Bermuda-based Flagstone Re posted net income attributable to common shareholders for the quarter ended December 31, 2009, of $71.5 million, or $0.86 per diluted share, compared to a net loss of $75.6 million, or a loss of $0.89 per diluted share, for the quarter ended December 31, 2008.
Net income available to common shareholders for the year ended December 31, 2009 was $242.2 million, or $2.87 per diluted share, compared to a net loss of $187.3 million, or a loss of $2.20 per diluted share, for the year ended December 31, 2008.
Flagstone Re also noted that its basic book value per share was $14.56 and diluted book value per share of $13.97 at the end of the fourth quarter, up 6.4 percent and 6.0 percent, respectively.
Fourth quarter operating income, which excludes capital gains and losses, was $58.4 million, a 32.1 percent increase over the $44.2 million in Q4 2008. Operating income for the full year more than doubled to $194.5 million from $96.5 million. The combined ratio for the year decreased significantly to 74.7 percent from 89.4 percent.
Chairman Mark Byrne commented: “2009 was an excellent year. Our diluted book value increased 6 percent for the quarter and 24.6 percent for the year, resulting in the most profitable year in our operating history. As we de-risked the investment portfolio in October 2008, the 2009 result is almost entirely a function of core underwriting returns, rather than movement in asset values.
“Our core operating results were strong with a 74.7 percent combined ratio. This clearly demonstrates the value created by our investment in industry-leading technologies and a powerful analytical staff as well as being a direct result of the quality and efficiency of our global platform. We are pleased about the level of diversification of our book and the growth and penetration we have achieved with our non-cat specialty lines business. We have now achieved our desired 50/50 split of non-cat to catastrophe-exposed business, a level of diversification that allows us to participate fully in the best priced sectors of the market while remaining less exposed to capital loss from significant catastrophic events.”
Commenting on Flagstone’s Lloyd’s operation, Marlborough, Byrne indicated that it “continues to develop and has added immensely to our opportunity set, while we continue to streamline and enhance the rest of our global platform.”
He also noted that Flagstone had added offices in Rio de Janeiro and New York in 2009. “The Rio office allows us access to the growing Brazilian market, and the opening of our agency in New York has opened up the North American Marine and Energy market on both a primary and reinsurance basis,” he stated.
The full report and additional information may be obtained on the Company’s web site at: www.flagstonere.com.
Source: Flagstone Re
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