Exhibit 99.2
PRESENTERS
Mark Byrne
Executive Chairman
David Brown
Chief Executive Officer
Gary Prestia
Chief Underwriting
Officer – North America
Guy Swayne
CEO, Flagstone
Réassurance Suisse SA
& Chief Underwriting
Officer - International
Patrick Boisvert
Chief Financial Officer
Brenton Slade
Chief Marketing Officer
& Director of Investor
Relations
AGENDA
TIME
DISCUSSION
PRESENTER
8:30am
Breakfast & Registration
9:00am
Welcome & Company Intro
Brenton Slade
9:05am
The Flagstone Difference
Mark Byrne
9:30am
Flagstone’s Underwriting Philosophy
David Brown
10:00am
Refreshment Break
10:15am
North American Underwriting Review & Market
Update
Gary Prestia
10:35am
International & Specialty Lines Underwriting
Review & Market Update
Guy Swayne
10:55am
Financial Review
Patrick Boisvert
11:15am
So what does all this mean to you?
Closing commentary
Mark Byrne
11:35am
Q & A
12:00pm
Lunch – The Studio
FSR EXECUTIVE MANAGEMENT TEAM
MARK BYRNE
Executive Chairman
22 years industry
experience
Prior experience:
Chairman: West End
Capital Management
Director: White
Mountains, Terra Nova,
Markel
Significant Capital
Markets experience –
Salomon Brothers, Credit
Suisse, Lehman Brothers
5
ABOUT US
History:
Formed in Dec 05
IPO – April 07
Listed on NYSE & BSX
Acquisitions:
Island Heritage
Imperial Re/ FSR Africa
Alliance Re/ FSR Alliance
Lloyd’s – Syndicate 1861
Today:
$1.3B Underwriting Capital
500 + employees
13 offices in 12 countries
Operating Company and
capital in Switzerland
6
FSR STRATEGY & OBJECTIVES
Leverage our global operating
platform
Lead the industry in the utilization of
proprietary analytics
Expand our strong broker and
customer relationships through
industry leading service
Employ our capital markets
expertise to optimize our return
and expand our opportunities
effectively with the investor
community.
Maintain an energetic culture that
continuously challenges best
practices
Grow diluted book value per share
Obtain and maintain “A” level
ratings from multiples agencies
7
OUR STRATEGY
OUR OBJECTIVES
Communicate proactively and
OUR CURRENT POSITION
Clean, conservative
investment portfolio
No exposure to potential
casualty problems:
-D&O, E&O, Financial
institutions
Hard market for short-tail
property, property cat &
specialty lines
Profit from problems of
competitors
Ability to underwrite
worldwide
Very scalable operating
capabilities
8
THE FLAGSTONE DIFFERENCE
9
GLOBAL PLATFORM
Unique, efficient, and
scalable
TECHNOLOGY
Cutting - edge analytics for
superior risk analysis and
industry-leading service
DIVERSIFICATION
Balanced, conservative and
strategic
Consider the Flagstone
difference… .
THE FSR DIFFERENCE – GLOBAL PLATFORM
Offer fast, efficient service to
clients 24 hours a day.
Respond rapidly to submissions
Source more risks, and be more
selective in the risks we choose
Penetrate local markets – source
business that wouldn’t typically be
directed to larger markets
Retain more professional talent in
comparison to companies several
times our size
Leverage low cost jurisdictions –
cost efficiencies to analyze ALL
risks.
10
THROUGH THE EFFICIENCY
OF OUR GLOBAL PLATFORM,
FLAGSTONE IS ABLE TO:
THE FLAGSTONE DIFFERENCE - TECHNOLOGY
Entire company integrated
through technology
Centralized underwriting systems
and controls – single system
Fully integrated work flow,
underwriting & risk management
system
Combination of commercial
models and in-house analytics to
effectively control, monitor and
analyze risks
Real-time portfolio simulation
and analysis
Marginal pricing analysis &
underwriting
Assess capital adequacy relative
to internal risk tolerance and
regulatory criteria
11
WHERE TECHNOLOGY MEETS
UNDERWRITING
THE FLAGSTONE DIFFERENCE - ANALYTICS
12
MOSAIC
QUARTZ
CYCLONE
Loss portfolio analysis
Optimization of exposures by risk
Assess capital adequacy
Additional proprietary view of risks
Considers additional load factors
Higher quality and more
comprehensive risk analysis
Large volumes of risk
Quicker & more efficient results
Risk tolerance
Regulatory criteria
THE FLAGSTONE DIFFERENCE - ANALYTICS
MOSAIC PRICING MODEL
Identify attractive opportunities by
stand-alone pricing
MOSAIC LOSS PORTFOLIO
Optimize exposures by risk zone from
real-time marginal pricing simulations
MOSAIC DYNAMIC RISK
MODEL
Firm-wide dynamic risk model
simulation
Attractive risk adjusted
return on capital
13
Investment
Analysis
Systems
Mosaic
Pricing
Model
(MPM)
Mosaic
Loss Portfolio
(MLP)
Mosaic
Dynamic
Risk Model
(MDRM)
MOSAIC
Database
Engine
DATA SOURCES
PROPRIETARY ANALYTICS
THE FSR DIFFERENCE - DIVERSIFICATION
WE DIVERSIFY BY:
Lines of Business
Growing specialty lines
Moving towards:
50% Property Cat/50%
Specialty
Geographically
New offices
Talented teams
Strategic acquisitions
14
TURNING THE DIFFERENCE INTO RESULTS
How do these differences
help our clients &
shareholders?
Superior loss ratio
Industry-leading service
Shareholder value
15
FSR EXECUTIVE MANAGEMENT TEAM
DAVID BROWN
Chief Executive Officer
& Deputy Chairman
26 years industry experience
Prior experience:
Chairman: Merastar Insurance
CEO: Centre Solutions (Bermuda)
Partner: Ernst & Young
16
FSR’S UNDERWRITING PHILOSOPHY
Diversification globally
Diversification allows for
premium leverage
Premium leverage lessens
per event losses
More frequent small losses
but better annual loss ratio
Allocate capital tactically
Select best clients/blue chips
LOB that we understand and
can make use of our toolset
SERVICE
17
18
Balanced portfolio with
significant international
exposures – Not a BIG
reliance on US Wind
45% US, 55%
International
Limit on zonal exposures
to mitigate large event
losses
60% of underwriting
capital
Analyze large amounts of
risk – selective on the
risks we choose
UNDERWRITING PHILOSOPHY
DIVERSIFICATION
GLOBALLY
DIVERSIFIED
MULTI-LINE
19
North America
45.1%
$406,737
Europe
12.2%
$110,138
Worldwide Risks
23.1%
$207,725
Caribbean
9.3%
$83,851
Japan & Australasia
5.6%
$50,492
Other
4.7%
$42,185
Property Catastrophe
54.8%
$493,673
Property
14.1%
$127,646
Short-Tail Specialty &
Casualty
22.8%
$205,265
Insurance
8.3%
$74,544
GROSS PREMIUMS WRITTEN BY GEOGRAPHIC AREA
For the period April 1st, 2008 – March 31st, 2009
GROSS PREMIUMS WRITTEN BY LINE OF BUSINESS
For the period April 1st, 2008 – March 31st, 2009
UNDERWRITING PHILOSOPHY
DIVERSIFICATION
Monitor zonal loss limits as
% of capital per zone
Monitor exposures in
adjacent combined zones
Per risk (cedant/layer)
Per event (1st event, 2nd
event, aggregate)
Per occurrence loss
estimates
Identifying potential loss
scenarios
Comparing & selecting risks
Conservative Methodology
As at 31 March, 2009:
1 in 100 PML of $236M
1 in 250 PML of $311M
20
UNDERWRITING PHILOSOPHY
RISK MANAGEMENT
UNDERWRITING PHILOSOPHY
SERVICE
Utilize proprietary technology
and global talent to provide
comprehensive risk analysis
and support to clients
Rapid turnaround and
response
Provide lead quote & price
Extend large capacity for risks
we like
Visit frequently – local
professionals
21
UNDERWRITING PHILOSOPHY
SERVICE
Entire submission,
underwriting &
accounting process
integrated in systems
Rigorous peer reviews
Differing levels of
authorization
Fully SOX compliant
22
Partner with Blue Chip
Companies
Prefer Regional exposures
vs. National exposures
Residential property vs.
Commercial property
Prefer XOL vs. Proportional
Approx 86% XOL
Generally conservative loss
estimates
Detailed cedant exposure:
Detailed data resolution vs.
aggregate resolution data
93% for US, 97.5% for
Europe
23
UNDERWRITING PHILOSOPHY
QUALITY PORTFOLIO
Traditionally mainly net
writer
Current 80% net retention
ratio
Specific purchases to
support business
expansion
Guideline on min rating
of A-
Collateralization if below
A-
24
UNDERWRITING PHILOSOPHY
REINSURANCE
PERFORMANCE: PEER ANALYSIS
25
2008 | UNDERWRITING
PROFITABILITY – LOSS
RATIO (as reported)
2008 | UNDERWRITING
PROFITABILITY – LOSS
RATIO (ex releases)
Source: Company reports based on public company data
0%
10%
20%
30%
40%
50%
60%
70%
80%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
PERFORMANCE: PEER ANALYSIS
26
2008 | DILUTED BOOK
VALUE (ex investment
returns & dividends)
CHANGE IN DBV
2008 | GROWTH
TOP-LINE GROWTH
(ex –RP)
Source: Company reports based on public company data
-8%
-6%
-4%
-2%
0%
2%
4%
6%
-30%
-20%
-10%
0%
10%
20%
30%
40%
PERFORMANCE: PEER ANALYSIS
27
2008 | DIVERSIFICATION
& USE OF CAPITAL
NET HURRICANE LOSSES
TO CAT PREMIUMS
2008 | NET HURRICANE
(IKE/GUSTAV) LOSSES
(millions of USD)
Source: Company reports based on public company data
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
$0
$50
$100
$150
$200
$250
$300
$350
$400
$450
PERFORMANCE: PEER ANALYSIS
3 YEAR ANALYSIS |
UNDERWRITING
PROFITABILITY LOSS
RATIOS (as reported)
*Loss ratio for non-life segment
** Calculated as a straight average of 3 ratios
28
0%
10%
20%
30%
40%
50%
60%
70%
80%
FSR EXECUTIVE MANAGEMENT TEAM
GARY PRESTIA
Chief Underwriting Officer,
North America
24 years industry experience
Prior experience:
29
CEO: Alea North America
President: Converium
North America
Senior Vice President:
Transatlantic Re
NA UNDERWRITING PHILOSOPHY
Underwrite NA Cat in
Bermuda – one team, highly
coordinated
Selectively deploy capital in
most attractive market - US
Property Cat
Understand our clients
business
Favour long term clients –
reinsurance purchase is a
“must buy” vs.
“opportunistic buy”
Quality book - underwrite
for profit margin/ROE, not
premium
Industry leading service
fosters satisfaction, loyalty
& sustainability
Show pictures of homes
30
NA UNDERWRITING APPROACH
Become top choice of brokers
& clients by providing:
31
High level of technical expertise in
risks we write
Rapid & informed quoting
Large capacity within our
Underwriting guidelines on the
high quality clients we target
Clear and timely response on
submissions of business we will &
will not write – a quick “no” is
appreciated
Consistent approach – know what
to expect from us
Favorable broker feedback -
within a tight range of final pricing
on business we quote
NA PORTFOLIO
Profitable results since
inception
Q1 09 NA Premiums up
by 31.6%
Strong 6/1 renewals
High teens increase in
rate at June 1
North American portfolio
– aggregate exposures
similar to 08
Expect solid 7/1 renewals
32
NA MARKET UPDATE
Hardening US Property cat
reinsurance market first
half of 2009 due to:
33
IKE development
Severity of global financial crisis
and investment results
Difficulties of major market
participants – desire to syndicate
placement
Rating agency pressures
FHCF’s $2bn reduction in TICL =
growth in Florida demand
TWIA Assessment = greater
exposure to Texas companies
Reduced sidecar and hedge fund
capacity
NORTH AMERICA OPPORTUNITIES
Developed profitable &
maturing US Property
portfolio
Opportunity to refine and
optimize mix by program
Re-evaluate core clients
and brokers
Meet with clients prior to
renewal
Remain nimble in
accessing market
opportunities – “Live cat”
and post-event covers
Continue to profitably
grow as we have done
past 3 ½ years
34
FSR EXECUTIVE MANAGEMENT TEAM
GUY SWAYNE
Chief Executive Officer
Flagstone Réassurance
Suisse SA & CUO, International
22 years industry experience
Prior experience:
35
CUO: ACE Tempest
Reinsurance Ltd.
EVP: ACE Financial Solutions
International
INTERNATIONAL UNDERWRITING APPROACH
Targeted core clients =
foundation for portfolio
Focus on service level to
brokers & clients
Leveraged Bermuda Cat
business to expand other
relationships and develop
Specialty Lines
Focus on territories and
LOB with best returns
Internal coordination
36
LOCATIONS, TEAMS & LOB
Bermuda International
Catastrophe Team
Strong analytical & model
knowledge
37
Understand the models not
rely on them
Strong relationships =
targeted business
Quoting market status with
superior technical response
plus large capacity
Private deals enhance
relationships with improved
returns
Consistent approach – well
received by clients and
brokers
LOCATIONS, TEAMS & LOB
FLAGSTONE SUISSE SA
(MARTIGNY)
2008 established as European
Reinsurer
2009 excellent development :
Improved service level
Notable breakthrough in
German direct market
Complements Bermuda with
focus on proportional, risk &
local markets
Current offer to bind
ratio of 15% or less
Optimistic for next year’s
renewals with Competitor
problems driving greater
Reinsurer diversification
38
LOCATIONS, TEAMS & LOB
FLAGSTONE RE AFRICA
(ex IMPERIAL RE)
Experienced Managing
Director
20 yrs in local market
Strong team
New local reinsurer backed by
Parent rating & Group capacity
Focused plan – ahead of
expectations after 5 months
July 1’s look promising:
Many terms & conditions
tightened
Current offer to bind ratio
of approximately 25%
Drive for Reinsurer diversification -
gaining opportunities at expense
of others
Focus on service to clients
39
LOCATIONS, TEAMS & LOB
FLAGSTONE
PUERTO RICO
Experienced & technical
team – locals from Latin
American region - key to
be seen as local to
nurture relationships
1/09 first real renewal
season in tough market
conditions – signs of
improving conditions
Current offer to bind ratio
of approximately 12%
Opportunity - Reinsurer
diversification
40
LOCATIONS, TEAMS & LOB
FLAGSTONE RE DUBAI/
FLAGSTONE ALLIANCE
CYPRUS
Engineering & Energy,
current focus:
Capacity needed
Acceptable rates
Flagstone expertise
Focused plan with target
clients & countries
Current fire rates
challenging
Proportional leaders
beginning to respond
European passporting
41
SPECIALTY PORTFOLIO
SPECIALTY LINES:
Airline exposure down since
January
Selected Motor accounts
Space portfolio consistent
Terrorism – modest plan
Energy & Engineering growing
Marine – London focus
42
In force business at April 1, 2009
Agricultural
3%
Aviation
21%
Commercial Auto
9%
Energy
8%
Engineering
9%
Industrial Aid
1%
Marine
14%
Marine & Energy
1%
Offshore Energy
1%
Personal Auto
2%
Professional Liability
2%
Space
14%
Surety
1%
Terrorism
4%
Warranty
1%
WC Cat
5%
Less than 1% in Accident & Health, Casualty Clash, Fire, General Liability,
Kidnap & Ransom, Marine – Cargo, Marine – Hull, Onshore Energy
LLOYD’S PLATFORM
BENEFITS:
Global distribution &
licenses
Lloyd’s branding
A+ Rating
Further diversifying short-
tail specialty lines
Extended market reach
Scalable platform
Experienced team with
deep relationships
Efficient capital structure
43
LLOYD’S PLATFORM
Specialist portfolio , short-
tail insurance &
reinsurance: marine,
energy, aviation and XOL
reinsurance
Fee based services –
Frameworks, Insurance
Admin and Turnkey
No legacy business
2008 – GPW of GBP 80m
($119m)
2009 – New Business for
FSR
Expect GPW of GBP 100m
($130/$140)
Currency benefit –
strengthening of $
44
Expected 2009 Business Mix
Marlborough/Lloyd’s Syndicate 1861
Source: Lloyd’s approved 2009 business plan for Syndicate 1861
2009 & 2010 PROSPECTS
Global reach & high level
of marketing activities
Building solid reputation
Seeing high volume of
submissions
Reinsurance rates
improving
Some regions & LOB
already increased
Cedants diversifying
Reinsurer panel
Already seeing benefits in
Europe, Latin America &
South Africa
45
FSR EXECUTIVE MANAGEMENT TEAM
PATRICK BOISVERT
Chief Financial Officer
14 years industry experience
Past experience:
CFO: West End Capital
Management Limited
VP Fund Administration:
BISYS Hedge Fund Services
Limited
46
FINANCIAL SNAPSHOT
FINANCIAL HIGHLIGHTS
As at 31 March 2009
$ in thousands (except per
share data)
For 3 months ended
31 March 2009
47
Total Assets
$2,472,039
Long Term Debt
$265,306
Shareholder’s Equity
$1,024,123
Total Capital
$1,289,429
Debt/Capital
20.6%
Basic Book Value per Share
$12.04
Diluted Book Value per Share
$11.60
Gross Premiums Written
$361,485
Net Premiums Earned
$172,835
Loss Ratio
44.3%
Combined Ratio
80.4%
KEY METRIC – GROWTH IN DBV
Our Key metric is Growth
in Diluted Book Value per
share
Represents the value
creation
Board sets the target
annually
48
KEY METRIC – UNDERWRITING CONTRIBUTION
Companies build different
platforms…and
On a quarterly basis, isolated
events and reserve releases
may affect underwriting
performance… BUT
Over the long run, this
measure shows the value
created by underwriting
performance
Despite being only a “class of 2005” (therefore having a “ramp-up lag”) and
without having any benefits of KRW reserves releases, we have
outperformed our peers and believe this is a true reflection of the
underwriting platform we have built.
49
Peers: Axis, Endurance, IPC Re, Lancashire, Montpellier, Ren Re, Validus
FSR
Diluted Book Value Growth (Ex-Investments)
BALANCE SHEET HIGHLIGHTS
Robust balance sheet with
strong liquidity position
No long-tail writings
Controlled financial
leverage
Underwriting capital of
$1.3B
50
$ in millions
(except per share
data)
Mar 31
2009
Dec 31
2008
Dec 31
2007
Dec 31
2006
Investments & Cash
$1,762,846
$1,709,928
$1,833,863
$1,018,525
Total Assets
$2,472,039
$2,251,970
$2,103,773
$1,144,502
Loss Reserves
$429,802
$411,565
$180,978
$22,516
Debt
$265,306
$252,575
$264,889
$137,159
Shareholders’
Equity
$1,024,123
$986,013
$1,210,485
$864,519
Underwriting
Capital
$1,289,429
$1,238,588
$1,475,374
$1,001,678
Diluted BV per
share
$11.60
$11.30
$13.87
$11.94
FSR EXECUTIVE MANAGEMENT TEAM
MARK BYRNE
Executive Chairman
22 years industry experience
Prior experience:
Chairman: West End Capital
Management
Director: White Mountains,
Terra Nova, Markel
Significant Capital Markets
experience – Salomon
Brothers, Credit Suisse,
Lehman Brothers
51
INVESTMENTS
October 2008 - de-risked
the portfolio
Conservative portfolio –
expect to stay here for
2009
At 3/31/09 - 94% of our
assets in high grade fixed
income securities & cash
No material exposure to
sub prime or Alt A
securities
Lower current returns –
focus on underwriting
Stable capital base with
which to underwrite
52
*Sovereign Bonds – Ex-US & Supranationals
CURRENT ALLOCATION – INVESTED ASSETS
THE FSR OPPORTUNITY
Ideally positioned to
take advantage of
opportunities in the
market
High Quality book of
business
Adequate capital &
strong balance sheet
Systems, global
locations & teams to
provide:
SHAREHOLDER VALUE
(Investors)
SERVICE
(clients/brokers)
53
FSR GOING FORWARD
54
Business continues to be
attractive
Hardening market
2009 Growth Plan:
Renewals
Increase participation
on programs
Develop new clients
especially with
Marlborough
Expand specialty
business
Global expansion
Brazil
Q & A
55
FLAGSTONE REINSURANCE HOLDINGS LIMITED
Crawford House, 23 Church Street,
Hamilton, HM 11, Bermuda
www.flagstonere.com
