Flagstone Re Q2 Net Income Increases to $41.9 Million

Bermuda-based Flagstone Reinsurance Holdings Limited announced that its net income in the second quarter increased to $41.9 million, or $0.49 per diluted share, compared to $14.7 million, or $0.17 per diluted share, for the quarter ended June 30, 2007. Basic book value per share of $14.97 and diluted book value per share of $14.53, were up 3.3 percent and 3.4 percent for the quarter (inclusive of dividends), respectively.

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

Flagstone’s combined ratio dropped by 19.7 percent in the second quarter to 76 percent from 94.6 percent. For the first six months of 2008 it was 71.5 percent, a 15.7 percent decrease from the 84.9 percent in the first six months of 2007.

CEO David Brown commented: “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 programs, we have to analyze 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.”

Chairman Mark Byrne added: “The second quarter was a positive one for our organization as we continued to build out our unique global platform. We finalized terms and integrated Imperial Re into our group and renamed it Flagstone Reinsurance Africa Limited and successfully issued the Valais Re Ltd. catastrophe bond into turbulent markets. We also have agreed to acquire a substantial minority position in Alliance Re of Cyprus. These steps are tangible progress in our diversification strategy and further demonstrate our capabilities in the capital markets.”

The full report, additional comments and details on accessing the investors’ conference call may be obtained on the Company’s web site at: http://www.flagstonere.bm.

Source: Flagstone Re

Topics Profit Loss