EXHIBIT 99.1

COLUMBUS, Ohio (July 30, 2004) Bancinsurance Corporation (NASDAQ: BCIS), a
specialty insurance holding company, today reported results for the three months
ended June 30, 2004. Net income was $846,151, or $0.17 per diluted share, for
the second quarter 2004 compared to $1,146,128, or $0.23 per diluted share, for
the same period last year.

The second quarter 2004 results included favorable loss development for the
Company's Ultimate Loss Insurance(R) ("ULI") product and higher net realized
gains on investments. These positive factors were offset by losses in the
Company's creditor placed insurance ("CPI") product and the bail bond
reinsurance program.

John Sokol, President, commented, "Our core product lines and investment
portfolio continue to provide positive results to the Company's earnings.
However, these contributions were overshadowed by two poorly performing blocks
of business in the second quarter 2004. First, a large CPI customer was
negatively impacting our financial results and was cancelled. Second, our bail
bond reinsurance program deteriorated rapidly during the second quarter 2004. We
are responding quickly to this situation and are pursuing all options to
mitigate the future impact of this matter. These factors offset favorable loss
development in our Ultimate Loss Insurance(R) product and net realized gains on
investments compared to last year."

Second Quarter Results

Lender/Dealer

Total net premiums earned declined 14.0% to $12,975,816 for the three months
ended June 30, 2004. The largest portion of this decrease was attributable to
CPI premiums, which were $568,379 for the second quarter 2004 versus $2,209,749
for the same period last year. This was due to cancellation of a poor performing
book of business in the second quarter 2004.

ULI net premiums earned declined 9.4% to $9,673,636 for the second quarter 2004
from $10,672,484 a year ago. This decrease was due to a fourth quarter 2003
producer-owned reinsurance transaction whereby the Company ceded 100% of the
premiums (along with the associated risk) for an existing lender/dealer
customer. Excluding the impact of the reinsurance transaction, ULI net premiums
earned for the second quarter 2004 increased $425,787 compared to the same
period last year. Net premiums earned for guaranteed auto protection ("GAP")
increased to $1,309,486 for the second quarter 2004 from $665,587 a year ago.
This growth was due to the purchase of GAP coverage by two large financial
institution customers in the second half of 2003, combined with rate increases,
volume increases with existing customers and new customers added in 2004.

Unemployment Compensation

Net premiums earned for unemployment compensation ("UC") products declined 5.3%
to $1,349,612 in the second quarter 2004 primarily due to the cancellation of an
excess of loss policy at year-end 2003.

Other Specialty

Other Specialty products ("OSP") primarily include the Company's waste surety
bond program ("WSB") and the bail bond reinsurance program. OSP net premiums
earned declined 39.5% to $74,703 for the second quarter 2004 from $123,559 for
the same period last year due to lower premiums in our discontinued bail bond
program that partially offset an increase in our WSB program, which was
introduced in the second quarter 2004.

Other Revenue

Other revenue improved 25.8% to $2,059,265 for the second quarter 2004 compared
to the same period last year due principally to an increase of $389,405 in net
realized gains on investments.

Losses and Loss Adjustment Expenses

Losses and loss adjustment expenses ("LAE") declined 5.7% to $9,234,300 for the
second quarter 2004 from $9,794,907 the prior year. ULI losses and LAE declined
24.1% to $6,227,736 for the second quarter 2004 primarily due to favorable loss
development and the fourth quarter 2003 producer-owned reinsurance transaction.
CPI losses and LAE increased $105,813 to $947,537 in the second quarter 2004
principally due to losses on a poor performing book of business that was
cancelled in the second quarter 2004. GAP losses and LAE increased 53.0% to
$636,112 for the second quarter 2004 consistent with the growth in this
business. UC losses and LAE declined $237,750 from a year ago primarily due to
the cancellation of an excess of loss policy at year-end 2003.

OSP losses and LAE increased $1,329,224 from a year ago due to our bail bond
reinsurance program. During 2001, the Company began assuming bail bond coverage
sold by a bail bond agency through several fronting insurance carriers. The
liability of the fronting carriers was then transferred to a group of
reinsurers, including the Company. The Company reinsured up to 15% of the
business. The bail bond program was discontinued in the second quarter 2004 and
no new bail bonds are being written.

During the second quarter 2004, the Company paid bail bond losses of $950,182.
As of June 30, 2004, the Company's loss reserves, net of anticipated recoveries,
were $537,128 related to the bail bond program. In addition, the Company
received approximately $1.4 million in bail bond claims that are not reserved
for as of June 30, 2004 as these losses relate to program years in dispute. The
Company has retained legal counsel and is reviewing its rights under the various
contracts for these disputed years. As of June 30, 2004, the Company recorded a
$225,000 reserve for legal costs to review and defend its rights under the
contracts. As of June 30, 2004, the Company also recorded a return premium
reserve of $226,200 associated with these disputed program years. At the present
time, the Company is uncertain as to its ultimate exposure for future loss
development on the run off of the bail bond program.

Operating Expenses

Operating expenses, which excludes losses, LAE and interest expense, decreased
13.5% to $4,500,819 for the second quarter 2004 compared to a year ago.
Experience rating adjustments declined $1,310,832 in the second quarter 2004
compared to last year as a result of the fourth quarter 2003 producer-owned
reinsurance transaction. Commission expense increased 13.0% to $2,185,800 for
the second quarter 2004 primarily due to

higher commission rates associated with the CPI product line combined with a
reduction in ceding commissions. Ceding commissions declined in the second
quarter 2004 versus a year ago due to the cancellation of a 100% producer-owned
reinsurance arrangement at the end of 2003. Other insurance operating expenses
rose 23.3% to $1,774,641 for the second quarter 2004 compared to last year
principally due to higher salaries and administrative fees associated with the
Company's UCassure product.

Six Month Results

Net premiums earned declined 6.8% to $24,483,383 for the six months ended June
30, 2004 as a result of decreases in ULI and CPI which were partially offset by
an increase in GAP business. ULI net premiums earned were impacted by the fourth
quarter 2003 producer-owned reinsurance transaction and CPI was impacted by the
cancellation of a poor performing book of business.

Other revenue improved 19.9% to $3,894,306 for the six months ended June 30,
2004 compared to the same period last year principally due to an increase of
$499,242 in net realized gains on investments.

Losses and LAE declined 2.4% to $15,549,926 for the first six months of 2004
from $15,933,817 a year ago principally due to lower Lender/Dealer losses and
LAE which were partially offset by an increase in OSP. Lender/Dealer losses and
LAE declined due to favorable loss development within our ULI product line and
as a result of the fourth quarter 2003 producer-owned reinsurance transaction.
OSP losses and LAE increased $1,313,160 from a year ago principally due to
deterioration in the bail bond reinsurance program.

Operating expenses, which excludes losses, LAE and interest expense, declined
5.8% to $9,697,760 for the first six months of 2004 compared to a year ago.
Lower experience rating adjustments were offset by higher commission expense and
other insurance operating expenses. Experience rating adjustments declined as a
result of the fourth quarter 2003 producer-owned reinsurance transaction.
Commission expense increased primarily due to higher commission rates associated
with the CPI product line combined with a reduction in ceding commissions. Other
insurance operating expenses rose as a result of higher salaries and
administrative fees associated with the Company's UCassure product.

Combined Ratio

The Company's specialty insurance products are underwritten by its wholly-owned
subsidiary, Ohio Indemnity Company, whose results represent the Company's
combined ratio. For the six months ended June 30, 2004, the combined ratio
increased 1.3 percentage points to 93.0% from 91.7% the prior year. The loss
ratio improved to 62.7% for the first six months of 2004 from 68.9% a year ago
principally due to the decrease in experience rating adjustments associated with
the fourth quarter 2003 producer-owned reinsurance transaction. The expense
ratio increased to 30.3% for the first six months of 2004 from 22.8% a year ago,
primarily due to a higher amount of CPI commissions and lower ceding
commissions.

Investment Portfolio

Total investments were $74,597,876 at June 30, 2004 compared to $73,979,835 at
December 31, 2003. Since year end-2003, available for sale fixed maturities
increased $13,496,545 due to a reallocation within the investment portfolio.
Short-term investments and available for sale equity securities declined
$10,960,515 and $1,784,403, respectively, during the first six months of 2004.

For the first six months of 2004, net realized gains on investments were
$966,302 versus $467,060 for the same period a year ago, which included
impairments of $450,792 and $49,328 for the six months ended June 30, 2004 and
2003, respectively. There were $364,096 and $49,328 in impairment charges
included in net realized gains on investments for the three months ended June
30, 2004 and 2003, respectively. Included in impairment charges for the three
and six months ended June 30, 2004 is a write down of $334,136 related to a
private equity investment.

Net investment income increased 18.4% to $489,013 for the second quarter 2004
and was $899,848 or 17.3% higher for the first six months of 2004 compared to
the same period a year ago. This improvement was due to solid growth in invested
assets during the past twelve months combined with a higher portfolio yield.
Higher yields resulted from the Company's $15.0 million reallocation of
short-term investments to fixed maturities during the second quarter 2004, which
provided a better matching of the Company's invested assets to its product
liability duration while maximizing investment return.

Shareholders' Equity

Shareholders' equity was $34,480,081 at June 30, 2004 compared to $33,365,028 at
December 31, 2003. The $2,004,743 year-to-date increase in retained earnings was
partially offset by a $1,118,415 decline in net unrealized gains on investments
due to sales of common stock investments in 2004. Book value per diluted share
increased to $6.94 at June 30, 2004 from $6.78 at December 31, 2003.

Bancinsurance Corporation

Bancinsurance Corporation, headquartered in Columbus, Ohio, is principally
engaged through its property/casualty insurance subsidiary, Ohio Indemnity
Company, in underwriting specialty insurance. Lender/Dealer insurance products
include our ULI, CPI and GAP products. These products protect banks and other
lenders against risk arising from theft or damage to certain loan collateral
where the borrower has failed to secure or maintain adequate insurance coverage.
The Company's unemployment compensation products are utilized by not-for-profit
entities that elect to not pay the unemployment compensation tax and instead
reimburse the state unemployment agencies for benefits paid by the agencies to
the entities' former employees. Other Specialty products include our waste
surety bond program and run off of our bail bond reinsurance program.

This press release includes forward-looking statements, within the meaning of
the Private Securities Litigation Reform Act of 1995. These forward-looking
statements involve known and unknown risks, uncertainties and other factors that
may cause actual results to differ materially from the forward-looking
information in this press release. Such risks, uncertainties and other factors,
include but are not limited to, changes in underwriting results affected by
adverse economic conditions, fluctuations in the investment markets, changes in
the retail marketplace, changes in the laws or regulations affecting the
operations of the Company, changes in business tactics or strategies of the
Company, the financial condition of the Company's business partners, changes in
market forces, litigation and other risk factors described from time to time in
the Company's Securities and Exchange Commission filings, including the
Company's Annual Report on Form 10-K for the fiscal year ended December 31,
2003. All forward-looking statements made in this press release are based on
information presently available to management of the Company. The Company
assumes no obligation to update any forward-looking statements.

BANCINSURANCE CORPORATION
AND SUBSIDIARIES

Consolidated Statements of Income
(Unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
------------ ------------ ------------ ------------

Revenues:
Net premiums earned ................................ $ 12,975,816 $ 15,095,790 $ 24,483,383 $ 26,256,766
Net investment income .............................. 489,013 413,178 899,848 766,947
Net realized gains on investments .................. 622,430 233,025 966,302 467,060
Codification and subscription fees ................. 978,880 876,960 1,972,341 1,756,676
Management fees .................................... (4,183) 71,307 28,814 199,423
Other income ....................................... (26,875) 41,960 27,001 56,849
------------ ------------ ------------ ------------
Total revenues ............................... 15,035,081 16,732,220 28,377,689 29,503,721
------------ ------------ ------------ ------------

Expenses:
Losses and loss adjustment expenses ................ 9,234,300 9,794,907 15,549,926 15,933,817
Experience rating adjustments ...................... (728,622) 582,210 (192,702) 2,156,341
Commission expense ................................. 2,185,800 1,934,038 4,298,329 3,325,288
Other insurance operating expenses ................. 1,774,641 1,439,212 3,110,424 2,655,375
Codification and subscription expenses ............. 909,092 895,759 1,899,929 1,625,983
General and administrative expenses................. 359,908 353,811 581,780 527,267
Interest expense ................................... 204,879 109,359 431,482 219,191
------------ ------------ ------------ ------------
Total expenses ............................... 13,939,998 15,109,296 25,679,168 26,443,262
------------ ------------ ------------ ------------

Income before federal income taxes ........... 1,095,083 1,622,924 2,698,521 3,060,459

Federal income tax expense ............................ 248,932 476,796 693,777 885,328
------------ ------------ ------------ ------------

Net income ................................... $ 846,151 $ 1,146,128 $ 2,004,744 $ 2,175,131
============ ============ ============ ============

Net income per common share:
Basic............................................. $ .17 $ .23 $ .41 $ .44
============ ============ ============ ============

Diluted........................................... $ .17 $ .23 $ .39 $ .43
============ ============ ============ ============

BANCINSURANCE CORPORATION
AND SUBSIDIARIES

Consolidated Balance Sheet Data

June 30, December 31,
2004 2003
------------- -------------
(Unaudited)

Assets
- ------
Investments:
Held to maturity:
Fixed maturities .................................................................. $ 5,072,562 $ 4,872,012

Available for sale:
Fixed maturities .................................................................. 42,414,694 28,918,149
Equity securities ................................................................. 8,451,455 10,235,858

Short-term investments ............................................................. 17,944,165 28,904,680
Other invested assets .............................................................. 715,000 1,049,136
------------- -------------

Total investments .............................................................. 74,597,876 73,979,835
------------- -------------

Cash ................................................................................ 3,069,116 2,949,627
Premiums receivable ................................................................. 8,191,434 10,661,766
Accounts receivable, net ............................................................ 783,979 993,093
Reinsurance recoverables ............................................................ 2,333,736 4,926,446
Prepaid reinsurance premiums ........................................................ 9,393,918 12,244,588
Deferred policy acquisition costs ................................................... 5,391,801 4,962,150
Estimated earnings in excess of billings on uncompleted codification contracts ...... 143,213 283,336
Loans to affiliates ................................................................. 839,089 770,466
Goodwill ............................................................................ 753,737 753,737
Intangible assets, net .............................................................. 882,789 920,048
Accrued investment income ........................................................... 684,817 541,519
Other assets ........................................................................ 1,992,947 1,883,125
------------- -------------

Total assets ................................................................... 109,058,452 115,869,736
============= =============

Liabilities and Shareholders' Equity
- ------------------------------------
Reserve for unpaid losses and loss adjustment expenses .............................. 12,381,856 14,385,919
Unearned premiums ................................................................... 23,853,960 25,124,137
Ceded reinsurance premiums payable .................................................. 371,066 1,721,963
Experience rating adjustments payable ............................................... 8,351,316 6,997,784
Retrospective premium adjustments payable ........................................... 3,766,854 5,370,273
Funds held under reinsurance treaties ............................................... 1,546,223 2,646,693
Contract funds on deposit ........................................................... 2,363,506 1,908,184
Taxes, licenses and fees payable .................................................... 24,793 1,315,443
Current federal income taxes ........................................................ -- 511,091
Deferred federal income taxes ....................................................... 132,290 852,625
Deferred ceded commissions .......................................................... 886,005 1,224,938
Commissions payable ................................................................. 2,403,717 2,660,979
Billings in excess of estimated earnings on uncompleted codification contracts....... 98,728 143,888
Notes payable ....................................................................... 639,237 53,276
Other liabilities ................................................................... 2,293,820 2,122,515
Trust preferred debt issued to affiliates ........................................... 15,465,000 15,465,000
------------- -------------

Total liabilities .............................................................. 74,578,371 82,504,708
------------- -------------

Shareholders' equity:
Common shares ...................................................................... 1,794,141 1,794,141
Additional paid-in capital ......................................................... 1,336,190 1,337,138
Accumulated other comprehensive income ............................................. 801,850 1,920,265
Retained earnings .................................................................. 36,344,075 34,339,332
------------- -------------
40,276,256 39,390,876

Less: Treasury shares ............................................................. (5,796,175) (6,025,848)
------------- -------------

Total shareholders' equity ..................................................... 34,480,081 33,365,028
------------- -------------
Total liabilities and shareholders' equity ..................................... $ 109,058,452 $ 115,869,736
============= =============