Exhibit (d)(16)
 


                                                                  
From:  Vincent T. Papa                Dawn Dover
       (212) 332-8080                 Robert Siegfried
       Jeanne Hotchkiss               Kekst and Company
       (860) 674-6754                 (212) 593-2655

FOR IMMEDIATE RELEASE
               
  ORION CAPITAL SUCCESSFULLY CONSUMMATES CASH TENDER OFFER 
                 FOR GUARANTY NATIONAL SHARES 

                   SETTLES RELATED LAW SUITS   
       
                  
New York, New York, July 9, 1996 -- Orion Capital Corporation
(NYSE: OC) today announced that it has purchased the 4,600,000
shares of Guaranty National Corporation (NYSE: GNC) Common Stock
for which it tendered.  The tender offer expired at 12:00 midnight,
New York City time on July 1, 1996.

Based on its final tabulation, the Depositary for the Offer has 
informed Orion that 6,774,515 shares of Guaranty National
Corporation were tendered and not withdrawn pursuant to the Offer
(including 2,369,030 shares tendered by means of notices of
guaranteed delivery which did not fail).  The proration factor used
was .67901168.  The 4,600,000 shares, together with the 7,409,942
shares previously owned by certain of Orion's wholly-owned
subsidiaries, represent approximately 80.3% of the shares of
Guaranty National Corporation currently outstanding.  Payment for
shares accepted pursuant to the Offer will commence on July 9,
1996.

An Orion spokesperson also announced that on July 2, 1996, Orion,
on behalf of the Purchasers (Orion and certain of its wholly-owned
subsidiaries) and Guaranty National, signed a Memorandum of
Understanding with respect to the settlement and dismissal of the
three law suits which were brought as a result of the tender.  The
plaintiffs would, under the terms of the Memorandum of
Understanding, terminate all pending litigation on behalf of the
entire purported class of allegedly affected stockholders of
Guaranty National, based on the revisions which Purchasers made in
the terms of the Offer to Purchase.  

Orion Capital Corporation is engaged in the specialty property and
casualty insurance business through wholly-owned subsidiaries which
include EBI Companies, DPIC Companies, Connecticut Specialty
Insurance Group, SecurityRe Companies and Wm. H. McGee & Co. Inc.,
as well as through its interest in Guaranty National Corporation. 

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