Fisker 8-K Flagstone Re Reports Diluted Book Value per Share of $14.08 for end of First Quarter 2008

Exhibit 99.2

Flagstone Reinsurance Holdings Limited

INVESTOR FINANCIAL SUPPLEMENT

FIRST QUARTER 2008

Flagstone Reinsurance Holdings Limited

Crawford House

23 Church Street

Hamilton    HM 11

Contact Information:

Brenton Slade

Director of Investor Relations

(441) 278-4303

Website Information:

http://www.flagstonere.bm

This report is for informational purposes only.  It should be read in conjunction

with the documents that we file with the Securities and Exchange Commission

pursuant to the Securities Act of 1933 and the Securities Exchange Act of 1934.

Flagstone Reinsurance Holdings Limited

FINANCIAL SUPPLEMENT TABLE OF CONTENTS

	Page(s)
Basis of Presentation	i
Cautionary Statement Regarding Forward-Looking Statements	ii
Regulation G - Non-GAAP Financial Measures	iii
I. Financial Highlights	1
II. Income Statements
a. Consolidated Statements of Income - Quarterly	2
b. Gross Premium Written by Line of Business and Geographic Area of Risk	3
III. Balance Sheets
a. Consolidated Balance Sheets	4
IV. Investments
a. Investment Portfolio Composition	5
V. Loss Reserve Analysis
a. Paid to Incurred Analysis	6
VI. Share Analysis
a. Capitalization	7
b. Earnings Per Common Share Analysis - As Reported	8
c. Book Value Per Common Share Analysis	9
VII. Mont Fort Consolidation
a. Balance Sheet Consolidation	10
b. Income Statement Consolidation	11

Flagstone Reinsurance Holdings Limited

BASIS OF PRESENTATION

DEFINITIONS AND PRESENTATION

●  Unless otherwise noted, all data is in thousands, except for share, per share amounts and ratio information.

● The debt to capitalization ratio is an indication of the leverage of the Company.  It is calculated by dividing the Company's long term debt by the total capital.  Total capital represents the sum of shareholders' equity plus long term debt.

● N/A - means not applicable

● In presenting the Company's results, management has included and discussed certain "non-GAAP" financial measures, as such term is defined in Regulation G promulgated by the SEC.  Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the Company's results of operations in a manner that allows a more complete understanding of the underlying trends in the Company's business.  However, these measures should not be viewed as a substitute for those determined in accordance with GAAP.  The reconciliation of such non-GAAP financial measures to their respective most directly comparable GAAP financial measures in accordance with Regulation G is included in this financial supplement.

i

Flagstone Reinsurance Holdings Limited

Cautionary Statement Regarding Forward-Looking Statements:

This report may contain, and the Company may from time to time make, written or oral “forward-looking statements”  within the meaning of the U.S. federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the Company’s control, that could cause actual results to differ materially from such statements. In particular, statements using words such as  “may”, “should”, “estimate”, “expect”, “anticipate”, “intend”, “believe”, “predict”, “potential”,  or words of similar import generally involve forward-looking statements.

Important events and uncertainties that could cause the actual results to differ include, but are not necessarily limited to: market conditions affecting the Company’s common share price; the possibility of severe or unanticipated losses from natural or man-made catastrophes; the effectiveness of our loss limitation methods; our dependence on principal employees; the cyclical nature of the reinsurance business; the levels of new and renewal business achieved; opportunities to increase writings in our core property and specialty reinsurance and insurance lines of business and in specific areas of the casualty reinsurance market; the sensitivity of our business to financial strength ratings established by independent rating agencies; the estimates reported by cedents and brokers on pro-rata contracts and certain excess of loss contracts where the deposit premium is not specified in the contract; the inherent uncertainties of establishing reserves for loss and loss adjustment expenses, our reliance on industry loss estimates and those generated by modeling techniques; unanticipated adjustments to premium estimates; changes in the availability, cost or quality of reinsurance or retrocessional coverage; changes in general economic conditions; changes in governmental regulation or tax laws in the jurisdictions where we conduct business; the amount and timing of reinsurance recoverables and reimbursements we actually receive from our reinsurers; the overall level of competition, and the related demand and supply dynamics in our markets relating to growing capital levels in the reinsurance industry; declining demand due to increased retentions by cedents and other factors; the impact of terrorist activities on the economy; and rating agency policies and practices.

These and other events that could cause actual results to differ are discussed in more detail from time to time in our filings with the SEC. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by U.S. federal securities laws. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made.

ii

Flagstone Reinsurance Holdings Limited

REGULATION G

NON-GAAP FINANCIAL MEASURES

In presenting the Company’s results, management has included and discussed non-GAAP financial measures.  Management believes that these non-GAAP measures, which may be defined differently by other companies, better explain the Company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the Company's business.   However, these measures should not be viewed as a substitute for those determined in accordance with GAAP.

BASIC BOOK VALUE PER SHARE

Basic book value per common share is defined as total shareholders' equity divided by the number of common shares outstanding at the end of the period plus vested restricted share units, giving no effect to dilutive securities.

DILUTED BOOK VALUE PER SHARE

The Company has included diluted book value per common share because it takes into account the effect of dilutive securities, therefore, the Company believes it is a better measure of calculating shareholder returns than basic book value per common share.  Diluted book value per common share is defined as total shareholders' equity divided by the number of common shares and common share equivalents outstanding at the end of the period including all potentially dilutive securities such as the warrant, PSU's and RSU's.  When the effect of securities would be anti-dilutive, these securities are excluded from the calculation of diluted book value per common share.  The warrant was anti dilutive and was excluded from the calculation of diluted book value per common share as at March 31, 2008 and March 31, 2007.

DILUTED NET OPERATING INCOME PER SHARE

Diluted net operating income per share is defined as net income adjusted for net realized and unrealized gains (losses) - investments and net realized and unrealized gains (losses) - other divided by diluted weighted average common shares outstanding.

iii

Flagstone Reinsurance Holdings Limited

FINANCIAL HIGHLIGHTS (Unaudited)

	Three months ended
	March 31, 2008		March 31, 2007
Gross premiums written	$	242,246	$	207,013
Net premiums written	$	226,232	$	198,768
Net premiums earned	$	135,257	$	101,226
Net investment income	$	18,696	$	13,631
Net income	$	32,860	$	35,610
Comprehensive income	$	31,440	$	35,334
Cash flow from operating activities	$	105,698	$	96,399
Loss and loss adjustment expense reserves	$	200,602	$	66,540
Total shareholders' equity	$	1,241,562	$	1,061,236
PER COMMON SHARE AND
COMMON SHARE DATA
Basic earnings per common share	$	0.38	$	0.50
Diluted earnings per common share	$	0.38	$	0.50
Diluted net operating income per common share	$	0.67	$	0.43
Basic weighted average common shares outstanding		85,469,270		71,746,162
Diluted weighted average common shares outstanding		85,690,742		71,839,562
Book value per common share	$	14.53	$	12.55
Diluted book value per common share	$	14.08	$	12.31
Diluted book value per common share adjusted for dividends	$	14.20	$	12.31
Dividend per share	$	0.04	$	-
FINANCIAL RATIOS
Growth in diluted book value per share (1)		1.8%		3.1%
Loss ratio		29.4%		47.2%
Acquisition cost ratio		17.9%		12.6%
General and administrative expense ratio		19.6%		14.5%
Combined ratio		66.9%		74.3%
INVESTMENT DATA
Total assets	$	2,241,885	$	1,649,190
Total cash and investments (2)	$	1,888,815	$	1,271,755
(1) Growth in diluted book value per share represents the increase in diluted book value per share in the period plus dividends declared.
(2) Cash and investments represents the total cash and cash equivalents, fixed maturity investments, short term investments, equities, other investments, accrued interest receivable and net payable for investments purchased.

1

Flagstone Reinsurance Holdings Limited

CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY  (unaudited)

	Quarter Ended															Year Ended
	March 31, 2008			December 31, 2007			September 30, 2007			June 30, 2007			March 31, 2007			December 31, 2007
																(audited)
Gross premiums written	$	242,246		$	65,088		$	123,704		$	181,345		$	207,013		$	577,150
Premiums ceded		(16,014	)		(9,302	)		(32,572	)		-			(8,245	)		(50,119	)
Net premiums written		226,232			55,786			91,132			181,345			198,768			527,031
Change in net unearned premiums		(90,975	)		69,484			47,667			(69,503	)		(97,542	)		(49,894	)
Net premiums earned		135,257			125,270			138,799			111,842			101,226			477,137
Net investment income		18,696			22,624			17,022			20,531			13,631			73,808
Net realized and unrealized (losses) gains - investments		(12,412	)		(1,573	)		17,980			(3,741	)		4,508			17,174
Net realized and unrealized (losses) gains - other		(12,237	)		(1,985	)		(9,682	)		1,840			6			(9,821	)
Other income		1,724			2,926			1,961			251			673			5,811
Total revenues		131,028			147,262			166,080			130,723			120,044			564,109
EXPENSES
Loss and loss adjustment expenses		39,767			30,415			37,439			77,257			47,748			192,859
Acquisition costs		24,165			26,054			28,795			14,725			12,718			82,292
General and administrative expenses		26,549			24,229			19,763			13,800			14,669			72,461
Interest expense		5,340			6,020			5,873			3,520			3,264			18,677
Net foreign exchange gains		(6,699	)		(2,109	)		(1,842	)		(56	)		(1,282	)		(5,289	)
Total expenses		89,122			84,609			90,028			109,246			77,117			361,000
Income before income taxes, minority interest and interest in earnings of equity investments		41,906			62,653			76,052			21,477			42,927			203,109
Provision for income tax		(865	)		(432	)		(229	)		(77	)		(45	)		(783	)
Minority interest		(8,181	)		(10,852	)		(9,317	)		(7,892	)		(7,733	)		(35,794	)
Interest in earnings of equity investments		-			-			(257	)		1,186			461			1,390
NET INCOME (1)	$	32,860		$	51,369		$	66,249		$	14,694		$	35,610		$	167,922
Change in currency translation adjustment		(1,420	)		1,652			8,310			(1,741	)		(276	)		7,945
COMPREHENSIVE INCOME	$	31,440		$	53,021		$	74,559		$	12,953		$	35,334		$	175,867
KEY RATIOS
Loss ratio		29.4%			24.3%			27.0%			69.1%			47.2%			40.4%
Acquisition cost ratio		17.9%			20.8%			20.7%			13.2%			12.6%			17.2%
General and administrative expense ratio		19.6%			19.3%			14.2%			12.3%			14.5%			15.2%
Combined ratio		66.9%			64.4%			61.9%			94.6%			74.3%			72.8%
PER COMMON SHARE DATA
Weighted average common shares outstanding - basic		85,469,270			85,414,160			85,413,479			85,139,757			71,746,162			81,975,384
Weighted average common shares outstanding - diluted		85,690,742			85,529,672			85,491,561			85,198,147			71,839,562			82,111,590
Net income per common share outstanding - basic	$	0.38		$	0.60		$	0.78		$	0.17		$	0.50		$	2.05
Net income per common share outstanding - diluted	$	0.38		$	0.60		$	0.77		$	0.17		$	0.50		$	2.05
(1) Effective January 1, 2007, the Company elected to adopt FAS 157 and FAS 159. As a result of this election, all changes in unrealized gains (losses) associated with our fixed maturity and equity investments are included in net income.

2

Flagstone Reinsurance Holdings Limited

GROSS PREMIUM WRITTEN BY LINE OF BUSINESS AND

GEOGRAPHIC AREA OF RISK (Unaudited)

	Three months ended March 31, 2008					Three months ended March 31, 2007
	Gross premiums written		% of total			Gross premiums written		% of total
Line of Business
Reinsurance
Property catastrophe	$	164,616		68.0	%	$	158,368		76.5	%
Property		18,921		7.8	%		24,556		11.9	%
Short-tail specialty and casualty		39,604		16.3	%		24,089		11.6	%
		223,141		92.1	%		207,013		100.0	%
Insurance		19,105		7.9	%		-		0.0	%
Total	$	242,246		100.0	%	$	207,013		100.0	%
	Three months ended March 31, 2008					Three months ended March 31, 2007
	Gross premiums written		% of total			Gross premiums written		% of total
Geographic area of risk insured(1)
North America	$	78,683		32.5	%	$	90,751		43.8	%
Europe		64,675		26.7	%		66,968		32.3	%
Worldwide risks(2)		56,864		23.5	%		25,606		12.4	%
Caribbean(3)		25,720		10.6	%		7,363		3.6	%
Japan and Australasia		9,292		3.8	%		11,639		5.6	%
Other		7,012		2.9	%		4,686		2.3	%
Total	$	242,246		100.0	%	$	207,013		100.0	%
(1) Except as otherwise noted, each of these categories includes contracts that cover risks located primarily in the designated geographic area.
(2) This geographic area includes contracts that cover risks primarily in two or more geographic zones.
(3) Gross premiums written related to the insurance segment are included in the Caribbean geographic area.

3

Flagstone Reinsurance Holdings Limited

CONSOLIDATED BALANCE SHEETS  (Unaudited)

	As at
	March 31, 2008		December 31, 2007		September 30, 2007		June 30, 2007			March 31, 2007
ASSETS
Investments:
Fixed maturity investments, at fair value	$	709,393	$	1,109,105	$	1,102,328	$	978,660		$	902,509
Short term investments, at fair value		70,956		23,616		14,242		25,583			4,974
Equity investments, at fair value		86,854		74,357		28,746		28,766			23,090
Other investments		322,907		293,166		289,340		157,438			151,272
Total investments		1,190,110		1,500,244		1,434,656		1,190,447			1,081,845
Cash and cash equivalents		710,663		362,680		322,768		422,045			191,191
Proceeds receivable from initial public offering		-		-		-		-			164,854
Insurance and reinsurance premium balances receivable		205,683		136,555		189,553		220,229			145,834
Unearned premiums ceded		18,348		14,608		22,491		4,211			7,484
Accrued interest receivable		6,225		9,915		7,534		7,719			5,965
Receivable for investments sold		5,660		-		-		-			-
Deferred acquisition costs		37,290		30,607		36,819		34,186			22,867
Funds withheld		10,361		6,666		6,606		5,138			5,069
Goodwill		10,781		10,781		11,556		6,602			5,624
Other assets		46,764		31,717		33,704		17,580			17,363
Due from related parties		-		-		1,009		2,291			1,094
TOTAL ASSETS	$	2,241,885	$	2,103,773	$	2,066,696	$	1,910,448		$	1,649,190
LIABILITIES
Loss and loss adjustment expense reserves	$	200,602	$	180,978	$	161,442	$	135,143		$	66,540
Unearned premiums		276,823		175,607		252,096		269,020			202,803
Insurance and reinsurance balances payable		13,207		12,088		22,728		883			6,235
Payable for investments purchased		23,843		41,750		8,248		1,201			7,246
Long term debt		266,375		264,889		264,469		238,290			137,361
Other liabilites		33,375		33,198		26,076		17,164			12,683
Due to related parties		-		-		-		1,283			1,359
TOTAL LIABILITIES		814,225		708,510		735,059		662,984			434,227
Minority Interest - Mont Fort Re(1) and Island Heritage		186,098		184,778		172,704		161,619			153,727
SHAREHOLDERS' EQUITY
Common voting shares		853		853		853		853			845
Additional paid-in capital		909,026		905,316		903,220		901,279			889,631
Accumulated other comprehensive income (loss)		5,457		7,426		5,774		(2,536	)		(795	)
Retained earnings		326,226		296,890		249,086		86,249			171,555
TOTAL SHAREHOLDERS' EQUITY		1,241,562		1,210,485		1,158,933		1,085,845			1,061,236
TOTAL LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS' EQUITY	$	2,241,885	$	2,103,773	$	2,066,696	$	1,910,448		$	1,649,190
Basic book value per common share	$	14.53	$	14.17	$	13.59	$	12.73		$	12.55
Diluted book value per common share	$	14.08	$	13.87	$	13.30	$	12.46		$	12.31
Diluted book value per common share adjusted for dividends declared	$	14.20	$	13.95	$	13.34	$	12.46		$	12.31
Debt to total capitalization (2)		17.7%		18.0%		18.6%		18.0%			11.5%
(1) See Pages 10 and 11 for additional information.
(2) Comprises long term debt divided by the sum of long term debt plus shareholders' equity.

4

Flagstone Reinsurance Holdings Limited

INVESTMENT PORTFOLIO COMPOSITION (Unaudited)

	Quarter Ended
	March 31, 2008				December 31, 2007				September 30, 2007				June 30, 2007				March 31, 2007
U.S. government and agency securities	$	273,011	22.9	%	$	493,969	32.9	%	$	265,467	18.5	%	$	313,808	26.4	%	$	349,049	32.3	%
Corporates		184,975	15.5	%		260,692	17.4	%		272,931	19.0	%		181,619	15.3	%		248,729	23.0	%
Non US government and government agencies		363	0.1	%		558	0.1	%		1,783	0.1	%		-	0.0	%		-	0.0	%
Mortgage-backed securities		111,792	9.4	%		198,734	13.2	%		324,831	22.7	%		221,436	18.6	%		176,914	16.3	%
Asset-backed securities		139,252	11.7	%		155,152	10.3	%		237,316	16.5	%		231,236	19.4	%		116,609	10.8	%
Other debt securities		-	0.0	%		-	0.0	%		-	0.0	%		30,561	2.6	%		11,208	1.0	%
Total fixed maturities		709,393	59.6	%		1,109,105	73.9	%		1,102,328	76.8	%		978,660	82.3	%		902,509	83.4	%
Other investments		322,907	27.1	%		293,166	19.5	%		289,340	20.2	%		157,438	13.2	%		151,272	14.0	%
Total		1,032,300	86.7	%		1,402,271	93.4	%		1,391,668	97.0	%		1,136,098	95.5	%		1,053,781	97.4	%
Equity securities		86,854	7.3	%		74,357	5.0	%		28,746	2.0	%		28,766	2.4	%		23,090	2.1	%
Short term investments		70,956	6.0	%		23,616	1.6	%		14,242	1.0	%		25,583	2.1	%		4,974	0.5	%
Total	$	1,190,110	100.0	%	$	1,500,244	100.0	%	$	1,434,656	100.0	%	$	1,190,447	100.0	%	$	1,081,845	100.0	%

CREDIT QUALITY OF FIXED MATURITIES AND SHORT TERM INVESTMENTS
AAA	$	581,871	74.6	%	$	843,980	74.5	%	$	823,292	73.7	%	$	779,600	77.6	%	$	603,379	66.5	%
AA		77,942	10.0	%		117,704	10.4	%		113,974	10.2	%		91,256	9.1	%		101,419	11.2	%
A		102,296	13.1	%		148,239	13.1	%		159,621	14.3	%		114,348	11.4	%		183,507	20.2	%
BBB		17,873	2.3	%		22,798	2.0	%		19,683	1.8	%		19,039	1.9	%		19,178	2.1	%
B		367	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%		-	0.0	%
Total	$	780,349	100	%	$	1,132,721	100.0	%	$	1,116,570	100.0	%	$	1,004,243	100.0	%	$	907,483	100.0	%

MATURITY PROFILE OF FIXED MATURITIES AND SHORT TERM INVESTMENTS
Within one year	$	122,878	15.7	%	$	57,033	5.0	%	$	34,320	3.1	%	$	45,062	4.5	%	$	12,721	1.4	%
From one to five years		214,142	27.4	%		372,338	32.9	%		321,244	28.8	%		284,514	28.3	%		304,129	33.5	%
From five to ten years		118,191	15.2	%		209,821	18.5	%		151,795	13.6	%		143,834	14.3	%		117,065	12.9	%
Above ten years		74,093	9.5	%		139,643	12.3	%		96,024	8.6	%		91,512	9.1	%		180,044	19.8	%
Asset-backed and mortgage-backed securities		251,045	32.2	%		353,886	31.3	%		513,187	45.9	%		439,321	43.8	%		293,524	32.4	%
Total	$	322,907	100.0	%	$	1,132,721	100.0	%	$	1,116,570	100.0	%	$	1,004,243	100.0	%	$	907,483	100.0	%

Average credit quality    AA+   AA+   AA+   AA+    AA+

OTHER INVESTMENTS
Island Heritage	$	-	$	-	$	-	$	11,977	$	9,287
Real estate investment trusts		11,079		12,204		13,787		12,724		10,897
Investment funds		30,834		31,249		31,033		30,195		28,653
Catastrophe bonds		36,652		36,619		36,599		36,541		36,453
Fixed income fund		244,342		212,982		207,921		66,001		65,982
Other investment		-		112		-		-		-
Total	$	780,349	$	293,166	$	289,340	$	157,438	$	151,272

5

Flagstone Reinsurance Holdings Limited

RESERVE FOR LOSSES AND LOSS EXPENSES:  PAID TO INCURRED ANALYSIS (Unaudited) 

	Three months ended March 31, 2008									Three months ended December 31, 2007								Three months ended September 30, 2007
Loss and loss adjustment expenses reserves	Gross			Recoveries			Net			Gross			Recoveries		Net			Gross			Recoveries		Net
Beginning of period	$	180,978		$	-		$	180,978		$	161,442		$	-	$	161,442		$	135,143		$	-	$	135,143
Incurred		40,123			(356	)		39,767			30,415			-		30,415			37,439			-		37,439
Other (1)		39			-			39			(352	)		-		(352	)		5,542			-		5,542
Paid		(20,182	)		-			(20,182	)		(10,527	)		-		(10,527	)		(16,682	)		-		(16,682	)
End of period	$	200,958		$	(356	)	$	200,602		$	180,978		$	-	$	180,978		$	161,442		$	-	$	161,442
Paid to incurred percentage		50.3%			0.0%			50.8%			34.6%			0.0%		34.6%			44.6%			0.0%		44.6%
	Three months ended June 30, 2007									Three months ended March 31, 2007
Loss and loss adjustment expenses reserves	Gross			Recoveries			Net			Gross			Recoveries		Net
Beginning of period	$	66,540		$	-		$	66,540		$	22,516		$	-	$	22,516
Incurred		77,257			-			77,257			47,748			-		47,748
Other (1)		-			-			-			-			-		-
Paid		(8,654	)		-			(8,654	)		(3,724	)		-		(3,724	)
End of period	$	135,143		$	-		$	135,143		$	66,540		$	-	$	66,540
Paid to incurred percentage		11.2%			0.0%			11.2%			7.8%			0.0%		7.8%
(1)  This amount represents the movement in reserves as a result of foreign exchange movements and the reserves acquired upon acquistition of the controlling interest in Island Heritage.

6

Flagstone Reinsurance Holdings Limited CAPITALIZATION (Unaudited)
	March 31, 2008		December 31, 2007		September 30, 2007		June 30, 2007		March 31, 2007
		---		---		---		---		---
Long term debt	$	266,375	$	264,889	$	264,469	$	238,290	$	137,361
Shareholders' equity		1,241,562		1,210,485		1,158,933		1,085,845		1,061,236
Total Capitalization	$	1,507,937	$	1,475,374	$	1,423,402	$	1,324,135	$	1,198,597
Leverage ratio:
Debt to total capitalization		17.7%		18.0%		18.6%		18.0%		11.5%
	March 31, 2008				March 31, 2007
	Debt or Facility Principal		In use		Debt or Facility Principal		In use
Debt and financing arrangements
Junior Subordinated Deferrable Interest Notes (a)	$	25,000	$	25,000	$	-	$	-
Junior Subordinated Deferrable Interest Notes (b)	$	100,000	$	100,000	$	-	$	-
Deferrable Interest Debentures (c)	$	120,000	$	120,000	$	120,000	$	120,000
Deferrable Interest Debentures (d)	€	13,000	€	13,000	€	13,000	€	13,000
Other long term debt	$	945	$	851	$	-	$	-
Letter of credit facility (e)	$	400,000	$	73,212	$	200,000	$	68,593
Letter of credit facility (f)	$	200,000	$	-	$	-	$	-

Notes:

(a)  The Junior Subordinated Deferrable Interest Notes have a floating rate equal to LIBOR plus 310 basis points per annum reset quarterly.  The notes mature on September 15, 2037, and may be called at par by the Issuer at any time after September 15, 2012.

(b)  The Junior Subordinated Deferrable Interest Notes have a floating rate equal to LIBOR plus 300 basis points per annum reset quarterly.  The notes mature on July 30, 2037, and may be called at par by the Issuer at any time after July 30, 2012.

(c)  The Deferrable Interest Debentures have a floating rate equal to LIBOR plus 354 basis points per annum reset quarterly.  The notes mature on September 15, 2036 and may be called at par by the Issuer at any time after September 15, 2011.

(d)  The Deferrable Interest Debentures have a floating rate equal to EURIBOR plus 354 basis points per annum reset quarterly.  The notes mature on September 15, 2036 and may be called at par by the Issuer at any time after September 15, 2011.

(e)  $400.0 million uncommitted letter of credit facility agreement with Citibank N.A.  The drawn amount of the facility at March 31, 2008 was secured by $81.3 million of fixed maturity securities from the Company's investment portfolio.

(f)   $200.0 million uncommitted letter of credit facility agreement with Wachovia Bank, N.A.  If drawn upon, the utilized portion of the facility will be secured by an appropriate portion of securities from the Company’s investment portfolio.

7

Flagstone Reinsurance Holdings Limited

EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP (Unaudited)

	Three months ended
	March 31, 2008		March 31, 2007
Net income available to common shareholders	$	32,860	$	35,610
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic weighted average common shares outstanding (1)		85,469,270		71,746,162
Dilutive share equivalents:
Unvested performance share units (2)		-		-
Unvested restricted share units		221,472		93,400
Diluted weighted average common shares outstanding		85,690,742		71,839,562
EARNINGS PER COMMON SHARE
Basic	$	0.38	$	0.50
Diluted	$	0.38	$	0.50

(1)  Includes weighted average vested restricted share units

(2)  Effective January 1, 2007 and in accordance with SFAS 128, we determined that the PSUs should not be included in the calculation of diluted EPS until the end of the performance period, when the numbers of shares issuable under the PSU Plan will be known. As at March 31, 2008, there were 2,308,658 PSUs outstanding under the PSU Plan.

8

Flagstone Reinsurance Holdings Limited

NON-GAAP FINANCIAL MEASURES RECONCILIATION

BASIC AND DILUTED BOOK VALUE PER COMMON SHARE (Unaudited)

	As at
	March 31, 2008		December 31, 2007		September 30, 2007		June 30, 2007		March 31, 2007
DILUTIVE COMMON SHARES AS IF OUTSTANDING
Common shareholders' equity	$	1,241,562	$	1,210,485	$	1,158,933	$	1,085,845	$	1,061,236
Cumulative dividends declared	$	10,501	$	6,977	$	3,412	$	-	$	-
Common shares outstanding		85,316,924		85,309,107		85,297,891		85,297,891		84,547,891
add in:
vested restricted share units		152,958		105,060		-		-		-
Total common shares and common share equivalents outstanding		85,469,882		85,414,167		85,297,891		85,297,891		84,547,891
Basic book value per common share	$	14.53	$	14.17	$	13.59	$	12.73	$	12.55
Basic book value per common share adjusted for dividends	$	14.65	$	14.25	$	13.63	$	12.73	$	12.55
Diluted book value on an "as if converted basis"
Common shareholders' equity	$	1,241,562	$	1,210,485	$	1,158,933	$	1,085,845	$	1,061,236
add in:
proceeds on exercise of warrant (1)		-		-		-		-		-
Adjusted shareholders' equity	$	1,241,562	$	1,210,485	$	1,158,933	$	1,085,845	$	1,061,236
Cumulative dividends declared	$	10,501	$	6,977	$	3,412	$	-	$	-
As if converted diluted shares outstanding
Common shares and share equivalents outstanding		85,469,882		85,414,167		85,297,891		85,297,891		84,547,891
add in:
vesting of performance share units		2,308,658		1,658,700		1,538,000		1,538,000		1,381,000
vesting of restricted share units		379,600		221,550		326,538		326,538		254,477
Diluted common shares outstanding		88,158,140		87,294,417		87,162,429		87,162,429		86,183,368
Diluted book value per common share	$	14.08	$	13.87	$	13.30	$	12.46	$	12.31
Diluted book value per common share adjusted for     dividends (3)	$	14.20	$	13.95	$	13.34	$	12.46	$	12.31
Change in diluted book value per share: Quarter		1.6%		4.3%		6.7%		1.2%		3.1%
Change in diluted book value per share adjusted for dividends (2): Quarter		1.8%		4.6%		7.1%		1.2%		3.1%
Change in diluted book value per share adjusted for dividends (2): Rolling 12 months		15.3%		16.8%		20.3%		21.3%		23.3%
Annualized change in diluted book value per share adjusted for dividends since inception		17.6%		19.0%		18.9%		16.9%		19.5%

(1)	Diluted book value per share incorporates the assumption that the warrant would not be exercised at the end of any period where the share price is less than the strike price.
(2)	Change in diluted book value adjusted for dividends is the internal rate of return of the increase in diluted book value per share in the period plus dividends declared.
(3)	Diluted book value per common share adjusted for dividends is calculated by dividing common shareholders' equity by the sum of cumulative dividends declared and diluted common shares outstanding.

9

Flagstone Reinsurance Holdings Limited

SUMMARY CONSOLIDATING BALANCE SHEET - MONT FORT (unaudited)

	As at March 31, 2008
	Flagstone Consolidated Excluding Mont Fort		Mont Fort			Consolidation/ Elimination			Flagstone Consolidated
ASSETS
Investments:
Fixed maturity investments, at fair value	$	629,474	$	79,919		$	-		$	709,393
Short term investments, at fair value		70,956		-			-			70,956
Equity investments, at fair value		86,854		-			-			86,854
Other investments		324,428		-			(1,521	)		322,907
Total investments		1,111,712		79,919			(1,521	)		1,190,110
Cash and cash equivalents		617,785		92,878			-			710,663
Insurance and reinsurance premium balances receivable		205,791		8,202			(8,310	)		205,683
Unearned premiums ceded		18,348		-			-			18,348
Accrued interest receivable		5,390		835			-			6,225
Receivable for investments sold		5,660		-			-			5,660
Deferred acquisition costs		37,290		-			-			37,290
Funds withheld		10,361		-			-			10,361
Goodwill		10,781		-			-			10,781
Other assets		46,136		628			-			46,764
Due from related parties		6,150		(6,150	)		-			-
TOTAL ASSETS	$	2,075,404	$	176,312		$	(9,831	)	$	2,241,885
LIABILITIES
Loss and loss adjustment expense reserves	$	200,602	$	-		$	-		$	200,602
Unearned premiums		276,823		-			-			276,823
Insurance and reinsurance balance payable		13,079		8,438			(8,310	)		13,207
Payable for investments purchased		23,843		-			-			23,843
Long term debt		266,375		-			-			266,375
Other liabilites		33,334		41			-			33,375
TOTAL LIABILITIES		814,056		8,479			(8,310	)		814,225
Minority Interest		19,786		-			166,312			186,098
SHAREHOLDERS' EQUITY
Common voting shares		853		123,118			(123,118	)		853
Additional paid-in capital		909,026		-			-			909,026
Accumulated other comprehensive		5,457		-			-			5,457
Retained earnings		326,226		44,715			(44,715	)		326,226
TOTAL SHAREHOLDERS' EQUITY		1,241,562		167,833			(167,833	)		1,241,562
TOTAL LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS' EQUITY	$	2,075,404	$	176,312		$	(9,831	)	$	2,241,885

10

Flagstone Reinsurance Holdings Limited

SUMMARY CONSOLIDATING INCOME STATEMENTS - MONT FORT (unaudited)

	Quarter ending March 31, 2008
	Flagstone Consolidated Excluding Mont Fort			Mont Fort			Consolidation/ Elimination			Flagstone Consolidated
REVENUES
Gross premiums written	$	242,246		$	6,712		$	(6,712	)	$	242,246
Premiums ceded		(22,726	)		-			6,712			(16,014	)
Net premiums written		219,520			6,712			-			226,232
Change in net unearned premiums		(91,023	)		48			-			(90,975	)
Net premiums earned		128,497			6,760			-			135,257
Net investment income		16,809			1,887			-			18,696
Net realized and unrealized (losses) gains - investments		(13,310	)		898			-			(12,412	)
Net realized and unrealized (losses) gains - other		(12,578	)		341			-			(12,237	)
Other income		3,487			(1,395	)		(368	)		1,724
Total revenues		122,905			8,491			(368	)		131,028
EXPENSES
Loss and loss adjustment expenses		39,767			-			-			39,767
Acquisition costs		23,830			703			(368	)		24,165
General and administrative expenses		26,487			62			-			26,549
Interest expense		5,340			-			-			5,340
Net foreign exchange gains		(6,699	)		-			-			(6,699	)
Total expenses		88,725			765			(368	)		89,122
Income before income taxes, minority interest
and interest in earnings of equity invetsments		34,180			7,726			-			41,906
Provision for income tax		(865	)		-			-			(865	)
Minority interest		(459	)		-			(7,722	)		(8,181	)
Interest in earnings of equity investments		4			-			(4	)		-
NET INCOME	$	32,860		$	7,726		$	(7,726	)	$	32,860
Change in currency translation adjustment		(1,420	)		-			-			(1,420	)
COMPREHENSIVE INCOME	$	31,440		$	7,726		$	(7,726	)	$	31,440
KEY RATIOS
Loss ratio		30.9%									29.4%
Acquisition cost ratio		18.5%									17.9%
General and administrative expense ratio		20.6%									19.6%
Combined ratio		70.0%									66.9%
Note: Mont Fort was consolidated starting in Q1, 2007.

11