EMPLOYMENT AGREEMENT


         WHEREAS, Symons International Group, Inc.("SIG") and Goran Capital Inc.
("Goran")  (collectively,  SIG  and  Goran  are  referred  to as the  "Company")
consider it in SIG's best  interests to employ Gregg Albacete  ("You",  "Your"or
"Executive"), upon the terms and conditions hereinafter set forth; and

         WHEREAS,  the  Executive  desires to be employed by SIG, 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. SIG agrees to employ Executive as Vice President
and Chief  Information  Officer  effective as of January 26, 2000 and continuing
until January 26, 2003 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 the Company or Executive gives written notice that it
or he does not intend to extend this Agreement (the "Term").

         1.2 Terms of  Employment.  During the Term, You agree to be a full-time
employee of SIG serving in the position of Vice President and Chief  Information
Officer of SIG and further  agree to devote  substantially  all of Your  working
time and  attention  to the  business  and  affairs  of SIG and,  to the  extent
necessary to discharge  the  responsibilities  associated  with Your position as
Vice President and Chief Information Officer of SIG 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 Chief Executive  Officer or Executive Vice President of SIG, which duties
shall be consistent  with the position of Vice  President and Chief  Information
Officer of SIG, which shall grant Executive authority, responsibility, title and
standing  comparable to that of the vice president and chief information officer
of a stock insurance holding company of similar standing.  Your primary place of
work will be at the Company's  headquarters in Indianapolis,  Indiana, but it is
understood and agreed that your duties may require travel.  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.


<PAGE>



         1.3  Appointment  and  Responsibility.  The Board of  Directors  of SIG
shall,  following  the  effective  date of this  Agreement,  elect  and  appoint
Executive as Vice  President  and Chief  Information  Officer.  Consistent  with
Section 1.2 of this Agreement,  Executive shall be primarily responsible for the
information systems of the Company.

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 One Hundred  Seventy Five
Thousand  Dollars  ($175,000).  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.

         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 of up to  Seventy-Five  Thousand  Dollars  ($75,000)  (subject  to  normal
withholdings)  within  sixty (60)  business  days from receipt by Company of its
consolidated,  annual audited  financial  statements.  Executive's bonus for the
year ended  December  31, 2000 shall be in an amount not less than  Thirty-Seven
Thousand  Five Hundred  Dollars  ($37,500).  Additional  bonus  amounts shall be
subject to the  discretion of the Chief  Executive  Officer and  Executive  Vice
President of the Company.

         2.3 Employee Benefits.  During the term of this Agreement, You shall be
entitled  to  participate  in all  incentive,  savings,  and  retirement  plans,
practices,  policies, and programs available generally to other employees of the
Company. During the term of this Agreement,  You and/or Your family, as the case
may be, shall be eligible for  participation  in and shall  receive all benefits
under  welfare  benefit  plans,  practices,  policies,  and  programs  available
generally to other employees of the Company.


<PAGE>



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

         (a)      Not less than four (4) weeks paid vacation during each
                  calendar year.

         (b)      An automobile allowance equal to the value of a Suburban,  but
                  in no event in excess of seven hundred fifty dollars ($750.00)
                  per month.

         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.

         2.6 Hiring Bonus. The Company will pay Executive Fifty Thousand Dollars
($50,000) upon  commencement of employment.  Should the  Executive's  employment
with the Company  terminate  within the first twelve (12) months of  employment,
including  termination for cause and excluding other termination by the Company,
the Executive shall  immediately  reimburse the Company the sum of Four Thousand
One Hundred  Sixty-Six  Dollars  ($4,166) for each remaining  month of the first
twelve (12) months of employment.

         2.7      Relocation Expense.

(a)                Company will cover the direct costs of moving  Executive  and
                   his  family  from  Dallas,  Texas to  Indianapolis,  Indiana,
                   including  house-hunting visits to Indianapolis,  packing and
                   unpacking of household goods, and insurance.

(b)      Company will pay realtor fees of up to seven percent (7%) on the sale
         of Executive's Dallas, Texas home.

(c)           Company will pay all closing costs on an Indianapolis home.

(d)               Company will reimburse Executive for temporary living expenses
                  in  Indianapolis  and weekly travel to and from Dallas,  Texas
                  until the relocation is complete.

         2.8 Stock  Options.  Executive  shall be eligible to participate in the
Company's stock option plan and will be granted 10,000 options for shares of SIG
at the  market  price on the first day of the Term.  Executive's  stock  options
shall be issued  pursuant to the Symons  International  Group,  Inc.  1996 Stock
Option Plan and a Stock Option  Agreement  with respect  thereto  which shall be
substantially in the form of Exhibit A attached  hereto.  The options shall vest
and become  exercisable  by the Executive  pro-rata over a three (3) year period
from the date of grant.

3.       Termination of Executive's Employment

         3.1 Termination of Employment and Severance Pay. Executive's employment
under  this  Agreement  may be  terminated  by the  Company  at any time for any
reason; provided,  however, that if Executive's employment is terminated for any
reason other than for cause, he shall receive, as severance pay, an amount equal
to his  salary  for a period  of one (1) year  from the date of  termination  of
employment.  Further, if Executive shall be terminated without cause, receipt of
severance  payments are conditioned  upon execution by Executive and the Company
of that mutual Agreement of Release and Waiver attached hereto as Exhibit B.

         3.2      Cause.  For purposes of this Section 3, "cause" shall mean:

         (a)      the Executive being convicted in the United States of America,
                  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;

         (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;

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

         (e)      gross negligence or willful misconduct by the Executive in the
                  performance of his duties hereunder; or

         (f)      failure of the  Executive  to follow the written  directive of
                  the Chief Executive Officer of Executive Vice President of the
                  Company  such  that  the   activities  of  the  Executive  are
                  detrimental to the business operations.


<PAGE>



         3.3 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, (a) Company (including its successors,  if
any) shall require  Executive to perform his duties and obligations  pursuant to
this  Agreement in a location  other than the city of employment of Executive at
the time of such Change of Control, or (b) Company (including its successors, if
any) shall  materially  change the  duties,  authority  or  responsibilities  of
Executive  such  that the  same are  materially  inconsistent  with the  duties,
authority  or  responsibilities  of  Executive  at the  time of such  Change  of
Control,  then  Executive's  employment  under this Agreement shall be deemed to
have  terminated  for other  than cause  pursuant  to Section  3.1  hereof,  and
Executive  shall be entitled to receive  salary and benefits as provided in such
Section 3.1. In addition,  Executive's  stock options shall vest immediately and
Executive  may  exercise  such  options  within  four  (4)  weeks of the date of
termination of  employment.  In the event  Executive  shall fail to exercise the
options within four (4) weeks of  termination  of employment,  the options shall
expire.

                 A 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 Goran  Capital  Inc.,  Symons  International  Group,  Inc. 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 (and,
where  applicable,   its  subsidiaries)  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.
                 Notwithstanding   any  provision  of  this   Agreement  to  the
                 contrary,  You agree that Your breach of the provisions of this
                 Section  4.1(a)  shall  permit the  Company to  terminate  Your
                 employment for cause.

         (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 of this  Agreement,  then for one (1) year 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  or
                 consulting 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.


<PAGE>



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.

         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:

         Chief Executive Officer
         Symons International Group, Inc.
         4720 Kingsway Drive
         Indianapolis, Indiana  46205

         If to Executive, to:

         Gregg Albacete

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

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


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.


<PAGE>



         5.5 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.

         5.6      Governing  Law.  This  Agreement  shall be  interpreted  and
enforced  in  accordance  with the laws of the State of Indiana, without giving
effect to conflict of law principles.

         5.7 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.

         5.8  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.

         5.9 Survival.  Company's  obligations under Section 3.1 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.

         5.10   Mutuality. This Agreement is mutually binding on Goran and SIG.

         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.


<PAGE>



         IN WITNESS WHEREOF,  the parties have executed this Agreement effective
as of the _____ day of January, 2000.

                                            ("Company")

                                            GORAN CAPITAL INC.

                                            By:________________________________
                                            Title:______________________________

                                            SYMONS INTERNATIONAL GROUP, INC.

                                            By:________________________________
                                            Title:______________________________

                                            GREGG ALBACETE
                                            ("Executive")

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