Flagstone Re has reported a net loss of $181.4m for the first half of 2011, down from $44.8 profit in H1 2010.
Despite the large losses, Flagstone Re chief executive David Brown is confident the reinsurer’s future profits will benefit from current rate rises.
“Some of the markets in which we are active are benefiting from significant rate increases and we continue to believe our operational platform can access the markets we find attractive,” Brown said.
Brown has also taken extra steps to protect the company’s balance sheet by increasing spending on retrocessional coverage in case of other large events this year.
Gross written premiums for the first half remained flat at $768.6m, compared with $769.8m for the same period in 2010.
Flagstone’s overall combined operating ratio for the first half has remained unprofitable, rising 44% to 144.6% from 100.6%.
Flagstone Re reinsurance sector H1 2011 results in $m (compared with H1 2010)
Net loss: 167.79 (25.27)
COR: 149.5% (94.0%)
GWP: 640.97 (638.39)