Sep. 29, 2009 (Business Wire) -- Flagstone Reinsurance Holdings Limited (NYSE: FSR) announced today that it has reached an agreement to become the sole shareholder of Flagstone Reinsurance Africa Limited (FRA), previously called Imperial Re, by acquiring the remaining 35% share currently held by Imperial Holdings Limited. Based on the successful integration of all aspects of FRA into the Flagstone Group and the substantial progress made in terms of business development, Flagstone and Imperial have decided to accelerate the transition to full Flagstone ownership. The transaction is subject to necessary regulatory approvals.

Mark Byrne, Chairman of Flagstone and Flagstone Re Africa, commented, “We are excited to have completed the integration work early, and with the substantial progress made in our African strategy. We would like to thank Imperial Holdings for their fine partnership, and look forward to a continuing business relationship with Imperial.”

Flagstone had previously acquired a 65% majority shareholding of FRA in June 2008 at which time the company’s name was changed and an AM Best international rating of A- was attained.

About Flagstone Reinsurance Holdings Limited

Flagstone, through its operating subsidiaries, is a global reinsurance and insurance company that employs a focused and technical approach to the Property Catastrophe, Property, and Specialty reinsurance and insurance businesses. Flagstone Réassurance Suisse has received “A-” financial strength ratings from both A.M. Best and Fitch Ratings, and “A3” ratings from Moody's Investors Service. Flagstone Reinsurance Africa has received an “A-” financial strength rating from A.M. Best.

Flagstone is traded on the New York Stock Exchange under the symbol “FSR” and the Bermuda Stock Exchange under the symbol “FSR BH”. Additional financial information and other items of interest are available at the Company’s website located at www.flagstonere.com.