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                                                                    Exhibit 10.8


                          INVESTMENT SERVICES AGREEMENT

         THIS INVESTMENT SERVICES AGREEMENT ("Agreement"), dated and effective
as of February 18, 2003, between INFINITY PROPERTY AND CASUALTY CORPORATION, an
Ohio corporation ("Company"), and AMERICAN MONEY MANAGEMENT CORPORATION, an Ohio
corporation ("American").

         WHEREAS, Company and its subsidiaries seek to obtain advice with
respect to the investment of their assets; and

         WHEREAS, American, an indirect wholly-owned subsidiary of American
Financial Group, Inc., an Ohio corporation ("AFG"), is willing and able to
supply such investment advice pursuant to the terms and conditions set forth
below;

         NOW, THEREFORE, for the consideration herein stated, the parties agree
as follows:

1.       INVESTMENT SERVICES.

         1.1. American shall furnish investment services to Company and its
         subsidiaries, which services shall include the following:

                  1.1.1.   to counsel and advise Company and its subsidiaries in
                           connection with the formulation of investment
                           programs and strategies designed to accomplish the
                           investment objectives of the Company and its
                           subsidiaries; and

                  1.1.2.   to manage the investment of the portfolio of
                           investment assets of the Company and its subsidiaries
                           in accordance with the investment policies,
                           objectives, directions and guidelines established by
                           their Boards of Directors or the Investment
                           Committee, as set forth in Section 1.3 below, and, in
                           connection therewith, to have full discretion and
                           authority, without prior consultation or prior
                           approval, to buy, sell and otherwise trade in bonds
                           and other fixed income securities and take such other
                           actions which American shall deem requisite,
                           appropriate or advisable.

         1.2. Custody and control of the securities and all other assets
         comprising the investment portfolio of the Company and its subsidiaries
         shall at all times be subject to the direction and control of the
         Company and its subsidiaries, acting through their Boards of Directors
         or an appropriate committee thereof. All purchases and sales of
         securities shall be in the name of the Company and its subsidiaries and
         all certificates or other instruments representing their investments
         shall be held in account at qualified depository institutions or in
         book form where appropriate. Such securities will be held in accounts
         segregated from those of American or its affiliates.

         1.3. American agrees that the investment services it furnishes will be
         in accordance with general investment policies, objectives, directions
         and guidelines established from time to time by the Board of Directors
         of the Company and its subsidiaries or an appropriate committee
         thereof. The investment guidelines of the Company and its subsidiaries
         will be made available to American. These provisions will change from
         time to time and Company and its subsidiaries, as soon as possible,
         will forward such changes to American which shall then comply with any
         revisions.



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         1.4. Notwithstanding Section 1.1 above, American shall not invest any
         of such investment funds in securities of AFG or any of its
         subsidiaries or any affiliate of them, nor shall it invest such funds
         in any investment opportunity which was previously made available to
         and declined by AFG or any of its affiliates, without first obtaining
         the written approval of an officer that the Company shall designate in
         writing who shall initially be Roger Smith.

         1.5 For providing services hereunder, American shall comply with all
         applicable laws, rules and regulations, and shall maintain in full
         force all necessary licenses, approvals and consents.

2.       PURCHASE AND SALE OF SECURITIES.

         American shall place all orders for the purchase and sale of portfolio
         securities for accounts of the Company and its subsidiaries with
         brokers or dealers selected by American and shall seek to execute
         portfolio transactions on terms which are advantageous to Company and
         its subsidiaries in selecting brokers or dealers to execute
         transactions. American shall not be obligated to solicit competitive
         bids or seek the lowest available commission cost. All trades by
         American of portfolio securities of Company shall be reported to the
         Company and its subsidiaries by 3:00 p.m. on the first business day
         following the trade.

3.       INVESTMENT FEES; EXPENSES.

         3.1. Company shall pay to American an annual fee for investment
         services rendered under this Agreement equal to .17% (seventeen basis
         points) of assets under management. The amount of assets under
         management shall be determined by determining the market value as shown
         on IDSI pricing tape of the portfolio securities; provided, however, in
         the event that any asset under management is not included on the IDSI
         pricing tape, the market value of such asset shall be valued as
         mutually agreed upon by Company and American. The fee shall be computed
         and paid on a quarterly basis measured as of the end of the preceding
         calendar quarter. The quarterly portion of each such fee shall be paid
         within ten (10) days after the end of each calendar quarter or portion
         thereof in which services are rendered under this Agreement.

         3.2. American shall furnish at its own expense necessary executive and
         other personnel for providing investment services to Company and its
         subsidiaries. Company and its subsidiaries shall be responsible for the
         expenses of (a) brokerage commissions, issue and transfer taxes and
         other costs in connection with securities transactions to which Company
         and its subsidiaries are a party, including any portion of such
         commissions attributable to research and brokerage services, (b) taxes
         payable by Company and its subsidiaries to federal, state and other
         governmental agencies, and (c) custodial fees and expenses.

4.       REPORTS AND RECORDS.

         4.1. American shall maintain adequate records relating to the
         furnishing of investment services under this Agreement, including those
         with respect to the acquisition and disposition of securities. American
         shall provide to Company and its subsidiaries such oral or written
         reports as to its services provided under this Agreement as Company and
         its subsidiaries shall reasonably require.

         4.2. All records maintained pursuant to this Agreement shall be deemed
         the property of Company and its subsidiaries and shall be subject to
         examination by Company and its subsidiaries and by persons authorized
         by it, or by governmental authorities, at all times upon



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         reasonable notice. Except as expressly authorized in this Agreement or
         directed by Company in writing, American shall keep confidential such
         records and other information obtained by reason of this Agreement.
         Upon termination of this Agreement, American shall promptly return all
         such records to Company.

5.       NON-EXCLUSIVITY OF SERVICES.

         The services of American to be provided hereunder are not to be deemed
         exclusive and American shall be free to provide similar services for
         its own account and the accounts of others, provided that such services
         do not materially interfere with services to be rendered hereunder.

6.       LIABILITY; INDEMNIFICATION.

         Neither American nor any of its directors, officers or employees or
         other persons affiliated with American shall have any liability
         hereunder for any act, omission, misstatement or error in judgment in
         the course of, or in connection with, providing investment advisory
         services under this Agreement, or for any losses that may be sustained
         from such investment advisory services, and Company shall indemnify and
         hold harmless American and its directors, officers, employees and other
         affiliated persons from and against any and all liability, claims and
         damages arising from or in connection with providing such services
         hereunder; provided, however, that the foregoing shall not relieve
         American or any of such other persons from liability, or require the
         Company to provide any indemnity, for gross negligence, willful
         misfeasance or illegal conduct in providing such services.

7.       TERMINATION; RENEGOTIATION.

         This Agreement shall remain in effect for a period of five (5) years
         from the date it is effective and thereafter may be terminated by any
         party hereto at any time upon ninety (90) days written notice to the
         other party's normal business address. Upon termination of this
         Agreement, Company shall pay pro rata any investment fees due for any
         portion of a calendar quarter within ten (10) days following the date
         of termination.

8.       NOTICES.

         Notices or other writings given or sent under or pursuant to this
         Agreement shall be in writing and be deemed to have been given or sent
         if delivered to the party at its address listed below in person or by
         telex or telecopy or within two (2) days of mailing if mailed postage
         prepaid to such address. The addresses of the parties are:

                                    Infinity Property and Casualty Corporation
                                    2204 Lakeshore Drive
                                    Birmingham, Alabama  35209
                                    Attention:  Roger Smith

                                    American Money Management Corporation
                                    One East Fourth Street
                                    Cincinnati, Ohio  45202
                                    Attention:  William A. Effler

Each party may change its address by giving notices as herein required.


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9.       SOLE INSTRUMENT.

         This instrument and the investment guidelines referred to in Section
         1.3 constitute the sole and only agreement of the parties hereto
         relating to the subject matter hereof, and correctly sets forth the
         rights, duties, and obligations of each party to the other as of its
         date.

10.      WAIVER OR MODIFICATION.

         No waiver or modification of this Agreement shall be effective unless
         reduced to a written document signed by the party to be charged.

11.      GOVERNING LAW.

         This Agreement shall be governed by and construed in accordance with
         the laws of the State of Ohio, without regard to the conflicts of laws
         and rules of such state.

12.      ASSIGNMENT.

         No party to this Agreement shall have the right to sell, transfer,
         delegate, or assign this Agreement or any of its rights or duties
         hereunder to any person, firm or corporation at any time during the
         term hereof, and any proposed assignee shall acquire no rights nor be
         able to assume any obligations unless the written consent of the other
         party to this Agreement is given before such assignment or delegation
         takes place. However, subject to this paragraph, this Agreement binds
         and inures to the benefit of its parties, their successors and assigns.

         IN WITNESS WHEREOF, the parties have hereunto executed this Agreement
as of February 18, 2003.

                     INFINITY PROPERTY AND CASUALTY
                     CORPORATION

                     By:  /s/  Samuel J. Simon
                        -------------------------------------------------
                              Name:    Samuel J. Simon
                              Title:   Senior Vice President, General Counsel
                                           and Secretary

                     AMERICAN MONEY MANAGEMENT
                       CORPORATION

                     By:  /s/ James C. Kennedy
                        -------------------------------------------------
                              Name:    James C. Kennedy
                              Title:   Secretary


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