,515             48

Missouri                                     8,669          4,555          1,929

Nebraska                                     6,803          3,846          1,436

Nevada                                       8,849          6,954          3,707

Ohio                                         2,106          2,096          3,169

Oklahoma                                     3,803          1,921          1,090

Oregon                                       6,390         12,394          4,236

Tennessee                                    1,443          6,840          9,794

Texas                                        7,520          2,641          5,918

Virginia                                    22,288         15,470         20,089

Washington                                       5           --             --

Total nonstandard auto                     303,737        235,773        174,456

Other property                               6,427            628              5
                                          --------       --------       --------

Total                                     $310,164       $236,401       $174,461
                                          ========       ========       ========
</TABLE>

         The  Company  markets  its  nonstandard  products  exclusively  through
approximately  7,000 independent  agencies.  The Company has several territorial
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  attempts to foster strong service  relationships  with its
agencies  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  offers rating  software to its agents in
some states which permits them to rate risks in their offices.

         Most of the  Company's  agents  have  the  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 reviews all coverages bound by the agents promptly and generally accepts
coverages  which  fall  within  its  stated  underwriting   criteria.   In  most
jurisdictions,  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  having  five  individual  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.  The Company intends to continue the expansion of the marketing of
its multi-tiered  products into other states and to obtain multiple licenses for
its subsidiaries in these states to permit maximum flexibility in designing rate
and commission structures.

Underwriting

         The Company utilizes many factors in determining its rates. Some of the
characteristics  used are  type,  age and  location  of the  vehicle,  number of
vehicles per policyholder,  number and type of convictions or 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 which 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%.  Refer  to
"Management's  Discussion  and  Analysis of Financial  Condition  and Results of
Operations" for a further discussion on the combined ratio.

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

Claims

         The Company's  nonstandard  automobile claims department handles claims
on a regional basis from its Indianapolis,  Indiana;  Atlanta,  Georgia;  Tampa,
Florida;  Orange  and  Riverside,  California;  Alexandria,  Virginia;  and Bala
Cynwyd, Pennsylvania locations.

         The Company retains independent appraisers and adjusters for estimating
physical  damage  claims and limited  elements of  investigation.  In 2000,  the
Company began  training its own  adjusters in  California  and Virginia to write
automobile damage appraisals.

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

Reinsurance

         The Company  follows the  customary  industry  practice of reinsuring a
portion of its risks and paying for that protection based upon premiums received
on all policies subject to such  reinsurance.  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 reinsurance treaties.

         In  2000,  Pafco  and  Superior  maintained  casualty  excess  of  loss
reinsurance on their nonstandard  automobile insurance business covering 100% of
losses on an individual  occurrence  basis in excess of $200,000 up to a maximum
of $5,000,000.

         Amounts recoverable from reinsurers relating to nonstandard  automobile
operations as of December 31, 2000 follows (in thousands):
                                                               Reinsurance
                                                             Recoverables as of
Reinsurers                            A.M. Best Rating     December 31, 2000 (1)

National Union Fire Ins Comp
  of Pittsburg, PA                        A++                       65,539
Gerling Blobal Reins Corp of America       A                           532
Lloyds of London                        Not Rated                      630


          (1) Only   recoverables   greater  than  $200,000  are  shown.   Total
              nonstandard automobile reinsurance recoverables as of December 31,
              2000 were approximately $66,901,000.
          (2) An A.M. Best Rating of "A++" is the highest of 15 ratings.
              An A.M. Best Rating "A" is the third highest of 15 ratings

                  Effective  January 1, 2000, Pafco and Superior entered into an
automobile  quota share agreement with National Union Fire Insurance  Company of
Pittsburgh (A.M. Best rated A++). The amount of cession for Pafco is variable up
to a maximum  of 75% and $5  million  in any one  quarter  and for  Superior  is
variable  up to a maximum of 75% and $11  million in any one quarter for all new
business,  renewal  business and in force unearned  premium  reserves.  In 2000,
Pafco and Superior ceded 48% of their nonstandard automobile 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"), an
affiliate of the Company,  whereby all of Pafco's commercial  business from 1996
and thereafter was ceded effective January 1, 1996. This agreement was in effect
during 2000.

          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, which serve the agency market, as well as companies, which sell
insurance  directly to customers.  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  primarily  competitors are Progressive  Casualty  Insurance  Company,
Guaranty  National  Insurance  Company,  Integon  Corporation  Group,  Deerbrook
Insurance  Company (a member of the Allstate  Insurance Group) and the companies
of the American  Financial Group.  Generally,  these  competitors are larger and
have greater financial  resources than the Company.  The nonstandard  automobile
insurance  business is price  sensitive and certain  competitors  of the Company
have from time to time,  decreased  their prices in an apparent  attempt to gain
market share.  The most recent two years have seen severe price  competition for
nonstandard automobile insurance.

Recent Developments

          After  experiencing  continued  operating  losses  in its  nonstandard
automobile  operations  throughout  1999, the Company  decided to, in the latter
part of 1999,  implement  significant  changes in its auto  operations to affect
improvement  in its operating  results.  Effective  January 10, 2000 the Company
engaged Gene Yerant as the President of its nonstandard  automobile  operations.
Mr.  Yerant's  focus in his  position  with the  Company  is to return  the auto
operations to  profitability  by improving  efficiency and  effectiveness in all
aspects of the operation.

          Since his  engagement,  Mr. Yerant has effected a number of management
changes designed to improve operations, including hiring a new Chief Information
Officer,  a Vice  President  of  Sales  and  Product  Management  for  the  auto
operations  and certain other key claims and operating  positions.  During 2000,
the Company raised rates,  redesigned the auto insurance product,  reduced staff
and closed the Tampa processing center.

Reserves for Losses and Loss Adjustment Expenses

         Loss reserves are estimates, established at a given point in time based
on facts  then  known,  of what  the  Company  projects  its  exposure  to be in
connection with incurred losses.  Loss adjustment expense reserves are estimates
of the ultimate  liability  associated  with the expense of settling all claims,
including investigation and litigation costs. The Company's actual liability for
losses and loss adjustment  expense at any point in time will be greater or less
than these estimates.

         The Company  maintains  reserves for the eventual payment of losses and
loss  adjustment  expenses 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 historical payments made for
similar claims.

         Loss and loss  adjustment  expense  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 Company's  recorded reserves for losses and loss adjustment expense
reserves at the end of 2000 are  certified  by the  Company's  chief  actuary in
compliance with insurance regulatory requirements.


<PAGE>



         The following loss reserve  development  table  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.


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

                    1990    1991     1992     1993     1994        1995        1996         1997        1998       1999     2000
                 ------- ------- --------  ------- --------   ---------   ---------    ---------    --------    -------   ------

Gross reserves
<S>               <C>     <C>     <C>       <C>     <C>        <C>         <C>          <C>
for unpaid        $27,403 $25,248 $ 71,748  $79,551 $101,185   $ 121,661   $ 141,260    $ 103,441
losses and LAE
Deduct
reinsurance        12,581  10,927    9,921    8,124   16,378       6,515       3,167       18,709
recoverable
Reserve for
unpaid losses
and LAE, net of   $15,923 $15,682 $ 17,055   14,822   14,321      61,827      71,427       84,807     115,146    138,093   84,732
reinsurance
Paid cumulative
as of:
One Year Later      7,695   7,519   10,868    8,875    7,455      42,183      59,410       62,962      85,389     81,444     --
Two Years Later    10,479  12,358   15,121   11,114   10,375      53,350      79,319       89,285     111,042       --       --
Three Years        12,389  13,937   16,855   13,024   12,040      58,993      86,298       98,469        --         --       --
Later
Four Years Later   13,094  14,572   17,744   13,886   12,822      61,650      89,166         --          --         --       --
Five Years Later   13,331  14,841   18,195   14,229   13,133      62,621        --           --          --         --       --
Six Years Later    13,507  14,992   18,408   14,330   13,375        --          --           --          --         --       --
Seven Years        13,486  15,099   18,405   14,426     --          --          --           --          --         --       --
Later
Eight Years        13,567  15,095   18,460     --       --          --          --           --          --         --       --
Later
Nine Years Later   13,566  15,135     --       --       --          --          --           --          --         --       --
Ten Years Later    13,586    --       --       --       --          --          --           --          --         --       --
Liabilities
re-estimated as
of:
One Year Later     13,888  14,453   17,442   14,788   13,365      59,626      82,011       97,905     131,256    124,012     --
Two Years Later    13,343  14,949   18,103   13,815   12,696      60,600      91,743      104,821     128,302       --       --
Three Years        13,445  15,139   18,300   14,051   13,080      63,752      91,641      105,011        --         --       --
Later
Four Years Later   13,514  15,218   18,313   14,290   13,485      63,249      91,003         --          --         --       --
Five Years Later   13,589  15,198   18,419   14,499   13,441      63,233        --           --          --         --       --
Six Years Later    13,612  15,114   18,533   14,523   13,592        --          --           --          --         --       --
Seven Years        13,529  15,157   18,484   14,584     --          --          --           --          --         --       --
Later
Eight Years        13,573  15,145   18,508     --       --          --          --           --          --         --       --
Later
Nine Years Later   13,574  15,165     --       --       --          --          --           --          --         --       --
Ten Years Later    13,595    --       --       --       --          --          --           --          --         --       --
Net cumulative
(deficiency) or     2,328     517   (1,453)     238      729      (1,406)    (19,576)     (20,204)    (13,156)    14,081     --
redundancy
Expressed as a
percentage of
unpaid losses        14.8%    3.4%    (8.4%)    2.0%     6.1%       (2.3%)     (28.3%)      (23.6%)     (14.3%)     10.2%    --
and LAE

Revaluation of gross losses and LAE as of
year-end 2000:

    Cumulative Gross Paid as of Year-end 2000            26,949    24,390    71,484       94,108     107,074      87,873      81,702
    Gross liabilities re-estimated as of                 27,287    24,953    73,522       99,890     123,060     136,131     125,968
    year-end 2000
    Gross cumulative (deficiency) or redundancy             116       295    (1,774)     (20,339)    (21,875)    (14,470)     15,292
</TABLE>

<PAGE>



Activity in the  liability  for unpaid  loss and loss  adjustment  expenses  for
nonstandard automobile insurance is summarized below:

<TABLE>
<CAPTION>

Reconciliation of Nonstandard Auto Reserves
<S>                                       <C>            <C>              <C>
                                          2000           1999             1998
                                          ----            ----             ----

Balance at January 1,                    $152,455       $134,024        $118,988
    Less Reinsurance Recoverables          13,527         17,844          34,181
                                          ------         ------          ------
    Net Balance at January 1,             138,928        116,180          84,807

Incurred related to
  Current Year                            127,497        214,606         204,818
  Prior Years                            (14,118)         16,367          13,098
                                         --------         ------          ------
  Total Incurred                          113,379        230,973         217,916

Paid Related to
    Current Year                           85,334        122,380         123,581
    Prior Years                            82,108         85,845          62,962
                                           ------         ------          ------
    Total Paid                            167,442        208,225         186,543

Net Balance at December 31,                84,865        138,928         116,180
Plus Reinsurance Balance                   23,252         13,527          17,844
                                           ------         ------          ------
Balance at December 31,                  $108,117       $152,455        $134,024

</TABLE>



<PAGE>



Ratings
          A.M.  Best has  currently  assigned a "B-" rating to  Superior,  a "C"
rating to Pafco and an "NA-3" rating to IGF.

         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,  phone  calls  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".  An
"NA-3" is a "rating procedure inapplicable" category.

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  stockholders  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  "Recent
Regulatory  Developments" and "Risk Based Capital  Requirements" below and "RISK
FACTORS."

<PAGE>


Recent Regulatory Developments

         To address Indiana  Department of Insurance  ("IDOI") concerns relating
to Pafco,  on February 17,  2000,  Pafco agreed to an order under which the IDOI
may monitor more closely the ongoing  operations of Pafco.  Among other matters,
Pafco must:

o    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.

o    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. Restrictions on premium
     writings would result in lower premium  volume and management  fees payable
     to Superior  Insurance Group,  Inc.  ("Superior  Group") are based on gross
     written  premium;  therefore,  lower  premium  volume  results  in  reduced
     management fees paid by Pafco.

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

         Pafco's  inability  or  failure to comply  with any of the above  could
result in the IDOI requiring  further  reductions in Pafco's  permitted  premium
writings or in the IDOI instituting future  proceedings  against Pafco. On April
24, 2000 the IDOI  concluded its  previously  disclosed  target  examination  of
Pafco,  covering loss reserves,  pricing and reinsurance and no action was taken
thereon.

         As previously  reported Pafco informed the Iowa Department of Insurance
("IADOI")  on October 10, 2000 of its  decision to stop  writing new  automobile
business in Iowa while Pafco reviews and revises its program in the state. Pafco
has agreed  with the IADOI that it will not write any new  nonstandard  business
until such time as Pafco has reduced its overall  nonstandard  automobile policy
counts in the state or has; (i) increased surplus; or (ii) a net written premium
to surplus ratio of less than three to one; and (iii) 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.

         As  previously  disclosed,  with  regard  to IGF and as a result of the
losses experienced by IGF from the discontinued crop insurance  operations,  IGF
has agreed with the IDOI to provide  monthly  financial  statements  and consult
monthly  with the IDOI,  and to  obtain  prior  approval  for  affiliated  party
transactions.  IGF continues to consult  regularly  with the IDOI  regarding the
status of the impending sale of the crop segment and regarding the status of the
continuing  nonstandard  auto  business  written by IGF. On January 24, 2000 the
IDOI concluded its target exam of IGF regarding  1998 loss reserves  principally
related to AgPI and no  further  action by IGF was  required  as a result of the
examination.

         The Florida  Department of Insurance  ("FDOI") has concluded its market
conduct, data processing,  year 2000 readiness and financial  examinations as of
June 30, 1999 and no  significant  action was taken as a result.  The  financial
review of  Superior  for the year ended  December  31, 1999 by the FDOI has been
completed  and no report has yet been  issued  thereon.  Superior is required to
submit monthly financial information to the FDOI, including a demonstration that
it has not exceeded a ratio of net written premiums to surplus of four to one.


<PAGE>



         As previously reported, the FDOI issued a notice of its intent to issue
an order on July 7, 2000 (the "Notice"),  which  principally  addressed  certain
policy and finance fee payments by Superior to Superior  Insurance  Group,  Inc.
("Superior Group"),  another subsidiary of the Company. A formal  administrative
hearing to review the Notice and a determination  that the order contemplated by
the Notice not be issued was held  February,  2001. A recommended  order has not
yet been  rendered  by the  administrative  law  judge.  The FDOI  could  reject
findings in a recommended order and issue an order which could restrict Superior
from paying  certain  billing  and policy  fees to Superior  Group and include a
requirement that Superior Group repay to its subsidiary,  Superior,  billing and
policy  fees from prior years in an amount of  approximately  $35.2  million.  A
restriction  on the ability of Superior to pay future billing and policy fees to
Superior Group may necessitate that the Company take certain actions,  which may
be subject  to  regulatory  approvals,  to  reallocate  operating  revenues  and
expenses  between its  subsidiaries.  The Company would  vigorously  contest the
issuance of any such order.

Insurance Holding Company Regulation

         The  Company  also is  subject  to  laws  governing  insurance  holding
companies in Florida and Indiana,  where its insurance company  subsidiaries are
domiciled.  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.  The 1996
FDOI consent order approving the Company's  acquisition of Superior,  prohibited
Superior from paying any  dividends for four years from the date of  acquisition
without prior approval.  This restriction  expired in April 2000. As a result of
regulatory  actions  taken by the IDOI  with  respect  to Pafco  and IGF,  those
subsidiaries  may not pay dividends 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  (formerly,  GGS Management,
Inc.).  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.
<PAGE>
         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
"Recent Regulatory Developments" 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.

         During 2000, Pafco had values outside of the acceptable ranges for four
IRIS tests.  These  included  the change in net  writings  ratio,  the  two-year
overall operating ratio, the liabilities to liquid assets ratio and the two-year
reserve  development  ratio. Pafco failed the first two tests due primarily to a
high loss ratio.

         During 2000,  Superior had values outside of the acceptable  ranges for
six IRIS tests.  These included the net premium to surplus ratio,  change in net
writings ratio, surplus aid to surplus ratio, two-year overall operating ratios,
change in surplus ratio, and the liabilities to liquid assets ratio.

         During 2000, IGF had values outside of the acceptable ranges for eleven
of the twelve IRIS tests.

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 falls.  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  which  requires  the  relevant
insurance commissioner to rehabilitate or liquidate the insurer if surplus falls
below 70% of the RBC amount. Based on the foregoing formulae, as of December 31,
2000, the RBC calculations for IGF, Superior, and Pafco were in excess of 200%.

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  coverages which 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,  2001  the   Company   and  its   subsidiaries   employed
approximately  385 full and  part-time  employees.  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 Terms of the Strategic Alliance Agreement May Adversely Affect the Company's
Financial Condition and Results of Operations

         As previously  reported,  the Company and two of its subsidiaries,  IGF
Holdings,  Inc. ("IGFH") and IGF, are parties to a Strategic  Alliance Agreement
("SAA") dated February 28, 1998 with Continental  Casualty Company  (referred to
in the SAA as "CNA").  By letter dated January 3, 2001, CNA gave notice pursuant
to the SAA of its  exercise  of the  "Put  Mechanism"  under  the SAA  effective
February 19, 2001.  According to the SAA,  upon  exercise of the Put  Mechanism,
IGFH is  obligated  to pay CNA an amount  equal to 5.85 times an amount equal to
"Average  Pre Tax Income" as defined by the SAA. The SAA further  provides  that
within 30 days after  exercise of the put, IGF will  execute a  promissory  note
payable six months after the exercise of the Put in the  principal  amount equal
to the amount  owed,  as specified by the SAA. In a letter dated March 20, 2001,
CNA advised the Company that it calculated  the  principal  amount due CNA to be
$26,265,403.  CNA also has  asserted  a claim for  amounts  allegedly  due under
certain reinsurance agreements with the Company for the 2000 crop year.

         The Company  believes it has claims  against CNA and  defenses to CNA's
exercise  of the Put  Mechanism  that may offset or reduce  amounts  owed by the
Company to CNA. Moreover,  the Company believes that the impending sale of IGF's
crop insurance  business may provide an opportunity  for the parities to resolve
their claims. However, there can be no assurance that the ultimate resolution of
the  claims  asserted  by CNA will  not have  material  adverse  effects  on the
Company's, IGFH's and IGF's financial condition or results of operations.


<PAGE>

Significant Losses Have Been Reported and May Continue

         The Company reported losses from continuing operations of $(71,384,000)
for the year 2000 compared to losses from continuing operations of $(65,443,000)
for 1999. Results from continuing operations before the effects of income taxes,
minority  interest and  amortization  expense were losses of  $(24,969,000)  and
$(48,698,000) for 2000 and 1999 respectively.  Losses from continuing operations
had decreased from 1999 largely due to favorable developments in loss ratios and
actions taken to reduce  operating  expenses.  The Company is continuing to seek
and implement rate increases and other  underwriting  actions to further improve
profitability. A number of systems have been automated and service problems have
been  eliminated  or  significantly  reduced.  Although  the Company has taken a
number of actions to address factors  contributing  to these past losses,  there
can be no assurance that operating losses will not continue.

Recent and Further Regulatory Actions May Affect the Company's Future Operations

         The  Company's   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  actions  by  several  regulators.   See  "Regulation  -  Recent
Regulatory  Developments"  and "Risk-Based  Capital  Requirements" . The primary
purpose of insurance  regulation is the protection of policyholders  rather than
stockholders.  Failure to resolve  issues  with the IDOI and the FDOI,  and with
other  regulators,  in a manner  satisfactory  to the Company  could  impair the
Company's  ability  to  execute  its  business  strategies  or  result in future
regulatory actions or proceedings that otherwise materially and adversely affect
the Company's operations.

The Company is Subject to a Number of Pending Legal Proceedings

         As discussed  elsewhere  in this  report,  the Company is involved in a
number  of  pending  legal  proceedings  (see  Part I - Item  3).  Most of these
proceedings remain in the early stages.  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  materially  adverse  effect  on  the  Company's
operations.

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  payments of 9.5% paid  semi-annually.  The  obligations of the
Preferred  Securities  are  funded  from the  Company's  nonstandard  automobile
management  company.  The Company has elected to defer the semi-annual  interest
payment,  beginning  February 2000 and may continue to defer such payment for up
to an aggregate of five years as permitted by the  indenture  for the  Preferred
Securities. Although there is no present default under the indenture which would
accelerate  the payment of the Preferred  Securities,  the indenture  contains a
number of  convenants  which may  restrict the  Company's  ability to act in the
future.  These covenants include restrictions on the Company's ability to: incur
or guarantee debt; make payment to affiliates;  repurchase its common stock; pay
dividends on common stock; and increases 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.

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 its
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 a base of experience with such products' performance. The level of claims can
not 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
which require prior approval of rates,  it may be more difficult for the Company
to achieve premium rates which 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 made by management as to the amount of losses
and loss  adjustment  expenses  ("LAE") that will  ultimately be incurred in the
settlement of claims.  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.

Nature of Nonstandard Automobile Insurance Business

         The  nonstandard  automobile  insurance  business  is  affected by many
factors  which  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 and net income.

Highly Competitive Business

         Nonstandard automobile insurance is a highly competitive business. Many
of the Company's  competitors  have  substantially  greater  financial and other
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,  as well as companies
which sell  insurance  directly to  customers.  Direct  writers may have certain
competitive   advantages   over  agency   writers,   including   increased  name
recognition,  loyalty  of the  customer  base  to the  insurer  rather  than  an
independent  agency 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,  state
assigned risk plans may provide nonstandard  automobile  insurance products at a
lower price than private insurers.


<PAGE>


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,  which 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  are 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 levels 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 which 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.  The remaining  space is
leased to third parties at a price of approximately $10 per square foot.

Superior

         Superior's  operations  are conducted at leased  facilities in Atlanta,
Georgia;  Marietta,  Georgia;  Tampa,  Florida;  Orange,  California;  Glendale,
California;  Bala Cynwyd,  Pennsylvania and Alexandria,  Virginia. Under a lease
term that extends through  February 2003,  Superior leases 43,338 square feet of
office space at 280 Interstate North Circle, N.W., Suite 500, Atlanta,  Georgia.
Superior occupies 2,500 square feet office space at 1400 South Marietta Parkway,
Suite  105,  Marietta,  Georgia  and the lease  expires  August  2003.  Superior
occupies  an office  located at 5483 West  Waters  Avenue,  Suite  1200,  Tampa,
Florida and consists of  approximately  33,861 square feet of space leased for a
term extending  through December 2007.  Superior occupies an office at 1745 West
Orangewood,  Orange,  California  consisting of approximately  3,264 square feet
leased for a term extending through May 2001. Superior occupies an office at 700
North Central Avenue,  Glendale,  California  consisting of approximately  2,015
square feet leased for a term extending through November 2005. Superior occupies
an  office  at 150  Monument  Road,  Bala  Cynwyd,  Pennsylvania  consisting  of
approximately  3,031  square  feet for a term  extending  through  April,  2003.
Superior  occupies  an  office  at  6303  Little  River  Turnpike,   Suite  220,
Alexandria,  Virginia  consisting of approximately  3,300 square feet for a term
extending   through   October  2003.   Underwriting,   customer   service,   and
administration  activities are housed at the Atlanta location. Claims activities
are split between Atlanta,  Tampa, Orange,  Glendale, Bala Cynwyd and Alexandria
locations.  The Tampa location processes all PIP claims.  Claims property damage
training is  performed  at the  Marietta  location.  Accounting  activities  are
performed at the headquarters location in Indianapolis, Indiana.

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


<PAGE>



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 purports to
be brought on behalf of a class  consisting  of  purchasers  of  insurance  from
Superior Guaranty.  Plaintiffs allege that the defendant charged premium finance
service charges in violation of Florida law. Superior Guaranty believes that the
allegations  of  wrongdoing  as alleged in the  complaint  are without merit and
intends to vigorously defend the claims brought against it.

         IGF is a party to a number of pending legal  proceedings  relating to a
policy ("AgPI") offered in the now discontinued crop insurance  operations.  See
Note  14  "Commitments  and   Contingencies"   in  the  consolidated   financial
statements.  During  2000 claims by  policyholders  prior to the end of the year
relating AgPI were settled. 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  directly  and/or through their
agents made false representations, among other things, regarding AgPI. Discovery
is proceeding. IGF remains a defendant/cross-claimant in six lawsuits pending in
California  state court (King and Fresno counties) only relating to cross claims
and discovery is proceeding. Over the objections of IGF, the third party carrier
settled in 2000 some of  policyholder  claims in the AgPI  cases for  amounts in
excess of the policy limits.  IGF and Mutual Service Casualty Insurance Company,
the third  party  carrier of the AgPI  policies,  have  submitted  their  claims
against each other related to these  settlements to binding  arbitration.  As of
December 31, 2000, IGF had paid an aggregate of  approximately  $28.9 million to
the  policyholders  involved in these legal  proceedings of which  approximately
$5.2 million was incurred  during 2000.  The unpaid  reserves as of December 31,
2000 were $10,912,000.  The Company believes that it has meritorious defenses to
any  claims in  excess  of the  amounts  it has  already  paid and that the loss
payments made and LAE reserves  established with respect to the claims from AgPI
as of December 31, 2000,  are adequate with regard to all of the policies  sold.
However,  there can be no assurance that the Company's  ultimate  liability with
respect to these and any future legal  proceedings  involving such policies will
not have a material  adverse  effect on the  Company's  results of operations or
financial position.

          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 purports to
be brought on behalf of a class  consisting  of  purchasers  of  insurance  from
Superior Guaranty.  The Plaintiff alleges that the defendant charged interest in
violation of Florida law.  Superior  Guaranty  believes that the  allegations of
wrongdoing  as  alleged  in the  complaint  are  without  merit and  intends  to
vigorously defend the claims brought against it.

         Superior is a defendant in a case filed February 4, 2000 in the Circuit
Court for Dade  County,  Florida  entitled  Medical  Re-Hab  Center v.  Superior
Insurance  Company.  The  case  purports  to be  brought  on  behalf  of a class
consisting  of (i)  healthcare  providers  that  rendered  treatment to Superior
insureds  and  claimants  of  Superior  insureds  and  (ii)  such  insureds  and
claimants.  The plaintiff alleges that Superior reduced medical benefits payable
and  improperly  calculated  interest in  violation  of Florida law. The Company
believes the claim is without merit and intends to vigorously defend the charges
brought against it.


<PAGE>

         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  Capital  Inc.
("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  ("1934  Act") and SEC Rule 10b-5  promulgated
thereunder.  The  individual  defendants  are  also  alleged  to  be  liable  as
"controlling  persons"  under  ss.20(a)  of the 1934 Act.  The  Company  and the
individual  defendants  filed a  motion  to  dismiss  the  amended  consolidated
complaint  for  failure  to  state  a  claim  and  for  failure  to  plead  with
particularity  as  required by Fed.  R. Civ.  P.9(b) and the Private  Securities
Litigation  Reform Act of 1995.  The  accounting  firms  also  filed  motions to
dismiss.  Briefing on the motions was  completed on December  18, 2000,  and the
motions presently are pending before the court.

         On July 7,  2000,  the FDOI  issued a notice of its  intent to issue an
order (the "Notice") which principally  addresses certain policy and finance fee
payments  by  Superior  to  Superior  Group,  and  financial  reporting  issues,
including disclosure of intercompany transactions.  An administrative hearing to
review the Notice and a determination  that the order contemplated by the Notice
not be issued was held in February  2001. A  recommended  order has not yet been
rendered by the  administrative  law judge.  The FDOI could reject findings in a
recommended  order and issue an order which could restrict  Superior from paying
certain billing and policy fees to Superior Group and include a requirement that
Superior Group repay to its subsidiary,  Superior,  billing and policy fees from
prior years in an amount of  approximately  $35.2 million.  A restriction on the
ability of Superior to pay future  billing and policy fees to Superior Group may
necessitate  that the  Company  take  certain  actions,  which may be subject to
regulatory approvals,  to reallocate operating revenues and expenses between its
subsidiaries. The Company intends to vigorously contest the issuance of any such
order;  however,  there can be no assurance that an order,  if issued,  will not
have a  material  adverse  effect on the  Company's  results  of  operations  or
financial position.

         Superior  is a  defendant  in a case filed  September  15,  2000 in the
Circuit  Court for Lee  County,  Florida  entitled  Charles L.  Fulton,  D.C. v.
Superior  Insurance  Company,  Case No.  00-7546 CA LG. The case purported to be
brought on behalf of a class  consisting of healthcare  providers  that rendered
treatment to and obtained a valid  assignment  of benefits  from  Superior.  The
court  granted  Superior  Insurance  Company's  motion to  dismiss  the  amended
complaint  and  indicated  that  the  allegations  of  the  plaintiff's  amended
complaint were inappropriate for class certification. The plaintiff alleges that
Superior  reduced or denied claims for medical expenses payable to the plaintiff
without  first  obtaining a written  report in  violation  of Florida  law.  The
plaintiff  also  alleges  that  Superior  inappropriately  reduced the amount of
benefits   payable  to  the  plaintiff  in  breach  of  Superior's   contractual
obligations to the plaintiff. Superior believes the allegations of wrongdoing in
violation of law are without merit and intends to  vigorously  defend the claims
brought against it.

         The California  Department of Insurance ("CDOI") had previously advised
the Company  that it was  reviewing a possible  assessment  which could total $3
million.  The Company does not believe it will owe  anything  for this  possible
assessment.  This  possible  assessment  relates  to  brokers  fees  charged  to
policyholders by independent agents who placed business with Superior.  The CDOI
has  indicated  that such brokers fees charged by the  independent  agent to the
policyholder were improper and has requested  reimbursement to the policyholders
from Superior.  The Company did not receive any of such brokers fees.  There was
no significant  development on this matter during 2000 and an assessment has not
been formally made by the CDOI. The Company will vigorously defend any potential
assessment and believes it will prevail.

         The Company's  insurance  subsidiaries  are parties to other litigation
arising in the  ordinary  course of  business.  The  Company  believes  that the
ultimate resolution of these lawsuits will not have a material adverse effect on
its  financial  condition or results of  operations.  The  Company,  through its
claims reserves,  reserves for both the amount of estimated damages attributable
to these lawsuits and the estimated costs of litigation.


<PAGE>



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

         None.


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

Gregg Albacete                 38           Vice President and Chief Information
                                            Officer of the Company

Earl R. Fonville               37           Vice President, Chief Financial
                                            Officer and Treasurer of the Company

          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 that  time,  Mr.  Albacete  was a  self-employed
consultant.

          Mr. Fonville,  has served as Vice President,  Chief Financial  Officer
and Treasurer of the Company since  September  2000.  Mr.  Fonville  served from
October 1999 to August 2000 various insurance organizations providing consulting
services in the areas of accounting and finance. During the period from November
1993 to September 1999, Mr. Fonville served as Vice President, Corporate Auditor
with Acordia,  Inc. and Vice President,  Chief  Financial  Officer of Acordia of
Lexington.

PART II

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

         Information  regarding  the  trading  market for the  Company's  common
stock,  the range of selling prices for each  quarterly  period since January 1,
1999, and the  approximate  number of holders of common stock as of December 31,
2000 and other  matters is  included  under the  caption  "Market  and  Dividend
Information" on page 43 of the 2000 Annual Report, included as Exhibit 13, which
information is incorporated herein by reference.

ITEM 6 - SELECTED FINANCIAL DATA

         The data  included  on page 5 of the 2000  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 2000 Annual
Report on pages 6 through 14  included as Exhibit 13 is  incorporated  herein by
reference.

ITEM 7A - QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK

         The discussion entitled "Quantitative and Qualitative Disclosures About
Market  Risk" is  included  in the 2000  Annual  Report on pages 12  through  14
included as Exhibit 13 is incorporated herein by reference.


<PAGE>



ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

         The  consolidated  financial  statements  in the  2000  Annual  Report,
included as Exhibit  13, and listed in Item 14 of this  Report are  incorporated
herein by reference from the 2000 Annual Report.

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

         The  information  required  by this  Item  regarding  Directors  of the
Company is incorporated  herein by reference to the Company's  definitive  proxy
statement for its 2001 annual  meeting of common  stockholders  to be filed with
the Commission pursuant to Regulation 14A (the "Proxy Statement").

ITEM 11 - EXECUTIVE COMPENSATION

         The  information  required  by this  Item  is  incorporated  herein  by
reference to the Proxy Statement.

ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

         The  information  required  by this  Item  is  incorporated  herein  by
reference to the Proxy Statement.

ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

         The  information  required  by this  Item  is  incorporated  herein  by
reference to the Proxy Statement.

PART IV

ITEM 14 - 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 2000 Annual Report indicated below
         are incorporated into Item 8 of this Report by reference.

              Description of Financial Statement Item Location
              in 2000 Annual Report

                Reports of Independent Accountants                      Pages 40
                                                                          and 41

                Consolidated Balance Sheets, December 31,
                  2000 and 1999                                          Page 15

                Consolidated Statements of Earnings (Loss), Years
                  Ended December 31, 2000, 1999 and 1998                 Page 16

                Consolidated Statements of Changes In
                  Shareholders' Equity (Deficit), Years Ended
                  December 31, 2000, 1999 and 1998                       Page 17

                Consolidated Statements of Cash Flows,
                  Years Ended December 31, 2000, 1999 and 1998           Page 18

                Notes to Consolidated Financial Statements,
                  Years Ended December 31, 2000, 1999 and 1998           Page 19
                                                                      through 38

2.       Financial Statement Schedules.  The following financial statement
         schedules are included beginning on Page 25.

               Reports 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.

4.       Reports on Form 8-K.  The following reports were filed during the
         fourth quarter of 2000.

               None

<PAGE>



Board of Directors and Stockholders of
Symons International Group, Inc. and Subsidiaries

The audit  referred  to in our report  dated  March 13,  2001,  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 stockholders  for the year ended December 31, 2000 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.



BDO SEIDMAN, LLP
Grand Rapids, Michigan
March 13, 2001



<PAGE>


Board of Directors And Stockholders of Symons International Group, Inc.
And Subsidiaries

In our opinion,  the  consolidated  statements  of earnings  (loss),  changes in
stockholders'  equity (deficit),  and cash flows for the year ended December 31,
1998 (appearing on pages 15 through 38 of the Symons  International  Group, Inc.
2000 Annual Report to Shareholders'  which has been incorporated by reference in
the Form  10-K)  present  fairly,  in all  material  respects,  the  results  of
operations and cash flows of Symons  International  Group, inc. and Subsidiaries
(the  "Company")  for the  year  ended  December  31,  1998 in  conformity  with
accounting  practices generally accepted in the United States of America.  These
financial  statements are the  responsibility of the Company's  management;  our
responsibility  is to express an opinion on these financial  statements based on
our  audit.  We  conducted  our audit of these  statements  in  accordance  with
auditing  standards  generally  accepted in the United States of America,  which
require that we plan and perform the audit to obtain reasonable  assurance about
whether the financial  statements  are free of material  misstatement.  An audit
includes  examining,  on a test  basis,  evidence  supporting  the  amounts  and
disclosures in the financial  statements,  assessing the  accounting  principles
used and  significant  estimates made by management,  and evaluating the overall
financial  statement  presentation.   We  believe  that  our  audit  provides  a
reasonable  basis for the  opinion  expressed  above.  We have not  audited  the
consolidated  financial  statements of the company for any period  subsequent to
December 31, 1998.



/s/ PricewaterhouseCoopers LLP
Indianapolis, Indiana
April 13, 1999











<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 Statement.

 SYMONS INTERNATIONAL GROUP, INC. - CONSOLIDATED
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
(Parent Company)
As Of December 31, 1999 and 2000
(In Thousands)
<TABLE>
<CAPTION>


ASSETS                                                                     1999                   2000
                                                                           ----                   ----

Assets:
<S>                                                                     <C>                    <C>
    Investments In And Advances To Related Parties                      $74,429                $38,957
    Cash and Cash Equivalents                                             4,938                     85
    Federal Income Tax Receivable                                        (3,769)                (1,916)
    Property and Equipment                                                   72                     55
    Other                                                                  (194)                    16
    Intangible Assets                                                    39,524                  4,547
                                                                         ------                  -----
Total Assets                                                           $115,000                $41,744
                                                                       ========                =======

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
    Accrued Distributions on Preferred Securities                        $4,809                $18,397
    Other                                                                   171                    792
                                                                            ---                    ---
Total Liabilities                                                         4,980                 19,189
                                                                          -----                 ------
Manditorily Redeemable
    Preferred Securities                                                135,000                135,000
                                                                        -------                -------
Stockholders' Equity:
    Common Stock, No Par, 100,000,000 shares Authorized,                 38,136                 38,136
       10,385,399 and 10,385,399 Issued and Outstanding
    Additional Paid-In Capital                                            5,851                  5,851
    Unrealized Gain (Loss) On Investments (Net of Deferred               (4,898)                (3,938)
       Taxes of $(2,637) in 1999 and $Nil in 2000)
Retained Earnings                                                       (64,069)              (152,494)
                                                                        --------              ---------
Total Stockholders' Equity (Deficit)                                    (24,980)              (112,445)
                                                                        --------              ---------
Total Liabilities and Stockholders' Equity                             $115,000                $41,744
                                                                       ========                =======
</TABLE>



<PAGE>



SYMONS INTERNATIONAL GROUP, INC. - CONSOLIDATED
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
For The Years Ended December 31, 1998, 1999 and 2000
(In Thousands)
<TABLE>
<CAPTION>

                                                                            1998         1999          2000
                                                                            ----         ----          ----

<S>                                                                         <C>          <C>           <C>
Fee Income                                                                  $600         $600          $600
Net Investment Income                                                      6,462        6,186         6,456
                                                                           -----        -----         -----
Total Revenue                                                              7,062        6,786         7,056
                                                                           -----        -----         -----
Expenses:
    Policy Acquisition and General and Administrative Expenses             3,663        4,256        39,032
    Interest Expense                                                         ---           --            --
                                                                             ---           --            --
Total Expenses                                                             3,663        4,256        39,032
                                                                           -----        -----        ------
Income Before Taxes and Minority Interest                                  3,399        2,530       (31,976)
Provisions for Income Taxes                                                1,789        5,497         1,393
                                                                           -----        -----         -----
Net Income (Loss) Before Minority Interest                                 1,610       (2,967)      (33,369)
Minority Interest:
    Equity in Consolidated Subsidiaries                                   (7,616)     (69,513)      (41,469)
    Distribution on Preferred Securities, Net of Tax                      (8,411)      (8,336)      (13,587)
                                                                          -------      -------      --------
Net Income (Loss) for the Period                                         (14,417)     (80,816)      (88,425)
Change in unrealized gains (losses) on securities                           (647)          --            --
Exercise of stock options                                                     37       (6,159)          960
Purchase of Common Stock                                                  (1,341)          --            --
Equity (deficit), beginning of year                                       78,363       61,995       (24,980)
                                                                          ------       ------       --------
Equity (deficit), end of year                                            $61,995     $(24,980)    $(112,445)
                                                                         =======     =========    ==========

</TABLE>


<PAGE>


SYMONS INTERNATIONAL GROUP, INC.
SCHEDULE II - CONDENSED FINANCIAL  INFORMATION OF REGISTRANT For The Years Ended
December 31, 1998, 1999 and 2000 (In Thousands)
<TABLE>
<CAPTION>

                                                                            1998          1999           2000
                                                                            ----          ----           ----

<S>                                                                     <C>           <C>            <C>
Net Income (Loss)                                                       $(14,417)     $(80,816)      $(88,425)
Cash Flows From Operating Activities:
Adjustments to Reconcile Net Cash Provided by (Used In) Operations:
    Equity In Net (Income) Loss of  Subsidiaries                           7,616        69,513         41,469
    Depreciation of Property and Equipment                                     7             5             17
    Amortization of Intangible Assets                                      2,040         2,194         34,977
Net Changes in Operating Assets and Liabilities:
    Federal Income Taxes                                                  (3,621)        7,613         (1,853)
    Other Assets                                                             538           293           (210)
    Other Liabilities                                                        646          (582)        14,209
                                                                             ---          -----        ------
Net Cash Provided From (Used In) Operations                               (7,191)       (1,780)           184
                                                                          -------       -------           ---
Cash Flow Used In Investing Activities:
    Purchase of Property and Equipment                                        (5)          (64)            --
                                                                              ---          ----            --
Net Cash Used in Investing Activities:                                        (5)          (64)            --
                                                                              ---          ----            --
Cash Flows Provided by Financing Activities:
    Contributions of Capital or Dividends Received from Subsidiaries
                                                                          10,786         4,196         (5,037)
    Other Investing Activities                                            (1,303)           --             --
                                                                          -------           --             --
Net Cash Provided By Financing Activities                                  9,483         4,196         (5,037)
                                                                           -----         -----         -------
Increase (Decrease) in Cash and Cash Equivalents                           2,287         2,352         (4,853)
Cash and Cash Equivalents - Beginning of Year                                299         2,586          4,938
                                                                             ---         -----          -----
Cash and Cash Equivalents - End of Year                                   $2,586        $4,938            $85
                                                                          ======        ======            ===
</TABLE>






<PAGE>


SYMONS INTERNATIONAL GROUP, INC. - CONSOLIDATED
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT
For The Years Ended December 31, 1998, 1999 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.

SYMONS INTERNATIONAL GROUP, INC. - CONSOLIDATED
SCHEDULE IV - REINSURANCE
For The Years Ended December 31, 1998, 1999 and 2000
(In Thousands)
<TABLE>
<CAPTION>

<S>                                      <C>          <C>           <C>
Property and Liability Insurance         1998         1999          2000
                                         ----         ----          ----

Direct Amount                          $299,733      $233,514      $168,626
Assumed From Other Companies             10,431         2,887         5,835
Ceded to Other Companies                (40,423)        8,425       (78,621)
                                        --------        -----       --------
Net Amounts                             269,741       244,826        95,840
                                        =======       =======        ======
Percentage of Amount Assumed to Net         3.9%          1.2%          6.1%


</TABLE>


<PAGE>


SYMONS INTERNATIONAL GROUP, INC. - CONSOLIDATED
SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS
For The Years Ended December 31, 1998, 1999 and 2000
(In Thousands)
<TABLE>
<CAPTION>


                                                     1998                    1999                    2000
                                                Allowance for           Allowance for            Allowance for
                                              Doubtful Accounts       Doubtful Accounts        Doubtful Accounts

Additions:

<S>                                                         <C>                     <C>                      <C>
Balance at Beginning of Period                              $1,297                  $4,953                   $1,479

Charged to Costs and Expenses(1)                             6,259                   6,134                    9,623

Charged to Other Accounts                                      ---                     ---                      ---

Deductions from Reserves                                     2,603                   9,608                    9,162
                                                             -----                   -----

Balance at End of Period                                    $4,953                  $1,479                   $1,940
                                                            ======                  ======                   ======
</TABLE>

(1)      The Company  continually  monitors  the adequacy of its  allowance  for
         doubtful  accounts  and  believes  the  balance  of such  allowance  at
         December 31, 1998, 1999 and 2000 was adequate.


<PAGE>


SYMONS  INTERNATIONAL  GROUP,  INC. -  CONSOLIDATED  SCHEDULE VI -  SUPPLEMENTAL
INFORMATION  CONCERNING  PROPERTY - CASUALTY INSURANCE  OPERATIONS For The Years
Ended December 31, 1998, 1999 and 2000 (In Thousands)

<TABLE>
<CAPTION>

          Deferred   Reserves   Discount,Unearned    Earned      Net           Claims and       Amorti-zatiPaid       Premiums
          Policy     for        if       Premiums    Premiums    Invest-menAdjustment Expenses  of         Claims     Written
          Acquisi-   Unpaid     any,                             Income         Incurred        Deferred   and
          tion       Claims     deducted                                       Related to:      Policy     Claim
          Costs      and        in                                                              Acqui-sitioAdjust-
                     Claim      Column                                                          Costs      ment
                     Adjust-    C                                                                          Expense
                     ment
                     Expense

Consolidated property - casualty                                           Current    Prior
entities                                                                   Years      Years


<S>       <C>        <C>                 <C>         <C>         <C>       <C>        <C>        <C>        <C>        <C>
1998      16,332     134,024    ---      97,929      264,022     12,098    204,818    13,098     48,066     186,543    310,164

1999      13,908     152,455    ---      80,562      249,094     12,242    214,606    16,367     42,665     208,225    236,401

2000      6,454      108,117    ---      62,386      137,706     10,074    127,497    (14,118)   37,453     167,442    174,461

</TABLE>


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>






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, thereto duly authorized.


                                        SYMONS INTERNATIONAL GROUP, INC.


April 17, 2001                           By:     /s/ Douglas H. Symons
                                                 Chief Executive Officer



<PAGE>


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the  following  persons on April 17, 2001, on behalf of
the Registrant in the capacities indicated:

(1) Principal Executive Officer:


/s/ Douglas H. Symons
Chief Executive Officer


(2) Principal Financial Officer:


/s/ Earl R. Fonville
Vice President and Chief Financial Officer,
Principal Accounting Officer


(3) The Board of Directors:


/s/ G. Gordon Symons                                  /s/ Gene Yerant
Chairman of the Board                                     Director


/s/ John K. McKeating                                 /s/ Douglas H. Symons
Director                                                   Director


/s/ Robert C. Whiting                                 /s/ Alan G. Symons
Director                                                  Director


/s/ Larry S. Wechter
Director



<PAGE>