Symons International Group, Inc. Acquisition Announcement.

INDIANAPOLIS--(BUSINESS WIRE)--July 23, 1997--Symons International Group, Inc. (NASDAQ/NM:SIGC) a leading provider of crop and nonstandard automobile insurance, today announces the agreement to acquire 48% interest in its nonstandard automobile insurance business currently held by investment funds affiliated with Goldman, Sachs & Co.

Symons International Group, Inc. ("the Company") today announces that it has reached agreement with GS Capital Partners II, L.P. and certain other investment funds affiliated with Goldman, Sachs & Co. ("GSCP"), to acquire the 48% interest in the Company's nonstandard automobile insurance business currently owned by GSCP for $61 million in an all cash transaction.

"We have had a rewarding relationship with Goldman Sachs and Company and look forward to working with Goldman Sachs in the future," said Alan G. Symons, the Company's CEO.

The acquisition is to be financed by a $130 million offering of trust preferred securities ("Preferred Securities") by SIG Capital Trust I. The Preferred Securities will be offered pursuant to Rule 144A of the Securities Act of 1933 and will enable SIG Capital Trust I to invest $130 million in senior subordinated notes ("Subnotes") of the Company. Both the Preferred Securities and the Subnotes will carry a 30 year term. The closing of the issue of Preferred Securities is expected to occur in early to mid-August.

In addition to financing the $61 million purchase of GSCP's share of the nonstandard automobile division, the proceeds from the issuance of the Subnotes will be used to (i) retire the approximately $45 million of term debt incurred in March, 1996, (ii) provide additional capital to the Company's operating insurance subsidiaries and (iii) pay expenses of the offering of the Preferred Securities.

The Preferred Securities being offered pursuant to Rule 144A of the Securities Act of 1933 have not been registered under applicable laws and may not be offered or sold absent such registration or an applicable exemption from registration requirements.

Symons International Group, Inc. (NASDAQ:SIGC) of Indianapolis is primarily engaged in the nonstandard auto and crop insurance business and maintains active business licenses in 35 U.S. states.

Anyone wishing further information may contact: Alan G. Symons Chief Executive Officer Indianapolis [phone]

CONTACT: Media: Symons International Group, Inc.

Alan G. Symons, 317/259-6302

or

Analyst: Advest, Inc.

Don Franz, 212/584-4143

or

Mesirow Financial

Joanne Smith, 914/669-8568