Exhibit
10.51


 


Amendment
No.2


 


To


 


Amended
and Restated


Brokerage
Business Quota Share Reinsurance Agreement Effective April 1, 2006


(Hereinafter
referred to as the “Original Agreement”)


 


Between


 


TOWER
INSURANCE COMPANY OF NEW YORK


 (Hereinafter referred to
as the “Company”)


 


And


 


CASTLEPOINT
REINSURANCE COMPANY, LTD.


(Hereinafter
referred to as the “Reinsurer”)


 


WHEREAS, the Reinsurer and the Company are
parties to the Original Agreement;


 


NOW THEREFORE, the parties hereby agree to
amend the Original Agreement as amended by Amendment No. 1 as follows:


 


1.             Effective
July 1, 2006, Article VI, Reinsurance Coverage, paragraph A (as amended by
Amendment No. 1) is as follows:


 


The Company shall
automatically and obligatorily cede to the Reinsurer, and the Reinsurer shall
be obligated to accept as assumed reinsurance, a 40% quota share portion of the
Net Liabilities with respect to new and renewal business, subject to adjustment
as set forth below. The Company may, in its sole discretion, change the quota
share participation of the Reinsurer, from time to time, as of any six month
anniversary date of the effective date of this Agreement upon not less than
thirty (30) days prior written notice to the Reinsurer, unless such notice is
waived by the Reinsurer, and provided, however, that the Company and the
Reinsurer may agree to change the Reinsurer’s quota share participation as of
any calendar quarter, with all such changes being affixed to the Agreement; provided
further, however, that the quota share participation of the
Reinsurer shall at all times during the term of this Agreement be a minimum of
25% and a maximum of 50%. Notwithstanding the foregoing, if the Company writes
business of the type that it has historically not written or writes more than
25% of its gross written premiums outside the state of New York in any 12 month
period ending on the anniversary date of this Agreement, then the Reinsurer has
the right to refuse to reinsure such business that the Company has not
historically written and such excess business written outside the State of New
York.


 


Furthermore, for the period
beginning April 1, 2007, the amount of property catastrophe premiums that will
be paid by the Reinsurer shall be 30% of property catastrophe premiums and, for
the period beginning April 1, 2007, the amount of property catastrophe losses
incurred that will be paid by the Reinsurer shall be 30% of the Company’s property
catastrophe net retained losses.  Reinsurer
may fulfill its 


 


 


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obligation to assume such
property catastrophe premiums and losses directly or indirectly.


 


2.             Effective January 1, 2007, the
quota share cession referenced to under Article IV, Reinsurance Coverage,
paragraph A, is 49% with respect to new and renewal business.


 


3              Effective
January 1, 2007, paragraph 1.C of Amendment No. 1 is deleted.


 


4.                                       Effective April
1, 2007, Company is defined as follows:


 


TOWER INSURANCE COMPANY OF NEW YORK (on behalf of
itself and its pooling partner TOWER NATIONAL INSURANCE COMPANY)


 


All other terms and conditions will remain
unchanged.


 


IN WITNESS WHEREOF, the Company and
the Reinsurer have caused this Agreement to be executed.


 


 


TOWER INSURANCE COMPANY OF NEW YORK (on behalf of itself 

and its pooling partner TOWER NATIONAL INSURANCE COMPANY)


 


 


	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  



 


CASTLEPOINT REINSURANCE COMPANY, LTD.


 


	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  



 


 


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