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15.12.2010 16:47

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Flagstone Celebrates Fifth Anniversary

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Flagstone Reinsurance Holdings, S.A. (NYSE: FSR) celebrates its fifth anniversary.

Flagstone, set up in the wake of the market dislocation caused by Hurricane’s Katrina, Rita, and Wilma in 2005, began in Bermuda in December 2005 with $550 million in capital and has since grown to over $1.45 billion in underwriting capital and wrote $988.5 million of premiums in 2009.

"We have worked hard since 2005 building a platform to produce quality underwriting opportunities from around the globe,” said David Brown, founder and chief executive officer of Flagstone Re. "We now have offices in 12 countries and more than 450 employees. We have come a long way in five years and are very pleased with the business we have built.

"Our success is based on the talent and hard work of our staff, the service we offer clients, and the underwriting discipline we continue to maintain. Our agility in being able to adapt to changing market conditions and the strong financial performance we have shown in the past five years are testament to the fact that we have established ourselves as a premier global short-tail reinsurer.”

Building on this early success, Flagstone has continued to develop a professional team of experts known for their depth of knowledge and comprehensive risk modeling and analysis, in addition to award-winning client service.

Flagstone has been the recipient of several awards since inception including being voted Reinsurance Company of the Year by the Review’s Worldwide Reinsurance Awards for 2010.

About Flagstone Reinsurance Holdings, S.A.

Flagstone Reinsurance Holdings, S.A., through its operating subsidiaries, is a global reinsurance and insurance company that employs a focused and technical approach to the Property Catastrophe, Property, and Specialty reinsurance and insurance businesses.

The Company is traded on the New York Stock Exchange under the symbol "FSR" and the Bermuda Stock Exchange under the symbol "FSR BH". Additional financial information and other items of interest are available at the Company's website located at http://www.flagstonere.com.

Cautionary Statement Regarding Forward-Looking Statements

This report may contain, and the Company may from time to time make, written or oral "forward-looking statements" within the meaning of the U.S. federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the Company's control, which could cause actual results to differ materially from such statements. In particular, statements using words such as "may", "should", "estimate", "expect", "anticipate", "intend", "believe", "predict", "potential", or words of similar import generally involve forward-looking statements.

Important events and uncertainties that could cause the actual results to differ include, but are not necessarily limited to: market conditions affecting the Company's common share price; the possibility of severe or unanticipated losses from natural or man-made catastrophes; the effectiveness of our loss limitation methods; our dependence on principal employees; the cyclical nature of the reinsurance business; the levels of new and renewal business achieved; opportunities to increase writings in our core property and specialty reinsurance and insurance lines of business and in specific areas of the casualty reinsurance market; the sensitivity of our business to financial strength ratings established by independent rating agencies; the estimates reported by cedents and brokers on pro-rata contracts and certain excess of loss contracts where the deposit premium is not specified in the contract; the inherent uncertainties of establishing reserves for loss and loss adjustment expenses, our reliance on industry loss estimates and those generated by modeling techniques; unanticipated adjustments to premium estimates; changes in the availability, cost or quality of reinsurance or retrocessional coverage; changes in general economic conditions; changes in governmental regulation or tax laws in the jurisdictions where we conduct business; the amount and timing of reinsurance recoverables and reimbursements we actually receive from our reinsurers; the overall level of competition, and the related demand and supply dynamics in our markets relating to growing capital levels in the reinsurance industry; declining demand due to increased retentions by cedents and other factors; the impact of terrorist activities on the economy; and rating agency policies and practices.

These and other events that could cause actual results to differ are discussed in more detail from time to time in our filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by U.S. federal securities laws. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made.

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