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Flagstone Re Reports Diluted Book Value per Share of $11.60 for end of First Quarter 2009
HAMILTON, Bermuda - 5 May, 2009 - Flagstone Reinsurance Holdings Limited (NYSE: FSR) announced first quarter 2009 basic book value per share of $12.04 and diluted book value per share of $11.60, up 4.0% and 3.0% for the quarter (percentages inclusive of dividends), respectively. Net income attributable to Flagstone's common shareholders for the quarter ended March 31, 2009 was $35.7 million, or $0.42 per diluted share, compared to $32.9 million, or $0.38 per diluted share, for the quarter ended March 31, 2008.
CEO David Brown commented: "We are pleased with our financial result for the first quarter of 2009. From an underwriting perspective, we performed well despite some international catastrophes, including Winter Storm Klaus and Australian bushfires. Due to the significant geographic diversification in our portfolio, we will expect to suffer losses more frequently from international events than those of our peers with more concentrated North American exposure. However, due to the increased premium leverage this diversification affords us, we are able to produce a superior loss ratio measured over time. We believe that our loss ratio over the last 3 years is amongst the best in our industry."
Chairman Mark Byrne noted: "Our basic book value increased 4.0% and on a diluted basis 3.0% for the quarter, which are satisfactory results. With the de-risking of our asset portfolio in October, we do not expect to receive much return from the current allocation so our results did not have any asset return as a tailwind. However, given the excellent underwriting opportunities, we are happy with a high quality portfolio of mainly fixed income securities and cash. The conservative positioning of our assets gives us a stable capital base from which to underwrite and provides us with the advantage of being a superior credit to our clients and counterparties. In these unstable times we believe this gives us an added edge, allowing us to see preferential business and terms.
We are as excited about the current business environment as we have ever been and expect to profit from it to our fullest capability. As significant shareholders in the company, we are looking forward to the remainder of the year."
Additional information
The Company will host a conference call on Tuesday, May 5, 2009 at 9:30 a.m. (EDT) to discuss this release. Live broadcast of the conference call will be available through the Investor Section of the Company's website at www.flagstonere.bm.
The Company, 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. Flagstone Réassurance Suisse has received "A-" financial strength ratings from both A.M. Best and Fitch Ratings,
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 www.flagstonere.bm.
Please refer to the unaudited March 31, 2009 Financial Supplement, which will be posted on the Company's website for more detailed financial information.
Contact:
Flagstone Reinsurance Holdings Limited, Hamilton
Brenton Slade, +1-441-278-4303