<PAGE>
                                                                    Exhibit 10.1

                       INTER-COMPANY REINSURANCE AGREEMENT


         THIS INTER-COMPANY REINSURANCE AGREEMENT ("Agreement") is made and
effective January 1, 2006, by and between Star Insurance Company ("Star"), and
Ameritrust Insurance Corporation, Savers Property and Casualty Insurance Company
and Williamsburg National Insurance Company, (hereinafter collectively referred
to as "Affiliated Companies").

                                    RECITALS

         WHEREAS, the parties hereto are engaged in the transaction of various
forms of property, casualty, medical malpractice, commercial auto and workers'
compensation insurance business in the United States and are a member of the
Insurance Company Holding System of Meadowbrook Insurance Group, Inc.;

         WHEREAS, Star shall be considered the lead company for the purposes of
this Agreement;

         WHEREAS, the parties wish to enter into an Inter-Company Reinsurance
Agreement to conform with state legal requirement;

         NOW, THEREFORE, the parties agree as follows:


                                    ARTICLE I
                            APPLICATION OF AGREEMENT

         This Agreement is effective as of 12:01 a.m. on January 1, 2006, (the
"Effective Date") and applies to all insurance risks of the Affiliated Companies
located in the United States as of the Effective Date, as well as to all such
risks written and assumed thereafter.

                                   ARTICLE II
                              REINSURANCE AGREEMENT

    (a) The Affiliated Companies hereby agree to cede to Star and Star agrees to
        reinsure 100% of the liabilities and expenses of the Affiliated
        Companies existing as of January 1, 2005 including any development on
        loss reserves relating to these liabilities and expenses occurring on or
        after January 1, 2006, as well as 100% of the liabilities and expenses
        of the Affiliated Companies during the term of this Agreement, each
        relating to all insurance and reinsurance policies assumed, written or
        issued by of on behalf of the Affiliated Companies.

        (b) Star hereby agrees to cede and the Affiliated Companies hereby agree
        to reinsure Star, their Respective Percentages (as set forth in Appendix
        A) of the liabilities and expenses of the Affiliated Companies existing
        as of January 1, 2005 including any development on loss reserves
        relating to these liabilities and expenses occurring on or after January
        1, 2005, as well as 100% of the liabilities and expenses of the
        Affiliated Companies during the term of the Agreement, each relating to
        all insurance and

                                  Page 1 of 8
<PAGE>

        reinsurance policies assumed, written or issued by or on behalf of the
        Affiliated Companies.

        The liabilities ceded under this Article II(b) shall be net of
    reinsurance ceded to excess of loss and/or quota share reinsurers, excluding
    the parties hereto and shall not include liabilities for federal income
    taxes, liabilities incurred in connection with investment transactions,
    liabilities for dividends and other liabilities not incurred in connection
    with underwriting and claim operations.

                                   ARTICLE III
                              PREMIUMS AND RESERVES

    (a) The Affiliated Companies agree to transfer to Star, and Star agrees to
        accept, all premium and reserves related to the business ceded to Star
        under Article II.

    (b) Star agrees to transfer to the Affiliated Companies their Respective
        Percentages of the premium received and reserves maintained by Star for
        its own account and for business reinsured by it under Article II.

        The premium ceded under this Article II(b) shall be net of reinsurance
    premium placed with unaffiliated quota share or excess of loss reinsurers.
    Until Williamsburg National Insurance Company receives authority to write
    disability insurance in California and Michigan, disability insurance will
    be excluded from this Agreement.

                                   ARTICLE IV
                               INVESTMENT EXPENSES

        Notwithstanding anything to the contrary in this Agreement, no
    investment expenses of any party (including costs of personnel) shall be
    allocated based on premium volume, but such expenses shall be allocated on a
    cost basis among the parties.

                                    ARTICLE V
                              RESPECTIVE PERCENTAGE

        The term "Respective Percentage" as used in this Agreement shall be as
    stated in Appendix A hereto.

                                   ARTICLE VI
                          OTHER REINSURANCE AGREEMENTS

        Star and Affiliated Companies agree that all reinsurance to be ceded to
    excess of loss and quota share reinsurers, excluding the parties hereto
    shall be ceded by and in the name of Star.

        Star assumes all premium responsibilities associated with any and all
    unaffiliated reinsurance agreements in effect on January 1, 2005 with
    Ameritrust, Savers and/or Williamsburg named separately or collectively
    inclusive of Star. In return for the payment of such premiums Ameritrust,
    Williamsburg and Savers agree to assign all reinsurance recoverables under
    said unaffiliated reinsurance agreements to Star.

                                  Page 2 of 8
<PAGE>

                                   ARTICLE VII
                                   ACCOUNTING

        Accounts, including reports for premiums and losses, and payment of
    losses shall be made no less frequently than on a quarterly basis, unless
    there is no activity during the period. The report of premiums and losses
    shall set forth the ceding Company's total loss and loss expense reserves on
    the policy obligations subject to this agreement. A ceding company may make
    a request at any time for immediate payment of a recovery and the funds will
    be made available without delay.

                                  ARTICLE VIII
                           POLICY AND CLAIMS HANDLING

        As of the Effective Date of this Agreement, the Affiliated Companies
    hereby authorize and empower Star to collect and receive all premium and
    other recoverable amounts, and to take charge of, adjust and pay all losses
    with respect to any and all contracts and policies of insurance issued by
    the Affiliated Companies and to reinsure, administer or terminate all such
    contracts and policies as appropriate.

                                   ARTICLE IX
                                   ASSIGNMENT

        Each of the Affiliated Companies assign to Star all right and interest
    of such Affiliated Company in its agents' balances and uncollected premium
    whether due or overdue underwriting expenses, as well as all right, title
    and interest in regulatory pools, associations or assessments, and any other
    underwriting assets and related liabilities. In turn, Star hereby transfers
    and assigns to each Affiliated Company their Respective Percentage of all
    premium, underwriting expenses and all title and interest in regulatory
    pools, associations or assessments and other underwriting assets and
    liabilities.

        Each of the Affiliated Companies assign to Star all right and interest
    of such Affiliated Company in reinsurance agreements entered into by it, and
    authorizes Star to take such actions as may be necessary to execute
    transactions pursuant to such reinsurance agreements.

                                    ARTICLE X
                                 RIGHT TO OFFSET

        The obligation of each party under this Agreement to transfer
    underwriting assets and liabilities to another party may be offset by the
    reciprocal obligations of such other party so that only the net amount of
    such underwriting assets and liabilities shall be required to be
    transferred.

                                   ARTICLE XI
                             CREDIT FOR REINSURANCE

        Each participant to this Agreement shall take full credit for all
    liabilities ceded to the other participants. To the extent that any
    participant is not identically licensed in the other participants' states of
    domicile, the ceding company will either retain sufficient funds withheld
    trusts or will obtain adequate letters of credit from the assuming party to
    secure reinsurance recoveries.

                                  Page 3 of 8
<PAGE>

                                   ARTICLE XII
                                 ORIGINAL TERMS

        The terms and conditions of the reinsurance hereunder shall in all cases
    be identical with the terms and conditions of the original insurance.

                                  ARTICLE XIII
                              INDEPENDENT OPERATION

        Notwithstanding any other provision of this Agreement, Star and the
    Affiliated Companies agree: (a) that each company owns, has custody of and
    keeps its own general corporate accounts; (b) that each company owns all the
    records of its business; (c) that each company has the ultimate veto right
    on its underwriting; (d) that each company has the ultimate right to cancel
    its risks; (e) that each company has the ultimate responsibility for and
    control of claims adjustment and claims payment and investment management;
    (f) that premium collected by Star as provided for in the Agreement shall be
    held and paid by Star in a fiduciary capacity under this Agreement; (g) that
    each company retains the right to cancel this Agreement at any time as
    stated in Article XIV; and (h) this Agreement may not be assigned by any
    party without the written consent of all other parties and applicable
    regulatory agencies.

                                   ARTICLE XIV
                                   INSOLVENCY

        In the event of the insolvency of any company that is a party to this
    Agreement, this reinsurance shall be payable directly to the company, or to
    its liquidator, receiver or conservator or statutory successor on the basis
    of the liability of the company without diminution because of the insolvency
    of the company or because the liquidator, receiver, conservator or statutory
    successor of the company has failed to pay all or a portion of any claim. It
    is agreed, however, that the liquidator, receiver, conservator or statutory
    successor of the company shall give written notice to the reinsurers of the
    pendency of a claim against the company indicating the policy or bond
    reinsurance which claim would involve a possible liability on the part of
    the reinsurers within a reasonable time after that claim is filed in the
    conservation or liquidation proceeding or in the receivership, and that
    during the pendency of that claim the reinsurers may investigate that claim
    and interpose, at their own expense, in the proceeding where that claim is
    to be adjudicated any defense (s) they may deem available to the company or
    its liquidator, receiver, conservator or statutory successor. This expense
    incurred by the reinsurers shall be chargeable, subject to the approval of
    the court, against the company as part of the expense conservation or
    liquidation to the extent of a pro rata share of the benefit which may
    accrue to the company solely as a result of the defense undertaken by the
    reinsurers.

        Where two or more reinsurers are involved in the same claim and a
    majority in interest elect to interpose defense to that claim, the expense
    shall be apportioned in accordance with the terms of the reinsurance
    agreement as though that expense had been incurred by the company.

        This insolvency clause shall not preclude the reinsurer from asserting
    any excuse of defense to payment of this reinsurance other than the excuses
    or defenses of the insolvency of the company and the failure of the
    company's liquidator, receiver, conservator or statutory successor to pay
    all or a portion of the claim.

                                  Page 4 of 8
<PAGE>

                                   ARTICLE XV
                            AMENDMENT OR CANCELLATION

        This Agreement may be amended by mutual agreement expressed in writing
    by the parties hereto. If this Agreement is amended, the parties shall
    provide the applicable regulatory agency thirty (30) days advance notice of
    such amendment.

        This Agreement shall remain in force until canceled by written notice
    given by any party to the others, at least ninety (90) days in advance of
    the effective date of cancellation. In addition, written notice shall be
    provided by the parties to the applicable regulatory agency thirty (30) days
    in advance of the cancellation date. In the event of such cancellation, all
    rights and obligations of the parties hereto with respect to policies which
    are then reinsured hereunder shall continue to be governed by this
    Agreement, until such liabilities are fully satisfied.

                                   ARTICLE XVI
                                  SOLE BENEFIT

        This Agreement is solely between and for the benefit of the parties
    hereto, and the acceptance of reinsurance hereunder shall not create any
    right or legal relation whatsoever between any third-party, such as,
    policyholder, unaffiliated quota share reinsurer or excess of loss
    reinsurer.

                                  ARTICLE XVII
                                  GOVERNING LAW

        This Agreement is made in the State of Michigan and shall be construed
    according to the laws of the State of Michigan.

                                  ARTICLE XVIII
                                 PERIODIC REVIEW

        This Agreement shall be reviewed by the parties annually and its terms
    renegotiated as the parties may mutually agree.

                                   ARTICLE XIX
                   PRIOR INTERCOMPANY REINSURANCE AGREEMENTS

        The Inter-Company Reinsurance Agreement dated January 1, 2005 shall be
    terminated on a "run-off" basis.

                                   ARTICLE XX
                                  JURISDICTION

        If a party fails to perform its obligations under the terms of this
    Agreement, the party may be sued in a court of competent jurisdiction
    located in any state in which the party is domiciled to enforce an
    arbitration award issued pursuant to Article XXIV.

                                  Page 5 of 8
<PAGE>



                                   ARTICLE XXI
                                 ENTIRE CONTRACT

        This Agreement represents the entire agreement and understanding among
    the parties. No other oral or written agreements or contracts relating to
    the risks reinsured hereunder currently exist and/or contemplated between
    parties.

                                  ARTICLE XXII
                              ERRORS AND OMISSIONS

        The position of either party to this Agreement shall not be prejudiced
    by any error or omission in reporting cessions or cancellations of premiums,
    commissions, losses, loss adjustment expenses or other underwriting expenses
    under this Agreement, or in claiming payments collectible hereunder for
    whatever cause.

                                  ARTICLE XXIII
                                ACCESS TO RECORDS

        Each party shall have the right, at any reasonable time, to examine all
    records and documents in the possession of the other party which relate to
    insurance business ceded under this Agreement.

                                  ARTICLE XXIV
                                   ARBITRATION

        Should a dispute arise between the parties relating to this Agreement,
    it is hereby mutually agreed that, as a condition precedent to any right of
    action hereunder, such difference shall be submitted to arbitration. Each
    party shall name their arbitrator within twenty (20) days of receiving a
    notice of appointment of arbitrator. The two (2) appointed arbitrators shall
    appoint the umpire. If they cannot agree, the umpire shall be selected by
    the Circuit Court for the County of Oakland. If either side fails to appoint
    its arbitrator, the other party may appoint the other arbitrator.
    Thereafter, the two (2) appointed arbitrators will appoint a neutral within
    ten (10) days of the appointment of the second arbitrator. The decision of
    the arbiters shall be final and binding upon the parties and enforceable in
    a court of competent jurisdiction. The parties shall bear the expense of its
    arbitrator and jointly and equally bear the expense of the umpire.


        In witness whereof, the parties hereto have caused this Agreement to be
    executed this 1st day of January, 2006.


    STAR INSURANCE COMPANY


    By:     /s/ Gregory L. Wilde
       -------------------------
       Gregory L. Wilde
       President

                                  Page 6 of 8
<PAGE>


    AMERITRUST INSURANCE CORPORATION


    By:      /s/ Gregory L. Wilde
       --------------------------
       Gregory L. Wilde
       President


    SAVERS PROPERTY AND CASUALTY INSURANCE COMPANY


    By:      /s/ Gregory L. Wilde
       --------------------------
       Gregory L. Wilde
       President


    WILLIAMSBURG NATIONAL INSURANCE COMPANY


    By:      /s/ Gregory L. Wilde
       --------------------------
       Gregory L. Wilde
       President

                                  Page 7 of 8
<PAGE>

                                   APPENDIX A
                       INTERCOMPANY REINSURANCE AGREEMENT

         Appendix A to the Inter-Company Reinsurance Agreement (the "Agreement")
is made and effective January 1, 2006 by and between Star Insurance Company
(Star), and Ameritrust Insurance Corporation, Savers Property and Casualty
Insurance Company and Williamsburg National Insurance Company, (hereinafter
collectively referred to as "Affiliated Companies"). The Affiliated Companies'
share in the attached Agreement shall be joint and several.


    1.  Effective January 1, 2006, the Respective Percentage(s) shall be as
        follows:

<Table>
<Caption>
        Company                                              Respective Percentage
        ----------------------------------------------       ---------------------
        <S>                                                  <C>
        Star Insurance Company                               56.6%

        Ameritrust Insurance Corporation                     10.0%

        Savers Property and Casualty Insurance Company       22.0%

        Williamsburg National Insurance Company              11.4%
</Table>


    2.  The initial participation percentages listed above may be adjusted from
        time to time by mutual agreement of the Parties. Any changes to the
        Parties' participation percentages will only be made after receipt of
        appropriate regulatory approval.

                                  Page 8 of 8