TAX ALLOCATION AGREEMENT

EXHIBIT 10.3

TAX ALLOCATION AGREEMENT

This Tax Allocation Agreement, dated June 1, 2006, between AmTrust Financial Services, Inc. (“AmTrust”), a Delaware corporation, and Wesco Insurance Company (“Wesco”), a Delaware corporation.

WITNESSETH

WHEREAS, AmTrust and Wesco are affiliates;

WHEREAS, AmTrust and Wesco are part of a consolidated tax filing group (the “Group”) in accordance with the relevant Internal Revenue Service regulations; and

WHEREAS, AmTrust is the agent of Wesco for the purpose of filing the consolidated tax return on behalf of the Group; and

WHEREAS, AmTrust and Wesco wish to set forth their obligations to each other as members of the Group in accordance with Delaware’s insurance laws and regulations.

NOW, THEREFORE, AmTrust and Wescp agree as fol