Document:

<PAGE>
                                                                   Exhibit 10.18

                              REINSURANCE AGREEMENT

                             EFFECTIVE JULY 1, 2004

                                     BETWEEN

                     CAPITOL SPECIALTY INSURANCE CORPORATION
                               MADISON, WISCONSIN

                                       AND

                        DARWIN NATIONAL ASSURANCE COMPANY
                             FARMINGTON, CONNECTICUT

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
Preamble.................................................................     1

ARTICLE I      BUSINESS COVERED..........................................     1

ARTICLE II     EFFECTIVE DATE, TERM AND CANCELLATION.....................     1

ARTICLE III    TERRITORY.................................................     2

ARTICLE IV     RETENTION AND LIMIT.......................................     2

ARTICLE V      ULTIMATE NET LOSS.........................................     2

ARTICLE VI     EXTRA CONTRACTUAL OBLIGATIONS AND EXCESS POLICY LIMITS....     3

ARTICLE VII    REINSURANCE PREMIUM AND COMMISSION........................     4

ARTICLE VIII   REPORTS AND REMITTANCES...................................     4

ARTICLE IX     CLAIMS....................................................     5

ARTICLE X      SALVAGE AND SUBROGATION...................................     5

ARTICLE XI     RESERVES AND TAXES........................................     6

ARTICLE XII    OFFSET....................................................     6

ARTICLE XIII   ERRORS OR OMISSIONS.......................................     6

ARTICLE XIV    INSOLVENCY................................................     6

ARTICLE XV     REINSURER'S SECURITY......................................     7

Signatures...............................................................     9
</TABLE>

                                        i

<PAGE>

                              REINSURANCE AGREEMENT
                  (hereinafter referred to as the "Agreement")

                                     Between

                        DARWIN NATIONAL ASSURANCE COMPANY
                             Farmington, Connecticut
                    (hereinafter referred to as "Reinsurer")

                                       and

                     CAPITOL SPECIALTY INSURANCE CORPORATION
                               Madison, Wisconsin
                   (hereinafter referred to as the "Company")

                                    ARTICLE I
                                BUSINESS COVERED

          A. This Agreement is to indemnify the Company on a quota share basis
in respect of the Company's Ultimate Net Loss which the Company may pay as a
result of losses:

          (i) arising from the unearned premium reserve on Policies of Capitol
     Specialty Insurance Corporation in-force as of July 1, 2004 written by
     Darwin Professional Underwriters, Inc.; and

          (ii) arising from Policies of Capitol Specialty Insurance Corporation
     written on or after July 1, 2004 by Darwin Professional Underwriters, Inc.

          B. This Agreement is solely between the Company and the Reinsurer, and
nothing contained in this Agreement shall create any obligations or establish
any rights against the Company or the Reinsurer in favor of any person or entity
not a party hereto.

          C. The term "Policies" shall mean binders, policies and contracts of
insurance or reinsurance on the lines of business covered hereunder.

          D. Under this Agreement, the indemnity for reinsured loss applies to
all lines of business written or assumed by the Company.

                                   ARTICLE II
                      EFFECTIVE DATE, TERM AND CANCELLATION

          A. This Agreement shall become effective 12:01 a.m., Central Standard
Time, July 1, 2004, for six months through 12:01 a.m., Central Standard Time,
January 1, 2005, and for each subsequent twelve-month period.

<PAGE>

          B. Upon termination of this Agreement, the reinsurance under this
Agreement shall remain in effect for all Policies to which this Agreement
attached, including those which are in-force on the expiration date until their
cancellation, non-renewal or natural expiration, whichever occurs first. The
reinsurance under this Agreement shall also remain in effect for Policies which
are required by a regulatory agency to be renewed or extended after the
termination of this Agreement.

          If this Agreement shall terminate while a loss covered hereunder is in
progress, it is agreed that, subject to the other conditions of this Agreement,
Reinsurer shall indemnify the Company as if the entire loss had occurred during
the time this Agreement is in-force provided the loss covered hereunder started
before the time of termination.

          C. Cancellation of this agreement may occur with ninety (90) days
prior written notice, initiated by either party, by certified or registered
mail.

                                   ARTICLE III
                                    TERRITORY

          Subject to the limitations in Article 1, this Agreement applies to
Policies issued by the Company within the United States of America, its
territories and possessions. This Agreement shall apply to losses covered
hereunder wherever occurring.

                                   ARTICLE IV
                               RETENTION AND LIMIT

          A. The Company shall retain zero percent (0%), net of any other
outside reinsurance purchased, of Ultimate Net Loss as respects any one loss
occurrence. Reinsurer shall fully reimburse the Company for any and all losses
and expenses arising from the failure of an unaffiliated reinsurer to timely pay
the Company amounts due Company in connection with business covered by this
Agreement. The Reinsurer shall then be liable for the amount by which the
Company's Ultimate Net Loss exceeds the Company's retention.

          B. The Company's retention and the Reinsurer's limit of liability for
each loss occurrence, as set forth above, shall apply irrespective of the number
of Policies affected or number of hazards in one policy and regardless of the
number of lines of business involved.

                                    ARTICLE V
                                ULTIMATE NET LOSS

          A. The term "Ultimate Net Loss" used herein shall mean the actual sum
paid or payable by the Company in settlement of losses or liability after making
deductions for all recoveries, all salvages, and all claims upon other
reinsurances which

                                        2

<PAGE>

inure to the benefit of the Reinsurer under this Agreement to the extent such
amounts are actually collected by the Company. Ultimate Net Loss shall exclude
unallocated loss adjustment expenses incurred by the Company. Ultimate net loss
will be inclusive of loss expense arising from declaratory judgment expense and
one hundred percent (100%) of any claims related extra contractual obligations
and/or excess of policy limits,

          B. The term "Ultimate Net Loss" shall, in addition, include Extra
Contractual obligations as defined in ARTICLE VI - EXTRA CONTRACTUAL OBLIGATIONS
and EXCESS POLICY LIMITS, but only as respects business covered under this
Agreement.

          C. All Allocated Loss Adjustment Expenses defined below shall be paid
on a pro rata basis, and the Reinsurer shall indemnify the Company for that
portion of the Company's Allocated Loss Adjustment Expenses allocated to a
single loss occurrence which bears the same ratio to total Allocated Loss
Adjustment Expenses as the Reinsurer's portion of the Company's Ultimate Net
Loss, bears to the entire amount of the Company's Ultimate Net Loss.

          D. In the event a verdict, award or judgment is ultimately
compromised, reduced or revised on appeal, the Reinsurer shall indemnify the
Company for the Allocated Loss Adjustment Expenses incurred in obtaining such
reduction or reversal in the ratio that the benefit the Reinsurer derives from
such reduction, reversal or compromise bears to the total benefit derived
therefrom.

          E. The term "Allocated Loss Adjustment Expenses" shall mean all
allocated expenses incurred by the Company in connection with the investigation,
settlement, defense or mitigation of any claim or loss which is the subject
matter of Policies written by the Company, provided such Policies are the
subject of this Agreement and shall exclude the salaries of the Company
employees, office expenses or any other unallocated expenses.

          F. All salvages, recoveries or payments recovered or received
subsequent to a loss settlement under this Agreement shall be applied as if
recovered or received prior to the aforesaid settlement and the parties shall
make all necessary adjustments hereto.

          G. Nothing in this Article V shall be construed to mean that losses
are not recoverable hereunder until the Ultimate Net Loss of THE COMPANY has
been ascertained.

                                   ARTICLE VI
             EXTRA CONTRACTUAL OBLIGATIONS AND EXCESS POLICY LIMITS

          A. This Agreement shall protect the Company where the Ultimate Net
Loss includes Extra Contractual Obligations or Excess Policy Limits.

                                        3

<PAGE>

          B. "Extra Contractual Obligations" are defined as those liabilities
not covered under any provision of this Agreement which arise from the handling
of any claim on business covered hereunder, such liabilities arising because of,
but not limited to, the following: failure by the Company to settle within the
policy limit, or by reason of alleged or actual negligence, fraud or bad faith
in rejecting an offer of settlement or in the preparation of the defense or in
the trial of any action against its insured or in the preparation of an appeal
consequent upon such action.

          C. "Excess Policy Limits" are defined as those damages payable in
excess of the policy limit as a result of alleged or actual negligence, fraud,
or bad faith in failing to settle and/or rejecting a settlement within the
policy limit, in the preparation of the defense, in the trial of any action
against the insured or reinsured, or in the preparation or prosecution of an
appeal consequent upon such action.

          D. The date on which an Extra Contractual Obligation or Excess Policy
Limits is incurred by the Company shall be deemed, in all circumstances, to be
the date of the original accident, casualty, disaster or loss occurrence.

                                   ARTICLE VII
                       REINSURANCE PREMIUM AND COMMISSION

          A. The Company shall pay to the Reinsurer:

          100% of the written premium charged and collected by the Company in
          connection with the Policies referenced in Article I(A)(ii), net of
          any other outside reinsurance purchased on this subject premium, plus
          100% of the unearned premium charged and collected by the Company in
          connection with the Policies referenced in Article I(A)(i), net of any
          other outside reinsurance purchased on this subject premium.

          The reinsurance premiums set forth above shall be subject to a
commission allowance payable to the Company in an amount equal to the
compensation paid by the Company to Darwin Professional Underwriters, Inc. in
relation to such business. The Reinsurer shall also compensate the Company for
additional expenses incurred by the Company in an amount equal to one percent
(1%) of the premium ceded in connection with the Policies described in Article
I(A), provided that such additional compensation shall not exceed twenty five
thousand dollars ($25,000) in any single calendar year.

                                  ARTICLE VIII
                             REPORTS AND REMITTANCES

          A. The Company shall furnish the Reinsurer with all necessary data
respecting losses for as long as one of the parties hereto has a claim against
the other arising from this Agreement.

                                        4

<PAGE>

          B. Within 15 days of the end of any month the Company shall furnish
the Reinsurer with a report of reinsurance premium due. Any balances shown to be
due will be remitted with said report.

          C. Payment by the Reinsurer of its proportion of loss and Allocated
Loss Adjustment Expenses paid by the Company shall be made by the Reinsurer to
the Company within 15 days after proof of payment is received by the Reinsurer.
The Reinsurer shall have the right, at its option, to offset the amount of loss
against any reinsurance premium and/or commission balance or balances past due.

                                   ARTICLE IX
                                     CLAIMS

          The Company shall promptly notify the Reinsurer of each claim, which
may involve the reinsurance provided hereunder and of all subsequent
developments relating thereto, stating the amount claimed and estimate of the
Company's Ultimate Net Loss and Allocated Loss Adjustment Expenses.

                                    ARTICLE X
                             SALVAGE AND SUBROGATION

          A. The Reinsurer shall be subrogated, as respects any loss for which
the Reinsurer shall actually pay or become liable, but only to the extent of the
amount of payment by or the amount of liability to the Reinsurer, to all the
rights of the Company against any person or other entity who may be legally
responsible in damages for such loss. The Company hereby agrees to enforce such
rights, but in case the Company shall refuse or neglect to do so, the Reinsurer
is hereby authorized and empowered to bring any appropriate action in the name
of the Company or its policyholders, or otherwise to enforce such rights.

          B. Any recoveries, salvages or reimbursements applying to risks
covered under this Agreement shall always be used to reimburse the excess
carriers (from the last to the first, beginning with the carrier of the last
excess), according to their participation, before being used in any way to
reimburse the Company for its primary loss.

          C. In the event there are any recoveries, salvages or reimbursements
recovered subsequent to a loss settlement, it is agreed that if the expenses
incurred in obtaining salvage or other recoveries are less than the amount
recovered, such expenses shall be borne by each party in the proportion that
each party benefits from the recoveries; otherwise, the amount recovered shall
first be applied to the reimbursement of the expense of recovery and the
remaining expense shall be borne by the Company and the Reinsurer in proportion
to the liability of each party for the loss before such recovery had been
obtained. Expenses hereunder shall exclude all office expenses of the Company
and all salaries and expenses of its officials and employees.

                                        5

<PAGE>

                                   ARTICLE XI
                               RESERVES AND TAXES

          A. The Reinsurer shall maintain legal reserves with respect to claims
hereunder.

          B. The Reinsurer shall reimburse the Company for any taxes which the
Company may be obligated to pay in connection with the Policies reinsured
pursuant to this Agreement.

                                   ARTICLE XII
                                     OFFSET

          Each party hereto shall have, and may exercise at any time and from
time to time, the right to offset any balance or balances, whether on account of
premiums or on account of losses or otherwise, due from such party to the other
party hereto under this Agreement or under any other reinsurance agreement
heretofore or hereafter entered into by and between them, and may offset the
same against any balance or balances due or to become due to the former from the
latter under the same or any other reinsurance agreement between them; and the
party asserting the right of offset shall have and may exercise such right
whether the balance or balances due or to become due to such party from the
other are on account of premiums or on account of losses or otherwise and
regardless of the capacity, whether as assuming insurer or as ceding insurer, in
which each party acted under the agreement or the different agreements involved,
provided however, that, in the event of the insolvency of a party hereto,
offsets shall only be allowed in accordance with the provisions of sec. 645.56,
Wis. Stats.

                                  ARTICLE XIII
                               ERRORS OR OMISSIONS

          Errors or omissions on the part of the Company shall not invalidate
the reinsurance under this Agreement.

                                   ARTICLE XIV
                                   INSOLVENCY

          A. Notwithstanding any other provision to the contrary, in the event
of insolvency of the Company, the reinsurance provided by this Agreement shall
be payable by the Reinsurer on the basis of the liability of the Company for the
business reinsured hereunder, without diminution because of such insolvency,
directly to the Company or its liquidator, receiver or statutory successor,
except where the Reinsurer, with the consent of the direct insured or insureds,
has assumed such policy obligations of the Company as direct obligations of the
Reinsurer to the payees under such policies and in substitution for the
obligations of the Company to such payees.

                                        6

<PAGE>

          B. The Reinsurer shall be given written notice of the pendency of each
claim or loss, which may involve the reinsurance provided by this Agreement
within a reasonable time after such claim or loss, is filed in the insolvency
proceeding. The Reinsurer shall have the right to investigate each such claim or
loss and interpose, at its own expense, in the proceeding where the claim or
loss is to be adjudicated, any defense available to the Company, its liquidator,
receiver or statutory successor. The expense thus incurred by the Reinsurer
shall be chargeable, subject to court approval, against the insolvent Company as
part of the expense of liquidation to the extent of a proportionate share of the
benefit, which may accrue to the Company solely as a result of the defense
undertaken by the Reinsurer.

          C. Nothing contained in this Article is intended to change the
relationship of the parties to this Agreement or to enlarge upon the rights or
obligations of either party hereunder except as provided herein, to wit, to pay
the statutory successor of the Company on the basis of the amount of liability
determined in the liquidation or receivership proceeding rather than on the
basis of the actual amount of loss paid by the liquidator, receiver or statutory
successor to allowed claimants.

                                   ARTICLE XV
                              REINSURER'S SECURITY

          It is agreed that when the Company files with an insurance department
or establishes reserves for claims covered and unearned premium hereunder, as
required by law, the Company shall forward to the Reinsurer a statement showing
the proportion of such loss and unearned premium reserves which is applicable to
the Reinsurer. In the event that the Company is not permitted by any insurance
regulator to take full and complete credit on its financial statements for this
reinsurance, the Reinsurer hereby agrees to apply for and secure delivery to the
Company of a clean, irrevocable, evergreen and unconditional Letter of Credit or
other collateral acceptable to the Company, with a minimum term of one year,
that is issued or confirmed, and presentable and payable in the United States by
any bank or trust company, and is in a format acceptable to the governmental
authority having jurisdiction over the Company's reserves, in an amount equal to
the Reinsurer's proportion of such loss and unearned premium and commission
reserves.

          The Company and the Reinsurer agree that the Letter of Credit or other
collateral acceptable to the Company provided by the Reinsurer under this
provision may be drawn upon at any time, notwithstanding any other provisions in
this Agreement, including and without limitation by any liquidator,
rehabilitator, receiver or conservator of such Company for the following
purposes:

          (1) to reimburse the Company for the Reinsurer's share of the Ultimate
     Net Losses paid by the Company and which has not otherwise been paid by the
     Reinsurer;

                                        7

<PAGE>

          (2) to reimburse the Company for the Reinsurer's share of premium
     returned under Policies reinsured under this Agreement on account of
     cancellation of such Policies and which has not otherwise been paid by the
     Reinsurer;

          (3) to fund an account with the Company in an amount at least equal to
     the deduction, for reinsurance ceded, from the Company's liabilities for
     amounts ceded under this Agreement. Such cash deposits shall be held in an
     interest bearing account separate from the Company's other assets, and
     interest thereon shall accrue to the benefit of the Reinsurer. Such amount
     shall include, but not be limited to, amounts for reserves for claims and
     losses incurred, including losses incurred but not reported, loss
     adjustment expenses, and unearned premiums;

          (4) to reimburse the ceding insurer for the assuming insurer's share
     of surrenders and benefits or losses paid by the ceding insurer under the
     terms and provisions of the Policies reinsured under this Agreement; and

          (5) to pay any other amounts the Company claims are due under this
     Agreement.

                                        8

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed by their duly authorized representatives.

          In Madison, Wisconsin, this 21st day of September, 2004.

                                        CAPITOL SPECIALTY INSURANCE CORPORATION

                                        By: /s/ David F. Pauly
                                            ------------------------------------
                                            David F. Pauly
                                            President and Chief Executive
                                            Officer

          And in Farmington, Connecticut this 22nd day of September, 2004.

                                        DARWIN NATIONAL ASSURANCE COMPANY

                                        By: /s/ John L. Sennott, Jr.
                                            ------------------------------------
                                            John L. Sennott, Jr.
                                            Chief Financial Officer

                                        9<PAGE>
                                                                 Exhibit 10.19.1

                              REINSURANCE AGREEMENT

                                  BY AND AMONG

                          CAPITOL INDEMNITY CORPORATION
                                AS CEDING COMPANY
                                       AND
                        DARWIN NATIONAL ASSURANCE COMPANY
                                  AS REINSURER

                               DATED JULY 1, 2005

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>
ARTICLE 1  DEFINITIONS...................................................     1
ARTICLE 2  TERM..........................................................     2
ARTICLE 3  REINSURANCE CEDED.............................................     2
ARTICLE 4  EXTRA-CONTRACTUAL OBLIGATIONS.................................     3
ARTICLE 5  CONSIDERATION.................................................     3
ARTICLE 6  ADMINISTRATION................................................     4
ARTICLE 7  REPORTS AND RECONCILIATION....................................     4
ARTICLE 8  RIGHT OF INSPECTION AND PARTICIPATION.........................     5
ARTICLE 9  THIRD-PARTY REINSURANCE AGREEMENTS............................     5
ARTICLE 10 INDEMNIFICATION...............................................     6
ARTICLE 11 COVENANTS.....................................................     6
ARTICLE 12 ERRORS AND OMISSIONS..........................................     7
ARTICLE 13 LEGAL PROCEEDINGS.............................................     7
ARTICLE 14 INSOLVENCY....................................................     8
ARTICLE 15 REGULATORY APPROVALS..........................................     8
ARTICLE 16 TERMINATION...................................................     9
ARTICLE 17 GENERAL PROVISIONS............................................     9
</TABLE>

                                        i

<PAGE>

                              REINSURANCE AGREEMENT

THIS REINSURANCE AGREEMENT (the "Reinsurance Agreement"), effective July 1,
2005, is made by and among Capitol Indemnity Corporation, an insurance company
organized and existing under the laws of the State of Wisconsin (the "Ceding
Company"), and Darwin National Assurance Company, an insurance company organized
and existing under the laws of the State of Delaware (the "Reinsures" or
"Darwin").

                                   WITNESSETH:

WHEREAS, the Ceding Company and Reinsurer are engaged in the property and
casualty insurance business;

WHEREAS, the Reinsures desires to reinsure 100% of the Policy Liabilities (as
defined herein), effective on the Reinsurance Effective Date (as defined
herein); and

WHEREAS, the Ceding Company desires to have the Reinsurer reinsure the Policy
Liabilities, effective on the Reinsurance Effective Date.

NOW, THEREFORE, for and in consideration of the foregoing premises and the
promises and the mutual agreements hereinafter set forth, the parties hereto
agree as follows:

                                    ARTICLE 1

                                   DEFINITIONS

As used in this Reinsurance Agreement, the following terms shall have the
following respective meanings:

"Affiliate" means, with respect to any Person, at the time in question, any
other Person directly or indirectly controlling, controlled by or under common
control with such Person.

"Applicable Law" means any federal, state or local statute, law, ordinance,
regulation, order, writ, injunction, directive, judgment or decree applicable to
the parties hereto, or any of their respective Affiliates, properties, or
assets, as the case may be.

"Books and Records" means all records, documents, data and information, in any
form whatsoever, including, but not limited to, hard copies, computer tapes and
drives, CD-ROM or other physical or electronic media, relating to the Policy
Liabilities, including all such materials relating to any third-party
reinsurance relating to such Policy Liabilities.

"Business Day" means any day other then a Saturday, Sunday, a day on which
banking institutions in either of the States of Wisconsin or Connecticut are
permitted or obligated by law to be closed or a day on which the New York Stock
Exchange is closed for trading.

"Extra Contractual Obligations" means all liabilities for compensatory,
consequential, exemplary, punitive, statutory or similar damages which relate to
or arise (i) in connection with any alleged or actual act, error or omission by
the Ceding Company or any of its Affiliates

<PAGE>

relating to the Policy Liabilities and/or the Policies, or (ii) in connection
with any such alleged or actual act, error or omission by the Reinsurer acting
on behalf of Ceding Company or any of its Affiliates.

"Loss or Losses" mean all claims, judgments, awards, losses, liabilities,
obligations, damages, payments, deficiencies, costs or expenses (including
allocated loss adjustment expenses), including, without limit, any penalties and
attorneys' fees and disbursements.

"Person" means any individual, corporation, partnership, firm, joint venture,
association, company, trust, unincorporated organization, governmental, judicial
or regulatory body, business unit division or other entity.

"Policy Liabilities" means all Losses (net of reinsurance payments actually
received by Ceding Company from reinsurers not affiliated with Ceding Company)
arising out of or relating to policies written through Darwin Professional
Underwriters, Inc. ("DPU") on Ceding Company paper pursuant to an Underwriting
Management Agreement between DPU and Ceding Company effective June 1, 2003 and
not otherwise ceded by Ceding Company to Darwin National Assurance Company or
otherwise paid by the Ceding Company prior to the Reinsurance Effective Date
(the "Policies").

"Policy Reserves" means the reserves of Ceding Company as of the Reinsurance
Effective Date with respect to the Policy Liabilities without giving effect to
this Reinsurance Agreement.

"Reinsurance Effective Date" shall be July 1, 2005.

"Tax or Taxes" means reinsurance premium taxes, reinsurance excise taxes, second
injury fund assessments (net of reimbursements, if any), guarantee fund
assessments (net of premium tax credits as used) or any other similar
premium-based taxes or similar assessments directly arising from, or directly
relating to, the Policy Liabilities, including any interest, penalties or
additions attributable thereto.

                                    ARTICLE 2

                                      TERM

Subject to all of the provisions set forth herein, this Reinsurance Agreement
shall be effective as of the Reinsurance Effective Date and shall remain in
effect so long as there are any outstanding Policy Liabilities or until this
Reinsurance Agreement is terminated in accordance with the provisions of Article
16 hereof.

                                    ARTICLE 3

                                REINSURANCE CEDED

A.   The Ceding Company hereby cedes, and the Reinsurer hereby accepts and
     assumes, as of the Reinsurance Effective Date, one hundred percent (100%)
     of the Policy Liabilities incurred by the Ceding Company, including any
     Taxes.

                                        2

<PAGE>

B.   The Ceding Company will use reasonable efforts to provide to the Reinsurer
     available information relating to the Policy Liabilities. Failure to
     provide any such information, or include any claim, policy form or other
     information relating to the Policy Liabilities, shall not affect the
     reinsurance coverage provided for by this Reinsurance Agreement.

C.   Neither the Ceding Company nor the Reinsurer shall have the right to
     commute the reinsurance ceded under this Reinsurance Agreement, except
     pursuant to the provisions of paragraph B of Article 16 of this Reinsurance
     Agreement.

D.   The Reinsurer shall follow the fortunes of the Ceding Company for all
     Policy Liabilities and matters covered by this Reinsurance Agreement in all
     respects, and the Reinsurer shall be bound by all payments and settlements
     entered into by the Ceding Company and/or DPU on behalf of the Ceding
     Company.

                                    ARTICLE 4

                          EXTRA-CONTRACTUAL OBLIGATIONS

The Reinsurer shall pay and be responsible for 100% of any Extra Contractual
Obligations arising out of or relating to the Policy Liabilities.

                                    ARTICLE 5

                                  CONSIDERATION

A.   The Ceding Company will compute and credit the amount due to the Reinsurer
     in consideration for the reinsurance provided hereunder a sum equal to the
     June 30, 2005 GAAP book value of the loss and loss adjustment expense
     reserves and unearned premium, less any deferred acquisition expense
     related to the unearned premium, for the Policies, less any ceded unearned
     premiums and reinsurance receivables from unaffiliated reinsurers on paid
     and unpaid Losses for the Policies. In addition to any other amounts due
     Ceding Company, Reinsurer shall reimburse Ceding Company for any and all
     amounts paid and/or payable by Ceding Company to DPU under the Underwriting
     Management Agreement between DPU and Ceding Company effective June 1, 2003.

B.   Within fifteen (15) business days following the Reinsurance Effective Dale,
     the Ceding Company will remit to the Reinsurer the consideration to be
     calculated pursuant to paragraph A of this Article. The form of the total
     consideration may include reinsurance recoverables relating to business
     reinsured (credited at full GAAP book value), cash, and invested assets of
     the entities reinsured (as determined by the Ceding Company and credited at
     market value). All invested assets transferred shall be free and clear of
     all claims, liens and encumbrances. The Ceding Company and the Reinsurer
     may, upon mutual agreement, offset amounts due under this Agreement against
     other amounts due between the parties.

C.   The Reinsurer shall be entitled, as a reinsurance premium, to 100% of all
     collected premiums, salvage and subrogation and any other moneys received
     by the Ceding Company with respect to the Policies after the Reinsurance
     Effective Date, except for any

                                        3

<PAGE>

     amount received by Ceding Company for reinsurance recoverables not
     transferred to the Reinsurer. Any costs, expenses and commissions incurred
     in collecting the amounts set forth in this paragraph D shall be borne by
     the Reinsurer.

D.   The Reinsurer shall fully reimburse the Ceding Company for any and all
     losses and expenses (including collection expenses and attorney's fees)
     arising from the failure of an unaffiliated reinsurer to timely pay the
     Ceding Company amounts due the Ceding Company in connection with the
     business covered by this Agreement.

                                    ARTICLE 6

                                 ADMINISTRATION

In further consideration of the mutual promises under this Reinsurance
Agreement, the Ceding Company and the Reinsurer agree that the Policy
Liabilities will be administered by the Reinsurer; provided, however, that
Reinsurer may permit DPU to provide administrative services related to these
Policy Liabilities in the same manner and to the same extent that DPU provides
such services on business written by Ceding Company through DPU. However,
notwithstanding the performance of such services by DPU, Reinsurer shall remain
directly liable for the performance of such services and Ceding Company shall
not be required to compensate DPU in any manner for such services performed as
permitted under this Reinsurance Agreement.

                                    ARTICLE 7

                           REPORTS AND RECONCILIATION

A.   Periodically, within a tune frame as mutually agreed upon by the parties,
     during the term of this Reinsurance Agreement, there shall be transmitted
     by the Reinsurer to the Ceding Company, in form and substance mutually
     agreed upon by the parties, a "'summary report" for the period reported on,
     of all activity relating to the Policy Liabilities. The report shall
     include, but not be limited to, the amount of gross premiums, commissions,
     related expenses, reserves and paid losses, as applicable. The report shall
     also reconcile any amounts due the Ceding Company and Reinsurer under this
     Reinsurance Agreement.

B.   Except to the extent that this Reinsurance Agreement provides otherwise,
     all amounts shall be paid within twenty (20) Business Days of delivery of
     such report, and any amount not paid within such twenty (20) Business Day
     period shall bear simple interest at the 60-Day C.P. Rate (as such rate is
     published under the caption "Commercial Paper" for a 60-Day duration in
     Federal Reserve Statistical Release H.15 (519) on the date the payment is
     made) (the "60-Day C.P. Rate") from the twentieth Business Day until the
     date of payment.

C.   To the extent Reinsurer has reasonably available the applicable
     information, or such information as can reasonably be made available,
     Reinsurer shall prepare all reports reasonably requested by the Ceding
     Company in connection with the Policy Liabilities to enable the Ceding
     Company to comply with any contractual requirements, any and all Applicable
     Laws, including, without limitation, all statutory insurance reporting

                                        4

<PAGE>

     requirements and, as the case may be, reasonable informational or reporting
     requests from reinsurers. Any monthly or quarterly reports required to be
     prepared by Reinsurer shall be prepared within fifteen (15) Business Days
     following the last day of the applicable month or calendar quarter, as the
     case may be. Any year-end reports and reports for the Ceding Company's
     reinsurers required to be prepared by Reinsurer shall be prepared on a
     timely basis in order for the Ceding Company to comply with any filing
     deadlines required by law or by contract. All such reports shall include
     such information as may reasonably be required by the Ceding Company.

                                    ARTICLE 8

                      RIGHT OF INSPECTION AND PARTICIPATION

To the extent permitted by Applicable Law, from the date hereof until the date
on which Reinsurer has fulfilled all of its obligations to the Ceding Company
under this Reinsurance Agreement, and at any time (without limitation) as may be
required in the Ceding Company's judgment in order for the Ceding Company to
comply with any Applicable Law or to perform its obligations or responsibilities
under this Reinsurance Agreement, the Ceding Company and its authorized
representatives may from time to time reasonably request, and Reinsurer shall
provide, during normal business hours, full and open access to examine all Books
and Records under the control of Reinsurer relating to the Policy Liabilities
and to discuss the Policy Liabilities or the reinsurance provided under this
Reinsurance Agreement with the employees and agents of Reinsurer who are
familiar therewith, so that the Ceding Company shall have sufficient opportunity
to make whatever investigation it shall reasonably deem necessary and desirable
in connection with the transactions contemplated by this Reinsurance Agreement.
Such access and opportunity shall be exercised by the Ceding Company and such
authorized representatives in a manner that shall not interfere unreasonably
with the operations of Reinsurer. Such access shall include provision by
Reinsurer to the Ceding Company of copies of any Books and Records to the extent
that the Ceding Company reasonably determines that it requires copies of any
such Books and Records in order to carry out the transactions contemplated by
this Reinsurance Agreement or for any legitimate business purposes related to
this Reinsurance Agreement.

                                    ARTICLE 9

                       THIRD-PARTY REINSURANCE AGREEMENTS

A.   Future potential recoveries under reinsurance contracts providing aggregate
     limits shall be apportioned pursuant to generally accepted allocation
     practices or procedures; provided that the method or the combination of
     methods actually utilized shall be reasonable and equitable; provided,
     further, that if the Ceding Company and the Reinsurer do not agree on any
     allocation, such dispute shall be subject to resolution pursuant to Article
     13 hereof.

B.   Nothing in this Agreement shall be deemed a warranty or guaranty by the
     Ceding Company of the reinsurance recoverables transferred to the Reinsurer
     pursuant to Article 5 hereof.

                                        5

<PAGE>

                                   ARTICLE 10

                                 INDEMNIFICATION

A.   The Reinsurer agrees to indemnify, defend and hold harmless the Ceding
     Company and its directors, officers, employees successors and permitted
     assigns from and against all Losses arising under or related to the Policy
     Liabilities assumed by the Reinsurer under this Reinsurance Agreement and
     the Extra Contractual Obligations assumed by the Reinsurer pursuant to
     Article 4 hereof.

B.   In the event the Ceding Company (or its directors, officers, employees,
     successors and permitted assigns) shall have a claim for indemnity against
     the Reinsurer, the Ceding Company shall deliver written notice of such
     claim with reasonable promptness to the Reinsurer specifying in reasonable
     detail the facts constituting the basis for and the amount of, the claim
     asserted. The failure by the Ceding Company to notify the Reinsurer shall
     not relieve the Reinsurer from any liability that it may have to the Ceding
     Company with respect to any claim made pursuant to this Article 10. The
     Ceding Company shall have authority to select counsel and control all
     aspects of the defense of any matters subject to this Article 10, subject
     to the approval of the Reinsurer, not to be unreasonably withheld.

                                   ARTICLE 11

                                    COVENANTS

A.   The Reinsurer shall maintain Policy Reserves consistent with the law of any
     jurisdiction having regulatory authority with respect to the Policy
     Liabilities.

B.   The Reinsurer shall, at its own expense, take all steps necessary to ensure
     that the Ceding Company obtain full financial statement credit in all
     applicable jurisdictions for the reinsurance ceded under this Reinsurance
     Agreement, including, to the extent required, the posting of letters of
     credit or other acceptable security.

C.   Notwithstanding any other provision of this Agreement to the contrary, if
     the Reinsurer becomes unauthorized in any State or Commonwealth of the
     United States of America or the District of Columbia or any other
     jurisdiction where authorization is required by insurance regulatory
     authorities in order for the Ceding Company to obtain credit on its
     statutory annual statements for the reinsurance being provided under this
     Reinsurance Agreement, the Reinsurer will establish such escrow accounts,
     trust accounts for the benefit of the Ceding Company, letters of credit, or
     a combination thereof as required by Applicable Law to permit the Ceding
     Company to obtain credit for such reinsurance upon the request of the
     Ceding Company if a penalty would accrue to the Ceding Company on its
     statutory annual statement without such funding. The Ceding Company shall
     have the option of determining the method of funding to be utilized.

     The Reinsurer shall promptly notify the Ceding Company of any loss of
     license or authorization or other change or condition which, in the
     reasonable judgment of the

                                        6

<PAGE>

     Ceding Company, may affect the ability of the Ceding Company to obtain
     credit on its statutory financial statements for such reinsurance.

D.   In the event (a) the Reinsurer is required to file a "Company Action Plan"
     as a result of its risk based capital level falling below required levels,
     which condition is not promptly cured by the Reinsurer upon notice by the
     Ceding Company, or (b) the AM Best rating of the Reinsurer falls below an
     "A-", the Reinsurer shall promptly collateralize its reinsurance
     obligations to the Ceding Company under this Reinsurance Agreement in a
     manner reasonably satisfactory to the Ceding Company. Such
     collateralization shall only be required during the period in which the
     Reinsurer's risk based capital level is below required levels under
     Applicable Law or (b) if the prior sentence applies.

E.   The Reinsurer shall promptly notify the Ceding Company of the occurrence of
     any of the following events:

          a.   As a result of the Reinsurer's risk based capital falling below
               required levels, the Reinsurer is required to file a "Company
               Action Plan" or (b) the AM Best rating of the Reinsurer falls
               below an "A-".

          b.   The insolvency of the Reinsurer or the existence of any condition
               that would provide grounds for the commencement of a
               rehabilitation, conservation, liquidation or other delinquency
               proceedings by a governmental entity with respect to the
               Reinsurer.

F.   The Reinsurer shall, within twenty (20) Business Days of notification by
     the Ceding Company, pay all Taxes.

                                   ARTICLE 12

                              ERRORS AND OMISSIONS

Any delays, errors or omissions on the part of one party occurring in connection
with its obligations under this Reinsurance Agreement or any transaction
hereunder shall not relieve any other party from any liability which would have
otherwise attached had such delay, error or omission not occurred, provided that
such error or omission is rectified as soon as reasonably practicable after
discovery thereof. Notwithstanding the foregoing, no inadvertent failure by the
Ceding Company to give notice to the Reinsurer of a claim or occurrence relating
to the Policy Liabilities being reinsured hereunder, regardless of prejudice to
the Reinsurer, shall render unenforceable or void the reinsurance relating to
such claim being provided under this Reinsurance Agreement.

                                   ARTICLE 13

                                LEGAL PROCEEDINGS

Each of the parties hereto agrees that any legal action or proceeding with
respect to this Reinsurance Agreement shall be brought in the Courts of the
State of Wisconsin, or the United States District Court for the Western District
of Wisconsin and, by execution and delivery of this

                                        7

<PAGE>

Reinsurance Agreement, each party hereto irrevocably submits itself in respect
of its property, generally and unconditionally, to the jurisdiction of the
aforesaid courts in any legal action or proceeding arising out of this
Reinsurance Agreement. Each of the parties hereto hereby irrevocably waives any
objection which it may now or hereafter have to the laying of venue of any of
the aforesaid actions or proceedings arising out of or in connection with this
Reinsurance Agreement brought in the courts referred to in the preceding
sentence. Each party hereby consents to process being served in any such action
or proceeding by the mailing of a copy thereof to the address set forth in
Article 17 (M) hereof and agrees that such service upon receipt shall constitute
good and sufficient service of process or notice thereof. Nothing herein shall
affect or eliminate any right to serve process in any other matter permitted by
law.

                                   ARTICLE 14

                                   INSOLVENCY

In the event of the insolvency, liquidation or rehabilitation of the Ceding
Company or the appointment of a liquidator, receiver or statutory successor of
the Ceding Company, the reinsurance coverage provided hereunder shall be payable
by the Reinsurer directly to the Ceding Company or to its liquidator, receiver
or statutory successor, on the basis of the liability of the Ceding Company for
the Policy Liabilities without diminution because of such insolvency,
liquidation, rehabilitation or appointment or because such liquidator, receiver
or statutory successor has failed to pay any or a portion of any claims. In any
such event, the reinsurance being provided hereunder shall be payable
immediately upon demand, with reasonable provision for verification, on the
basis of claims allowed against the Ceding Company by any court of competent
jurisdiction or by any liquidator, receiver or statutory successor. In any such
event, the liquidator, receiver or statutory successor of the Ceding Company
shall give written notice to the Reinsurer of the pendency of each claim against
the Ceding Company with respect to such Policy Liabilities within a reasonable
time after each such claim is filed in the insolvency, liquidation or
rehabilitation proceeding. During the pendency of any such claims, the Reinsurer
may, at its own expense, investigate such claim and interpose in the proceeding
in which such claim is to be adjudicated any defense or defenses, which the
Reinsurer may reasonably deem available to the Ceding Company or its liquidator,
receiver or statutory successor. The expenses incurred in connection therewith
by the Reinsurer shall be chargeable, subject to court approval, against the
Ceding Company as part of the expense of such insolvency, liquidation or
rehabilitation to the extent of any benefit, which accrues to the Ceding
Company, solely as a result of the defense or defenses undertaken by the
Reinsurer.

                                   ARTICLE 15

                              REGULATORY APPROVALS

A.   It shall be a condition to the effectiveness of this Reinsurance Agreement
     that the Ceding Company and the Reinsurer shall have obtained prior
     approval of this Reinsurance Agreement from those state insurance
     departments or other regulatory authorities, the approval of which is
     required for the effectiveness of this Reinsurance Agreement.

                                        8

<PAGE>

B.   At all times during the term of this Reinsurance Agreement, Reinsurer shall
     hold and maintain all licenses and authorities required under Applicable
     Laws to perform its obligations hereunder.

                                   ARTICLE 16

                                   TERMINATION

A.   This Reinsurance Agreement shall be terminated:

     1.   upon the termination of all of the Policy liabilities:

     2.   by mutual written agreement of the parties; or

     3.   at the Option of the Ceding Company, upon the occurrence of the
          commencement of a rehabilitation, liquidation, conservation or other
          delinquency proceeding against the Reinsurer, or the existence of any
          condition (continuing as of the date of termination) that would
          provide reasonable grounds for the commencement of a rehabilitation,
          liquidation, conservation or other delinquency proceeding against the
          Reinsurer, under applicable state insurance laws and regulations,
          which condition is not promptly cured by the Reinsurer upon notice by
          the Ceding Company of its intent to exercise its rights under this
          provision.

B.   In the event of the termination of this Reinsurance Agreement under
     paragraph A (3) of this Article, the Ceding Company shall be permitted, at
     its sole option, to commute the Policy Liabilities. In such an event, the
     Reinsurer shall transfer to the Ceding Company, subject to any necessary
     court approval, assets with a fair market value equal to the Policy
     Liabilities subject to such commutation as of the effective date of the
     commutation ("Commutation Payment"). All parties shall use their best
     efforts to cooperate in effectuating the necessary transitions.

                                   ARTICLE 17

                               GENERAL PROVISIONS

A.   Invalidity. Unless the invalidity or unenforceability of any provision or
     portion thereof frustrates the intent of the parties or the purpose of this
     Reinsurance Agreement, such invalidity or unenforceability shall not affect
     the validity or enforceability of the other provisions or portions thereof.
     In the event that such provision shall be declared unenforceable by a court
     of competent jurisdiction, such provision or portion thereof, to the extent
     declared unenforceable, shall be stricken. However, in the event any such
     provision or portion thereof shall be declared unenforceable due to its
     scope, breadth or duration, then it shall be modified to the scope, breadth
     or duration permitted by law and shall continue to be fully enforceable as
     so modified.

B.   Entire Agreement. This Reinsurance Agreement constitutes the entire
     contract between the parties with respect to the reinsurance and
     administration of the Policy Liabilities and there are no understandings
     between the parties as to the reinsurance or administrative

                                        9

<PAGE>

     services to be provided other than as expressed in this Reinsurance
     Agreement and the Administrative Services Agreement. Any amendment or
     modification hereto shall be null and void unless made in writing by
     amendment to this Reinsurance Agreement and executed by all parties.

C.   Governing Law. This Reinsurance Agreement shall be deemed to have been made
     under and governed by the laws of the State of Wisconsin without regard to
     Wisconsin's choice of law rules.

D.   Counterparts. This Reinsurance Agreement may be executed in two or more
     counterparts, each of which shall be deemed an original, but all of which
     together shall constitute one and the same instrument. This Reinsurance
     Agreement shall become effective when one or more counterparts have been
     signed by each party hereto and delivered to the other parties hereto,
     which consent shall not unreasonably be withheld.

E.   No Third-Party Beneficiaries. Nothing in this Reinsurance Agreement is
     intended or shall be construed to give any Person, other than the parties
     hereto, any legal or equitable right, remedy or claim under or in respect
     of this Reinsurance Agreement or any provision contained herein; provided,
     however, that any person entitled to indemnification pursuant to Article 10
     hereof shall be entitled to enforce such article.

F.   Assignment. This Reinsurance Agreement shall be binding upon and inure to
     the benefit of the parties hereto and their respective successors and
     assigns and legal representatives. This Reinsurance Agreement is not
     assignable except by operation of law or by mutual written consent of the
     parties hereto.

G.   Waivers. The terms of this Reinsurance Agreement may be waived only by a
     written instrument signed by the party waiving compliance. No delay on the
     part of any party in exercising any right, power or privilege hereunder
     shall operate as a waiver thereof. Nor shall any waiver on the part of any
     party of any right, power or privilege, nor any single or partial exercise
     of any such right, power or privilege, preclude any further exercise
     thereof or the exercise of any other such right, power or privilege.

H.   Headings. The headings in this Reinsurance Agreement are for the
     convenience of reference only and shall not affect its interpretation.

I.   Exhibits. Each Exhibit referred to herein is incorporated into this
     Reinsurance Agreement by such reference.

J.   Preparation. This Reinsurance Agreement has been jointly prepared by the
     parties hereto and the terms hereof will not be construed in favor of or
     against any such party by reason of its participation in such preparation.

K.   Reasonableness. Each of the Parties will act reasonably and in good faith
     on all matters within the terms of this Reinsurance Agreement.

L.   Incontestability. In consideration of the mutual covenants and agreements
     contained herein, each party hereto does hereby agree that this Reinsurance
     Agreement, and each

                                       10

<PAGE>

     and every provision hereof, is and shall be enforceable by and between them
     according to its terms, and each party does hereby agree that it shall not
     contest the validity or enforceability hereof.

M.   Notices. All notices, requests, demands, approvals and other communications
     under this Reinsurance Agreement shall be in writing and shall be delivered
     personally, sent by facsimile transmission or sent by certified, registered
     or express mail, postage prepaid. Any such notice or other communication
     shall be deemed given upon actual delivery if presented personally or sent
     by facsimile transmission, In each case to the following addresses:

     If to the Ceding Company:

     Chief Financial Officer
     Capitol Insurance Companies
     4610 University Avenue
     P.O. Box 5900
     Madison, WI 53705-0900
     Fax: 608-231-2053

     With copies to.

     General Counsel
     Capitol Insurance Companies
     4610 University Avenue
     P.O. Box 5900
     Madison, WI 53705-0900
     Fax: 608-231-2053

     If to Reinsurer:

     Chief Financial Officer
     Darwin National Assurance Company
     9 Farm Springs Road
     Farmington, CT 06032
     Fax: 860-284-1301

     With copies to:

     General Counsel
     Darwin National Assurance Company
     9 Farm Springs Road
     Farmington, CT 06032
     Fax: 860-284-1950

Any party may, by notice given in accordance with this Reinsurance Agreement to
the other parties, designate another address, fax number or person for receipt
of notices hereunder.

                                       11

<PAGE>

N.   Offsets. Ceding Company and Reinsurer may offset any balance, whether on
     account of premiums, commissions, losses or claim expenses, due from one
     party to the other under this Reinsurance Agreement or under any other
     reinsurance agreement hereafter entered into between Ceding Company and
     Reinsurer; provided, however, that in the event of the insolvency,
     liquidation, or rehabilitation of a party hereto, offsets shall only be
     permitted to the extent allowed under the terms of this Reinsurance
     Agreement and applicable law.

     IN WITNESS WHEREOF, and Intending to be legally bound, the parties have
signed this Reinsurance Agreement.

                                        CAPITOL INDEMNITY CORPORATION

Date: September 1, 2005                 By: /s/ David F. Pauly
      -----------------                     ------------------------------------
                                        Name: David F. Pauly
                                              ----------------------------------
                                        Title: President
                                               ---------------------------------

                                        DARWIN NATIONAL ASSURANCE COMPANY

Date: August 31, 2005                   By: /s/ John L. Sennott, Jr.
      ----------------                      ------------------------------------
                                        Name: John L. Sennott, Jr.
                                              ----------------------------------
                                        Title: CFO
                                               ---------------------------------

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]