$75m Series 2009-1, Class B Principal-at-Risk Variable Rate  Notes due 7 December 2012  

Issuer is issuing the Notes to support its obligations under the respective Risk Transfer Contract to make certain payments to the Risk Transfer Contract Counterparty upon the occurrence of one or more Loss Events during the applicable Risk Period. 

Risk Transfer Contract Counterparty:  For each Class within a Series of Notes, one or more subsidiaries or affiliates of Flagstone Reinsurance Limited, as specified in the applicable Offering Circular Supplement ("Risk Transfer Contract Counterparty").

The minimum denomination for Class B Notes is US$250,000.

Effective Yield: 3 month LIbor +13.25%