Flagstone Reinsurance Holdings Limited announced that it has completed its initial capitalization of more than $715 million through a private placement of its equity securities.
The bulletin notes that Flagstone Re “was formed in response to the significant market dislocation and substantial losses experienced by the industry from the 2005 Hurricane season. The Company has been authorized as a Class 4 [the most broadly authorized] Bermuda licensed reinsurer and has received an initial ‘A-‘ financial strength rating from A.M. Best Company. The transaction was led by management, Lehman Brothers Merchant Banking and Lightyear Capital.
“Mark Byrne, Chairman, and David Brown, President and CEO, lead the senior management team, which includes Gary Prestia, Chief Underwriting Officer for North America, and Guy Swayne, Chief Underwriting Officer for International.
“The Company will focus on the property and specialty reinsurance business. Flagstone is fully operational, with an established operating platform in Bermuda, Nova Scotia and India, and has already underwritten a substantial amount of business for the 2006 fiscal year.”
“There is a significant demand for underwriting capacity as a result of the hardening market and the aftermath of Hurricanes Katrina, Rita, and Wilma,” Brown stated. “Flagstone is prepared to meet that demand and is committed to this market.” Mark Byrne, Chairman, added, “Our goal is to leverage world class analytical resources and underwriting experience to create a premier global short tail reinsurer.”
Topics Reinsurance
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