FLAGSTONE ALLIANCE ANNOUNCES RETIREMENT OF KHADER HEMSI

HAMILTON, Bermuda - 7 May, 2009 - Flagstone Reinsurance Holdings Limited (NYSE: FSR) announced today that Mr. Khader Hemsi, Chief Executive Officer of Flagstone Alliance Insurance & Reinsurance PLC ("Flagstone Alliance"), will retire from the company.  Flagstone Alliance is a wholly-owned subsidiary of Flagstone Reinsurance Holdings Limited.

Khader Hemsi commented: "Flagstone is a dynamic group with a lot of talent and advanced technology and I am confident they will lead the reinsurance industry under the leadership of Mark and David for the years to come. I enjoyed working with my friends Mark and David and wish to thank them and my colleagues at Flagstone for the support given to me."

Mark Byrne, Chairman of Flagstone, said:  "We wish to thank Khader for his role in integrating Alliance into the Flagstone Group. I know I will be able to rely on his advice and we all wish Khader a wonderful retirement. "

David Brown, CEO of Flagstone, added: "Khader will remain with the company for a sufficient period to ensure a smooth transition. Plans are already well in hand to ensure that client service is uninterrupted and that Flagstone maintains and enhances the value of the business acquired when we purchased Alliance."

About Flagstone Reinsurance Holdings Limited

Flagstone Reinsurance Holdings Limited, through its operating subsidiaries, is a global reinsurance and insurance company that employs a focused, technical approach to the Property, Property Catastrophe, and Specialty reinsurance and insurance businesses.  Flagstone Réassurance Suisse SA has an "A-" financial strength rating from both A.M. Best and Fitch Ratings, and an "A3" rating from Moody's Investors Service.

Contact:
Flagstone Reinsurance Holdings Limited, Hamilton
Brenton Slade, +1-441-278-4303