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                        ADDENDUM TO CONSULTING AGREEMENT


     This Addendum is entered into as of the 1st day of January, 1998 by and
between Goran Capital, Inc. ("Goran"), Symons International Group, Inc. ("SIG"),
Granite Reinsurance Company Ltd. ("Granite Re"), Goran Management Bermuda Ltd.
("Goran Bermuda") and G. Gordon Symons (the "Chairman") with respect to the
following:


A.       The Chairman is the Chairman of the Board of Directors of Goran and SIG
         and the Chairman of the Board and President of Granite Re;

B.       Granite Re and Goran Bermuda have heretofore entered into that certain
         Consulting Agreement dated January 1, 1995 (as amended from time to
         time, the "Consulting Agreement") whereby an annual sum of Two Hundred
         Fifty Thousand Dollars ($250,000) (the "Annual Sum") is paid by Granite
         Re to Goran Bermuda;

C.       Granite Re desires to ensure that it continues to receive the benefit
         it currently derives from the Consulting Agreement;

D.       Goran desires to ensure that its wholly owned subsidiary, Granite Re,
         continues to receive the benefit it currently derives from the
         Consulting Agreement; and

E.       The parties to the Consulting Agreement desire to amend such Consulting
         Agreement consistent with the terms contained herein (including, but
         not limited to, the provisions of this Addendum dealing with
         non-competition) and otherwise ratify and affirm the Consulting
         Agreement.


     NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Goran, Granite Re, Goran Bermuda
and the Chairman agree as follows:


1.       RATIFICATION AND AMENDMENT. Granite Re and Goran Bermuda hereby
         reaffirm and modify the Consulting Agreement, and hereby ratify all
         existing terms of the Consulting Agreement and also amend the
         provisions of the Consulting Agreement to provide that, upon the
         occurrence of a Triggering Event (as defined herein), the sum of One
         Million Eight Hundred Seventy-Five Thousand Dollars ($1,875,000) (the
         "Contract Payment") shall be paid to Goran Bermuda.


2.       TRIGGERING EVENT. A Triggering Event shall occur upon the happening of
         any of the following events:

     a.   Granite Re shall fail to pay the Annual Sum; or
     b.   There shall occur a "Change of Control" with respect to Goran or SIG.
          For purposes of this Addendum, a "Change of Control" shall mean the
          inability of the Symons family to cause the election of a majority of
          the Board of Directors of Goran or SIG or their respective successors.
          In the event of a Change of Control, Goran shall comply with the
          provisions of Sections 1 and 8 hereof.

3.       PAYMENTS TO SURVIVING SPOUSE. In the event of the death of the Chairman
         prior to the satisfaction by Granite Re of the Contract Payment, the
         Annual Sum payments and the Contract Payment shall be made to the
         Chairman's spouse if she is then surviving, in accordance with the
         terms of this Addendum.

4.       NONCOMPETITION AGREEMENT. As consideration of Granite Re entering into
         this Addendum, Goran Bermuda agrees as follows:


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    a.   Goran Bermuda, from and after the date of this Addendum, shall not
         compete, in any manner, with Goran or SIG (including the Affiliates of
         Goran or SIG, as such term "Affiliates" is defined for purposes of the
         Securities Laws of the United States.)

5.       MONTHLY INSTALLMENTS. The Annual Sum shall be paid in equal monthly
         installments.

6.       COUNTERPARTS. This Addendum may be executed in any number of
         counterparts, each of which shall be an original; but such counterparts
         shall together constitute but one and the same instrument.

7.       U.S. DOLLARS. The payment of all amounts hereunder shall be made in
         United States dollars.

8.       LIABILITY. If a Triggering Event shall occur, Goran and SIG shall
         become jointly and severally liable with Granite Re for all obligations
         pursuant to the Consulting Agreement or this Addendum. Neither the
         Consulting Agreement nor this Addendum may be amended, canceled,
         terminated or otherwise revised unless same shall be in writing signed
         by the parties to the Consulting Agreement.

9.       FULL FORCE AND EFFECT. Except as otherwise provided herein, the
         Consulting Agreement shall remain in full force and effect.




     IN WITNESS WHEREOF, the parties have executed this Addendum as of the day
and year first set forth above.

                                   "Chairman"


                             ----------------------------------------
                                                    G. Gordon Symons


                             "Granite Re"
                             Granite Reinsurance Company Ltd.


                             By:
                                -------------------------------------
                                      Colin James


                             "Goran Bermuda"
                             Goran Management Bermuda Ltd.


                             By:
                                -------------------------------------
                                      G. Gordon Symons


                             "Goran"
                             Goran Capital Inc.


                             By:
                                -------------------------------------
                                Alan G. Symons, President and Chief
                                       Executive Officer


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                                      "SIG"
                                Symons International Group, Inc.


                             By:
                                -------------------------------------
                                Alan G. Symons, Chief Executive Officer

















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