Second quarter net income of $41.9m attributed to new business

Flagstone Reinsurance Holdings Limited announced second quarter 2008 basic book value per share of US$14.97 and diluted book value per share of $14.53, up 3.3% and 3.4% for the quarter (inclusive of dividends), respectively.

Net income available to common shareholders for the quarter ended June 30, 2008 was $41.9m, or $0.49 per diluted share, compared to $14.7m, or $0.17 per diluted share, for the quarter ended June 30, 2007. Net income available to common shareholders for the six months ended June 30, 2008 was $74.8m, or $0.87 per diluted share, compared to $50.3m, or $0.64 per diluted share, for the six months ended June 30, 2007.

CEO David Brown said: "Our underwriting results were strong through the quarter and continue to be driven by fundamental results rather than reserve releases from prior periods. We continued to grow our business in a careful and tactical manner by continuing to provide world-class, value-added service to our clients. I am pleased to note that although we are able to grow our volume in a softening market, this growth was generated in an intelligent manner through new business generated through our global network of offices, expanding our deep relationships with existing valued clients, and redeploying capacity from inadequate programs to more attractive risks.

“To find these attractive programmes, we have to analyse a large amount of business and be very selective. This means, as a global writer, we were impacted by some international losses, but the diversification in our book showed its value in producing an overall attractive underwriting result."

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