Document:

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                                                                   EXHIBIT 10.24

                            TAX ALLOCATION AGREEMENT

This TAX ALLOCATION AGREEMENT (Agreement), made and entered into as of October
15, 2003 and effective February 13, 2003 by and among Infinity Property and
Casualty Corporation ("Parent") and each one of those companies set forth herein
on Exhibit A attached hereto and incorporated herein by this reference
(hereinafter collectively referred to as "Subsidiaries").

Parent and Subsidiaries are members of an affiliated group of corporations (the
"AFFILIATED GROUP") within the meaning of section 1504(a) of the Internal
Revenue Code of 1986, as amended (the "CODE"). The Affiliated Group includes
Parent and Subsidiaries (individually, a "MEMBER" and collectively, the
"MEMBERS"). Pursuant to section 1501 of the Code and Regulations thereunder,
Members will elect to file a U.S. consolidated income tax return for the taxable
year beginning February 13, 2003 and ended December 31, 2003, and for each
subsequent taxable period in respect of which this Agreement is in effect and
for which the Affiliated Group is required or permitted to file a consolidated
tax return. Each Subsidiary shall execute and file such consent, elections, and
other documents that may be required or appropriate for the proper filing of
such returns. The Members deem it appropriate to define the method by which the
Federal income tax liability of the affiliated group shall be allocated among
them and the manner in which such allocated tax liability shall be paid.

NOW, THEREFORE, in consideration of the promises and mutual covenants
hereinafter set forth and intending to be legally bound, the parties hereto
agree as follows:

1.       Definitions: The following terms as used in this Agreement shall have
         the meanings set forth below:

         (a)      "ALLOCATED TAX LIABILITY", in respect of a Member, shall mean
                  the amount (whether positive or negative) of tax (net all
                  credits) allocated to such Member pursuant to paragraph 2
                  hereof.

         (b)      "CONSOLIDATED RETURN" shall mean a consolidated Federal income
                  tax return filed by the Affiliated Group pursuant to section
                  1501 of the Code.

         (c)      "CONSOLIDATED TAX LIABILITY" shall mean the Federal income tax
                  liability as determined pursuant to Reg. section 1.1502-2 of
                  the Affiliated Group for any taxable year for which a
                  Consolidated Return is filed.

         (d)      "IRS" shall mean the Internal Revenue Service.

         (e)      "REGULATIONS" OR "REG." shall mean the Income Tax Regulations
                  promulgated under the Code and as in effect from time to time.

         (f)      "REASONABLE PERIOD OF TIME" shall mean a period of time not
                  exceeding 60 days in duration.

         (g)      "SUBSIDIARIES" shall mean all of the Members other than the
                  Parent.

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Tax Allocation Agreement
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2.       Allocation of Consolidated Tax Liability.

         (a)      Parent and Subsidiaries agree that the consolidated tax
                  liability for each year, determined in accordance with Income
                  Tax Regulation ("Regulation") 1.1502-2, shall be apportioned
                  among them in accordance with the provisions of Regulation
                  1.1502-33(d)(3) in conjunction with the method described in
                  Regulation 1.1552-1(a)(2) and allocated pursuant to the
                  following:

                  (i)      Consolidated Tax Liability is determined and
                           allocated to Members with positive tax liabilities.
                           Consolidated Tax Liability is allocated in the ratio
                           of the Member's separate tax liability to the total
                           separate return tax liability of all Members with
                           positive tax liabilities.

                  (ii)     An additional amount is allocated to each Member in
                           2(a)(i) equal to 100% of the excess of the Member's
                           separate return tax liability for the year over the
                           amount allocated to the Member under 2(a)(i) above.

                  (iii)    The total of the amounts allocated under 2(a)(ii)
                           above is credited to Members who incurred net
                           operating losses or credits which were not utilizable
                           by such Member on a separate return basis but were
                           available to the Members with taxable income. Amounts
                           credited under this subparagraph shall be allocated
                           in a manner that reasonably reflects the absorption
                           of the Member's tax attributes.

3.       Payments. Each subsidiary shall pay to the Parent amounts allocated
         pursuant to paragraph 2(a)(i) and 2(a)(ii) above. Payments under this
         paragraph shall be made within a Reasonable Period of Time after
         receiving request for payment from Parent.

         (a)      The Parent shall pay to each Subsidiary with excess tax
                  credits or losses during the taxable year the amounts
                  allocated pursuant to paragraph 2(a)(iii) above to the extent
                  actually used in the Consolidated Return. Payments under this
                  paragraph shall be made within a Reasonable Period of Time
                  after the date of filing the Consolidated Return for such
                  taxable year. Once the Subsidiary has been paid for its
                  credits or losses, it cannot use such credits or losses in
                  calculating its separate return tax liability under paragraph
                  2 above. Any of the Subsidiary's credits or losses which are
                  not used in the Consolidated Return and for which it has not
                  been paid shall be retained by the Subsidiary for possible
                  future use.

         (b)      Payment of the Consolidated Tax Liability for a taxable period
                  shall include the payment of estimated tax due on or before
                  the required installment due dates for such taxable year
                  (Estimated Tax Installment). Parent shall or shall cause the
                  Members to estimate the Consolidated Tax Liability (or, if
                  applicable, the alternative minimum tax which may be imposed
                  on the Affiliated Group) and each Member's Allocated Tax
                  Liability for purposes of each Estimated Tax Installment. Each
                  Subsidiary shall pay to the Parent its share of the Estimated
                  Tax Installments within a Reasonable Period of Time after
                  receiving request for payment from Parent and after taking
                  into consideration Estimated Tax Installments previously made
                  for the taxable year. Any overpayment of the Estimated Tax
                  Installment will be refunded to the Subsidiary within a
                  Reasonable Period of Time after the installment due date for
                  such taxable year.

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Tax Allocation Agreement
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         (c)      Payment of the Consolidated Tax Liability for a taxable period
                  shall include the extension request payment due under the
                  Code. Parent shall or shall cause the Members to estimate the
                  Consolidated Tax Liability (or, if applicable, the alternative
                  minimum tax which may be imposed on the Affiliated Group) and
                  each Member's Allocated Tax Liability for purposes of an
                  extension of time for filing the Consolidated Return
                  (Consolidated Return Extension). Within a Reasonable Period of
                  Time after receiving request for payment from Parent of the
                  Consolidated Return Extension, each of the Subsidiaries shall
                  pay to the Parent or the Parent shall pay to each of the
                  Subsidiaries, as the case may be, the difference (if any)
                  between the sum of such Subsidiary's Allocated Tax Liability
                  as calculated for the Consolidated Return Extension request
                  and all Estimated Tax Installments thereof previously paid by
                  or to such Subsidiary.

         (d)      Within a Reasonable Period of Time after receiving request for
                  payment from Parent of the tax due for the Consolidated
                  Return, each of the Subsidiaries shall pay to the Parent or
                  the Parent shall pay to each of the Subsidiaries, as the case
                  may be, the difference (if any) between such Subsidiary's
                  actual Allocated Tax Liability and all Estimated Tax
                  Installments and the Consolidated Return Extension amounts
                  previously paid by or to such Subsidiary for such taxable
                  year.

         (e)      Parent shall have the responsibility and authority to make or
                  cause to be made all Estimated Tax Installments, Consolidated
                  Return Extension and Consolidated Return deposits of the
                  Consolidated Tax Liability or alternative minimum tax, as the
                  case may be, and shall collect all refunds thereof.

4.       Alternative Minimum Tax. The provisions of paragraphs 2 and 3 shall not
         apply to any consolidated alternative minimum tax ("AMT") liability
         determined in accordance with Code Section 55.

         (a)      The Parent and Subsidiaries agree that any AMT incurred on a
                  consolidated basis by the Affiliated Group shall be allocated
                  among the Members of the Affiliated Group. The consolidated
                  liability for AMT shall be individually allocated to each
                  member in the proportion that each Member's separate AMT tax
                  liability for such tax has to the total of all such separate
                  AMT tax liabilities. Each Subsidiary shall pay to the Parent
                  its share of such tax liability as determined under this
                  paragraph. The tax liability of each Subsidiary under this
                  paragraph shall not exceed the amount such Subsidiary would
                  have paid if it had filed on a separate return basis.

         (b)      The Parent and Subsidiaries agree that if the Consolidated Tax
                  Liability is reduced by the AMT credit (as defined in section
                  53 of the Code) the amount of such reduction shall be
                  allocated among the Members of the Affiliated Group. The
                  consolidated AMT credit shall be individually allocated to
                  each member in the proportion that each Member's separate
                  return tax liability for such tax has to the total of all such
                  separate return tax liabilities.

5.       Subsequent Adjustments. If any adjustments are made to the income,
         gains, losses, deductions, or credits of the Affiliated Group, whether
         by reason of the filing of an amended return or a claim for refund with
         respect to such taxable year, a change in law, or an examination by the
         IRS with respect to such taxable year, the amounts due under this
         Agreement for such taxable year shall be re-determined by taking into
         account such adjustments. If, as a result of such re-determination, any
         amounts under this Agreement shall differ from the amounts previously
         paid, then payments of such difference shall be made (a) in the case of
         an adjustment resulting in a credit or refund, within a Reasonable
         Period of Time after the date on which such credit or refund is
         received with

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Tax Allocation Agreement
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         respect to such adjustment, or (b) in the case of an adjustment
         resulting in the assertion of a deficiency, within a Reasonable Period
         of Time after receiving request for payment from Parent of such
         deficiency. Any amount due under this paragraph 4 shall include any
         interest attributable thereto under sections 6601 and 6611 of the Code,
         as the case may be, and any penalties or additional amounts which may
         be imposed.

6.       Determinations. All determinations required hereunder shall be made by
         the Tax Department of the Parent, and such determinations shall be
         binding and conclusive upon all Members for purposes thereof.

7.       Procedural Matters.

         (a)      The Parent shall prepare or cause to be prepared and file the
                  Consolidated Return and any other returns, documents or
                  statements required to be filed or prepared with respect to
                  the Consolidated Return and to the determination of the
                  Consolidated Tax Liability (or AMT liability). Each Subsidiary
                  shall deliver to the Parent before such date as is reasonably
                  determined by the Tax Department of the Parent all data
                  required for preparation of the Consolidated Return and the
                  determinations required hereby.

         (b)      In its sole discretion, the Parent shall have the right with
                  respect to any Consolidated Return (a) to determine (i) the
                  manner in which such Consolidated Return and all related
                  documents or statements shall be prepared and filed,
                  including, without limitation, the manner in which any item of
                  income, gain, loss, deduction, or credit shall be reported and
                  (ii) whether any extension may be requested; (b) to contest,
                  compromise or settle any adjustment or deficiency proposed,
                  asserted or assessed as a result of any examination by the
                  IRS; (c) to file, prosecute, compromise or settle any claim
                  for refunds; and (d) to determine whether any refunds shall be
                  paid by way of refund or credited against the Consolidated Tax
                  Liability (or AMT liability). Each Member hereby irrevocably
                  appoints the Parent as its agent and attorney-in-fact to take
                  such action (including the execution of documents) as the
                  Parent may deem appropriate to effect the foregoing.

8.       State Taxes.

         (a)      To the extent the privilege of filing consolidated state tax
                  returns is available and the Parent determines in its sole
                  discretion that the filing of such return is advantageous, the
                  eligible Members shall file consolidated state tax returns,
                  and the terms of this Agreement shall apply to such eligible
                  Members as if this Agreement were directed toward the filing
                  of such consolidated state income tax returns.

         (b)      To the extent a Member is not required or elects not to file a
                  consolidated state tax return, the Parent shall prepare or
                  cause to be prepared and file the separate state tax return
                  and any other documents or statements required to be filed or
                  prepared with respect to the separate state tax return. Each
                  Subsidiary shall deliver to the Parent before such date as is
                  reasonably determined by the Tax Department of the Parent all
                  data required for preparation of the consolidated or separate
                  state tax returns and the determinations required hereby.

         (c)      In its sole discretion, the Parent shall have the right with
                  respect to consolidated or separate state tax returns (a) to
                  determine (i) the manner in which such consolidated or
                  separate state tax returns and all related documents or
                  statements shall be prepared and filed, including, without
                  limitation, the manner in which any item of income, gain,
                  loss, deduction, or credit

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Tax Allocation Agreement
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                  shall be reported and (ii) whether any extension may be
                  requested; (b) to contest, compromise or settle any adjustment
                  or deficiency proposed, asserted or assessed as a result of
                  any examination by any state tax authority; (c) to file,
                  prosecute, compromise or settle any claim for refunds; and (d)
                  to determine whether any refunds shall be paid by way of
                  refund or credited against the consolidated or separate state
                  tax liability. Each Member hereby irrevocably appoints the
                  Parent as its agent and attorney-in-fact to take such action
                  (including the execution of documents) as the Parent may deem
                  appropriate to effect the foregoing.

         (d)      Each Subsidiary shall pay to the Parent its share of the
                  consolidated state tax liability calculated within a
                  Reasonable Period of Time after receiving request for payment
                  from Parent. Any overpayment will be refunded to the
                  Subsidiary within a Reasonable Period of Time after receipt by
                  the Parent of such refund. Subsidiary shall reimburse any
                  Member within a Reasonable Period of Time after receiving
                  request for payment by Member of separate state tax liability
                  payment made on behalf of such Subsidiary.

9.       Miscellaneous Provisions:

         (a)      Authority to Change Adjustments. Each of the Members hereby
                  agrees that the Parent shall have the authority to make any
                  necessary alterations in this Agreement to comply with any
                  changes in the provisions of the Code or Regulations relating
                  to consolidated income tax returns.

         (b)      Consent to Regulations. Each of the Members consents to all
                  Regulations relating to the filing of a consolidated income
                  tax return.

         (c)      Binding Agreement: Additional Parties/Participants. If, during
                  a consolidated return period, the Parent or any Subsidiary
                  acquires or organizes another corporation that is required to
                  be included in the consolidated return, then such corporation
                  shall join in and be bound by this Agreement without any
                  further action by the signatories to the Agreement. Any
                  corporation that becomes a member of the Affiliated Group,
                  that respectively becomes or is eligible under the Code to
                  participate in the consolidated tax return, will execute an
                  addendum indicating it's election to become a party to this
                  Agreement and specify the taxable year of inclusion in the
                  consolidated tax return.

         (d)      Terms of Agreement. This Agreement shall remain in effect for
                  so long as two (2) or more of the Members continue to qualify
                  as Members of the Affiliated Group. Additionally, the Parent
                  may terminate this Agreement as it relates to a particular
                  Subsidiary upon the sale, disposition or other transaction
                  that ceases the Subsidiary's membership in the Affiliated
                  Group.

         (e)      Subsequent Alterations and Modifications. Subject to the
                  rights of the Parent to modify the provisions of this
                  agreement for purposes of conforming to the applicable
                  provisions of the Code or Regulations and except as provided
                  in paragraphs 9(c) and 9(d) above, all alterations and
                  modifications of this Agreement shall be in writing and signed
                  by all parties.

         (f)      Elections. Each of the Members hereby agrees that the Parent
                  shall have the authority to make any or all elections,
                  including accounting methods, that are available to the
                  Subsidiary or Affiliated Group under the Code or Regulations
                  and requested by the Parent to minimize the Consolidated Tax
                  Liability (or AMT liability).

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Tax Allocation Agreement
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         (g)      Termination. This Agreement will not apply to taxable years of
                  any Member commencing on or after such time as such Member is
                  no longer included in the Affiliated Group.

         (h)      Conduct of Examination. Each of the Members agrees that the
                  Parent shall be solely responsible for the conduct and
                  disposition of any IRS or State tax examination of the
                  Affiliated Group. In the event Subsidiary is no longer part of
                  the Affiliated Group and except as otherwise delegated by
                  Parent, Parent is solely responsible for the active conduct
                  and disposition of any IRS or State tax examination of such
                  Subsidiary for periods such Subsidiary was a Member of the
                  Affiliated Group. All costs and expenses of the IRS or State
                  tax examination, including the expense of defending any
                  adjustments or proposed adjustments that are directly
                  identifiable with a particular Member, shall be billed to such
                  Member. All costs and expenses not specifically identifiable
                  with a particular Member shall be borne and paid by each
                  Member on an equitable basis determined by the Parent.

         (i)      Authority to Settle Examination. Each Subsidiary hereby waives
                  any and all present and future claims against the Parent
                  relating to any compromise, arrangement or other agreement
                  between the Parent and the IRS based on an allegation that
                  such compromise, arrangement or agreement improperly causes a
                  misstatement of its Allocated Tax Liability or that such
                  Subsidiary could have reached a more favorable agreement with
                  the IRS on a separate company basis.

         (j)      Foreign taxes. The Parent shall prepare or cause to be
                  prepared any foreign tax returns, related foreign tax
                  attributes and any excise tax returns that may be required by
                  any Subsidiary. Subsidiary shall reimburse any Member within a
                  Reasonable Period of Time after request for payment by such
                  Member of any such foreign or excise tax for payments made by
                  Member on behalf of such Subsidiary.

         (k)      Carrybacks. Subsidiaries waive the right to carryback any tax
                  attribute to a year in which they were not members of the
                  Affiliated Group.

         (l)      Tax proceedings. In the event Subsidiary is no longer a member
                  of the Affiliated Group, Subsidiary shall have the right to
                  participate in, but not control, at their own expense, a tax
                  proceeding to the extent such tax proceeding relates to a tax
                  period Subsidiary was a member of the Affiliated Group, and to
                  employ counsel of its choice at its expense. If Parent shall
                  not assume the defense of such tax proceeding, then Subsidiary
                  may assume control over such tax proceeding, at its own
                  expense.

         (m)      Deferred taxes. The Parent shall prepare or cause to be
                  prepared separate company and consolidated deferred tax
                  calculations for purposes of Generally Accepted Accounting
                  Principles (GAAP). The Parent shall prepare or cause to be
                  prepared separate company deferred tax calculations for
                  purposes of Statutory Accounting Practices (SAP). Each
                  Subsidiary shall deliver to the Parent before such date as is
                  reasonably determined by the Tax Department of the Parent all
                  data required for preparation of GAAP and SAP deferred tax
                  calculations.

         (n)      Governing law. This Agreement and the rights and obligations
                  of the parties under this Agreement shall be governed by, and
                  construed and interpreted in accordance with the law of the
                  State of Ohio.

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Tax Allocation Agreement
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IN WITNESS WHEREOF, each of the parties hereto had caused this Agreement to be
duly executed as of the date set forth above.

<TABLE>
<CAPTION>
WITNESSES:                                     INFINITY PROPERTY AND
                                               CASUALTY CORPORATION
<S>                                            <C>

                                               By:
-------------------------------                   ---------------------------------------
                                                    Roger Smith, Senior Vice President

                                               Date:
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</TABLE><PAGE>

                                                                   EXHIBIT 10.25

                   INFINITY PROPERTY AND CASUALTY CORPORATION

                                  $200,000,000
                              5.50% NOTES DUE 2014

                               PURCHASE AGREEMENT

                                                               February 11, 2004

Lehman Brothers Inc.
745 Seventh Avenue
New York, New York 10019

UBS Securities LLC
677 Washington Boulevard
Stamford, CT 06901
       as Representatives of the Initial Purchasers

Ladies and Gentlemen:

         1.       Infinity Property and Casualty Corporation, an Ohio
corporation (the "COMPANY"), proposes, subject to the terms and conditions
stated herein, to issue and sell to the Initial Purchasers named in Schedule I
hereto (the "INITIAL PURCHASERS"), for whom UBS Securities LLC and Lehman
Brothers, Inc. (the "Representatives") are acting as representatives, an
aggregate principal amount of $200,000,000 of its 5.50% Senior Notes Due 2014
(the "SECURITIES"). The Securities will be issued under an indenture (the
"INDENTURE") dated as of the Closing Date (as hereinafter defined) between the
Company and American Stock Transfer & Trust Company, as trustee (the "TRUSTEE").

         In connection with the sale of the Securities, the Company has prepared
an offering memorandum, dated the date hereof, in form and substance
satisfactory to the Initial Purchasers. As used in this Agreement, "Offering
Memorandum" means, collectively, the preliminary offering memorandum dated as of
February 10, 2004 (the "PRELIMINARY OFFERING MEMORANDUM") and the offering
memorandum dated the date hereof (the "OFFERING MEMORANDUM"), each as amended or
supplemented to the date hereof, including any and all exhibits thereto and any
information incorporated by reference therein. The Offering Memorandum sets
forth certain information concerning the Company and the Securities. The Company
hereby confirms that it has authorized the use of the Offering Memorandum, and
any amendment or supplement thereto prepared by the Company in accordance with
this Agreement, in connection with the offer and sale of the Securities by the
Initial Purchasers. Unless stated to the contrary, any references herein to the
terms "amend", "amendment" or "supplement" with respect to the Offering
Memorandum shall be deemed to refer to and include any information filed under
the Securities Exchange Act of 1934, as amended (the "EXCHANGE ACT"), subsequent
to the date and time that this Agreement is executed and delivered by the
parties hereto (the "EXECUTION TIME"), through the Closing Date, which is
expressly incorporated by reference therein.

<PAGE>

         The Initial Purchasers and their direct and indirect transferees of the
Securities will be entitled to the benefits of the Exchange and Registration
Rights Agreement, to be dated as of February 17, 2004 (the "REGISTRATION RIGHTS
AGREEMENT"), pursuant to which the Company has agreed, among other things, to
file under the Securities Act of 1933, as amended (the "ACT"), with the
Securities and Exchange Commission (the "COMMISSION") a registration statement
relating to an offer to exchange any and all of the Securities for a like
aggregate principal amount of debt securities issued by the Company (the
"Exchange Securities"), which debt securities are substantially identical to the
Securities, except that they have been registered pursuant to an effective
registration statement under the Securities Act.

         The Company has (i) acquired all of the issued and outstanding capital
stock of each of Atlanta Casualty Company, Infinity Insurance Company, Leader
Insurance Company and Windsor Insurance Company, (ii) executed and delivered (or
caused one or more of the appropriate Company subsidiaries to execute and
deliver) the agreements set forth on Exhibit A hereto (as amended through the
date of this Agreement, the "INCEPTION AGREEMENTS") including without limitation
the Reinsurance Agreement between Windsor Insurance Company and Great American
Insurance Company and certain affiliates pursuant to which, among other things,
the Company's subsidiaries reinsure certain personal lines property and casualty
insurance business written by Great American Insurance Company and (iii)
consummated or caused the consummation of the transactions contemplated by the
Inception Agreements. All of the foregoing are referred to collectively herein
as the "FORMATION." For all purposes of this Agreement, the subsidiaries of the
Company include Atlanta Casualty Company, Infinity Insurance Company, Leader
Insurance Company and Windsor Insurance Company.

         2.       Representations and Warranties of the Company. The Company
represents and warrants to, and agrees with, the Initial Purchasers that:

                  (a)      The Preliminary Offering Memorandum as of its date
and the Offering Memorandum as of its date and on the Closing Date, did not, and
will not (and any amendment or supplement thereto prepared by the Company in
accordance with this Agreement, will not), contain any untrue statement of a
material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided, however, that this representation and warranty
shall not apply to any statements or omissions made in reliance upon and in
conformity with information furnished in writing to the Company by the Initial
Purchasers specifically for use therein.

                  (b)      The documents filed with the Commission after the
date of the Preliminary Offering Memorandum through the date of this Agreement,
when they were filed with the Commission, conformed in all material respects to
the requirements of the Exchange Act, and none of such documents contained an
untrue statement of a material fact or omitted to state a material fact
necessary to make the statements therein, in the light of the circumstances
under which they are made, not misleading; and any further documents so filed
after the date of the Offering Memorandum through the Closing Date, when they
are filed with the Commission, will conform in all material respects to the
requirements of the Exchange Act and will not contain an untrue statement of a
material fact or omit to state a material fact necessary to make the statements
therein, in the light of the circumstances under which they are made, not
misleading.

                  (c)      The Securities satisfy the eligibility requirements
of Rule 144A(d)(3) under the Act.

                                       -2-

<PAGE>

                  (d)      Neither the Company nor any of its Affiliates (as
defined in Rule 501(b) under the Act), nor any person acting on its or their
behalf, has engaged in any form of general solicitation or general advertising
(within the meaning of Regulation D under the Act) in connection with any offer
or sale of the Securities in the United States.

                  (e)      Neither the Company nor any of its Affiliates, nor
any person acting on its or their behalf, has, directly or indirectly, made
offers or sales of any security, or solicited offers to buy any security, in a
manner that would cause the Securities to be required to be registered under the
Act.

                  (f)      Except as disclosed in the Offering Memorandum, there
are no contracts, agreements or understandings between the Company and any
person that would give rise to a valid claim against the Company or any Initial
Purchaser for a brokerage commission, finder's fee or other like payment.

                  (g)      The Company has not taken, directly or indirectly,
any action designed to cause or which has constituted or which might reasonably
be expected to cause or result under the Exchange Act or otherwise in the
stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of the Securities.

                  (h)      The Company has been duly incorporated and is an
existing corporation in good standing under the laws of the State of Ohio, with
power and authority (corporate and other) to own its properties and conduct its
business as described in the Offering Memorandum; and the Company is duly
qualified to do business as a foreign corporation in good standing in all other
jurisdictions in which its ownership or lease of property or the conduct of its
business requires such qualification.

                  (i)      Each subsidiary of the Company has been duly
incorporated and is an existing corporation in good standing under the laws of
the jurisdiction of its incorporation, with power and authority (corporate and
other) to own its properties and conduct its business as described in the
Offering Memorandum; and each subsidiary of the Company is duly qualified to do
business as a foreign corporation in good standing in all other jurisdictions in
which its ownership or lease of property or the conduct of its business requires
such qualification except where the failure to so qualify would not have a
material adverse effect on the condition (financial or other), business,
properties or results of operations of the Company and its subsidiaries taken as
a whole ("Material Adverse Effect"); all of the issued and outstanding capital
stock of each subsidiary of the Company has been duly authorized and validly
issued and is fully paid and nonassessable; and except as otherwise disclosed in
the Offering Memorandum, the capital stock of each subsidiary owned by the
Company, directly or through subsidiaries, is owned free from liens,
encumbrances and defects.

                  (j)      The Formation did not, and will not, result in any
tax liability to the Company or any of its subsidiaries.

                  (k)      Except as disclosed in the Offering Memorandum, the
Company and its subsidiaries have good and marketable title to all real
properties and all other properties and assets owned by them, in each case free
from liens, encumbrances and defects that would materially affect the value
thereof or materially interfere with the use made or to be made thereof by them;
and except as disclosed in the Offering Memorandum, the Company and its
subsidiaries

                                       -3-

<PAGE>

hold any leased real or personal property under valid and enforceable leases
with no exceptions that would materially interfere with the use made or to be
made thereof by them.

                  (l)      The Company and its subsidiaries possess adequate
certificates, authorities or permits issued by appropriate governmental agencies
or bodies necessary to conduct the business now operated (or contemplated by the
Offering Memorandum to be operated) by them and have not received any notice of
proceedings relating to the revocation or modification of any such certificate,
authority or permit that, if determined adversely to the Company or any of its
subsidiaries, would individually or in the aggregate have a Material Adverse
Effect.

                  (m)      No labor dispute with the employees of the Company or
any subsidiary exists or, to the knowledge of the Company, is imminent that
might have a Material Adverse Effect.

                  (n)      The Company and its subsidiaries own, possess or can
acquire on reasonable terms, adequate trademarks, trade names and other rights
to inventions, know-how, patents, copyrights, confidential information and other
intellectual property (collectively, "INTELLECTUAL PROPERTY RIGHTS") necessary
to conduct the business now operated (or contemplated by the Offering Memorandum
to be operated) by them, or presently employed by them, and have not received
any notice of infringement of or conflict with asserted rights of others with
respect to any intellectual property rights that, if determined adversely to the
Company or any of its subsidiaries, would individually or in the aggregate have
a Material Adverse Effect.

                  (o)      Except as disclosed in the Offering Memorandum,
neither the Company nor any of its subsidiaries is in violation of any statute,
any rule, regulation, decision or order of any governmental agency or body or
any court, domestic or foreign, relating to the use, disposal or release of
hazardous or toxic substances or relating to the protection or restoration of
the environment or human exposure to hazardous or toxic substances
(collectively, "ENVIRONMENTAL LAWS"), owns or operates any real property
contaminated with any substance that is subject to any environmental laws, is
liable for any off-site disposal or contamination pursuant to any environmental
laws, or is subject to any claim relating to any environmental laws, which
violation, contamination, liability or claim would individually or in the
aggregate have a Material Adverse Effect; and the Company is not aware of any
pending investigation which might lead to such a claim.

                  (p)      Except as disclosed in the Offering Memorandum, there
are no pending actions, suits or proceedings against or affecting the Company,
any of its subsidiaries or any of their respective properties that, if
determined adversely to the Company or any of its subsidiaries, would
individually or in the aggregate have a Material Adverse Effect, or would
materially and adversely affect the ability of the Company to perform its
obligations under this Agreement, the Indenture or the Registration Rights
Agreement or which are otherwise material in the context of the sale of the
Securities; and no such actions, suits or proceedings are threatened or, to the
Company's knowledge, contemplated;

                  (q)      The financial statements included or incorporated by
reference in the Offering Memorandum present fairly the financial position of
the Company and its consolidated subsidiaries as of the dates shown and their
results of operations and cash flows for the periods shown, and, except as
otherwise disclosed in the Offering Memorandum, such financial

                                       -4-

<PAGE>

statements have been prepared in conformity with generally accepted accounting
principles in the United States applied on a consistent basis and the
assumptions used in preparing the pro forma financial statements included in the
Offering Memorandum provide a reasonable basis for presenting the significant
effects directly attributable to the transactions or events described therein,
the related pro forma adjustments give appropriate effect to those assumptions,
and the pro forma columns therein reflect the proper application of those
adjustments to the corresponding historical financial statement amounts. The
Company's ratios of earnings to fixed charges set forth in the Offering
Memorandum have been calculated in compliance with Item 503(d) of Regulation S-K
under the Securities Act.

                  (r)      Except as disclosed in the Offering Memorandum, since
December 31, 2002 there has been no material adverse change, nor any development
or event involving a prospective material adverse change, in the condition
(financial or other), business, properties or results of operations of the
Company and its subsidiaries taken as a whole, and, except as disclosed in the
Offering Memorandum, there has been no dividend or distribution of any kind
declared, paid or made by the Company on any class of its capital stock.

                  (s)      The Company is not and, after giving effect to the
offering and sale of the Securities, will not be an "investment company" as
defined in the Investment Company Act of 1940.

                  (t)      The Securities have been duly authorized and, when
executed and authenticated in accordance with the Indenture and delivered and
paid for pursuant to this Agreement, will have been duly executed and delivered
and will constitute valid and legally binding obligations of the Company,
enforceable in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general
applicability relating to or affecting creditors' rights and to general equity
principles and entitled to the benefits of the Indenture; and the Exchange
Securities have been duly authorized by the Company, and, when duly executed,
issued and authenticated in accordance with the Indenture, will constitute valid
and legally binding obligations of the Company, enforceable against the Company,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization
moratorium and similar laws of general applicability relating to or affecting
creditors' rights and to general equity principles and entitled to the benefits
of the Indenture.

                  (u)      This Agreement has been duly authorized, executed and
delivered by the Company.

                  (v)      The Registration Rights Agreement has been duly
authorized by the Company and, when executed and delivered by the Company, will
constitute a valid and legally binding instrument of the Company enforceable in
accordance with its terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors' rights, to general equity principles and to
any applicable public policy that may limit or restrict the validity or
enforceability of indemnities or agreements that contain indemnities with
respect to liabilities under the Act.

                  (w)      The Indenture has been duly authorized and, when
executed and delivered by the Company, will constitute a valid and legally
binding instrument of the Company enforceable in accordance with its terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting

                                       -5-

<PAGE>

creditors' rights and to general equity principles; and the Registration Rights
Agreement, Securities and the Indenture will conform in all material respects to
the descriptions thereof in the Offering Memorandum.

                  (x)      The issue and sale of the Securities and the
compliance by the Company with all of the terms thereof and of the Indenture,
the Registration Rights Agreement and this Agreement, and the consummation of
the transactions contemplated herein and therein and of the Formation will not
and did not, as the case may be, result in a breach or violation of any of the
terms or provisions of, or constitute a default under (i) any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to
which the Company or any of its subsidiaries is a party or by which the Company
or any of its subsidiaries is bound or to which any of the property or assets of
the Company or any of its subsidiaries is subject; (ii) the charter or by-laws
(or similar corporate documents) of the Company or any of its subsidiaries; or
(iii) any law, statute or any order, rule or regulation of any court or
regulatory authority or governmental agency or body having jurisdiction over the
Company or any of its subsidiaries or any of its or their properties, except, in
the case of clauses (i) and (iii) above, for such breaches, defaults and
violations that would not result in a Material Adverse Effect or affect the
validity of the Securities; and (assuming the accuracy and completeness of the
representations and warranties of the Initial Purchasers contained herein and
the compliance by the Initial Purchasers with their obligations hereunder) no
registration of the Securities under the Act, or qualification of the Indenture
under the Trust Indenture Act, is required for (i) the offer or sale of the
Securities by the Company to the Initial Purchasers or (ii) the re-offer and
initial resale of the Securities by the Initial Purchasers to "qualified
institutional buyers" (as defined in Rule 144A under the Act) in the manner
contemplated by this Agreement and as described in the Offering Memorandum, no
consent, approval, authorization, registration or qualification of or with any
court or any regulatory authority or other governmental agency or body is
required for the issue and sale of the Securities or the consummation of the
other transactions contemplated by this Agreement, the Registration Rights
Agreement or the Indenture, except for the registration of the substantially
similar debt securities under the Act, and the qualification of an indenture
under the Trust Indenture Act of 1939, as amended (the "TRUST INDENTURE ACT"),
as specifically set forth in the Registration Rights Agreement, and such
consents, approvals, authorizations, registrations or qualifications as may be
required under state securities or Blue Sky or insurance securities laws in
connection with the purchase and distribution by the Initial Purchasers of the
Securities.

                  (y)      Each subsidiary of the Company which is engaged in
the business of insurance or reinsurance (collectively, the "INSURANCE
SUBSIDIARIES") holds such insurance licenses, certificates and permits from
governmental authorities (including, without limitation, from the insurance
regulatory agencies of the various jurisdictions where it conducts business (the
"INSURANCE LICENSES")) as are necessary to the conduct of its business as
described in the Offering Memorandum; the Company and each Insurance Subsidiary
have fulfilled and performed all obligations necessary to maintain the Insurance
Licenses; except as disclosed in the Offering Memorandum, there is no pending
or, to the knowledge of the Company, threatened action, suit, proceeding or
investigation that could reasonably be expected to result in the revocation,
termination or suspension of any Insurance License which would, individually or
in the aggregate, have a Material Adverse Effect; and except as disclosed in the
Offering Memorandum, no insurance regulatory agency or body has issued, or
commenced any proceeding for the issuance of, any order or decree impairing,
restricting or prohibiting the payment of dividends by any Insurance Subsidiary
to its parent.

                                       -6-

<PAGE>

                  (z)      Except as disclosed in the Offering Memorandum, the
Company and its Insurance Subsidiaries have made no material change in their
insurance reserving practices since December 31, 2002.

                  (aa)     All reinsurance treaties, contracts or agreements to
which any Insurance Subsidiary is a party are in full force and effect and no
Insurance Subsidiary is in violation of, or in default in the performance,
observance or fulfillment of, any obligation, agreement, covenant or condition
contained therein; no Insurance Subsidiary has received any notice from any of
the other parties to such treaties, contracts or agreements that such other
party intends not to perform such treaty, contract or agreement and, to the best
knowledge of the Company and the Insurance Subsidiaries, the Company and the
Insurance Subsidiaries have no reason to believe that any of the other parties
to such treaties, contracts or agreements will be unable to perform such treaty,
contract or agreement except to the extent adequately and properly reserved for
in the audited historical financial statements of the Company included in the
Offering Memorandum, except where such default or inability to perform would
not, individually or in the aggregate, have a Material Adverse Effect.

                  (bb)     The statutory financial statements of the Insurance
Subsidiaries, from which certain ratios and other statistical data included in
the Offering Memorandum have been derived, have been prepared for each relevant
period in conformity with statutory accounting principles or practices required
or permitted by the National Association of Insurance Commissioners and by the
appropriate Insurance Department of the jurisdiction of domicile of each
Insurance Subsidiary, and such statutory accounting practices have been applied
on a consistent basis throughout the periods involved, except as may otherwise
be indicated therein or in the notes thereto, and present fairly in all material
respects the statutory financial position of the Insurance Subsidiaries as of
the dates thereof, and the statutory basis results of operations of the
Insurance Subsidiaries for the periods covered thereby.

                  (cc)     The Company is not aware of any threatened or pending
downgrading of any Insurance Subsidiaries' claims-paying ability rating from
A.M. Best Company, Inc. or financial strength rating from Standard & Poor's
Rating Services, Inc. or Fitch, Inc.

                  (dd)     Ernst & Young LLP, which has certified certain
financial statements of the Company and its subsidiaries and delivered its
report with respect to the audited consolidated financial statements and
schedules included or incorporated by reference in the Offering Memorandum, is
or was independent public accountants with respect to the Company when serving
as the Company's accountants within the meaning of the Act and the applicable
published rules and regulations thereunder.

                  (ee)     The Company and each of its subsidiaries maintain a
system of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management's
general or specific authorizations; (ii) transactions are recorded as necessary
to permit preparation of financial statements in conformity with generally
accepted accounting principles and to maintain asset accountability; (iii)
access to assets is permitted only in accordance with management's general or
specific authorization; and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action
is taken with respect to any differences.

                                       -7-

<PAGE>

         Any certificate signed by any officer of the Company and delivered to
the Initial Purchasers or counsel for the Initial Purchasers in connection with
the offering of the Securities shall be deemed a representation and warranty by
the Company, as to matters covered thereby, to each Initial Purchaser.

         3.       Purchase, Offering and Delivery. Subject to the terms and
conditions herein set forth, the Company agrees to issue and sell to the Initial
Purchasers, and each Initial Purchaser, severally and not jointly, on the basis
of the representations and warranties contained herein, agrees to purchase from
the Company the respective principal amount of Securities set forth opposite
such Initial Purchaser's name in Schedule I hereto, at a purchase price of
98.978% of the principal amount thereof, plus any accrued interest from February
17, 2004 to the date of payment and delivery.

         The Securities to be purchased by the Initial Purchasers will be
represented by one or more global Securities in book-entry form which will be
deposited by or on behalf of the Company with The Depository Trust Company
("DTC") or its designated custodian. The Company will deliver the Securities to
the Initial Purchasers, against payment by the Initial Purchasers of the
purchase price therefor by wire transfer of federal (same-day) funds to the
account specified by the Company to the Initial Purchasers at least forty-eight
hours in advance, by causing DTC to credit the Securities to the accounts of the
Initial Purchasers at DTC. The delivery of and payment for the securities shall
be made at the offices of Dewey Ballantine LLP, 1301 Avenue of the Americas, New
York, New York 10019 (or such other place as may be agreed to by the Company and
the Initial Purchasers) at 9:00 a.m., New York City time, on February 17, 2004
or such other time and date as the Representatives and the Company may agree
upon in writing. Such time and date for delivery of the Securities is herein
called the "CLOSING DATE". The Company will cause specimen copies of the
certificates representing the Securities to be made available to the Initial
Purchasers for checking at least forty-eight hours prior to the Closing Date at
the office of Dewey Ballantine LLP.

         4.       Representations and Warranties of the Initial Purchasers.

                  (a)      Each Initial Purchaser represents and warrants to,
and agrees with, the Company that:

                           (i)      It has not offered or sold, and will not
         offer or sell, any Securities except to entities it reasonably believes
         to be qualified institutional buyers (as defined in Rule 144A under the
         Act) and that, in connection with each such sale, it has taken or will
         take reasonable steps to ensure that the purchaser of such Securities
         is aware that such sale is being made in reliance on Rule 144A.

                           (ii)     Neither it, nor any of its Affiliates nor
         any person acting on its behalf, has made or will make offers or sales
         of the Securities in the United States by means of any form of general
         solicitation or general advertising (within the meaning of Regulation D
         under the Act).

                           (iii)    Any offer or sale of the Securities through
         an electronic medium has been and will be made in accordance in all
         material respects with the Act.

                                       -8-

<PAGE>

         5.       Covenants of the Company. The Company covenants and agrees
with the Initial Purchasers that:

                  (a)      The Company will not amend or supplement the Offering
Memorandum, without the prior written consent of the Representatives. The
Company will not file any document under the Exchange Act after the date of the
Offering Memorandum through the Closing Date unless, prior to such proposed
filing, the Company has furnished the Initial Purchasers with a copy of such
document for their review and the Representatives have not reasonably objected
to the filing of such document. The Company will promptly advise the Initial
Purchasers when any document filed under the Exchange Act through the Closing
Date shall have been filed with the Commission.

                  (b)      If any event occurs as a result of which the Offering
Memorandum as then amended or supplemented would include an untrue statement of
a material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading, or if it should be necessary to amend or supplement the
Offering Memorandum to comply with applicable law, the Company promptly (i) will
notify the Initial Purchasers in writing of any such event and (ii) subject to
the requirements of paragraph (a) of this Section 5, will prepare an amendment
or supplement which will correct such statement or omission or effect such
compliance. The expense of complying with the requirements of this Section 5(b)
shall be borne by the Company.

                  (c)      The Company will furnish to the Initial Purchasers
copies of the Offering Memorandum, and all amendments and supplements thereto,
in each case as soon as available and in such quantities as the Initial
Purchasers request.

                  (d)      The Company will arrange, if necessary, for the
qualification of the Securities for sale by the Initial Purchasers under the
laws of such jurisdictions as the Initial Purchasers may designate and will
maintain such qualifications in effect so long as required for the sale of the
Securities; provided that in no event shall the Company be obligated to qualify
to do business in any jurisdiction where it is not now so qualified or to take
any action that would subject it to service of process in suits, other than
those arising out of the offering or sale of the Securities, or taxation in any
jurisdiction where it is not now so subject. The Company will promptly advise
the Initial Purchasers in writing of the receipt by the Company of any
notification with respect to the suspension of the qualification of the
Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose.

                  (e)      Neither the Company nor any of its Affiliates, nor
any person acting on its or their behalf, will, directly or indirectly, offer or
sell any security, or solicit offers to buy any security, in a manner that would
cause the Securities to be required to be registered under the Act.

                  (f)      The Company will not, and will not permit any of its
Affiliates, nor any person acting on its or their behalf, to engage in any form
of general solicitation or general advertising (within the meaning of Regulation
D under the Act) in connection with any offer or sale of the Securities in the
United States.

                  (g)      The Company will not take, directly or indirectly,
any action designed to or which has constituted or which might reasonably be
expected to cause or result, under the

                                       -9-

<PAGE>

Exchange Act or otherwise, in stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of the Securities.

                  (h)      The Company will provide to each holder of the
Securities and to each prospective purchaser (as designated by such holder) of
the Securities, upon the request of such holder or prospective purchaser, any
information required to be provided by Rule 144A(d)(4) under the Act. This
covenant is intended to be for the benefit of the holders, and the prospective
purchasers designated by such holders, from time to time of such restricted
securities.

                  (i)      The Company will pay or cause to be paid the
following:

                           (i)      the fees, disbursements and expenses of the
         Company's counsel and accountants in connection with the distribution
         of the Securities and all other expenses in connection with the
         preparation and printing of the Preliminary Offering Memorandum and the
         Offering Memorandum and amendments and supplements thereto and the
         mailing and delivering of copies thereof to the Initial Purchasers;

                           (ii)     any stamp or transfer taxes in connection
         with the original issuance and sale of the Securities;

                           (iii)    the cost of preparing this Agreement, the
         Registration Rights Agreement, the Indenture and any other documents to
         be delivered by the Company in connection with the offering, purchase,
         sale and delivery of the Securities;

                           (iv)     the cost of preparing the Securities;

                           (v)      the fees and expenses of any Trustee and any
         agent of any Trustee and the fees and disbursements of counsel for any
         Trustee in connection with the Indenture and the Securities;

                           (vi)     any registration or qualification of the
         Securities for offer and sale under the securities or blue sky laws of
         the several states (including filing fees and the reasonable fees and
         expenses of counsel for the Initial Purchasers relating to such
         registration and qualification);

                           (vii)    the transportation and other expenses
         incurred by or on behalf of Company representatives in connection with
         presentations to prospective Initial Purchasers of the Securities; and

                           (viii)   all other costs and expenses incident to the
         performance of its obligations hereunder which are not otherwise
         specifically provided for in this Section. It is understood, however,
         that, except as provided in this Section, Section 7, Section 9 and
         Section 13 hereof, the Initial Purchasers will pay all of their own
         costs and expenses, including the fees of their counsel, transfer taxes
         on resale of any of the Securities by them, and any expenses connected
         with any offers they may make.

                  (j)      During the period beginning on the date hereof and
continuing to and including fifteen business days after the Closing Date the
Company will not, without the prior

                                      -10-

<PAGE>

consent of the Representatives, offer or sell any of its United States dollar
denominated long-term, unsecured debt securities that are substantially similar
to the Securities.

         6.       Conditions of the Obligations of the Initial Purchasers. The
obligations of the Initial Purchasers to purchase and pay for the Securities
will be subject to the accuracy, at the Execution Time and as of the Closing
Date of the representations and warranties on the part of the Company herein, to
the accuracy of the statements of Company officers made pursuant to the
provisions hereof, to the performance by the Company of its obligations
hereunder and to the following additional conditions:

                  (a)      For the period from and after the Execution Time and
prior to the Closing Date:

                           (i)      there shall not have occurred any change, or
         any development or event involving a prospective change, in the
         condition (financial or other), business, properties or results of
         operations of the Company or its subsidiaries which, in the judgment of
         the Representatives, is so material and adverse as to make it
         impractical or inadvisable to proceed with the offering or delivery of
         the Securities as contemplated in the Offering Memorandum; and

                           (ii)     there shall not have occurred any
         downgrading in the rating of any debt securities or preferred stock of
         the Company by any "nationally recognized statistical rating
         organization" (as defined for purposes of Rule 436(g) under the Act) or
         downgrading in the insurance claims paying ability rating of any
         Insurance Subsidiary by A.M. Best Company, or any public announcement
         that any such organization has under surveillance or review such rating
         (other than an announcement with positive implications of a possible
         upgrading, and no implication of a possible downgrading, of such
         rating).

                  (b)      The Initial Purchasers shall have received an opinion
of Keating, Muething & Klekamp, P.L.L., counsel for the Company, dated the
Closing Date, to the effect that:

                           (i)      The Company has been duly incorporated and
         is an existing corporation in good standing under the laws of the State
         of Ohio, with corporate power and authority to own its properties and
         conduct its business as described in the Offering Memorandum; and the
         Company is duly qualified to do business as a foreign corporation in
         good standing in all other jurisdictions in which its ownership or
         lease of property or the conduct of its business requires such
         qualification;

                           (ii)     Each subsidiary of the Company has been duly
         incorporated and is an existing corporation in good standing under the
         laws of the jurisdiction of its incorporation, with power and authority
         (corporate and other) to own its properties and conduct its business as
         described in the Offering Memorandum; and each subsidiary of the
         Company is duly qualified to do business as a foreign corporation in
         good standing in all other jurisdictions in which its ownership or
         lease of property or the conduct of its business requires such
         qualification except where the failure to so qualify would not result
         in a Material Adverse Effect; all of the issued and outstanding capital
         stock of each subsidiary of the Company has been duly authorized and
         validly issued and is fully paid

                                      -11-

<PAGE>

         and nonassessable; and the capital stock of each subsidiary owned by
         the Company, directly or through subsidiaries, is owned free from
         liens, encumbrances and defects;

                           (iii)    The Company has corporate power and
         authority to enter into and perform its obligations under this
         Agreement, the Registration Rights Agreement, the Indenture and the
         Securities;

                           (iv)     The Indenture has been duly authorized,
         executed and delivered by the Company and constitutes a valid and
         legally binding instrument of the Company enforceable in accordance
         with its terms, subject to bankruptcy, insolvency, fraudulent transfer,
         reorganization, moratorium and similar laws of general applicability
         relating to or affecting creditors' rights and to general equity
         principles;

                           (v)      The Registration Rights Agreement has been
         duly authorized, executed and delivered by the Company and constitutes
         a valid and legally binding instrument of the Company enforceable in
         accordance with its terms, subject to bankruptcy, insolvency,
         fraudulent transfer, reorganization, moratorium and similar laws of
         general applicability relating to or affecting creditors' rights and to
         general equity principles; provided that such counsel need not express
         any opinion regarding the enforceability of provisions therein relating
         to indemnification, exculpation or contribution, to the extent that
         such provisions may be held contrary to federal or state securities
         laws;

                           (vi)     The Securities have been duly authorized and
         executed by the Company, and when authenticated in accordance with the
         Indenture and delivered to and paid for by the Initial Purchasers in
         accordance with the terms of this Agreement, will constitute valid and
         legally binding obligations of the Company enforceable in accordance
         with their terms and entitled to the benefits of the Indenture, subject
         to bankruptcy, insolvency, fraudulent transfer, reorganization,
         moratorium and similar laws of general applicability relating to or
         affecting creditors' rights and to general equity principles;

                           (vii)    The Exchange Securities have been duly
         authorized by the Company, and, when duly executed and authenticated in
         accordance with the Indenture, and delivered pursuant to the exchange
         offer contemplated by the Registration Rights Agreement, will
         constitute valid and legally binding obligations of the Company
         enforceable in accordance with their terms and entitled to the benefits
         of the Indenture, subject to bankruptcy, insolvency, fraudulent
         transfer, reorganization moratorium and similar laws of general
         applicability relating to or affecting creditors' rights and to general
         equity principles;

                           (viii)   This Agreement has been duly authorized,
         executed and delivered by the Company;

                           (ix)     The issue and sale of the Securities and the
         compliance by the Company with all of the terms thereof and of the
         Indenture, the Registration Rights Agreement and this Agreement, and
         the consummation of the transactions contemplated herein and therein
         and of the Formation will not and did not, as the case may be, result
         in a breach or violation of any of the terms or provisions of, or
         constitute a default under (i)

                                      -12-

<PAGE>

         any indenture, mortgage, deed of trust, loan agreement or other
         agreement or instrument to which the Company or any of its subsidiaries
         is a party or by which the Company or any of its subsidiaries is bound
         or to which any of the property or assets of the Company or any of its
         subsidiaries is subject; (ii) the charter or by-laws (or similar
         corporate documents) of the Company or any of its subsidiaries; or
         (iii) any law, statute or any order, rule or regulation of any court or
         regulatory authority or governmental agency or body having jurisdiction
         over the Company or any of its subsidiaries or any of its or their
         properties, except, in the case of clauses (i) and (iii) above, for
         such breaches, defaults and violations that would not result in a
         Material Adverse Effect or affect the validity of the Securities; and
         (assuming the accuracy and completeness of the representations and
         warranties of the Initial Purchasers contained herein and the
         compliance by the Initial Purchasers with their obligations hereunder)
         no registration of the Securities under the Act, or qualification of
         the Indenture under the Trust Indenture Act, is required for (i) the
         offer or sale of the Securities by the Company to the Initial
         Purchasers or (ii) the re-offer and initial resale of the Securities by
         the Initial Purchasers to "qualified institutional buyers" (as defined
         in Rule 144A under the Act) in the manner contemplated by this
         Agreement and as described in the Offering Memorandum, no consent,
         approval, authorization, registration or qualification of or with any
         court or any regulatory authority or other governmental agency or body
         is required for the issue and sale of the Securities or the
         consummation of the other transactions contemplated by this Agreement,
         the Registration Rights Agreement or the Indenture, except for the
         registration of the substantially similar debt securities under the
         Act, and the qualification of an indenture under the Trust Indenture
         Act, as specifically set forth in the Registration Rights Agreement,
         and such consents, approvals, authorizations, registrations or
         qualifications as may be required under state securities or Blue Sky or
         insurance securities laws in connection with the purchase and
         distribution by the Initial Purchasers of the Securities.

                           (x)      Each document filed pursuant to the Exchange
         Act after the date of the Preliminary Offering Memorandum through the
         Closing Date complied on its face as to form when so filed in all
         material respects with the Exchange Act and the rules and regulations
         of the Commission thereunder.

                           (xi)     Insofar as the statements in the Offering
         Memorandum under the captions "Description of Notes" and "Exchange
         Offer; Registration Rights," purport to describe specific provisions of
         the Securities, the Indenture or the Registration Rights Agreement,
         such statements present in all material respects an accurate summary of
         such provisions; insofar as the statements in the Offering Memorandum
         under the caption "ERISA Considerations" purport to describe specific
         provisions of the Employee Retirement Income Security Act of 1974, as
         amended or any other law, rule or regulation, such statements present
         in all material respects an accurate summary of such provisions;

                           (xii)    The Company is not and, after giving effect
         to the offering and sale of the Securities, will not be an "investment
         company" as defined in the Investment Company Act of 1940;

                           (xiii)   No consent, approval, authorization or order
         of, or filing with, any governmental agency or body or any court was or
         is required to be obtained or made by the Company or any subsidiary of
         the Company for the consummation of the Formation except such as have
         been obtained;

                                      -13-

<PAGE>

                           (xiv)    Except as disclosed in the Offering
         Memorandum, to the knowledge of such counsel, there are no pending
         actions, suits or proceedings against or affecting the Company, any of
         its subsidiaries or any of their respective properties that, if
         determined adversely to the Company or any of its subsidiaries, would
         individually or in the aggregate have a Material Adverse Effect, or
         would materially and adversely affect the ability of the Company to
         perform its obligations under this Agreement, the Indenture or the
         Registration Rights Agreement or which are otherwise material in the
         context of the sale of the Securities; and to the knowledge of such
         counsel, no such actions, suits or proceedings are threatened or
         contemplated;

                           (xv)     To the knowledge of such counsel (after
         reasonable investigation), each Insurance Subsidiary holds such
         insurance licenses, certificates and permits from governmental
         authorities (including, without limitation, Insurance Licenses) as are
         necessary to the conduct of its business as described in the Offering
         Memorandum; to the knowledge of such counsel, there is no pending or
         threatened action, suit, proceeding or investigation that could
         reasonably be expected to result in the revocation, termination or
         suspension of any Insurance License which would have a Material Adverse
         Effect; and except as disclosed in the Offering Memorandum, to the
         knowledge of such counsel, no insurance regulatory agency or body has
         issued, or commenced any proceeding for the issuance of, any order or
         decree impairing, restricting or prohibiting the payment of dividends
         by any Insurance Subsidiary to its parent;

                           (xvi)    To the knowledge of such counsel, all
         reinsurance treaties and arrangements to which any Insurance Subsidiary
         is a party are in full force and effect and such counsel is not aware
         of any violation of, or default in the performance, observance or
         fulfillment of, any obligation, agreement, covenant or condition
         contained therein by any Insurance Subsidiary; and

                           (xvii)   The Formation did not, and will not, result
         in any tax liability to the Company or any of its subsidiaries.

         In addition, such counsel shall state that they have participated in
conferences with officers and other representatives of the Company,
representatives of the independent public or certified public accountants for
the Company and with representatives of the Initial Purchasers at which the
contents of the Offering Memorandum, and any supplements or amendments thereto,
and related matters were discussed and, although such counsel is not passing
upon and does not assume any responsibility for the accuracy, completeness or
fairness of the statements contained in the Offering Memorandum (other than as
specified above), and any supplements or amendments thereto, on the basis of the
foregoing, nothing has come to their attention which would lead them to believe
that either the Offering Memorandum or any amendments thereto, as of its date or
at the Closing Date, as the case may be, contained an untrue statement of a
material fact or omitted to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading (it being understood that such counsel need express no
belief as to the financial statements and the notes related thereto and the
other financial data included or incorporated by reference in the Offering
Memorandum or any amendments or supplements thereto).

         In rendering such opinion, such counsel may rely as to matters of fact,
to the extent they deem proper, on certificates of responsible officers of the
Company and public officials. Such

                                      -14-

<PAGE>

opinion shall state that Dewey Ballantine LLP may rely upon such opinion as to
matters of Ohio law in rendering its opinion pursuant to Section 6(c) hereof

                  (c)      The Initial Purchasers shall have received from Dewey
Ballantine LLP, counsel for the Initial Purchasers, such opinion, dated the
Closing Date, with respect to the validity of the Securities, the Offering
Memorandum and other related matters as the Initial Purchasers may reasonably
require, and the Company shall have furnished to such counsel such documents as
they reasonably request for the purpose of enabling them to pass upon such
matters.

         In rendering such opinion, Dewey Ballantine LLP may rely as to all
matters governed by Ohio law upon the opinion of Keating, Muething & Klekamp,
P.L.L. referred to above.

                  (d)      The Initial Purchasers shall have received a
certificate of the Chairman of the Board or Chief Executive Officer and the
Chief Financial Officer or Chief Accounting Officer of the Company, dated the
Closing Date, in which such officers shall state that the representations and
warranties of the Company in this Agreement are true and correct on and as of
the Closing Date, that the Company has complied with all agreements and
satisfied all conditions on its part to be performed or satisfied and that,
since the respective dates as of which information is given in the Offering
Memorandum there has not been any material adverse change, nor any development
or event involving a prospective material adverse change, in the condition
(financial or other), business, properties or results of operations of the
Company and its subsidiaries taken as a whole, otherwise than as specifically
set forth in the Offering Memorandum.

                  (e)      At the Execution Time and at the Closing Date, the
Initial Purchasers shall have received a letter of Ernst & Young LLP, in form
and substance satisfactory to the Initial Purchasers, containing statements and
information of the type customarily included in accountants' "comfort letters"
to underwriters with respect to the financial statements and certain financial
information contained or incorporated by reference in the Offering Memorandum;
provided that the letter delivered on the Closing Date shall use a "cut-off"
date no more than three business days prior to the Closing Date.

                  (f)      The Company and the Initial Purchasers shall have
executed and delivered the Registration Rights Agreement (in form and substance
satisfactory to the Initial Purchasers), and the Registration Rights Agreement
shall be in full force and effect.

         The Company will furnish the Initial Purchasers with such conformed
copies of such opinions, certificates, letters and documents as the Initial
Purchasers reasonably request.

         7.       Indemnification. (a) The Company will indemnify and hold
harmless each Initial Purchaser, its partners, members, directors and officers
and each person, if any, who controls such Initial Purchaser within the meaning
of Section 15 of the Act, against any losses, claims, damages or liabilities,
joint or several, to which the Initial Purchasers or such persons may become
subject, under the Act, the Exchange Act or other federal or state statutory law
or regulation, or at common law or otherwise (including in settlement of any
litigation), insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon any untrue statement or
alleged untrue statement of any material fact contained in the Offering
Memorandum, or any amendment or supplement thereto, or arise out of or are based
upon the omission or alleged omission to state therein a material fact necessary
to make the

                                      -15-

<PAGE>

statements therein not misleading; and will reimburse each Initial Purchaser,
its partners, members, directors and officers and each person, if any, who
controls such Initial Purchaser within the meaning of Section 15 of the Act, for
any legal or other expenses incurred by the Initial Purchasers or such persons
in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the Company will not be liable in
any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon an untrue statement or alleged untrue statement
or omission or alleged omission made in the Offering Memorandum in reliance upon
and in conformity with written information furnished to the Company by the
Initial Purchasers specifically for use therein. This indemnity agreement will
be in addition to any liability which the Company may otherwise have.

                  (b)      The Initial Purchasers severally and not jointly will
indemnify and hold harmless the Company and each person, if any, who controls
the Company within the meaning of Section 15 of the Act against any losses,
claims, damages or liabilities to which the Company or such controlling person
may become subject, under the Act, the Exchange Act or other federal or state
statutory law or regulation, or at common law or otherwise (including in
settlement of any litigation, if such settlement is effected with the written
consent of such Initial Purchaser), insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
the Offering Memorandum or any amendment or supplement thereto, or arise out of
or are based upon the omission or the alleged omission to state therein a
material fact necessary to make the statements therein not misleading, in each
case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company by the
Initial Purchasers specifically for use therein; and will reimburse any legal or
other expenses incurred by the Company or such controlling person in connection
with investigating or defending any such loss, claim, damage, liability or
action. This indemnity agreement will be in addition to any liability which the
Initial Purchasers may otherwise have. The Company acknowledges that the
statements set forth in the third sentence of paragraph six related to
market-making activities; the first two sentences of paragraph seven related to
stabilization, syndicate covering transactions and over-allotment; and the
eighth full paragraph related to Market Axess Inc. under the heading "Plan of
Distribution" in the Offering Memorandum, constitute the only information
furnished in writing by or on behalf of the Initial Purchasers for inclusion in
the Offering Memorandum (or in any amendment or supplement thereto).

                  (c)      Promptly after receipt by an indemnified party under
this Section of notice of the commencement of any action, such indemnified party
will, if a claim in respect thereof is to be made against the indemnifying party
under this Section, notify the indemnifying party of the commencement thereof;
but failure to so notify an indemnifying party shall not relieve such
indemnifying party from any liability hereunder to the extent it is not
materially prejudiced as a result thereof and in any event shall not relieve it
from any liability which it may have otherwise than on account of this indemnity
agreement. In case any such action is brought against any indemnified party, and
it notifies the indemnifying party of the commencement thereof, the indemnifying
party will be entitled to participate therein and, to the extent that it may
wish, jointly with any other indemnifying party similarly notified, to assume
the defense thereof, with counsel satisfactory to such indemnified party (who
shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under this
Section for any legal (other than local

                                      -16-

<PAGE>

counsel) or other expenses subsequently incurred by such indemnified party in
connection with the defense thereof other than reasonable costs of
investigation. Notwithstanding the indemnifying party's election to appoint
counsel to represent the indemnified party in an action, the indemnified party
shall have the right to employ separate counsel (including local counsel), and
the indemnifying party shall bear the reasonable fees, costs and expenses of
such separate counsel if (i) the use of counsel chosen by the indemnifying party
to represent the indemnified party would present such counsel with a conflict of
interest; (ii) the actual or potential defendants in, or targets of, any such
action include both the indemnified party and the indemnifying party and the
indemnified party shall have reasonably concluded that there may be legal
defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party; (iii) the
indemnifying party shall not have employed counsel to the indemnified party to
represent the indemnified party within a reasonable time after notice of the
institution of such action; or (iv) the indemnifying party shall authorize the
indemnified party to employ separate counsel at the expense of the indemnifying
party. An indemnifying party will not, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any pending or threatened claim, action, suit or
proceeding in respect of which indemnification or contribution may be sought
hereunder (whether or not the indemnified parties are actual or potential
parties to such claim or action) unless such settlement, compromise or consent
(i) includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding and (ii) does
not include a statement as to or an admission of fault, culpability or failure
to act by or on behalf of any indemnified party.

                  (d)      If the indemnification provided for in this Section 7
is unavailable to or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above in respect of any losses, claims, damages or
liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or
actions in respect thereof) in such proportion as is appropriate to reflect the
relative benefits received by the Company on the one hand and the Initial
Purchasers on the other from the offering of the Securities to which such loss,
claim, damage or liability (or action in respect thereof) relates. If, however,
the allocation provided by the immediately preceding sentence is not permitted
by applicable law or if the indemnified party failed to give the notice required
under subsection (c) above and thereby lost its right to indemnification, then
each indemnifying party shall contribute to such amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only such
relative benefits but also the relative fault of the Company on the one hand and
the Initial Purchasers on the other in connection with the statements or
omissions which resulted in such losses, claims, damages or liabilities (or
actions in respect thereof), as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand
and the Initial Purchasers on the other shall be deemed to be in the same
proportion as the total net proceeds from the sale of Securities (before
deducting expenses) received by the Company bear to the total commissions or
discounts received by the Initial Purchasers in respect thereof. The relative
fault shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged
omission to state a material fact necessary in order to make the statements
therein not misleading relates to information supplied by the Company on the one
hand or by the Initial Purchasers on the other and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and the Initial Purchasers agree that it
would not be just and equitable if contribution pursuant to this subsection (d)
were determined by pro rata

                                      -17-

<PAGE>

allocation or by any other method of allocation which does not take account of
the equitable considerations referred to above in this subsection (d). The
amount paid or payable by an indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to above
in this subsection (d) shall be deemed to include any legal or other expenses
incurred by such indemnified party in connection with investigating or defending
any such action or claim. Notwithstanding the provisions of this subsection (d),
no Initial Purchaser shall be required to contribute any amount in excess of the
purchase discount or commission received by such Initial Purchaser in connection
with the Securities purchased by such Initial Purchaser.

         No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Act) shall be entitled to contribution from any person who
was not guilty of such fraudulent misrepresentation.

         8.       Default by an Initial Purchaser. If any one or more Initial
Purchasers shall fail to purchase and pay for any of the Securities agreed to be
purchased by such Initial Purchaser hereunder and such failure to purchase shall
constitute a default in the performance of its or their obligations under this
Agreement, the remaining Initial Purchasers shall be obligated severally to take
up and pay for (in the respective proportions which the principal amount of
Securities set forth opposite their names in Schedule I hereto bears to the
aggregate principal amount of Securities set forth opposite the names of all the
remaining Initial Purchasers) the Securities which the defaulting Initial
Purchaser or Initial Purchasers agreed but failed to purchase; provided,
however, that in the event that the aggregate principal amount of Securities
which the defaulting Initial Purchaser or Initial Purchasers agreed but failed
to purchase shall exceed 10% of the aggregate principal amount of Securities set
forth in Schedule I hereto, the remaining Initial Purchasers shall have the
right to purchase all, but shall not be under any obligation to purchase any, of
the Securities, and if such nondefaulting Initial Purchasers do not purchase all
the Securities, this Agreement will terminate without liability to any
nondefaulting Initial Purchaser or the Company. In the event of a default by any
Initial Purchaser as set forth in this Section 8, the Closing Date shall be
postponed for such period, not exceeding two business days, as the Initial
Purchasers shall determine in order that the required changes in the Offering
Memorandum or in any other documents or arrangements may be effected. Nothing
contained in this Agreement shall relieve any defaulting Initial Purchaser of
its liability, if any, to the Company or any nondefaulting Initial Purchaser for
damages occasioned by its default hereunder.

         9.       Termination of this Agreement. Prior to the Closing Date this
Agreement may be terminated by the Representatives by notice given to the
Company if at any time (i) trading or quotation in any of the Company's
securities shall have been suspended or limited by the Commission or by the
Nasdaq Stock Market ("Nasdaq"), or trading in securities generally on the New
York Stock Exchange ("NYSE") or Nasdaq shall have been suspended or limited, or
minimum or maximum prices shall have been generally established on the NYSE or
Nasdaq; (ii) a general banking moratorium shall have been declared by any U.S.
federal, New York or Ohio authority; (iii) there shall have occurred any
outbreak or escalation of hostilities or any crisis or calamity involving or
affecting the United States (including without limitation an act of terrorism),
or any change in the United States or international financial markets, or any
substantial change or development involving a prospective substantial change in
U.S. or international political, financial or economic conditions, as in the
judgment of the Representatives is material and adverse and makes it
impracticable or inadvisable to market the Securities in the manner and on the
terms described in the Offering Memorandum or to enforce contracts for the sale
of securities; (iv) there shall have occurred a

                                      -18-

<PAGE>

material adverse change, or any development or event involving a prospective
material adverse change, in the condition (financial or other), business,
properties or results of operations of the Company and its subsidiaries taken as
a whole, the effect of which is, in the judgment of the Representatives, so
material and adverse as to make it impractical or inadvisable to proceed with
the offering or delivery of the Securities as contemplated in the Offering
Memorandum; or (v) there has occurred a material disruption in commercial
banking or securities settlement or clearance services. Any termination pursuant
to this Section 9 shall be without liability on the part of (a) the Company to
the Initial Purchasers, except that if such termination is pursuant to clause
(i) (with respect to the Company's securities) or clause (iv) of this Section 9,
the Company shall be obligated to reimburse the expenses of the Initial
Purchasers pursuant to Section 13 hereof, (b) the Initial Purchasers to the
Company, or (c) of any party hereto to any other party except that the
provisions of Section 7 shall at all times be effective and shall survive such
termination.

         10.      Survival of Certain Representations and Obligations. The
respective indemnities, agreements, representations, warranties, and other
statements of the Company or its officers and of the Initial Purchasers set
forth in or made pursuant to this Agreement will remain in full force and
effect, regardless of any investigation, or statement as to the results thereof,
made by or on behalf of the Initial Purchasers or the Company or any of its
officers or directors or any controlling person, and will survive delivery of
and payment for the Securities.

         11.      Notices. All communications hereunder will be in writing and
shall be mailed, delivered or telephoned and confirmed to the parties as
follows:

If to the Initial Purchasers:

         Lehman Brothers Inc.
         745 Seventh Avenue
         New York, New York 10019
         Facsimile: (212) 526-0943
         Attention: Debt Capital Markets, Financial Institutions Group

         UBS Securities LLC
         677 Washington Boulevard
         Stamford, CT 06901
         Facsimile: (203) 719-0495
         Attention: Fixed Income Syndicate

         with a copy to:

         Lehman Brothers Inc.
         745 Seventh Avenue
         New York, New York 10019
         Attention: General Counsel

If to the Company:

                                      -19-

<PAGE>

         Infinity Property and Casualty Corporation
         2204 Lakeshore Drive
         Birmingham, Alabama 35209
         Facsimile: (205) 803-8487
         Attention: James R. Gober

                  Any party hereto may change the address for receipt of
communications by giving written notice to the others.

         12.      Successors. This Agreement will inure to the benefit of and be
binding upon the parties hereto and their respective successors and the other
persons referred to in Section 7 hereof, and no other person will have any right
or obligation hereunder. No purchaser of the Securities from the Initial
Purchasers shall be deemed a successor or assign merely by reason of such
purchase.

         13.      Reimbursement of Expenses. If for any reason, other than by
reason of a default by any of the Initial Purchasers or the occurrence of any of
the events set forth in clauses (i) (exclusive of any action taken on the
Company's securities) through (iii) of Section 9 hereof, the Securities are not
delivered by or on behalf of the Company as provided herein, the Company will
reimburse the Initial Purchasers for all out-of-pocket expenses (including fees
and disbursements of counsel) incurred by the Initial Purchasers in making
preparations for the purchase, sale and delivery of such Securities.

         14.      Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

         15.      Counterparts. This Agreement may be executed by any one or
more of the parties hereto and thereto in any number of counterparts, each of
which shall be deemed to be an original, but all such respective counterparts
shall together constitute one and the same instrument.

                                      -20-

<PAGE>

         If the foregoing is in accordance with your understanding of our
agreement, please sign and return to us five counterparts hereof, whereupon it
will become a binding agreement between the Company and the Initial Purchasers
in accordance with its terms.

                                            Very truly yours,

                                            INFINITY PROPERTY AND CASUALTY
                                            CORPORATION

                                            By _________________________________
                                               Name:
                                               Title:

The foregoing Purchase Agreement is hereby
confirmed and accepted as of the date first
above written.

LEHMAN BROTHERS INC.

By _______________________________
   Name:
   Title:

UBS SECURITIES LLC

By _______________________________
   Name:
   Title:

By _______________________________
   Name:
   Title:

Acting on behalf of themselves and as the
representatives of the Initial Purchasers

<PAGE>

                                   SCHEDULE I

<TABLE>
<CAPTION>
                                                                PRINCIPAL AMOUNT
                                                                  OF SECURITIES
                NAME OF INITIAL PURCHASER                        TO BE PURCHASED
------------------------------------------------------------     ---------------
<S>                                                              <C>
Lehman Brothers Inc. .......................................      $ 90,000,000
UBS Securities LLC .........................................      $ 90,000,000
Bear, Stearns & Co. Inc. ...................................      $ 10,000,000
Merrill Lynch, Pierce, Fenner & Smith Incorporated..........      $ 10,000,000

                                                Total ......      $200,000,000
                                                                  ============
</TABLE>

                                       I-1

<PAGE>

                                    EXHIBIT A

Formation and Separation Agreement between AFG and the Company

Reinsurance Agreement between Windsor Insurance Company, as Reinsurer and Great
American Insurance Company and Affiliates as Reassured

Investment Services Agreement between the Company and American Money Management
Services Agreement between AFG and the Company

Noncompetition Agreement between AFG and the Company

Tax Allocation Indemnification Agreement between AFG and the Company

License Agreement between Great American Insurance Company and the Company

Lease between Great American Insurance Company and Infinity for property located
at 14 East Fourth Street, Cincinnati, Ohio

Lease between Great American Insurance Company and Infinity for St. Louis,
Missouri property

Sublease between Great American Insurance Company and Infinity for Windsor,
Connecticut property

Sublease between Great American Insurance Company and Infinity for Maitland,
Florida property

Sublease between Great American Insurance Company and Infinity for property
located at 11353 Reed Hartman Highway, Cincinnati, Ohio

Sublease between Great American Insurance Company and Infinity for Parsippany,
New Jersey property

Sublease between Great American Insurance Company and Infinity for Raleigh,
North Carolina property

Sublease between Great American Insurance Company and Infinity for property
located at 49 East Fourth Street, Cincinnati, Ohio

Sublease between Great American Insurance Company and Infinity for Exton,
Pennsylvania property

                                      II-1

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