QuickLinks -- Click here to rapidly navigate through this document

Exhibit 10.2

AMENDMENT NO. 1
TO
COST ALLOCATION AGREEMENT

WHEREAS, Zenith National Insurance Corp., Zenith Insurance Company, ZNAT
Insurance Company, CalFarm Insurance Company, CalFarm Life Insurance Company,
and CalFarm Insurance Agency have previously entered into a Cost Allocation
Agreement; and

WHEREAS, Zenith Insurance Company has recently formed and owns 100% of the
outstanding common stock of Zenith Star Insurance Company; and

WHEREAS, Zenith Star Insurance Company desires to become a party to the
aforementioned Cost Allocation Agreement;

IN CONSIDERATION OF THE PREMISES, the parties agree as follows:

1.Effective July 1, 1993, Zenith Star Insurance Company shall become a party to
the inter-company Cost Allocation Agreement, subject to all of the terms,
conditions and obligations thereunder.

2.In all other respects the Cost Allocation Agreement remains unchanged.

IN WITNESS WHEREOF, each of the undersigned parties has caused this Amendment
No. 1 to be executed on its behalf, this 28th day of December, 1993.

ZENITH NATIONAL INSURANCE CORP.   ZENITH INSURANCE COMPANY               By:  
/s/  ILLEGIBLE      

--------------------------------------------------------------------------------

  By:   /s/  JAMES ROSS      

--------------------------------------------------------------------------------

              ZENITH STAR INSURANCE COMPANY   CALFARM INSURANCE COMPANY        
      By:   /s/  JOHN J. TICKNER      

--------------------------------------------------------------------------------

  By:   /s/  JAMES ROSS      

--------------------------------------------------------------------------------

             
CALFARM LIFE INSURANCE COMPANY
 
CALFARM INSURANCE AGENCY               By:   /s/  JOHN J. TICKNER      

--------------------------------------------------------------------------------

  By:   /s/  JOHN J. TICKNER      

--------------------------------------------------------------------------------

             
ZNAT INSURANCE COMPANY
 
 
 
                By:   /s/  JOHN J. TICKNER      

--------------------------------------------------------------------------------

       

--------------------------------------------------------------------------------

QuickLinks

AMENDMENT NO. 1 TO COST ALLOCATION AGREEMENT