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Goran Capital Hires Two Senior-Level Individuals

22 January 1999

Additional Senior Executives, Chief Actuary and Auto Insurance Product Development Vice President Join Goran Capital Group

  Company Completes Expansion of Non-Standard Auto Insurance Management Team

    INDIANAPOLIS, Jan. 22 --  Goran Capital Inc.
, a leading provider of crop and nonstandard automobile
insurance, announced on January 19 that it continued to strengthen its
marketing and operational capabilities by hiring two senior-level individuals.
Goran hired David N. Hafling, 51, F.C.A.S., as chief actuary to strengthen the
company's corporate financial and reserving capabilities.  Hafling brings more
than 26 years of experience as an actuary in personal and commercial
automobile insurance.
    Goran has also hired Gregory Reichert, 48, C.P.C.U., as vice president of
product development for its non-standard auto insurance business.  He will
head the company's product team, which includes two recently hired senior
product managers.  Reichert was most recently with Guidant Insurance Group as
vice president, product management, where he developed and priced non-standard
auto insurance products.  He has more than 20 years of experience with the
insurance industry.
    "Hiring Gregory Reichert as vice president of product development
completes our immediate search for a dynamic management team to drive growth
and expansion into new non-standard auto insurance markets during 1999," said
Alan G. Symons, CEO.  "We recently hired Charles Narramore and William
Ballard, both 20-plus year veterans of the insurance industry, as senior
product managers."
    Symons emphasized that these recent hirings reflect the company's
commitment to accelerated growth in 1999 by expanding presence in existing
markets, entering new states and markets, and developing new and enhanced
products to win greater market share.  In December 1998, the company hired
Brad Haskell as director of regulatory affairs.  Haskell, a veteran state
insurance regulator, is charged with helping the company rapidly obtain
regulatory approval to enter new markets, and to expand in existing markets.
    Chief Actuary David Hafling served for more than 26 years with American
States Insurance Companies in various actuarial and management roles.  Most
recently he was senior vice president-actuary.  A graduate of Wabash College,
Crawfordsville, Ind., Hafling is a Fellow of the Casualty Actuarial Society
(CAS) and a member of the American Academy of Actuaries.  He is currently a
member of the CAS board of directors, and chairman of two board committees.
He has been actively involved with a number of other actuarial associations.
    "David's credentials are ideal for this senior level position as chief
actuary," said Symons.  "He is familiar with every aspect of insurance, from
product management to claims processing, and he will measure the actuarial
impact of every decision.  In recent years, we have been disappointed with our
loss ratio, and particularly the instability of our loss reserves, and we're
expecting David to rapidly improve this situation.
    "Our new chief actuary will have access to the latest technology,
delivered by a new centralized management information system," continued
Symons.  "The new technology will make it possible to improve the accuracy of
loss reserving by migrating reserve analysis and adjustment to a monthly
process from the current quarterly process.  We anticipate that this
technology, combined with the depth and experience of our actuarial team, will
help stabilize fluctuations in loss reserving.  We are also counting on
David's and the team's rate-making experience to develop more profitable
pricing formulae for our auto insurance products."
    Goran Capital Inc. is the tenth largest
nonstandard automobile insurer in the United States.  Nonstandard auto
insurance is sold through independent insurance agents.  It generally carries
higher premiums, and low limits of liabilities.  The company utilizes
proprietary systems and procedures to achieve operating efficiencies.  Goran's
subsidiaries Pafco General Insurance Company and Superior Insurance Company
write nonstandard auto insurance in 22 states.  Goran's IGF Insurance Company
is the fourth largest insurer of crops in the US.  IGF Insurance Company
writes business in 39 states plus Canada.  Visit the company's Web site at
http://www.sigins.com.
    All statements, trend analyses, and other information contained in this
release and elsewhere (such as in other filings by the company or its
affiliates with the Securities and Exchange Commission, press releases,
presentations by the company or its management or oral statements) 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" 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:  general economic
conditions, including prevailing interest rate levels and stock market
performance, and factors affecting the Company's nonstandard automobile
operations such as premium volume, levels of operating expenses as compared to
premium volume, ultimate development of loss reserves and full and successful
implementation of the company's new management information system.