SECURITIES AND EXCHANGE COMMISSION
                   WASHINGTON, D.C. 20549


         FORM 10-Q


[<check-mark>] QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d)
         OF THE SECURITIES EXCHANGE ACT OF 1934

     FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000 or

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


               Commission file number: 0-20882

 STANDARD MANAGEMENT CORPORATION
   (Exact name of registrant as specified in its charter)


Indiana                                                    No. 35-1773567
(State or other jurisdiction             (I.R.S. Employer Identification No.)
of incorporation or organization)

9100 Keystone Crossing, Indianapolis, Indiana46240
(Address of principal executive offices)(Zip Code)

                     (317) 574-6200
  (Registrant's telephone number, including area code)

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
[<check-mark>]  No [  ]

As of July 24, 2000, the Registrant  had  7,785,156 shares of
Common Stock outstanding.

<PAGE>



                     STANDARD MANAGEMENT CORPORATION

                                  INDEX

                                                             PAGE NUMBER

Part I.FINANCIAL INFORMATION:

Item 1.Financial Statements

Consolidated Balance Sheets --
June  30, 2000 (Unaudited) and December 31, 1999 (Audited)           3

Consolidated Statements of Income --
For the Three and Six Months Ended June 30, 2000 and 1999 (Unaudited)4

Consolidated Statements of Shareholders' Equity --
For the Six Months Ended June 30, 2000 and 1999 (Unaudited)          5

Consolidated Statements of Cash Flows --
For the Six Months Ended June 30, 2000 and 1999 (Unaudited)          6

Notes to Consolidated Financial Statements (Unaudited)7 -            8

Item 2.Management's Discussion and Analysis  of  Financial  Condition and
Results of Operations                                                9 - 17

Item 3.Quantitative and Qualitative Disclosures about Market Risk    18

Part II.OTHER INFORMATION:

Item 6.Exhibits and Reports on Form 8-K                              19

SIGNATURES                                                           20




<PAGE>



                     PART I -- FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

            STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

                       CONSOLIDATED BALANCE SHEETS
                         (DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
                                                 June 30    December 31
<S>                                                 <C>        <C>
                                                  2000      1999
                                             (Unaudited)    (Audited)
ASSETS
Investments:
Securities available for sale:
Fixed maturity securities, at fair value (amortized cost:
$679,834 in 2000
and $646,284 in 1999)                        $   638,288  $ 606,907
<ellipsis><ellipsis><ellipsis><ellipsis><ellipsis><ellipsis><ellipsis>
<ellipsis><ellipsis><ellipsis><ellipsis><ellipsis><ellipsis><ellipsis>
<ellipsis><ellipsis><ellipsis><ellipsis><ellipsis><ellipsis><
ellipsis><ellipsis><ellipsis><ellipsis><ellipsis>..
Equity securities, at fair value (cost: $565 in 2000 and
1999)                                                372        378
Mortgage loans on real estate                      6,763      8,131
Policy loans                                      13,907     14,033
Real estate                                        4,681      3,233
Other invested assets                                775        845
Short-term investments                            24,277     14,976
Total investments                                689,063    648,503
Cash                                               1,953      3,659
Accrued investment income                         11,313     11,105
Amounts due and recoverable from reinsurers       46,234     58,230
Deferred policy acquisition costs                 82,477     67,811
Present value of future profits                   30,171     30,688
Goodwill.                                          5,521      5,636
Other assets                                       6,235      5,372
Assets held in separate accounts                 508,473    319,973
Total assets                                 $ 1,381,440 $1,150,977
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Insurance policy liabilities                 $   773,626 $  727,189
Accounts payable and accrued expenses              7,414      9,076
Notes payable                                     31,600     34,500
Deferred federal income taxes                         --        349
Liabilities related to separate accounts         508,473    319,973
Total liabilities                              1,321,113  1,091,087
Series  A convertible redeemable preferred stock,
par value $100 per share;
Authorized 130,000; 65,300 issued and
outstanding in 1999 and 2000                       6,530      6,530
Shareholders' Equity:
Preferred stock, no par value:
Authorized 870,000 shares; none issued and
 outstanding                                          --         --
Common stock and additional paid in capital,
 no par value:
Authorized 20,000,000 shares; issued 9,038,134
 in 2000 and 1999                                 62,438     62,152
Treasury stock, at cost, 1,252,978 shares
 in 2000 and 1999                                 (6,802)    (6,802)
Accumulated other comprehensive income:
Unrealized gain (loss) on securities available
 for sale,net taxes (benefits) of :
 ($8,697) in 2000 and  ($8,196) in 1999          (16,883)   (15,859)
Unrealized gain on other investments, net taxes
of: $8 in 2000 and 1999                                15         15
Foreign currency translation adjustment           (1,808)      (862)
Retained earnings                                 16,837     14,716
  Total shareholders'                             53,797     53,360

Total liabilities and shareholders' equity   $ 1,381,440 $1,150,977
</TABLE>
       See accompanying notes to consolidated financial statements.




<PAGE>



            STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

                    CONSOLIDATED STATEMENTS OF INCOME
       (UNAUDITED, DOLLARS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


                                Three months ended  Six Months Ended
                                       June 30           June 30
                                      2000    1999   2000    1999
Revenues:
Premium income                     $ 4,482 $ 3,119 $ 7,660  $  6,184
Net investment income               10,124  10,380  22,011    20,725
Net realized investment gains
 (losses)                           (1,819)      7  (2,155)       40
Policy income                        2,105   1,885   4,012     3,514
Negative goodwill amortization         --       --      --        --
Separate account fees                1,253   1,084   2,480     2,005
Fee and other income                 1,472   1,168   2,810     2,421
        Total revenues              17,617  17,643   36,818   34,889
Benefits and expenses:
Benefits and claims                  5,470   4,009    9,525    7,254
Interest credited on interest-
 sensitive annuities and other
 financial products                  4,836   5,746  11,169    11,582
Amortization related to
 operations                          3,110   1,808   5,320     3,557
Amortization related to net
 realized investment loss           (1,100)     --  (1,100)       --
Other operating expenses             3,384   3,376   7,247     7,296
Interest expense and
 financing costs                       824     800   1,687     1,681
Total benefits and expenses         16,524  15,739  33,848    31,370

Income before federal income taxes and
 preferred stock dividends           1,093   1,904   2,970     3,519
Federal income tax expense              85     502     597       821
Net income                           1,008   1,402   2,373     2,698
Preferred stock dividends             (127)   (127)   (253)     (253)
Earnings available to common
 shareholders                       $  881  $1,275  $2,120    $2,445
Earnings per share - basic:
Net income                          $  .13  $  .19  $  .30    $  .35
Preferred stock dividends             (.02)   (.02)   (.03)     (.03)
Earnings available to common
 shareholders                       $  .11  $  .17  $  .27    $  .32
Earnings per share - diluted:
 Net income                         $  .13  $  .17  $  .30    $  .33
 Preferred stock dividends            (.02)   (.01)   (.03)     (.02)
 Earnings available to common
 shareholders                       $  .11  $  .16  $  .27    $  .31

       See accompanying notes to consolidated financial statements.




<PAGE>



            STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

             CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                    (UNAUDITED, DOLLARS IN THOUSANDS)
                                      Common
                                      stock and        Accumulated
                                      additional       other
                                      paid-in Treasury comprehensive retained
                               Total  capital  stock   income        earnings
Balance at January 1, 1999   $66,042  $60,586 $(6,220)  $1,687       $9,989
Comprehensive income:
Net income                     2,699                                  2,699
Other comprehensive income:
Change in unrealized gain
 (loss) on securities,net
 taxes (benefits) of ($4,283) (8,091)                   (8,091)
Change in foreign currency,
 net taxes of $0                (737)                     (737)
Other comprehensive income    (8,828)
Comprehensive income          (6,129)

Issuance of common stock
 warrants                        674      674
Treasury stock acquired         (548)            (548)
Reissuance of treasury stock
 in connection with exercise
 of stock options                (24)                                   (24)
Preferred stock dividends       (253)                                  (253)
Balance at June 30, 1999     $59,762  $61,260 $(6,768)  $(7,141)    $12,411

Balance at January 1, 2000   $53,360  $62,152 $(6,802) $(16,706)    $14,716

Comprehensive income:
Net income                     2,373                                  2,373
Other comprehensive income:
Change in unrealized gain
 (loss) on securities, net
 taxes (benefits) of ($501)   (1,024)                    (1,024)
Change in foreign currency,
 net taxes of $0                (945)                      (945)
Other comprehensive income    (1,969)

Comprehensive income             404
Issuance of common stock
 warrants                        286      286
Preferred stock dividends       (253)                                  (253)
Balance at June 30, 2000     $53,797   62,438  $(6,802)  $(18,675)  $16,836

         See accompanying notes to consolidated financial statements.




<PAGE>



             STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

                  CONSOLIDATED STATEMENTS OF CASH FLOWS
                    (UNAUDITED, DOLLARS IN THOUSANDS)



                                                      six months Ended
                                                           June 30
                                                        2000      1999

OPERATING ACTIVITIES
Net income                                          $  2,373  $  2,699
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization of deferred policy acquisition costs      2,632     1,751
Policy Acquistion costs deferred                     (17,586)  (13,215)
Deferred federal income taxes                           (211)    1,387
Depreciation and amortization                          1,940     1,991
Insurance policy liabilities                          10,083     8,717
Net realized investment gains                          2,155       (40)
Accrued investment income                               (209)     (502)
Other                                                    473      (633)
Net cash provided by operating activities              1,650     2,155

INVESTING ACTIVITIES
Fixed maturity securities available for sale:
   Purchases                                         (79,462) (126,908)
   Sales                                              33,566    78,289
   Maturities, calls and redemptions                   9,853    11,355
Short-term investments, net                           (9,723)   (9,550)
Other investments, net                                (3,073)     (922)
Net cash used by investing activities                (48,839)  (47,736)

FINANCING ACTIVITIES
Issuance of common stock, net                            286       673
Borrowings                                                --       300
Repayments on long term debt                          (2,900)     (200)
Premiums received on interest-sensitive annuities
 and other financial products credited to
 policyholder account balances, net of premiums
 ceded                                                91,846    84,574
Return of policyholder account balances on
 interest-sensitive annuities and other
 financial products                                  (43,496)  (45,007)
Purchase of common stock for treasury                     --      (548)
Dividends on preferred stock                            (253)     (253)
Net cash provided by financing activities             45,483    39,539
Net decrease in cash                                  (1,706)   (6,042)
Cash at beginning of period                            3,659    13,591
Cash at end of period                                 $1,953     7,549

       See accompanying notes to consolidated financial statements.




<PAGE>

            STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)




            STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

         NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)




NOTE 1 -- BASIS OF PRESENTATION

The  accompanying unaudited consolidated financial statements  have  been
prepared  in  accordance  with  generally  accepted accounting principles
("GAAP") for interim financial information and  with  the instructions to
Form  10-Q and Article 10 of Regulation S-X.  Accordingly,  they  do  not
include  all  of  the  information  and  footnotes  required  by GAAP for
complete financial statements.  The results of operations for the interim
periods  shown  in  this  report  are  not necessarily indicative of  the
results that may be expected for the fiscal  year.   This is particularly
true in the life insurance industry, where mortality results  in  interim
periods  can  vary  substantially from such results over a longer period.
In  management's  opinion,  the  information  contained  in  this  report
reflects all adjustments,  of  a  normal  recurring  nature, necessary to
fairly  present  the  results  of  operations  for  the interim  periods.
Certain amounts from prior periods have been reclassified  to  conform to
the  2000  presentation.   These  reclassifications  have  no  effect  on
previously reported shareholders' equity or net income during the periods
presented.

The  nature  of the insurance business of Standard Management Corporation
and its consolidated  subsidiaries  (the  "Company"  or  "SMC")  requires
management  to  make  estimates  and  assumptions that affect the amounts
reported in the consolidated financial statements and accompanying notes.
For example, the Company uses significant  estimates  and  assumptions in
calculating  deferred  policy  acquistion costs ("DAC"), present value of
future profits ("PVP"), goodwill, future  policy  benefits  and  deferred
federal  income  taxes.  If future experience   differs   materially from
these estimates and assumptions, the Company's financial statements could
be affected.

For  further information, refer to the consolidated financial  statements
and related  footnotes included in the Annual Report on Form 10-K for the
year ended December 31, 1999.


NOTE 2 -- NOTES PAYABLE

Notes payable of the Company are as follows (in thousands):

                                  Interest     June 30   December 31
                                    Rate         2000        1999

Borrowings under revolving credit
 agreements                       10.26%{(1)}   $21,600      $24,500
Senior subordinated convertible
 notes                            10.00%         10,000       10,000
                                                $31,600      $34,500

Current weighted average rate at June 30, 2000.

NOTE 3 -- NET UNREALIZED GAIN (LOSS) ON SECURITIES AVAILABLE FOR SALE

The components of the balance sheet caption "Unrealized gain (loss) on
securities available for sale" in shareholders' equity are summarized as
follows (in thousands):
                                                June 30  December 31
                                                  2000      1999
Fair value of securities available for
sale                                       $   638,660   $ 607,285
Amortized cost of securities available
for sale                                       680,399     646,849
Gross unrealized gain (loss) on securities
available for sale                             (41,739)    (39,564)
Adjustments for:
Deferred policy acquisition cost                10,239      10,527
Present value of future profits                  5,920       4,982
Deferred federal income tax liability            8,697       8,196

Net unrealized gain (loss) on securities
 available for sale                        $   (16,883)   ($15,859)


NOTE 4-- EARNINGS PER SHARE


A reconciliation of income and shares used to calculate basic and diluted
earnings per share is as follows (dollars in thousands):

                                     Three Months Ended   Six Months Ended
                                          June 30             June 30
                                       2000       1999      2000      1999
INCOME:
Net income                          $ 1,008     $ 1,402   $ 2,373    $ 2,699
Preferred stock dividends              (127)       (127)     (253)      (253)


Income available to common
 shareholders for basic earnings
 per share                              881       1,275     2,120      2,446

Effect of dilutive securities:
 Interest on subordinated
 convertible debt                        --         250        --        500
Income available to common
 shareholders for diluted earnings
 per share                              881       1,525     2,120      2,946

SHARES:
Weighted average shares outstanding
 for basic earnings per share     7,785,156   7,556,437 7,785,156  7,576,421
Effect of dilutive securities:
Stock options                         1,932     153,668    12,163    160,861
Stock warrants                           --     121,518       985    126,673
Subordinated convertible debt            --   1,740,038        --  1,740,038
Dilutive potential common shares      1,932   2,015,224    13,148  2,027,572
Weighted average shares outstanding
 for diluted earnings per share   7,787,088   9,571,661  7,798,304 9,603,993





<PAGE>


         STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

                      __________________



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

GENERAL

The  following  discussion  highlights the material factors affecting the
results of operations and the significant changes in balance sheet items.
Notes to the consolidated financial  statements  included  in this report
and  the notes to the consolidated financial statements included  in  the
1999  Form  10-K  should  be  read  in  conjunction  with  both  sets  of
consolidated financial statements.

FIRST SIX MONTHS OF 2000 COMPARED WITH THE FIRST SIX MONTHS OF 1999:

The following  tables  and narratives summarize the results of operations
by operating segment:
                                     Three Months Ended   Six Months Ended
                                           June 30             June 30
                                         2000    1999        2000    1999
                                             (Dollars in thousands)
Operating income before income taxes:
Domestic operations                  $ 1,349   $ 1,529    $ 3,117  $ 2,840
International operations                 463       368        908      639
Consolidated operating income
 before income taxes                   1,812     1,897      4,025    3,479
Applicable income taxes related
 to operating income                     289       500        874      807
Consolidated operating income
 after taxes                           1,523     1,397      3,151    2,672

Consolidated realized investment
 gains (losses) before income taxes     (718)        7     (1,055)      40

Applicable income taxes (benefits)
 related to realized investment
 gains (losses)                          203         2        277       14
Consolidated realized investment
 gains (losses) after taxes (benefits)  (515)        5       (778)      26
Net income                           $ 1,008   $ 1,402    $ 2,373  $ 2,698

CONSOLIDATED RESULTS AND ANALYSIS

SMC's six month 2000 operating earnings were   $3.2 million, or 40 cents
per diluted share, up 18% and 21%, respectively, over the same six month
period of 1999.  Operating earnings include   i)  increased  net  spread
revenue from larger in force business from the sales  of recent periods,
ii) higher separate account fees due to an increase in separate  account
assets for  the  period  and  iii) a lower marginal  tax rate due to the
utiliztion of net  operating  loss carry forwards.  These increases were
somewhat offset by unfavorable mortality.




<PAGE>

         STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

                      __________________




DOMESTIC OPERATIONS:


                                 Three Months Ended   Six Months Ended
                                      June 30               June 30

                                    2000      1999      2000     1999
                                          (Dollars in thousands)

Premiums and deposits collected:
Traditional life                   $ 4,477  $ 3,102   $ 7,643  $ 6,160
Flexible premium deferred
 annuities ("FPDA's")               24,564   30,292    45,308   52,091
Equity-indexed annuities            20,777   17,649    37,927   28,845
Other annuities and deposits         5,380    1,437     7,979    2,868
Universal and interest-sensitive
 life                                  319      284       641      891
Subtotal - interest-sensitive and
 other financial products           51,040   49,662    91,855   84,695

Total premiums and deposits
 collected                        $ 55,517 $ 52,764  $ 99,498 $ 90,855

Premium income                    $  4,477 $  3,102  $  7,643 $  6,160
Policy income                        2,105    1,885     4,012    3,514
Total policy related income          6,582    4,987    11,655    9,674
Net investment income               10,005   10,248    21,766   20,461
Fee and other income                 1,472    1,168     2,810    2,421
Total revenues (a)                  18,059   16,403    36,231   32,556

Benefits and claims                  5,496    3,972     9,577    7,275
Interest credited on interest-
sensitive annuities and other
financial products                   4,836    5,746    11,169   11,582
Amortizatin related to operations    2,774    1,571     4,607    3,072
Other operating expenses             2,780    2,785     6,074    6,106
Interest expense and financing costs   824      800     1,687    1,681
Total benefits and expenses         16,710   14,874    33,114   29,716
Operating income before income taxes 1,349    1,529     3,117    2,840
Net realized investment gains
 (losses)                             (718)       7    (1,055)      40

Income before income taxes             631    1,536     2,062    2,880

(a)Revenues exclude net realized investment gains (losses)




<PAGE>

         STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

                      __________________



GENERAL: This segment consists of revenues earned and expenses incurred
from United States operations which includes deposits from annuity
products (primarily FPDA's), equity-indexed products, universal life
products and traditional life products.  The profitability for this
segment is primarily a function of its investment spread earned (i.e. the
excess of investment earnings over interest credited on annuity and
universal life deposits), persistency of the in-force business, mortality
experience and operating expenses.  Domestic operations include SMC and
its U.S. consolidated subsidiaries.

PREMIUM INCOME consists of premiums earned from i) traditional life
insurance and ii) annuity business that incorporates significant
mortality features.

Life premiums were up $1.5  million  or  24%  in  the first six months of
2000, to $7.6 million which is primarily a result of  higher  first  year
and renewal traditional life premiums.

NET   PREMIUM  DEPOSITS  consist  of  FPDA's,  equity-indexed  annuities,
interest-sensitive  annuities  and  other  financial products that do not
incorporate  significant  mortality  features.  For  GAAP  these  premium
deposits  are  not  shown  as premium income  in  the  income  statement.
Furthermore, a change in premium  deposits  in  a  single period does not
directly cause operating income to change, although  continued  increases
or  decreases  in premiums may affect the growth rate of total assets  on
which investment spreads are earned.

In the first six  months  of  2000  net  premium  deposits increased $7.2
million or 8%, to $91.9 million.  The increase relates  to i) an increase
in the agency base achieved through the recruitment of high volume agents
and  larger  managing  general  agencies, and ii) continued expansion  of
geographical  concentration.   Four   new  equity-indexed  products  were
introduced in the 2000 period.  Equity-indexed  products  contributed 41%
of net premium deposits in the first six months of 2000 compared  to  34%
in the first six months of 1999.

NET  INVESTMENT  INCOME includes interest earned on invested assets which
fluctuates with changes  in  i)  the  amount  of  average invested assets
supporting  insurance liabilities and ii) the yield  earned  on  invested
assets.

Net investment  income  in  the  first  six months of 2000 increased $1.3
million or 6%, to $21.8 million.  Average  invested  assets at book value
increased  by $50.0 million or 16% compared to the first  six  months  of
1999 primarily  due  to the growth in insurance liabilities from the sale
of annuity premium deposits.   This  increase  was somewhat offset by the
$2.4 million impact  from  equity-indexed products.   See  discussion  on
"Interest credited on interest  sensitive  annuities  and other financial
products".

The  net investment  yields  earned on average invested assets, excluding
the  impact  of equity-indexed assets, were 7.15% and 7.08% for the first
six months of 2000 and 1999, respectively.

POLICY INCOME represents i) mortality charges and ii) administrative fees
earned on universal life products and surrender income earned as a result
of terminated life and annuity policies.

Policy  income increased $.5 million or 14%, to $4.0 million in the first
six months  2000.   This  increase  primarily relates to surrender income
received as a result of lowering crediting rates on certain FPDA products.

FEE  AND  OTHER  INCOME  consists  of recurring  fee  income  related  to
servicing blocks of business for other  insurance  companies,  experience
refunds and commission income.

In the first six months of 2000 fee income increased $.4 million  or 16%,
to  $2.8  million.   This increase relates to commission income from  the
Savers Marketing  administrative  agreement  and  the  marketing  efforts
associated with that business.





<PAGE>

         STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

                      __________________



BENEFITS  AND  CLAIMS include i) paid life insurance claims, ii) benefits
from annuity policies  that  incorporate  significant mortality features,
and  iii) changes in future policy reserves.   Throughout  the  Company's
history,  it  has experienced periods of higher and lower benefit claims.
Such volatility  is not uncommon in the life insurance industry and, over
extended periods of  time,  periods  of  higher  claim experience tend to
offset  periods  of  lower claims experience.  Changes  in  benefits  and
claims should be analyzed along with changes in premium income.

Benefits and claims in  the  first  six  months  of  2000  increased $2.3
million, to $9.6 million and includes higher claim experience and changes
in future policy reserves for higher traditional life premiums.

INTEREST  CREDITED  ON  INTEREST-SENSITIVE ANNUITIES AND OTHER  FINANCIAL
PRODUCTS  represents interest  credited  to  the  FPDA's,  equity-indexed
annuities, interest sensitive and other financial products.

In the first six months of 2000 interest credited declined by $.4 million
or  4%,  to $11.2  million due to  a $.6 million impact of equity-indexed
products.  This  expense  was  also  impacted  by  interest  credited  on
insurance liabilities from sales in recent periods.

The weighted average credited rates, excluding the impact of equity-indexed
liabilities, for the first six months of 2000 and 1999 were 4.93% and 4.92%,
respectively.

AMORTIZATION includes i)  amortization  related  to  the present  value  of
polices  purchased from  acquired  insurance businesss,  ii)   amortization
of deferred policy acquisition costs and  iii)amortization of  goodwill and
organizational costs.

Amortization in the  first  six  months of 2000 increased  $1.5  million  or
50%,  to  $4.6 million.  The increased amortization was due to i) .7 million
of amortization in connection with production of new business, ii) increased
surrender income that resulted  in  approximately  $.4 million of additional
amortization, and iii) $.3 million of amortization related to purchased
insurance business.

NET REALIZED INVESTMENT GAINS (LOSSES) fluctuate  from  period  to period and
generally  arise  when  securities  are  sold in   response to changes in the
investment environment which provides opportunities to maximize return on the
investment  portfolio  without  adversely  affecting the quality and  overall
yield.  Net realized investment gains (losses) can  affect the  timing of the
amortization of deferred acquistion costs and the amortization of the present
value of future profits.

Net  realized investment  losses  for  the first six months of 2000 were $1.1
million  which  is  reduced  by  $1.1 million of  deferred  acquisition  cost
amortization.  Realized losses primarily  resulted from the default status of
debt securities issued by Laidlaw, Inc.







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         STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

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INTERNATIONAL OPERATIONS:

                               Three Months Ended  Six Months Ended
                                     June 30           June 30
                                 2000      1999      2000     1999
                                       (Dollars in thousands)

Premiums and deposits collected:
Traditional life              $     5    $   17    $    17  $    24
Separate account deposits      65,267     9,152     92,233   25,421
Total premiums and deposits
 collected                     65,272     9,169     92,250   25,445

Premium income                      5        17         17       24
Net investment income             119       132        245      264
Separate account fees           1,253     1,084      2,480    2,005
Total revenues                  1,377     1,233      2,742    2,293

Benefits and claims               (26)       37        (52)     (21)
Amortization related to
 operations                       336       237        713      485
Other operating expenses          604       591      1,173    1,190

Total benefits and expenses       914       865      1,834    1,654

Operating income before
 income taxes                     463       368        908      639

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         STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

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GENERAL: This segment consists of revenues earned and expenses incurred
from abroad, primarily Europe, and includes fees collected on deposits
from separate account (unit-linked) products.  The profitability of this
segment primarily depends on the amount of separate account assets under
management, the management fee charged on those assets and operating
expenses.  International operations include Standard Management
International, S.A. and its non-U.S.consolidated subsidiaries ("SMI").

NET INVESTMENT INCOME fluctuates with changes in i) the amount of average
invested assets and ii) the yield earned on invested assets.

Net investment income was $.3 million for each  of  the six-month periods
of  2000  and  1999  on  average  invested assets of approximately  $11.0
million.

The net investment yields earned on  average  invested  assets were 4.63%
and 4.85% for the first six months of 2000 and 1999, respectively.

FEES FROM SEPARATE ACCOUNTS represents the net fees earned on the various
unit-linked  products  sold  and  fluctuate in relationship with  account
assets and the return earned on such  assets. Fees include initial set up
fees  on  certain products and annual recurring  fees  on  virtually  all
products.

Fees from separate  accounts  for  the first six months of 2000 increased
78% to $2.5 million.   This is due to  weighted  average  assets  held in
separate  accounts  increasing  by $192.6 million, or 92% for the period.
Actual  separate account assets increased  $290.4  million  or  133%,  to
$508.5 million  for the twelve months ending June 30, 2000.  Net deposits
from sales of unit-linked  products  by  SMI  increased  $66.8 million or
263%, to $92.2 million.

FOREIGN  CURRENCY  TRANSLATION   International  operations  are conducted
using  foreign  currencies,  primarily  the  Luxembourg Franc, which  are
subsequently  converted  into  U.S.  dollars  using  a  conversion  rate.
Although  the  net  impact  of  this  translation is  deemed  immaterial,
individual income statement components  from  period  to  period  may  be
impacted from the strengthening and destrengthening of the U.S. dollar.




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         STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

                      __________________



LIQUIDITY AND CAPITAL RESOURCES

LIQUIDITY OF STANDARD MANAGEMENT (PARENT COMPANY)

Standard  Management  is a life insurance holding company whose liquidity
requirements are met through  payments  received  from  its subsidiaries.
These payments include i) interest on surplus debenture,  ii)  dividends,
iii)  management  fees  and  iv)  rental  income,  which  are  subject to
restrictions  under  applicable  insurance  laws  and  are  used  to  pay
operating  expenses  and  meet  debt service obligations.  These internal
sources  of liquidity have been supplemented  in  the  past  by  external
sources such as revolving credit agreements and long term debt and equity
financing in the capital markets.

GENERAL:   On a consolidated GAAP basis SMC reported net cash provided by
operations of  $1.7  million  for the first six months of 2000.  Although
deposits  received  on  SMC's  interest-sensitive   annuities  and  other
financial  products are not included in cash flow from  operations  under
GAAP,  such funds  are  available  for  use  by  SMC.  Cash  provided  by
operations plus net deposits received, less net account balances returned
to policyholders  on  interest  sensitive  annuities  and other financial
products, resulted in positive cash flow of $50.0 million  for  the first
six  months of 2000.  Cash generated on a consolidated basis is available
to Standard  Management  only  to  the extent that it is generated at the
Standard Management level or is available  through  dividends,  interest,
management fees or other payments from subsidiaries.

At July 24, 2000, Standard Management  had "parent company only" cash and
short-term investments of  $.5 million.  These  funds  are  available  to
Standard Management for general corporate purposes. Standard Management's
annual  "parent  company only" operating expenses (not including interest
expense)  were  $4.8   million  and  $3.1  million  for  1999  and  1998,
respectively.

Standard Management anticipates  the  available  cash  from  its existing
working capital, plus anticipated 2000 dividends, management fees, rental
income and interest payments on its surplus debentures receivable will be
more  than  adequate  to meet its anticipated "parent company only"  cash
requirements for 2000.

SURPLUS DEBENTURE INTEREST.  From  the  funds  borrowed  by  Standard
Management   pursuant   to   the  revolving  credit  agreements  ("credit
agreement")  and  the  senior subordinated  convertible  note  agreements
("debt agreement') described  in  Note  3,  $27.0  million  was loaned to
Standard   Life   pursuant  to  unsecured  surplus  debenture  agreements
("surplus debentures")  which  requires  Standard  Life to make quarterly
interest  payments  to Standard Management at a variable  corporate  base
rate plus 2% per annum, and annual principal payments of $1.0 million per
year  beginning  in 2007  and  concluding  in  2033.   The  interest  and
principal payments  are  subject  to  quarterly  approval  by the Indiana
Department of Insurance, depending upon satisfaction of certain financial
tests  relating  to  levels  of  Standard Life's capital and surplus  and
general  approval  of  the Commissioner  of  the  Indiana  Department  of
Insurance.  Standard Management  currently  anticipates  these  quarterly
approvals  will  be granted.  Assuming the approvals are granted and  the
June 30, 2000 interest  rate of 11.5% continues, Standard Management will
receive interest income of  $3  million  from  the  surplus debentures in
2000.

DIVIDENDS.  Laws applicable to insurance companies limit  dividends  from
Standard  Life to Standard Management.  As an Indiana domiciled insurance
company, Standard  Life  may  pay  a  dividend  or  distribution from its
surplus  profits, without the prior approval of the Commissioner  of  the
Indiana  Department  of  Insurance,  if  the  dividend  or  distribution,
together with  all  other  dividends  and  distributions  paid within the
preceding twelve months, does not exceed the greater of (i) net gain from
operations or (ii) 10% of surplus, in each case as shown in its preceding
annual  statutory financial statements.  Standard Life paid a dividend of
$2.0 million in the first quarter 2000 and has  the  ability  to  pay  an
additional $2.1 million in 2000 if necessary.

MANAGEMENT  FEES.   Pursuant to a management services agreement, Standard
Life paid Standard Management  $2.4  million  for the first six months of
2000  for  certain  management  services  related to  the  production  of
business,  investment  of  assets  and  evaluation  of  acquisitions.  In
addition,  Dixie  National  Life Insurance Company  ("Dixie  Life')  paid
Standard Life $.6 million in  the  first  six  months of 2000 for certain
management services provided.  Both of these agreements provide that they
may be modified or terminated by the Indiana and  Mississippi Departments
of Insurance in the event of financial hardship of Standard Life or Dixie
Life.




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         STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

                      __________________



EQUIPMENT RENTAL FEES.  Standard Management charged  its subsidiaries $.6
million in the first six months of 2000 for the use of equipment owned by
Standard Management.

LIQUIDITY OF INSURANCE OPERATIONS

U.S.  INSURANCE  OPERATIONS.   The  principal  liquidity requirements  of
Standard Life are its contractual obligations to policyholders, dividend,
rent,  management  fee  and  surplus  debenture  payments   to   Standard
Management  and  other  operating expenses. The primary source of funding
for  these obligations has  been  cash  flow  from  premium  income,  net
investment  income,  investment sales and maturities and sales of FPDA's.
These  sources  of  liquidity  for  Standard  Life  significantly  exceed
scheduled  uses.  Liquidity  is  also  affected  by  unscheduled  benefit
payments including  death benefits and policy withdrawals and surrenders.
The amount of withdrawals  and  surrenders  is  affected  by a variety of
factors  such  as  renewal interest crediting rates, interest  rates  for
competing products,  general  economic  conditions,  Standard Life's A.M.
Best  rating (currently rated "B+") and events in the insurance  industry
that affect policyholders' confidence.

The policies  and  annuities  issued  by Standard Life contain provisions
that allow policyholders to withdraw or  surrender  their  policies under
defined  circumstances.  These  policies and annuities generally  contain
provisions that apply penalties or  otherwise  restrict  the  ability  of
policyholders  to  make  such  withdrawals  or  surrenders. Standard Life
closely monitors the surrender and policy loan activity  of its insurance
products  and  manages  the  composition  of  its  investment portfolios,
including liquidity, in light of such activity.

Changes in interest rates may affect the incidence of  policy  surrenders
and  other withdrawals. In addition to the potential effect on liquidity,
unanticipated  withdrawals  in a changing interest rate environment could
adversely affect earnings if  SMC  were  required  to sell investments at
reduced  values  to  meet liquidity demands. SMC manages  the  asset  and
liability portfolios in  order to minimize the adverse earnings effect of
changing market interest rates.  SMC  seeks  assets  that  have  duration
characteristics  similar  to the liabilities that they support. SMC  also
prepares cash flow projections and performs cash flow tests under various
market interest rate scenarios  to  assist  in evaluating liquidity needs
and  adequacy.  SMC's  U.S.  insurance  subsidiaries   currently   expect
available liquidity sources and future cash flows to be adequate to  meet
the demand for funds.

Statutory  surplus is computed according to rules prescribed by the NAIC,
as modified by the Indiana Department of Insurance, or the state in which
the insurance  subsidiaries  do  business. Statutory accounting rules are
different  from GAAP and are intended  to  reflect  a  more  conservative
perspective. With respect to new business, statutory accounting practices
require that:  (i)  acquisition  costs  (primarily commissions and policy
issue costs) and (ii) reserves for future  guaranteed  principal payments
and interest in excess of statutory rates, be expensed in  the  year  the
new  business  is  written.  These  items  cause a reduction in statutory
surplus  ("surplus  strain")  in  the  year written  for  many  insurance
products. SMC designs its products to minimize  such  first-year  losses,
but  certain  products  continue  to  cause  a statutory loss in the year
written. For each product, SMC controls the amount  of  net  new premiums
written  to  manage  the  effect  of such surplus strain. SMC's long-term
growth goals contemplate continued growth in its insurance businesses. To
achieve these growth goals, SMC's U.S.  insurance  subsidiaries will need
to increase statutory surplus. Standard Management may  secure additional
statutory  surplus  through various sources such as internally  generated
statutory earnings, infusions with funds generated through debt or equity
offerings or mergers  with  other life insurance companies. If additional
capital is not available from  one or more of these sources, SMC believes
that it could reduce surplus strain  through  the  use  of reinsurance or
through reduced writing of new business.

Management believes that the operational cash flow of Standard  Life will
be sufficient to meet its anticipated needs for 2000. As the life insurance
and  annuity  business produced  by Standard Life increases, Standard Life
expects to continue to satisfy statutory capital and surplus requirements
through statutory profits, the continued reinsurance of a portion of its
new  business  and additional capital contributions by  Standard Management.
If the needrises for cash that is not readily available, additional liquidity
could be obtained from the sale of invested assets.

Effective  January 1, 1999 the Company decided  to  no  longer  sell  new
business through  Dixie  Life.   This  decision is not expected to have a
material effect on operations or financial condition of the Company.





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         STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

                      __________________




INTERNATIONAL OPERATIONS.  SMI dividends  are  limited to its accumulated
earnings  without  regulatory approval and no dividends  are  anticipated
from these companies in 2000.

IMPACT OF YEAR 2000

The Company updated its main operating computer systems in 1995 with Year
2000  ready  systems.    Since   that  time  the  Company  has  completed
modifications or conversions of other  portions of its software, hardware
and imbedded chip technology so that its  computer  systems will function
properly  with  respect  to  dates in the year 2000 and thereafter.   The
Company believes that with such  modifications  and conversions, the Year
2000  issue  will  not  pose  significant operational  problems  for  its
computer systems.

FORWARD-LOOKING STATEMENTS

All statements, trend analyses,  and  other information contained in this
quarterly report on Form 10-Q or any document  incorporated  by reference
herein relative to markets for the Company's products and trends  in  the
Company's  operations  or  financial results, as well as other statements
including words such as "anticipate,"   "believe,"   "plan,"  "estimate,"
"expect,"  "intend,"  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, but are not limited to:   (i)  general
economic conditions and other factors, including prevailing interest rate
levels and stock  market performance, which may affect the ability of the
Company  to  sell   its  products, the  market  value  of  the  Company's
investments  and  the  lapse rate  and  profitability  of  the  Company's
policies;   (ii) the Company's ability to  achieve  anticipated levels of
operational  efficiencies   at  recently  acquired  companies, as well as
through  other   cost-saving initiatives; (iii) customer response to  new
products, distribution channels and marketing initiatives; (iv)mortality,
morbidity and  other  factors which may affect  the  profitability of the
Company's insurance products; (v) changes in the Federal income tax  laws
and  regulation  which may affect  the  relative  tax  advantages of some
of the Company's products;(vi) increasing competition in  the sale of the
Company's products; (vii) regulatory changes or actions, including  those
relating to regulation of  financial  services  affecting  bank sales and
underwriting    of  insurance  products,  regulation   of  the  sale  and
underwriting and pricing of insurance products; (viii)  the  availability
and   terms  of  future  acquisitions;  and  (ix) the  risk  factors   or
uncertainties listed  from  time  to time in any document incorporated by
by reference herein.






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         STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

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ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company's market risks and the way they are managed are summarized in
management's discussion and analysis of financial  condition  and results
of operations as of December 31, 1999, included in the Company's December
31, 1999 Form 10-K.  There have been no material changes in 2000 to these
risks or the management of such risks.

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                  PART II.  OTHER INFORMATION



ITEM 6.  EXHIBITS AND REPORTS ON FORM 8-K.


Exhibits

Exhibit 27 Financial  Data  Schedule,  which  is submitted electronically
pursuant to Regulation S-K to the Securities and Exchange Commission (the
"Commission") for information only and not filed.


(b) Reports ON FORM 8-K

No  reports  on  Form  8-K were filed with the Commission  in  the  second
quarter of 2000.




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         STANDARD MANAGEMENT CORPORATION AND SUBSIDIARIES

                      __________________



                               SIGNATURES

Pursuant to the requirements  of the Securities Exchange Act of 1934, the
Registrant has duly caused this  report to be signed on its behalf by the
undersigned thereunto duly authorized.


Dated:   August 1, 2000


STANDARD MANAGEMENT CORPORATION
(Registrant)

By:RONALD D. HUNTER
Ronald D. Hunter
Chairman of the Board, President and
Chief Executive Officer
(Principal Executive Officer)

By:GERALD R. HOCHGESANG
Gerald R. Hochgesang
Senior Vice President and Treasurer
(Chief Accounting Officer)




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