EMPLOYMENT AGREEMENT

         WHEREAS, Goran Capital Inc. ("Goran"),  and Symons International Group,
Inc.  ("SIG"),   jointly  and  severally,   and  their  respective  subsidiaries
(collectively,  the  "Company")  consider it essential to its best interests and
the best interests of its  stockholders  to foster the continuous  employment of
its key management  personnel and,  accordingly,  the Company  desires to employ
Douglas H. Symons ("You",  "Your"or "Executive"),  upon the terms and conditions
hereinafter set forth; and

         WHEREAS,  the  Executive  desires to  continue  to be  employed  by the
Company, upon the terms and conditions contained herein.

         NOW,  THEREFORE,  in  consideration of the covenants and agreements set
forth below, the parties agree as follows:

1.       Employment

         1.1 Term of  Agreement.  The  Company  agrees  to employ  Executive  as
President and Chief Operating Officer of Symons International Group, Inc. and as
Senior  Executive  Vice President and Chief  Operating  Officer of Goran Capital
Inc.,  (the  "Positions"),  effective as of March 8, 1999 and  continuing  until
March 31,  2001,  unless such  employment  is  terminated  pursuant to Section 3
below; provided, however, that the term of this Agreement shall automatically be
extended  without  further  action of either party for  additional  one (1) year
periods thereafter unless, not later than six (6) months prior to the end of the
then  effective  term,  either  the  Company or the  Executive  shall have given
written notice that such party does not intend to extend this Agreement ("Notice
of  Non-Renewal").  If Company  gives  Executive  such a Notice of  Non-Renewal,
Executive's  employment  shall  terminate  as of the  expiration  date  of  this
Agreement.  It is expressly  understood  and agreed that a notice of non-renewal
issued by the  Company  shall not  extinguish  the  Executive's  non-competition
obligations  pursuant to Section 4 herein,  nor shall such Notice of Non-Renewal
extinguish Executive's right to severance pay pursuant to Section 3 herein.



<PAGE>


         1.2 Terms of Employment. During the Term of this Agreement as set forth
in Section 1.1, You agree to be a full-time  employee of the Company  serving in
the positions and further agree to devote substantially all of Your working time
and  attention  to the  business  and affairs of the Company  and, to the extent
necessary to discharge the responsibilities associated with the positions and to
use  Your  best   efforts   to   perform   faithfully   and   efficiently   such
responsibilities.  Executive shall perform such duties and  responsibilities  as
may be  determined  from time to time by the Board of  Directors of the Company,
which duties shall be consistent with the positions, which shall grant Executive
authority,  responsibility,  title and standing comparable to the positions in a
stock insurance holding company of similar standing.  Your primary place of work
will be at the company's U.S.  headquarters in Indianapolis,  Indiana, but it is
understood and agreed that your duties may require travel.  In the event you are
relocated to another Company location, the Company agrees to pay for the cost of
your move (including  temporary  lodging expenses) and to facilitate the sale of
your  Indianapolis  home so that you will be enabled  to  purchase a new home in
your new location  that is  comparable  in price to your  existing home and have
your family join you at such new location within two (2) months of your transfer
or such other period as is reasonable  considering market and location.  Nothing
herein  shall  prohibit  You from  devoting  Your  time to civic  and  community
activities  or managing  personal  investments,  as long as the foregoing do not
interfere with the performance of Your duties hereunder.

         1.3  Appointment  and  Responsibility.  The Boards of  Directors of the
Company shall, following the effective date of this Agreement, elect and appoint
Executive to the positions.

2.       Compensation, Benefits and Prerequisites

         2.1 Salary.  Company shall pay Executive a salary,  in equal  bi-weekly
installments,  equal to an annualized salary rate of Three Hundred  Seventy-Five
Thousand  Dollars  ($375,000).  Executive's  salary as payable  pursuant to this
Agreement  may be  increased  from  time  to  time as  mutually  agreed  upon by
Executive  and  the  Company.   Notwithstanding  any  other  provision  of  this
Agreement,  Executive's  salary  paid by  Company  for any year  covered by this
Agreement  shall  not be  less  than  such  salary  paid  to  Executive  for the
immediately  preceding  calendar  year.  All  salary and bonus  amounts  paid to
Executive pursuant to this Agreement shall be in U.S. dollars.

         2.2 Bonus.  The Company  and  Executive  understand  and agree that the
Company expects to achieve  significant growth during the term of this Agreement
and that Executive will make a material  contribution  to that growth which will
require  certain  personal and  familial  sacrifices  on the part of  Executive.
Accordingly,  it is the desire and intention of the Company to reward  Executive
for the attainment of that growth through bonus and other means (including,  but
not limited to,  stock  options,  stock  appreciation  rights and other forms of
incentive  compensation).  Therefore,  the Company will pay Executive a lump-sum
bonus  (subject to normal  withholdings)  within  thirty (30) business days from
receipt by Company of its consolidated,  annual audited financial  statements in
an amount which shall be  determined  in  accordance  with the  following  Bonus
Table. All amounts used for calculation  purposes in this section shall be based
on the  audited,  consolidated  financial  statements  of SIG (or any  successor
thereto), with such financial statements having been prepared in accordance with
applicable  Generally Accepted  Accounting  Principles,  applied on a consistent
basis with that of prior years.

    BONUS TABLE

    If Audited Net                                       % of Annual Salary
    Income (as a % of                                    Payable to Executive
    Budgeted Net Income) Is                              As Bonus
    -----------------------                              -----------------------

    Less Than 75%                                                 -0-
    75% or more, but less than 85%                                25%
    85% or more, but less than 90%                                30%
    90% or more, but less than 95%                                35%
    95% or more, but less than 96%                                50%
    96% or more, but less than 97%                                60%
    97% or more, but less than 98%                                70%
    98% or more, but less than 99%                                80%
    99% or more, but less than 100%                               90%
   100% or more of budget                                         100%

         2.3  Employee  Benefits.  Executive  shall be  entitled  to receive all
benefits and perquisites which are provided to other executives of Company under
the  applicable  Company  plans  and  policies,   and  to  future  benefits  and
perquisites made generally  available to executive employees of the Company with
duties and compensation  comparable to that of Executive upon the same terms and
conditions as other Company participants in such plans.

         2.4      Additional Prerequisites.  During the term of this Agreement,
                  Company shall provide Executive with:

         (a)      Not less than five (5) weeks paid vacation during each
                  calendar year.

         (b)      A vehicle commensurate with Executive's position.

         (c)      A golfing  membership at various Social Clubs, or in the event
                  of  Executive's  relocation,  other  comparable  country club,
                  including  payment by the Company of all  charges  incurred by
                  Executive at such club.



<PAGE>


(d)               A resident membership at the Social Club (e.g. Skyline Club or
                  Columbia  Club)  of  Executives  choice,  or in the  event  of
                  Executive's   relocation,   other   comparable   social  club,
                  including  payment by the Company of all  charges  incurred by
                  Executive at such club.

         2.5 Expenses. During the period of his employment hereunder,  Executive
shall be entitled to receive  reimbursement from the Company (in accordance with
the policies  and  procedures  in effect for the  Company's  employees)  for all
reasonable travel,  entertainment and other business expenses incurred by him in
connection with his services hereunder.


<PAGE>



3.       Termination of Executive's Employment

         3.1 Termination of Employment and Severance Pay. Executive's employment
under  this  Agreement  may be  terminated  by either  party at any time for any
reason;  provided,  however, that if Executive's employment is terminated by the
Company for any reason other than for Cause (as such term is defined herein), he
shall  receive,  as severance pay, one (1) year's current salary paid in regular
bi-weekly payments (the "Salary  Continuation") plus a lump sum payment equal to
one (1) years  current  salary  (the "Lump Sum  Payment").  The Lump Sum Payment
shall  be paid  to  Executive  within  five  (5)  business  days  of  Executives
termination for any reason other than for cause.  Executive and his family shall
continue  to be covered by  Company's  health and dental  plan for the period of
time  Executive  shall  receive  Salary  Continuation  pursuant to the preceding
sentence upon the same terms and conditions under which Executive and his family
were covered at the time of his  termination.  Further,  if  Executive  shall be
terminated  without  Cause,  receipt  of  Salary  Continuation  and the Lump Sum
Payment  described  above is  conditioned  upon  execution by Executive  and the
Company of that mutual Waiver and Release attached hereto as Exhibit A. Further,
Executive  shall  receive  Salary  Continuation  and the  Lump  Sum  Payment  in
accordance with this Section 3.1 if Executive shall terminate this Agreement due
to a breach  thereof by the Company or if  Executive  is directed by the Company
(including,  if  applicable,  any  successor)  to  engage  in any act or  action
constituting  fraud or any  unlawful  conduct  relating  to the  Company  or its
business as may be determined  by  application  of applicable  law. If Executive
shall become  entitled to receive Salary  Continuation  pursuant to this Section
3.1; (a) all stock options of SIG and Goran  (including any subsidiary of either
SIG or Goran) existing as of the date hereof previously  granted Executive shall
vest in full and become  exercisable as of the date of Executive's  Termination;
and (b)  Executive  shall  have 180 days  from  the date of  Termination  of his
employment  with  Company in which to exercise  any  unexercised  stock  options
previously granted to Executive.

         3.2      Cause.  For purposes of this Agreement including, but not
                  limited to, this Section 3, "Cause" shall mean:


                  (a)      the Executive being convicted in the United States of
                           American,  any  State  therein,  or the  District  of
                           Columbia, or in Canada or any Province therein (each,
                           a "Relevant Jurisdiction"),  of a crime for which the
                           maximum penalty may include imprisonment for one year
                           or  longer  (a  "felony")  or  the  Executive  having
                           entered  against him or  consenting  to any judgment,
                           decree or order (whether criminal or otherwise) based
                           upon  fraudulent  conduct or violation of  securities
                           laws;



<PAGE>



               (b)  the  Executive's   being  indicted  for,   charged  with  or
                    otherwise the subject of any formal proceeding  (criminal or
                    otherwise) in connection with any felony, fraudulent conduct
                    or violation of securities  laws, in a case brought by a law
                    enforcement  or securities  regulatory  official,  agency or
                    authority in a Relevant Jurisdiction;

               (c)  the Executive engaging in fraud, or engaging in any unlawful
                    conduct  relating to the Company or its business,  in either
                    case  as   determined   under  the  laws  of  any   Relevant
                    Jurisdiction; or

               (d)  the Executive breaching any provision of this Agreement.

          Change  of  Control.  Notwithstanding  any  other  provisions  of this
Agreement,  if (i) a Change of Control shall occur;  and (ii) within twelve (12)
months  of any such  Change  of  Control,  Executive  (a)  receives  a Notice of
Non-Renewal,  (b) is  terminated  for any reason  other  than for Cause,  or (c)
Company (including its successors,  if any) is in breach of this Agreement, then
Executive  shall  receive  the Lump Sum  Payment  plus his  current  salary  (in
bi-weekly  payments) as severance  pay until the  expiration  of fifty-two  (52)
weeks from Executive's Date of Termination.

          The receipt by Executive  of payments  pursuant to this Section 3.3 is
specifically conditioned,  and no payments pursuant to this Section 3.3 shall be
made to  Executive  if he is, at the time of his  Termination,  in breach of any
provision  (specifically  including,  but not limited to, the provisions of this
Agreement  pertaining to non-competition and  confidentiality) of this Agreement
and, further,  if such payments have already begun, the continuation of payments
to  Executive  pursuant to this  Section  3.3 shall cease at the time  Executive
shall fail to comply with the non-competition and confidentiality  provisions of
Article 4 herein.

         "Change of Control"  shall mean the  inability of the Symons  family to
cause the  election of a majority of the  members of the Board of  Directors  of
either Goran, SIG or their respective successors.

         3.4 Disability. So long as otherwise permitted by law, if Executive has
become permanently disabled from performing his duties under this Agreement, the
Company's  Chairman  of the  Board,  may,  in  his  discretion,  determine  that
Executive  will not return to work and  terminate  his  employment  as  provided
below. Upon any such termination for disability,  Executive shall be entitled to
such disability,  medical, life insurance, and other benefits as may be provided
generally  for  disabled  employees  of  Company  during  the  period he remains
disabled.  Permanent  disability  shall be  determined  pursuant to the terms of
Executive's long term disability  insurance  policy provided by the Company.  If
Company elects to terminate this Agreement  based on such permanent  disability,
such termination shall be for cause.

          3.5 Indemnification.  Executive shall be indemnified by Company to the
maximum  extent  permitted by applicable law for actions  undertaken  for, or on
behalf of, the Company and its subsidiaries.

4.       Non-Competition, Confidentiality and Trade Secrets

         4.1  Noncompetition.  In consideration  of the Company's  entering into
this Agreement and the  compensation  and benefits to be provided by the Company
to You hereunder,  and further in  consideration of Your exposure to proprietary
information of the Company, You agree as follows:

               (a)  Until  the  date  of   termination  or  expiration  of  this
                    Agreement  for any reason  (the "Date of  Termination")  You
                    agree not to enter  into  competitive  endeavors  and not to
                    undertake any  commercial  activity which is contrary to the
                    best interests of the Company or its affiliates,  including,
                    directly or  indirectly,  becoming an employee,  consultant,
                    owner (except for passive  investments  of not more than one
                    percent  (1%) of the  outstanding  shares  of,  or any other
                    equity  interest in, any company or entity  listed or traded
                    on a national  securities exchange or in an over-the-counter
                    securities  market),  officer,  agent  or  director  of,  or
                    otherwise   participating  in  the  management,   operation,
                    control or profits of (a) any firm or person  engaged in the
                    operation  of a  business  engaged  in  the  acquisition  of
                    insurance  businesses or (b) any firm or person which either
                    directly  competes  with a line or lines of  business of the
                    Company  accounting  for  five  percent  (5%) or more of the
                    Company's gross sales,  revenues or earnings before taxes or
                    derives five percent (5%) or more of such firm's or person's
                    gross sales,  revenues or earnings  before taxes from a line
                    or  lines  of  business  which  directly  compete  with  the
                    Company.

               (b)  If Your  employment  is  terminated  by You, or by reason of
                    Your Disability,  by the Company for cause, or pursuant to a
                    notice of  non-renewal  as outlined in Section 1.1, then for
                    two (2) years after the Date of  Termination,  You agree not
                    to become, directly or indirectly, an employee,  consultant,
                    owner (except for passive  investments  of not more than one
                    percent  (1%) of the  outstanding  shares  of,  or any other
                    equity  interest in, any company or entity  listed or traded
                    on a national  securities exchange or in an over-the-counter
                    securities  market),  officer,  agent  or  director  of,  or
                    otherwise  to  participate  in  the  management,  operation,
                    control or profits  of,  any firm or person  which  directly
                    competes with a business of the Company which at the Date of
                    Termination  produced  any  class of  products  or  business
                    accounting  for five percent  (5%) or more of the  Company's
                    gross sales,  revenues or earnings before taxes at which the
                    Date of  Termination  derived  five  percent (5%) or more of
                    such firm's or person's  gross  sales,  revenues or earnings
                    before taxes.  It is expressly  agreed and  understood  that
                    this Section 4.1(b) shall not apply to a public  accounting,
                    consulting or law firm.


<PAGE>



               (c)  You  acknowledge  and agree that  damages  for breach of the
                    covenant  not  to  compete  in  this  Section  4.1  will  be
                    difficult  to  determine  and  will  not  afford  a full and
                    adequate remedy,  and therefore agree that the Company shall
                    be entitled to an immediate injunction and restraining order
                    (without the  necessity of a bond) to prevent such breach or
                    threatened  or  continued  breach by You and any  persons or
                    entities  acting  for or with You,  without  having to prove
                    damages,  and to all  costs  and  expenses  (if a  court  or
                    arbitrator  determines  that the  Executive has breached the
                    covenant  not to  compete  in this  Section  4.1,  including
                    reasonable  attorneys'  fees and costs,  in  addition to any
                    other  remedies  to which the Company may be entitled at law
                    or in equity.  You and the Company agree that the provisions
                    of this covenant not to compete are reasonable and necessary
                    for the  operation  of the  Company  and  its  subsidiaries.
                    However,  should any court or arbitrator  determine that any
                    provision of this  covenant not to compete is  unreasonable,
                    either in period of time,  geographical  area, or otherwise,
                    the parties agree that this  covenant not to compete  should
                    be interpreted and enforced to the maximum extent which such
                    court or arbitrator deems reasonable.


         4.2 Confidentiality.  You shall not knowingly disclose or reveal to any
unauthorized  person,  during  or after  the  Term,  any  trade  secret or other
confidential  information (as outlined in the Indiana Uniform Trade Secrets Act)
relating to the  Company or any of its  affiliates,  or any of their  respective
businesses or principals, and You confirm that such information is the exclusive
property of the Company and its  affiliates.  You agree to hold as the Company's
property all memoranda,  books,  papers,  letters and other data, and all copies
thereof or therefrom, in any way relating to the business of the Company and its
affiliates, whether made by You or otherwise coming into Your possession and, on
termination  of Your  employment,  or on demand of the  Company at any time,  to
deliver the same to the Company.

         Any ideas, processes, characters,  productions, schemes, titles, names,
formats,  policies,   adaptations,   plots,  slogans,   catchwords,   incidents,
treatment,  and dialogue which You may conceive,  create,  organize,  prepare or
produce during the period of Your  employment and which ideas,  processes,  etc.
relate to any of the  businesses  of the Company,  shall be owned by the Company
and its  affiliates  whether  or not You should in fact  execute  an  assignment
thereof to the Company, but

          You agree to execute any  assignment  thereof or other  instrument  or
document which may be reasonably  necessary to protect and secure such rights to
the Company.
5.       Miscellaneous

          5.1 Amendment.  This Agreement may be amended only in writing,  signed
by both parties.

         5.2 Entire Agreement.  This Agreement contains the entire understanding
of the parties with regard to all matters contained  herein.  There are no other
agreements,  conditions  or  representations,  oral  or  written,  expressed  or
implied,  with regard to the  employment of Executive or the  obligations of the
Company  or the  Executive.  This  Agreement  supersedes  all  prior  employment
contracts and  non-competition  agreements between the parties.  Notwithstanding
the  foregoing  sentence,  paragraph  12 of that  certain  Employment  Agreement
between  Douglas H. Symons and GGS Management  Holdings,  Inc. dated October 30,
1996 shall remain in full force and effect.

         5.3 Notices. Any notice required to be given under this Agreement shall
be in  writing  and shall be  delivered  either in  person  or by  certified  or
registered mail, return receipt requested. Any notice by mail shall be addressed
as follows:

         If to the Company, to:

         Secretary
         Symons International Group, Inc.
         4720 Kingsway Drive
         Indianapolis, Indiana  46205

         If to Executive, to:

         Douglas H. Symons

or to such other  addresses  as one party may  designate in writing to the other
party from time to time.

         5.4 Waiver of Breach. Any waiver by either party of compliance with any
provision of this Agreement by the other party shall not operate or be construed
as a waiver of any  other  provision  of this  Agreement,  or of any  subsequent
breach by such party of a provision of this Agreement.

          5.5 Due  Authority.  The  Company  represents  and  warrants  that the
execution of this Agreement and the  performance by the Company of the terms and
conditions of this  Agreement  have been duly and validly  authorized by Company
and, further,  that no other authorization or consent is required to be obtained
by Company for its performance hereunder.

         5.6 Validity.  The invalidity or  unenforceability  of any provision of
this  Agreement  shall not affect the  validity or  enforceability  of any other
provision of this Agreement, which shall remain in full force and effect.

          5.7 Governing Law. This Agreement shall be interpreted and enforced in
accordance with the laws of the State of conflict of law principles.

         5.8 Headings. The headings of articles and sections herein are included
solely for  convenience  and  reference  and shall not  control  the  meaning or
interpretation of any of the provisions of this Agreement.

         5.9  Counterparts.  This  Agreement  may be  executed  by either of the
parties in  counterparts,  each of which shall be deemed to be an original,  but
all such counterparts shall constitute a single instrument.

         5.10 Survival.  Company's  obligations  under Sections 3.1, 3.3 and 3.5
and  Executive's  obligations  under Section 4 shall survive the termination and
expiration of this Agreement in accordance with the specific provisions of those
Paragraphs  and  Sections and this  Agreement  in its entirety  shall be binding
upon,  and inure to the  benefit of, the  successors  and assigns of the parties
hereto.

         5.11  Miscellaneous.  No provision of this  Agreement  may be modified,
waived or discharged unless such waiver,  modification or discharge is agreed to
in writing and signed by You and such officer as may be specifically  designated
by the Board.  No waiver by either party hereto at any time of any breach by the
other party hereto of, or  compliance  with,  any condition or provision of this
Agreement  to be  performed  by such  other  party  shall be  deemed a waiver of
similar  or  dissimilar  provisions  or  conditions  at the same or at any prior
subsequent  time. IN WITNESS  WHEREOF,  the parties have executed this Agreement
this 8th day of March, 1999.


SYMONS INTERNATIONAL GROUP, INC.    GORAN CAPITAL INC.


By:__________________________________       By:_______________________________
Title:________________________________      Title:____________________________


                                                     DOUGLAS H. SYMONS
                                                    ("Executive")