FLAGSTONE ANNOUNCES SHIFT IN BOARD CHAIRMANSHIP

HAMILTON, Bermuda – 24 May, 2010 - Flagstone Reinsurance Holdings, S.A. (NYSE: FSR) today announced that Mark Byrne has decided to step down as Chairman of the Board of Directors of Flagstone while continuing to serve as a non-executive member of the Board of Directors of the Company. David Brown, who has served as Flagstone’s Chief Executive Officer since the Company’s inception in 2005, and all other members of the senior management team, will continue in their current roles. Daniel James, a Director of the Flagstone Board since its inception, will succeed Mr. Byrne as Chairman. 

“We are very grateful for Mark’s substantial contribution to Flagstone’s significant growth and maturity in a short time, and we look forward to his continued involvement as a member of our Board of Directors,” said Steve Coley, Flagstone’s Governance Committee Chairman, speaking on behalf of the Board.  “We have been fortunate during Flagstone’s first five years to benefit from the combined leadership of both an Executive Chairman and a Chief Executive in Mark and David. Mark and David founded Flagstone together as partners, and as the Company has reached a certain degree of maturity, Mark recommended and the Board agreed that the executive leadership of only one of the founding partners is required to take the business forward.”

Mr. Coley added, “We are very fortunate to have in David Brown a Chief Executive with extensive industry experience who, together with the executive team, has built Flagstone into a world-class company, and will continue to execute Flagstone’s strategy and manage our operations around the world. We have great confidence that Flagstone will continue to grow and prosper under his ongoing leadership.  We are also pleased to be able to name Danny James as our non-executive Chairman. Danny has been an integral part of our Board since our founding and we appreciate his commitment to Flagstone.”

Mr. James is a Founding Partner and Head of North America of Trilantic Capital Partners (“TCP”), a private equity firm managing over $3.6 billion. Prior to TCP, Mr. James was Head of North America of Lehman Brothers Merchant Banking.

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. Flagstone Réassurance Suisse has received “A-” financial strength ratings from both A.M. Best and Fitch Ratings, and “A3” ratings from Moody's Investors Service.  Island Heritage and Flagstone Reinsurance Africa have received “A-” financial strength ratings from A.M. Best.

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.com.

Contact:
Flagstone Reinsurance Holdings, S.A.
Brenton Slade, +1-441-278-4303