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EXHIBIT 10.3

Amendment No. 2 to Employment Agreement

        This Amendment dated as of September 17, 2002 amends the Employment
Agreement (the "Agreement") dated and effective as of January 5, 1998, as
amended on March 1, 2000, between Zenith National Insurance Corp. (the
"Company") and John J. Tickner (the "Employee").

        Whereas, the parties desire to amend the Agreement, it is therefore
agreed as follows:

        1.    Section 2 — Term — is deleted and the following substituted
therefore:

        "2.    Term.    This Agreement shall be in effect for a term commencing
on the Effective Date and expiring on March 1, 2005, and such period shall be
referred to herein as the "Term" of this Agreement, and such Term shall not be
affected by the termination of the Employee's employment hereunder."

        2.    Section 3 — Salary — is deleted and the following substituted
therefore:

        "3.    Salary.    Employees minimum annual base salary shall be as
follows: $311,163, effective March 1, 2000; $349,376, effective March 1, 2001;
$387,589 effective March 1, 2002; $422,589, effective March 1, 2003; and
$447,589, effective March 1, 2004. Employee's annual base salary shall be
payable in installments in conformity with the Company's policy relating to
salaried employees. The Employee's base salary may be subject to annual
adjustment (but not below the then current amount) in the sole discretion of the
Board.

        3.    Section 8 (c) (i) — Termination (Constructive Termination) — is
deleted and the following substituted therefore:

        (i)    Mr. Stanley R. Zax ceases to be full-time Chairman of the Board
and President of the Company and Zenith other than by reason of death or
disability or by reason of retirement on or after December 31, 2002; provided,
however, this clause (i) shall in any event be deleted and of no further force
or effect after December 31, 2002.

        4.    In all other respects, the Agreement remains unchanged.

        In Witness Whereof, the parties have executed this Amendment as of the
date first written above.

Zenith National Insurance Corp.   Employee              
By:
 
/s/  STANLEY R. ZAX      

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Stanley R. Zax
 
By:
 
/s/  JOHN J. TICKNER      

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John J. Tickner

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Amendment No. 2 to Employment Agreement