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Exhibit 99.163

OFFICE OF THE UNITED STATES TRUSTEE

IN RE:	)	DEBTOR IN POSSESSION OPERATING REPORT
	)
SNTL CORPORATION (formerly SUPERIOR NATIONAL INSURANCE GROUP)	) )	REPORT NUMBER 23 FOR THE PERIOD FROM: 01-Feb-02
	)	TO: 28-Feb-02
DEBTOR	)
CHAPTER 11 CASE NO. SV00-14099-GM	)

1. Profit and Loss Statement				Please see Attached Schedule A
A. Related to Business Operations:
	Gross Sales
	Less Sales Returns and Discounts
		Net Sales
	Less: Cost of Goods Sold
		Beginning Inventory at Cost
		Add: Purchases
		Less: Ending Inventory at Cost
			Cost of Goods Sold
		Gross Profit
		Other Operating Revenue (Specify)
Less: Operating Expenses
	Officer Compensation
	Salaries & Wages—Other Employees
		Total Salaries & Wages
		Employee Benefits
	Payroll Taxes
	Real Estate Taxes
	Federal and State Income Taxes
		Total Taxes
	Rent and Lease Exp. (Real and Personal Property)
	Interest Expense (Mortgage, Loan, etc.)
	Insurance
	Automobile Expense
	Utilities (Gas, Electric, Water, Telephone, etc.)
	Depreciation and Amortization
	Repairs and Maintenance
	Advertising
	Supplies, Office Expenses, Photocopies, etc.
	Bad Debts
	Miscellaneous Operating Expenses (Specify)
		Total Operating Expenses
	Net Gain/(Loss) from Business Operations
B. Not Related to Business Operations
	Income:
		Interest Income
		Other Non-Operating Revenues (Specify)
		Gross Proceeds on Sale of Assets
		Less: Original Cost of Assets plus Expenses of Sale
			Net Gain/(Loss) on Sale of Assets
		Total Non-Operating Income
	Expenses Not Related to Business Operations:
		Legal and Professional Fees
		Other Non-Operating Revenues (Specify)
			Total Non-Operating Expenses
	NET INCOME /(LOSS) FOR PERIOD
Revised April 1989				OPERATING REPORT	UST-4

PAGE 1

DEBTOR IN POSSESSION OPERATING REPORT NO. 23

2.

Aging of Accounts Payable and Receivable (exclude pre-petition debt from accounts payable):

		Accounts Payable		Accounts Receivable
Current	Under 30 days	$	0	$	0
Overdue	31 - 60 days	$	0	$	0
Overdue	61 - 90 days		PLEASE SEE ATTACHED SCHEDULE B
Overdue	91 - 120 days	$	0	$	0
Overdue	121 + days	$	0	$	0
Total		$	0	$	0

3.

Statement of Status of Payments to Secured Creditors and Lessors:

				Post-Petition Payments Not Made
	Frequency of Payments per Lease/Contract	Amount of Each Payment	Next Payment Due
Creditor/Lessor				Number	Amount
	NONE

4.

Tax Liability:

Gross Payroll Expense For Period	$65,879
Gross Sales for Period Subject to Sales Tax	$0

	Date Paid	Amount Paid *		Post Petition Taxes Still Owing
Federal Payroll and Withholding Taxes	2/15/02 & 2/28/02	$	20,181	0
State Payroll and Withholding Taxes	2/15/02 & 2/28/02	$	4,037	0
State Sales and Use Tax	N/A	$	0	N/A
Real Property Taxes	N/A	$	0	N/A

ALL PAYROLL TAXES PAID BY ADP

* Attach photocopies of depository receipts from taxing authority or financial institution to verify that such deposits or payments have been made.

5.

Insurance Coverage

	Carrier/ Agent	Amount of Coverage	Policy Exp. Date	Premium Paid Thru Date
Worker's Compensation	See Schedule D
Liability	See Schedule E
Fire and Extended Coverage	See Schedule E
Property	See Schedule E
Theft	See Schedule E
Life (Beneficiary:            )	See Schedule E
Vehicle	See Schedule E
Other	See Schedule E

PAGE 2

DEBTOR IN POSSESSION OPERATING REPORT NO. 23

6.

Questions:

A.

Has the Debtor provided to any officers, directors, shareholders, or other principals compensation without the approval of the Office of the United States Trustee?

/ /: Yes            Explain:                                         

/X/ : No

B.

Has the Debtor, subsequent to the filing of the petition made any payments on its pre-petition unsecured debt, except as have been authorized by the Court?

/ /: Yes            Explain:                                         

/X/ : No

7.

Statement of Unpaid Professional Fees (Post-Petition Only):

Name of Professional	Type Professional	Post-Petition Unpaid Total
See Schedule F

8.

Narrative Report of Significant Events And Events Out Of The Ordinary Course Of Business:

9.

Quarterly Fees: (This Fee must be paid to the United States Trustee every calendar quarter)

Quarterly
Period Ending Quarterly
Disbursements
for Quarter Quarterly
Fee Date Paid Amount Paid Check No. Quarterly
Fee Still Owing

I, Alex Corbett—Chief Financial Officer, declare under penalty of perjury that the information contained in the above Debtor in Possession Operating Report is true and complete to the best of my knowledge.

Dated: 3/25/2002 Signed: /s/  ALEX CORBETT

PAGE 3

SCHEDULE A

SNTL, SNTLHC, SNIA, SNIS
Schedule of Operations
One Month ended February 28, 2002
[Bankruptcy filed April 26, 2000]
[unaudited]

(In thousands)		SNTL (formerly SNIG)			SNTLHC (formerly BIG)			SNIA			SNIS			Elimination		Consolidated Total
Revenues:
Net investment income		$	3		$	1		$	—		$	11		$	—	$	15
	Total Revenues		3			1			—			11			—		15
Expenses:
Interest expense			582			—			—			—			—		582
General and administrative
	Other		(247	)		—			246			1,022			—		1,021
	Total Expenses		335			—			246			1,022			—		1,603
	Income (loss) before income taxes and preferred securities dividends and accretion		(332	)		1			(246	)		(1,011	)		—		(1,588	)
Income tax (benefit) expense			1	(A)		—			—			2	(A)		—		3
	Income (loss) before preferred securities dividends and accretion		(333	)		1			(246	)		(1,013	)		—		(1,591	)
Preferred securities dividends and accretion			(1,194	)		—			—			—			—		(1,194	)
Expenses not related to business operations:
	Legal and Professional Fees		(248	)		—			—			—			—		(248	)
	Other non—operating expenses		—			—			—			—			—		—
			(1,775	)		1			(246	)		(1,013	)		—		(3,033	)
Equity in net income (loss) from subsidiaries			(1,258	)		(1,259	)		—			—			2,517		—
	Net (Loss) Income	$	(3,033	)	$	(1,258	)	$	(246	)	$	(1,013	)	$	2,517	$	(3,033	)

(A)

All amounts reflect tax expense associated with the payment of taxes to various state tax authorities.

SCHEDULE B

SNTL Corporation and Subsidiaries in Bankruptcy
Aging of Accounts Payable and Receivable
As of February 28, 2002

SNTL Corporation
(formerly Superior National Insurance Group)

		Non-Intercompany Accounts						Intercompany Accounts
		Accounts Payable			Accounts Receivable			Accounts Payable		Accounts Receivable
Current	Under 30 days		1,192,592			—			64,359		306,168
Overdue	31 — 60 days		46,485			30,224			206,942		68,882
Overdue	61 — 90 days		—			14,483			—		189,085
Overdue	91 — 120 days		(0	)		—			—		77,313
Overdue	121 + days		954,510			62,324			5,237,080		1,901,821	(E)
Total		$	2,193,586		$	107,031	[A]	$	5,508,381	$	2,543,268

SNTL Holdings Corporation
(formerly Business Insurance Group)

		Non-Intercompany Accounts					Intercompany Accounts
		Accounts Payable		Accounts Receivable			Accounts Payable		Accounts Receivable
Current	Under 30 days		—		—			—		443,180
Overdue	31 — 60 days		—		—			—		206,942
Overdue	61 — 90 days		—		—			—		—
Overdue	91 — 120 days		—		—			—		—
Overdue	121 + days		—		0			—		20,200,924	(E)
Total		$	—	$	0	(D)	$	—	$	20,851,047

Superior National Insurance Services

		Non-Intercompany Accounts						Intercompany Accounts
		Accounts Payable			Accounts Receivable			Accounts Payable		Accounts Receivable
Current	Under 30 days		294,535			(0	)		490,379		3,595
Overdue	31 — 60 days		2			(0	)		0		6,648
Overdue	61 — 90 days		—			0			—		4,432
Overdue	91 — 120 days		(0	)		(0	)		—		4,738
Overdue	121 + days		36,455			6,816,907			0		424,113
Total		$	330,992		$	6,816,907	[B]	$	490,379	$	443,526

Superior National Insurance Administrators

		Non-Intercompany Accounts						Intercompany Accounts
		Accounts Payable			Accounts Receivable			Accounts Payable		Accounts Receivable
Current	Under 30 days		103,655			—			198,206		—
Overdue	31 — 60 days		—			—			75,530		—
Overdue	61 — 90 days		—			—			193,517		—
Overdue	91 — 120 days		(0	)		—			82,051		—
Overdue	121 + days		—			0			2,298,419		98,383
Total		$	103,655		$	0	[C]	$	2,847,723	$	98,383

Consolidated

		Non-Intercompany Accounts						Intercompany Accounts
		Accounts Payable			Accounts Receivable			Accounts Payable		Accounts Receivable
Current	Under 30 days		1,590,782			(0	)		752,944		752,943
Overdue	31 — 60 days		46,487			30,224			282,472		282,472
Overdue	61 — 90 days		—			14,483			193,517		193,517
Overdue	91 — 120 days		(0	)		(0	)		82,051		82,050
Overdue	121 + days		990,965			6,879,232			7,535,499		22,625,242
Total		$	2,628,234		$	6,923,939		$	8,846,482	$	23,936,224

[A]

Amounts in accounts payable do not include interest due and accrued on bank loan and Trust Preferred Securities.

[B]

Amounts shown in accounts receivable do not include $13.8 million commissions receivable that were written off in December 2001. Nevertheless, Debtor continues to assert it's ownership of these commissions receivable and will continue to pursue it's rights of offset and other methods to effectuate collection.

[C]

Amounts shown in accounts receivable do not include $7.1 million commissions receivable that were written off in December 2001. Nevertheless, Debtor continues to assert it's ownership of these commissions receivable and will continue to pursue it's rights of offset and other methods to effectuate collection.

[D]

Amount shown in accounts receivable does not include a $0.6 million receivable that was written off in December 2001. Nevertheless, Debtor continues to assert it's ownership of this receivable and will continue to pursue it's rights of offset and other methods to effectuate collection.

[E]

Amounts include a payment of $5.4 million pursuant to an Order Authorizing Release of Escrowed Funds to the Bank Group Pursuant to Stipulation dated November 9, 2000. The $5.4 million was paid from BIG for interest expense accrued on SNIG.

SCHEDULE C
February 28, 2002

SNTL (formerly SNIG)

3.

Statement of Status of Payments to Secured Creditors and Lessors:

				Post-Petition Payments Not Made
	Frequency of Payments per Lease/Contract	Amount of Each Payment	Next Payment Due
Creditor/Lessor				Number	Amount
NONE

Amounts above do not include bank loan in default, which are partially secured by stock of Superior National Insurance Group, Inc. and its subsidiaries.

SNTLHC (formerly BIG)

3.

Statement of Status of Payments to Secured Creditors and Lessors:

				Post-Petition Payments Not Made
	Frequency of Payments per Lease/Contract	Amount of Each Payment	Next Payment Due
Creditor/Lessor				Number	Amount
NONE

Amounts above do not include bank loan in default, which are partially secured by stock of Superior National Insurance Group, Inc. and its subsidiaries.

SNIA

3.

Statement of Status of Payments to Secured Creditors and Lessors:

				Post-Petition Payments Not Made
	Frequency of Payments per Lease/Contract	Amount of Each Payment	Next Payment Due
Creditor/Lessor				Number	Amount
NONE

Amounts above do not include bank loan in default, which are partially secured by stock of Superior National Insurance Group, Inc. and its subsidiaries.

SNIS

3.

Statement of Status of Payments to Secured Creditors and Lessors:

				Post-Petition Payments Not Made
	Frequency of Payments per Lease/Contract	Amount of Each Payment	Next Payment Due
Creditor/Lessor				Number	Amount
NONE

Amounts above do not include bank loan in default, which are partially secured by stock of Superior National Insurance Group, Inc. and its subsidiaries.

SCHEDULE D

SNTL Corporation and Subsidiaries in Bankruptcy
Debtor in Possession
Insurance Coverage
February 28, 2002

State	Carrier	Agent	Amount of Coverage	Policy Exp. Date	Premium Paid Thru Date
Arizona	Liberty Mutual Group	Di Buduo & De Fendis Insurance Group	Statutory	12-Jul-02	12-Jul-02
California	State Compensation Insurance Fund	Hogan Insurance	Statutory	01-Jun-02	28-Feb-02
Colorado	Pinnacol Assurance	Di Buduo & De Fendis Insurance Group	Statutory	01-Jun-02	01-Jun-02
Illinois	Liberty Mutual Group	Di Buduo & De Fendis Insurance Group	Statutory	12-Jul-02	12-Jul-02
Kansas	Liberty Mutual Group	Di Buduo & De Fendis Insurance Group	Statutory	11-Aug-02	11-Aug-02
Missouri	Travelers Property & Casualty	Di Buduo & De Fendis Insurance Group	Statutory	02-Jun-02	02-Jun-02
New Jersey	Granite State Insurance Company	Di Buduo & De Fendis Insurance Group	Statutory	02-Jun-02	02-Jun-02
New York	The State Insurance Fund (N.Y.)	Hogan Insurance	Statutory	01-Jun-02	01-Jun-02
Oklahoma	First American Insurance Company	IRAA (MGA)	Statutory	15-Nov-02	15-Nov-02
Pennsylvania	State Workrmens' Insurance Fund	Di Buduo & De Fendis Insurance Group	Statutory	03-Jun-02	03-Jun-02
Texas	Texas Mutual	Hogan Insurance	Statutory	15-Nov-02	15-Nov-02
Virginia	Liberty Mutual Group	Di Buduo & De Fendis Insurance Group	Statutory	11-Aug-02	11-Aug-02

Note 1:	Within all of the policies identified above the following entities are covered for Workers' Comp.: SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIA, and SNIS.
Note 2:	A Virginia employee was added to the Kansas policy
Note 3:	The AZ, ILL policy was renewed and the AR & GA states were removed
Note 4:	California is a monthly reporting policy. At the conclusion of each month we receive a voluntary payroll report request. We complete the report, calculate the premium and remit the premium after the fact.

February 28, 2002 Company	Agent	Type of Insurance	Amount of Coverage	Policy Exp. Date	Schedule E Premium paid thru date
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS,& SNIA	Hogan Insurance	Commercial General Liability Package     BWCP 001385     General Liability        Advertising Injury     Employee Benefit Liability	$1 million per occurrence $2 million aggregate excluded $1 million per claim $1 million aggregate	11/1/2002	11/1/2002
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA	Hogan Insurance	Automobile (non-owned) RPC 435072     Liability     Physical Damage/Comp/Collision	$1 million $30,000 $100 deductible comp/ $250 collision	11/1/2002	11/1/2002
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA	Carpenter Moore	Directors & Officers (run-off)     Hartford     Lloyd's of London     Gulf Insurance Company     Executive Risk Indeminity     Philadelphia Indemnity	$5,000,000 $5,000,000 xs $5,000,000 $10,000,000 xs $10,000,000 $10,000,000 xs $20,000,000 $10,000,000 xs $30,000,000	5/1/2003	5/1/2003
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA	Hogan Insurance	Employment Practice Liability	$1 million per loss & in the aggregate	1/15/2003	1/15/2003
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA	Hogan Insurance	Commercial Umbrella — CUBW 793401Evanston Insurance Company	$10 million per occurrence $10 million aggregate	11/1/2002	11/1/2002
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA	Hogan Insurance	Excess Liability United National InsuranceXTA0000927	$10 million per occurrence $10 million aggregate	11/1/2002	11/1/2002
SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, & SNIA	Andreini & Co	Accident Policy (Trip/Travel)     Hartford	$500,000 to $1,000,000 $5 million aggregate (single accident)	12/31/2002	12/31/2002
SNTL CORP & Sub's	Hogan Insurance	Professional Liability — (Binder)     Indian Harbor Insurance     ELU 8286301	$1 million per occurrence $1 million aggregate	8/8/2002	8/8/2002
BIG only	DiBudio & DeFendis	Professional Liability Run OffBIG companies only/acts b/f 12-10-99     *$500,000 deductible	$10 million per loss & in the aggregate	12/10/2004	12/10/2004

SCHEDULE F
February 28, 2002

SNTL (formerly SNIG), SNTLHC (formerly BIG), SNIS, SNIA

Name of Professional	Type Professional	Post-Petition Unpaid Total
Paul, Weiss, Rifkind, Wharton & Garrison	Legal fees	$	68,929	Note A
Latham & Watkins	Counsel for Official Committee of Unsecured Creditors	$	233,906	Note A
Steve Eldrige	Tax consulting	$	-
Quinn Emanuel Urquhart Oliver & Hedges LLP	Special litigation counsel	$	784,718	Note A & D
Mannat Phelps	Legal fees	$	26,308	Note A & E
KPMG LLP	Audit & consulting fees	$	473,660	Note A
Riordan & McKinzie	Corporate counsel	$	111,035	Note A, C & E
Pachulski, Stang, Ziehl, Young & Jones LLP	General bankruptcy counsel	$	226,959	Note A & D
Miller, Herbers, Lehmann & Assoc.	Legal fees	$	178,050	Note A
Davis, Fox & Berke	Legal fees — Hanover lawsuit	$	8,122	Note A & B
Edward Shoop	Actuarial consulting fees	$	120,288	Note A

Note A—Amount includes 20% hold back on professional fees sanctioned by the Bankruptcy Court.

Note B—Amount represents fees & expenses through November 30, 2001.

Note C—SNIG has a retainer with Riordan & McKinzie. Retainer balance as of 2/28/02 is $547,028.99.

Note D—Amount represents fees & expenses through December 31, 2001.

Note E—Amount represents fees & expenses through January 31, 2002.

QuickLinks

Exhibit 99.163
SCHEDULE A

SNTL, SNTLHC, SNIA, SNIS Schedule of Operations One Month ended February 28, 2002 [Bankruptcy filed April 26, 2000] [unaudited]

SCHEDULE B
SCHEDULE C February 28, 2002
SCHEDULE D
SCHEDULE F February 28, 2002