EXHIBIT 10.17

                                 January 4, 2006

Mr. Harold F. Ilg
Safety National Casualty Corporation
2043 Woodland Parkway, Suite 200
St. Louis, Missouri 63146

Re: Amendment of Stock Option Award Agreement

Dear Harry:

     This will confirm that, pursuant to action taken by the Stock Option and
Compensation Committee (the "Committee") of the Board of Directors of Delphi
Financial Group, Inc. ("Delphi"), the Stock Option Award Agreement dated July 8,
2003 (the "Award Agreement"), pursuant to which you were granted options to
purchase up to 225,000 shares (on a split-adjusted basis) of Delphi's Class A
Common Stock pursuant to Delphi's 2003 Employee Long-Term Incentive and Share
Award Plan (the "Plan"), has been amended as provided herein. Capitalized terms
used but not defined herein shall have the respective meanings set forth in the
Award Agreement.

     Specifically, subparagraphs (a) and (b) of the third paragraph of the Award
Agreement, which relate to the conditions to the exercisability of the Options,
have been deleted in their entirety and replaced with the following:

     "(a) If SIG's aggregate Pre-Tax Operating Income (as such term is defined
in Exhibit A hereto) for the period consisting of Delphi's 2003, 2004 and 2005
fiscal years is at least $216,700,000, 112,500 Options shall become exercisable.
Alternatively, if SIG's aggregate Pre-Tax Operating Income for such period does
not reach $216,700,000, but is greater than $196,134,656, a reduced number of
the Options shall become exercisable, to be determined by interpolating between
zero and 112,500 in relation to the point at which the Pre-Tax Operating Income
amount falls in the range between $196,134,656 and $216,700,000. For example, if
SIG's aggregate Pre-Tax Operating Income for such period were $206,417,328,
56,250 Options would become exercisable.

     (b) If SIG's aggregate Pre-Tax Operating Income for the



Harfold F.Ilg
January 4, 2006
Page 2


period consisting of Delphi's 2003, 2004, 2005, 2006 and 2007 fiscal years is at
least $417,185,000, 225,000 Options, less the number of Options, if any, as
shall previously have become exercisable pursuant to the preceding clause (a)
(the "Previously Vested Options"), shall become exercisable. Alternatively, if
SIG's aggregate Pre-Tax Operating Income for such period does not reach
$417,185,000, but is greater than $370,401,000, a reduced number of the Options
shall become exercisable, to be determined by interpolating between zero and
225,000 in relation to the point at which the Pre-Tax Operating Income amount
falls in the range between $370,401,000 and $417,185,000, and subtracting the
number of the Previously Vested Options. For example, if SIG's aggregate Pre-Tax
Operating Income for such period were $393,793,000, and the number of the
Previously Vested Options was 56,250, 56,250 Options would become exercisable.
If, in such example, there were no Previously Vested Options, 112,500 Options
would become exercisable."

     Except as provided above, the Award Agreement shall remain in full force
and effect according to its terms.

     If you are in agreement with and accept the terms and conditions of this
Amendment, please confirm such agreement and acceptance by executing and dating
both counterparts of this Amendment and returning one fully executed counterpart
to me. The other counterpart should be retained for your files.

                                        Very truly yours,

                                        Chad W. Coulter
                                        Vice President, Secretary and General
                                        Counsel

Agreed to and accepted:

                                        Date:
- -------------------------------------         ----------------------------------
Harold F. Ilg

cc: Robert Rosenkranz