Exhibit 99.1

[Bancinsurance Corporation Logo]

FOR IMMEDIATE RELEASE For Additional Information
Contact: John S. Sokol
President
(614) 220-5200

BANCINSURANCE CORPORATION ANNOUNCES
THIRD QUARTER RESULTS

COLUMBUS, Ohio (November 2, 2004) Bancinsurance Corporation (NASDAQ: BCIS), a
specialty insurance holding company, today reported results for the three months
ended September 30, 2004. Net income was $404,043, or $0.08 per diluted share,
for the third quarter 2004 compared to $750,175, or $0.15 per diluted share, for
the same period last year.

The third quarter 2004 results included favorable loss development for the
Company's Ultimate Loss Insurance(R) ("ULI") product and premium growth in
guaranteed auto protection ("GAP") and waste surety bond products. These
positive factors were offset by a decrease in net realized gains on investments
combined with losses in the Company's creditor placed insurance ("CPI") product
and bail bond reinsurance program.

John Sokol, President, commented, "We achieved solid performance in our core
product lines during the third quarter of 2004 and realized favorable loss
development in ULI, our largest product. The quarterly results also benefited
from an asset allocation change in our investment portfolio earlier this year.
These positive contributions were offset by two specific blocks of business that
performed poorly in the third quarter of this year. This included runoff from a
CPI policy cancelled in the second quarter of 2004 and a bail bond reinsurance
program that deteriorated rapidly during 2004. Legal options are being
aggressively pursued concerning the bail bond reinsurance program to determine
our exposure and also mitigate its impact on the Company's future results. We
remain committed to increasing our presence in specialized insurance markets and
achieving profitable long-term growth."

Discontinued Bail Bond Program
- ------------------------------

Beginning in 2001, the Company entered into a reinsurance program covering bail
bonds issued by several insurance carriers and sold by a bail bond agency. The
liability of the insurance carriers was 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.

There are certain issues which the Company is disputing with respect to the bail
bond reinsurance program. During the third quarter 2004, the Company began
arbitration proceedings with two of the four insurance carriers. Through these
arbitration proceedings, the Company is seeking rescission of the program,
monetary damages for claims paid and other appropriate relief. The insurance
carriers are seeking to recover certain of its losses from the Company under its
reinsurance agreement. Through September 30, 2004, the Company has received
approximately $2.7 million in bail bond claims that are not reserved for as
these claims pertain to issues in dispute. The Company has retained legal
counsel to review and defend its rights under the various contracts for these
disputed issues. As of September 30, 2004, the Company recorded legal reserves
and return premium reserves of $450,000 and $226,200, respectively, related to
these disputed issues.

As of September 30, 2004, the Company's bail bond loss reserves, net of
anticipated recoveries, were $806,243; however, the Company is still
investigating the validity of these claims. 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.

Third Quarter Results
- ---------------------

Lender/Dealer

Total net premiums earned declined 19.6% to $12,676,975 for the three months
ended September 30, 2004 versus the third quarter 2003. The largest portion of
this decrease was attributable to ULI premiums, which declined $3,556,735 to
$9,180,619 compared to the same period last year. This planned decrease was
primarily 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.

CPI net premiums earned declined $1,144,628 from a year ago due to cancellation
of a poor performing book of business in the second quarter 2004. Net premiums
earned for GAP increased to $1,516,913 for the third quarter 2004 from $621,618
a year ago. This growth was primarily due to new customers added combined with
rate and volume increases compared to the same period last year.

Unemployment Compensation

Net premiums earned for unemployment compensation ("UC") products increased 6.1%
to $1,344,928 in the third quarter 2004 versus a year ago primarily due to
growth in the Company's UCassure product and rate increases. These increases
were partially offset by 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 increased 419.5% to $785,965 for the third quarter 2004 from $151,296 for
the same period last year principally due to the WSB program, which was
introduced in the second quarter 2004.

Other Revenue

Other revenue declined 7.6% to $1,613,010 for the third quarter 2004 compared to
the same period last year due primarily to a decline of $265,498 in net realized
gains on investments. This decrease was partially offset by improvement in net
investment income as a result of increased after-tax yields on the Company's
investment portfolio.

Losses and Loss Adjustment Expenses

Losses and loss adjustment expenses ("LAE") declined 34.8% to $7,822,594 for the
third quarter 2004 from $11,997,283 the prior year. The largest amount of this
improvement was attributable to ULI losses and LAE which declined 40.4% to
$5,811,721 for the third quarter 2004. This was primarily due to favorable loss
development and the fourth quarter 2003 producer-owned reinsurance transaction.
CPI losses and LAE decreased $509,988 to $147,064 in the third quarter 2004
principally due to the cancellation of a poor performing book of business in the
second quarter 2004. GAP losses and LAE increased 35.6% to $1,471,694 for the
third quarter 2004 consistent with growth in this business. UC losses and LAE
declined $345,329 from a year ago primarily due to the cancellation of an excess
of loss policy at year-end 2003. OSP losses and LAE increased $227,129 from a
year ago due to reserve strengthening in the bail bond reinsurance program.

Operating Expenses

Operating expenses, which excludes losses, LAE and interest expense, increased
30.5% to $5,839,579 for the third quarter 2004 compared to a year ago.
Commission expense rose 42.0% to $2,973,981 for the third quarter 2004 primarily
due to the increase in business for GAP and WSB combined with a reduction in
ceding commissions.

Ceding commissions declined in the third 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 41.0% to $1,775,849 for the third
quarter 2004 compared to the same period last year, principally due to higher
salaries, legal costs related to the bail bond program and administrative fees
associated with the Company's UCassure product.

Nine Month Results
- ------------------

Net premiums earned declined 11.6% to $37,160,358 for the nine months ended
September 30, 2004 as a result of decreases in ULI and CPI which were partially
offset by increases in GAP and OSP 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 9.5% to $5,507,316 for the nine months ended September
30, 2004 compared to the same period last year principally due to an increase in
net realized gains on investments and net investment income.

Losses and LAE declined 16.3% to $23,372,520 for the first nine months of 2004
from $27,931,640 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 $1,540,289 from a year ago principally due to
deterioration in the bail bond reinsurance program.

Operating expenses, which excludes losses, LAE and interest expense, increased
5.0% to $15,537,339 for the first nine 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, the increase in business for GAP and WSB and a
reduction in ceding commissions. Other insurance operating expenses rose as a
result of higher salaries, legal costs related to the bail bond reinsurance
program 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 nine months ended September 30, 2004, the combined ratio
increased 1.2 percentage points to 95.0% from 93.8% the prior year. The loss
ratio improved to 62.2% for the first nine months of 2004 from 71.5% a year ago
benefiting from the decrease in experience rating adjustments associated with
the fourth quarter 2003 producer-owned reinsurance transaction. The expense
ratio increased to 32.7% for the first nine months of 2004 from 22.3% a year
ago, primarily due to a higher amount of CPI commissions, lower ceding
commissions and legal costs related to the bail bond reinsurance program.

Investment Portfolio
- --------------------

Total investments were $76,452,479 at September 30, 2004 compared to $73,979,835
at December 31, 2003. Since year end-2003, available for sale fixed maturities
increased $16,609,760 principally due to a reallocation within the investment
portfolio. Short-term investments and available for sale equity securities
declined $11,509,444 and $2,335,323, respectively, during the first nine months
of 2004. This was consistent with the Company's change in investment allocation.

For the first nine months of 2004, net realized gains on investments were
$1,072,752 versus $839,008 for the same period in 2003, which included
impairments of $508,343 and $62,566 for the nine months ended September 30, 2004
and 2003, respectively. There were $57,550 of impairment charges included in net
realized gains on investments for the three months ended September 30, 2004
compared to $13,238 for the same period last year.

Included in impairment charges for the nine months ended September 30, 2004 is a
write down of $334,136 related to a private equity investment.

Net investment income increased 51.9% to $626,304 for the third quarter 2004,
and was $308,865 or 25.4% higher for the first nine months of 2004 compared to
the same periods a year ago. This improvement was due to growth in invested
assets during the past twelve months combined with a higher after-tax yield.
Higher yields resulted from the Company's $18.0 million reallocation of
short-term investments to fixed maturities during the second and third quarters
of 2004, which provided a better matching of the Company's invested assets to
its product liability duration and enhanced the Company's overall investment
return.

As the Company's strategy is to invest in tax exempt fixed income securities,
the effective tax rate declined for the three and nine months ended September
30, 2004 compared to a year ago due to higher portfolio yields combined with a
higher percentage of pretax income coming from investments compared to other
operations.

Shareholders' Equity
- --------------------

Shareholders' equity was $35,074,415 at September 30, 2004 compared to
$33,365,028 at December 31, 2003. The $2,408,786 year-to-date increase in
retained earnings was partially offset by a $937,999 decline in net unrealized
gains on investments due to sales of common stock investments in 2004. Book
value per share increased to $7.08 at September 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 the 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 Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
------------ ------------ ------------ ------------

Revenues:
Net premiums earned.................................... $ 12,676,975 $ 15,770,717 $ 37,160,358 $ 42,027,483
Net investment income.................................. 626,304 412,290 1,526,152 1,217,287
Net realized gains on investments...................... 106,450 371,948 1,072,752 839,008
Codification and subscription fees..................... 868,842 913,121 2,841,183 2,669,797
Management fees........................................ 4,896 45,319 33,710 244,742
Other income........................................... 6,518 3,299 33,519 60,148
------------ ------------ ------------ ------------
Total revenues................................... 14,289,985 17,516,694 42,667,674 47,058,465
------------ ------------ ------------ ------------

Expenses:
Losses and loss adjustment expenses.................... 7,822,594 11,997,823 23,372,520 27,931,640
Experience rating adjustments.......................... (50,834) (56,140) (243,536) 2,100,201
Commission expense..................................... 2,973,981 2,094,468 7,272,310 5,419,756
Other insurance operating expenses..................... 1,775,849 1,259,660 4,886,273 3,953,085
Codification and subscription expenses................. 802,400 904,483 2,702,329 2,530,466
General and administrative expenses.................... 338,183 271,425 919,963 798,692
Interest expense....................................... 220,220 117,119 651,702 336,310
------------ ------------ ------------ ------------
Total expenses................................... 13,882,393 16,588,838 39,561,561 43,070,150
------------ ------------ ------------ ------------

Income before federal income taxes............... 407,592 927,856 3,106,113 3,988,315

Federal income tax expense................................ 3,549 177,681 697,326 1,063,009
------------ ------------ ------------ ------------

Net income....................................... $ 404,043 $ 750,175 $ 2,408,787 $ 2,925,306
============ ============ ============ ============

Net income per common share:
Basic................................................ $ .08 $ .15 $ .49 $ .58
============ ============ ============ ============
Diluted.............................................. $ .08 $ .15 $ .47 $ .58
============ ============ ============ ============

BANCINSURANCE CORPORATION
AND SUBSIDIARIES

Consolidated Balance Sheet Data

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

Assets
- ------
Investments:
Held to maturity:
Fixed maturities................................................................................. $ 4,913,799 $ 4,872,012

Available for sale:
Fixed maturities................................................................................. 45,527,909 28,918,149
Equity securities................................................................................ 7,900,535 10,235,858

Short-term investments............................................................................ 17,395,236 28,904,680
Other invested assets............................................................................. 715,000 1,049,136
-------------- -------------

Total investments............................................................................. 76,452,479 73,979,835
-------------- -------------

Cash .............................................................................................. 4,247,719 2,949,627
Premiums receivable................................................................................ 7,540,770 10,661,766
Accounts receivable, net........................................................................... 534,511 993,093
Reinsurance recoverables........................................................................... 2,907,398 4,926,446
Prepaid reinsurance premiums....................................................................... 8,213,726 12,244,588
Deferred policy acquisition costs.................................................................. 6,307,501 4,962,150
Estimated earnings in excess of billings on uncompleted codification contracts..................... 206,023 283,336
Loans to affiliates................................................................................ 837,682 770,466
Goodwill........................................................................................... 753,737 753,737
Intangible assets, net............................................................................. 864,160 920,048
Accrued investment income.......................................................................... 718,769 541,519
Current federal income taxes....................................................................... 220,939 -
Other assets ...................................................................................... 1,900,759 1,883,125
-------------- -------------

Total assets.................................................................................. 111,706,173 115,869,736
============== =============

Liabilities and Shareholders' Equity
- ------------------------------------
Reserve for unpaid losses and loss adjustment expenses............................................. 14,471,601 14,385,919
Unearned premiums.................................................................................. 25,715,421 25,124,137
Ceded reinsurance premiums payable................................................................. 396,218 1,721,963
Experience rating adjustments payable.............................................................. 7,471,501 6,997,784
Retrospective premium adjustments payable.......................................................... 5,726,798 5,370,273
Funds held under reinsurance treaties.............................................................. 1,312,188 2,646,693
Contract funds on deposit.......................................................................... 983,297 1,908,184
Taxes, licenses and fees payable................................................................... 27,685 1,315,443
Current federal income taxes....................................................................... - 511,091
Deferred federal income taxes...................................................................... 15,956 852,625
Deferred ceded commissions......................................................................... 814,430 1,224,938
Commissions payable................................................................................ 2,349,521 2,660,979
Billings in excess of estimated earnings on uncompleted codification contracts..................... 120,338 143,888
Notes payable...................................................................................... 39,717 53,276
Other liabilities.................................................................................. 1,722,087 2,122,515
Trust preferred debt issued to affiliates.......................................................... 15,465,000 15,465,000
-------------- -------------

Total liabilities............................................................................. 76,631,758 82,504,708
-------------- -------------

Shareholders' equity:
Common shares..................................................................................... 1,794,141 1,794,141
Additional paid-in capital........................................................................ 1,336,425 1,337,138
Accumulated other comprehensive income............................................................ 982,266 1,920,265
Retained earnings................................................................................. 36,748,118 34,339,332
-------------- -------------
40,860,950 39,390,876

Less: Treasury shares............................................................................ (5,786,535) (6,025,848)
-------------- -------------

Total shareholders' equity.................................................................... 35,074,415 33,365,028
-------------- -------------

Total liabilities and shareholders' equity.................................................... $ 111,706,173 $ 115,869,736
-------------- -------------