Fisker 8K Flagstone Re Reports Diluted Book Value per Share of $13.87 for End of Fourth Quarter 2007 | SEC 20 Feb 08







FLAGSTONE RE




Flagstone Reinsurance Holdings Limited




INVESTOR FINANCIAL SUPPLEMENT
Fourth Quarter 2007


23 Church Street, Hamilton HM 11, Bermuda

Flagstone Reinsurance Holdings Limited

Crawford House

23 Church Street

Hamilton HM 11

Contact Information:

Brenton Slade

Director of Investor Relations

(441) 278-4003

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

Cautionary Note Regarding Forward Looking Statements

Regulation G - Non-GAAP Financial Measures

iii

I. Financial Highlights

II. Income Statements

a. Consolidated Statements of Income - Quarterly

b. Gross Premium Written by Line of Business and Geographic Area of Risk

III. Balance Sheets

a. Consolidated Balance Sheets

IV. Loss Reserve Analysis

a. Paid to Incurred Analysis

V. Share Analysis

a. Capitalization

b. Earnings Per Common Share Analysis - As Reported

c. Book Value Per Common Share Analysis

VI. Mont Fort Consolidation

a. Balance Sheet Consolidation

b. Income Statement Consolidation

Flagstone Reinsurance Holdings Limited
BASIS OF PRESENTATION


	DEFINITIONS AND PRESENTATION

	●	Unless otherwise noted, all data is in thousands, except for share and 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 the 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.

Flagstone Reinsurance Holdings Limited

	Cautionary Note Regarding Forward-Looking Statements:

	This report may include forward-looking statements which reflect our current views with respect to future events and financial performance. Statements which include the words "expect," "intend," "plan," "believe," "project," "anticipate," "will" and similar statements of a future or forward-looking nature identify forward-looking statements for purposes of the U.S. federal securities laws or otherwise.
	These statements include forward-looking statements both with respect to us specifically and our industry in general. These statements are based on certain assumptions and analyses made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors believed to be appropriate in the circumstances. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations, including, but not limited to, the following:

●	The risks discussed on our Form S-1 filed with SEC on March 30, 2007 beginning on page 12

●	Cyclicality of demand and pricing of reinsurance market

●	Unpredictability and severity of catastrophic events

●	Adequacy of our risk management and loss estimation methods

●	Adequacy of our loss reserves

●	Our limited operating history

●	Dependence on key personnel

●	Dependence on the policies, procedures and expertise of ceding companies

●	Potential loss of business from one or more major reinsurance brokers

●	Potential for financial strength rating downgrade

●	Risks inherent to the Company's acquisition strategy

●	Highly competitive business environment

●	Other factors, most of which are beyond the Company's control.

	Accordingly, all of the forward-looking statements made in this report are qualified by these cautionary statements, and there can be no assurance that the actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, us or our business or operations. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. All subsequent written and oral forward-looking statements attributable to us or individuals acting on our behalf are expressly qualified in their entirety by this paragraph. You should specifically consider the factors identified in our Form S-1 filed with the SEC on March 30, 2007 which could cause actual results to differ before making an investment decision.

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 December 31, 2007 and December 31, 2006.

iii

Flagstone Reinsurance Holdings Limited
FINANCIAL HIGHLIGHTS (Unaudited)


	HIGHLIGHTS	Three months ended							Year ended
		December 31, 2007				December 31, 2006			December 31, 2007				December 31, 2006

	Gross premiums written	$	65,088			$	26,508		$	577,150			$	302,489
	Net premiums written	$	55,786			$	26,508		$	527,031			$	282,498
	Net premiums earned	$	125,270			$	72,335		$	477,137			$	192,063
	Net investment income	$	22,624			$	9,562		$	73,808			$	34,212
	Net income	$	51,369			$	63,583		$	167,922			$	152,338
	Comprehensive income	$	53,021			$	59,795		$	175,867			$	147,810
	Cash flow from operating activities	$	55,088			$	49,213		$	327,849			$	172,649
	Reserve for losses and loss expenses	$	180,978			$	22,516		$	180,978			$	22,516
	Total shareholders' equity	$	1,210,485			$	864,519		$	1,210,485			$	864,519


	PER COMMON SHARE AND
	COMMON SHARE DATA

	Basic earnings per common share	$	0.60			$	0.89		$	2.05			$	2.17
	Diluted earnings per common share	$	0.60			$	0.88		$	2.05			$	2.16
	Basic weighted average common shares outstanding		85,414,160				71,601,718			81,975,384				70,054,087
	Diluted weighted average common shares outstanding		85,529,672				71,968,704			82,111,590				70,393,821
	Book value per common share	$	14.17			$	12.08		$	14.17			$	12.08
	Diluted book value per common share	$	13.87			$	11.94		$	13.87			$	11.94
	Diluted book value per common share adjusted for dividends	$	13.95			$	11.94		$	13.95			$	11.94
	Dividend per share	$	0.04			$	-		$	0.08			$	-

	FINANCIAL RATIOS
	Growth in diluted book value per share ⁽¹⁾		4.6	%			7.7	%		16.8	%			21.2	%

	Loss ratio		24.3	%	%		9.8	%		40.4	%	%		13.9	%
	Acquisition cost ratio		20.8	%			15.1	%		17.2	%			15.6	%
	General and administrative expense ratio		19.3	%			15.0	%		15.2	%			18.1	%
	Combined ratio		64.4	%			39.9	%		72.8	%			47.6	%

	INVESTMENT DATA
	Total assets	$	2,103,773			$	1,144,502		$	2,103,773			$	1,144,502
	Total cash and investments ⁽²⁾	$	1,831,089			$	1,018,525		$	1,831,089			$	1,018,525

	(1) Growth in fully diluted book value per share represents the increase in fully 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.



Flagstone Reinsurance Holdings Limited
CONSOLIDATED STATEMENTS OF INCOME - QUARTERLY (unaudited)

	Quarter ended															Year Ended Year Ended
	December 31, 2007			September 30, 2007			June 30, 2007			March 31, 2007			December 31, 2006			December 31, 2007			December 31, 2006

REVENUES
Gross premiums written	$	65,088		$	123,704		$	181,345		$	207,013		$	26,508		$	577,150		$	302,489
Reinsurance premiums ceded		(9,302	)		(32,572	)		-			(8,245	)		-			(50,119	)		(19,991	)
Net premiums written		55,786			91,132			181,345			198,768			26,508			527,031			282,498

Change in net unearned premiums		69,484			47,667			(69,503	)		(97,542	)		45,827			(49,894	)		(90,435	)
Net premiums earned		125,270			138,799			111,842			101,226			72,335			477,137			192,063
Net investment income		22,624			17,022			20,531			13,631			9,562			73,808			34,212
Net realized and unrealized (losses) gains - investments		(1,573	)		17,980			(3,741	)		4,508			8,359			17,174			10,304
Net realized and unrealized (losses) gains - other		(1,985	)		(9,682	)		1,840			6			1,682			(9,821	)		1,943
Other income		2,926			1,961			251			673			2,874			5,811			6,099
Total revenues		147,262			166,080			130,723			120,044			94,812			564,109			244,621


EXPENSES
Loss and loss adjustment expenses		30,415			37,439			77,257			47,748			7,110			192,859			26,660
Acquisition costs		26,054			28,795			14,725			12,718			10,895			82,292			29,939
General and administrative expenses		24,229			19,763			13,800			14,669			10,843			72,461			34,741
Interest expense		6,020			5,873			3,520			3,264			3,357			18,677			4,648
Net foreign exchange gains		(2,109	)		(1,842	)		(56	)		(1,282	)		(335	)		(5,289	)		(2,079	)
Total expenses		84,609			90,028			109,246			77,117			31,870			361,000			93,909

Income before income taxes, minority interest and
interest in earnings of equity investments		62,653			76,052			21,477			42,927			62,942			203,109			150,712
Provision for income tax		(432	)		(229	)		(77	)		(45	)		(50	)		(783	)		(128	)
Minority interest		(10,852	)		(9,317	)		(7,892	)		(7,733	)		-			(35,794	)		-
Interest in earnings of equity investments		-			(257	)		1,186			461			691			1,390			1,754

NET INCOME ⁽¹⁾	$	51,369		$	66,249		$	14,694		$	35,610		$	63,583		$	167,922		$	152,338
Change in net unrealized losses		-			-			-			-			(3,239	)		-			(4,008	)
Change in currency translation adjustment		1,652			8,310			(1,741	)		(276	)		(549	)		7,945			(520	)

COMPREHENSIVE INCOME	$	53,021		$	74,559		$	12,953		$	35,334		$	59,795		$	175,867		$	147,810


KEY RATIOS/PER COMMON SHARE DATA

Loss ratio		24.3	%		27.0	%		69.1	%		47.2	%		9.8	%		40.4	%		13.9	%
Acquisition cost ratio		20.8	%		20.7	%		13.2	%		12.6	%		15.1	%		17.2	%		15.6	%
General and administrative expense ratio		19.3	%		14.2	%		12.3	%		14.5	%		15.0	%		15.2	%		18.1	%
Combined ratio		64.4	%		61.9	%		94.6	%		74.3	%		39.9	%		72.8	%		47.6	%

Weighted average common shares outstanding - basic		85,414,160			85,413,479			85,139,757			71,746,162			71,601,718			81,975,384			70,054,087
Weighted average common shares outstanding - diluted		85,529,672			85,491,561			85,198,147			72,010,501			71,968,704			82,111,590			70,393,821

Net income per common share outstanding - basic	$	0.60		$	0.78		$	0.17		$	0.50		$	0.89		$	2.05		$	2.17
Net income per common share outstanding - diluted	$	0.60		$	0.77		$	0.17		$	0.49		$	0.88		$	2.05		$	2.16


(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 for the quarters ended March 31, 2007, June 30, 2007, September 30, 2007, and December 31, 2007, and the year ended December 31, 2007. For all prior periods, certain of these changes are included in other comprehensive income.

Flagstone Reinsurance Holdings Limited
GROSS PREMIUM WRITTEN BY LINE OF BUSINESS AND
GEOGRAPHIC AREA OF RISK (Unaudited)


	Three months ended December 31, 2007				Three months ended December 31, 2006
	Gross premiums written		% of total		Gross premiums written			% of total
Line of Business
Property catastrophe	$	31,130	47.8	%	$	17,580		66.3	%
Property		18,055	27.7	%	$	2,774		10.5	%
Short-tail specialty and casualty		15,903	24.4	%	$	6,154		23.2	%
Total	$	65,088	99.9	%	$	26,508		100.0	%



	Year Ended December 31, 2007				Year Ended December 31, 2006
	Gross premiums written		% of total		Gross premiums written			% of total
Line of Business
Property catastrophe	$	411,566	71.3	%	$	219,102		72.4	%
Property		94,503	16.4	%		56,417		18.7	%
Short-tail specialty and casualty		71,081	12.3	%		26,970		8.9	%
Total	$	577,150	100.0	%	$	302,489		100.0	%



	Three months ended December 31, 2007				Three months ended December 31, 2006
	Gross premiums written		% of total		Gross premiums written			% of total
Geographic area of risk insured⁽¹⁾
North America	$	20,720	31.8	%	$	7,331		27.7	%
Worldwide risks⁽²⁾		16,420	25.2	%		2,759		10.4	%
Europe		13,263	20.4	%		11,259		42.5	%
Japan and Australasia		676	1.0	%		4,893		18.5	%
Caribbean		12,315	18.9	%		(3,200	)	-12.1	%
Other		1,694	2.7	%		3,466		13.0	%
Total	$	65,088	100.0	%	$	26,508		100.0	%



	Year Ended December 31, 2007				Year Ended December 31, 2006
	Gross premiums written		% of total		Gross premiums written			% of total
Geographic area of risk insured⁽¹⁾
North America	$	297,928	51.6	%	$	160,384		53.0	%
Worldwide risks⁽²⁾		99,365	17.2	%		37,815		12.5	%
Europe		79,894	13.8	%		45,737		15.1	%
Japan and Australasia		39,547	6.9	%		31,690		10.5	%
Caribbean		48,103	8.3	%		10,291		3.4	%
Other		12,313	2.2	%		16,572		5.5	%
Total	$	577,150	100.0	%	$	302,489		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.

Flagstone Reinsurance Holdings Limited
CONSOLIDATED BALANCE SHEETS (unaudited)

	As at
	December 31, 2007			September 30, 2007			June 30, 2007			March 31, 2007			December 31, 2006
ASSETS
Investments:
Fixed maturity investments, at fair value	$	1,109,105		$	1,102,328		$	978,660		$	902,509		$	682,278
Short term investments, at fair value		23,616			14,242			25,583			4,974			-
Equity investments, at fair value		74,357			28,746			28,766			23,090			-
Other investments		293,166			289,340			157,438			151,272			74,496
Total investments		1,500,244			1,434,656			1,190,447			1,081,845			756,774

Cash and cash equivalents		362,680			322,768			422,045			191,191			261,352
Proceeds receivable from initial public offering		-			-			-			164,854			-
Reinsurance premium balances receivable		136,555			189,553			220,229			145,834			68,940
Unearned premiums ceded		14,608			22,491			4,211			7,484			8,224
Accrued interest receivable		9,915			7,534			7,719			5,965			6,331
Receivable for investments sold		-			-			-			-			3,599
Deferred acquisition costs		30,607			36,819			34,186			22,867			11,909
Funds withheld		6,666			6,606			5,138			5,069			-
Goodwill		10,781			11,556			6,602			5,624			5,624
Other assets		31,717			33,704			17,580			17,363			18,659
Due from related parties		-			1,009			2,291			1,094			3,090
TOTAL ASSETS	$	2,103,773		$	2,066,696		$	1,910,448		$	1,649,190		$	1,144,502

LIABILITIES
Loss and loss adjustment expense reserves	$	180,978		$	161,442		$	135,143		$	66,540		$	22,516
Unearned premiums		175,607			252,096			269,020			202,803			98,659
Insurance and reinsurance balances payable		12,088			22,728			883			6,235			-
Payable for investments purchased		41,750			8,248			1,201			7,246			9,531
Long term debt		264,889			264,469			238,290			137,361			137,159
Other liabilites		33,198			26,076			17,164			12,683			11,866
Due to related parties		-			-			1,283			1,359			252
TOTAL LIABILITIES		708,510			735,059			662,984			434,227			279,983


Minority Interest - Mont Fort Re⁽¹⁾ and Island Heritage		184,778			172,704			161,619			153,727			-

SHAREHOLDERS' EQUITY

Common shares		853			853			853			845			715
Additional paid-in capital		905,316			903,220			901,279			889,631			728,378
Accumulated other comprehensive income (loss)		7,426			5,774			(2,536	)		(795	)		(4,528	)
Retained earnings		296,890			249,086			186,249			171,555			139,954
TOTAL SHAREHOLDERS' EQUITY		1,210,485			1,158,933			1,085,845			1,061,236			864,519

TOTAL LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS' EQUITY	$	2,103,773		$	2,066,696		$	1,910,448		$	1,649,190		$	1,144,502

Basic book value per common share	$	14.17		$	13.59		$	12.73		$	12.55		$	12.08

Diluted book value per common share	$	13.87		$	13.30		$	12.46		$	12.31		$	11.94

Diluted book value per common share adjusted for dividends declared	$	13.95		$	13.34		$	12.46		$	12.31		$	11.94

Debt to total capitalization ⁽²⁾		18.0	%		18.6	%		18.0	%		11.5	%		13.7	%

(1) See Pages 9 and 10 for additional information.
(2) Comprises long term debt divided by the sum of long term debt plus shareholders' equity.

Flagstone Reinsurance Holdings Limited
RESERVE FOR LOSSES AND LOSS EXPENSES: PAID TO INCURRED ANALYSIS (Unaudited)



	Three months ended December 31, 2007									Three months ended September 30, 2007									Three months ended June 30, 2007									Three months ended March 31, 2007									For the year ended December 31, 2006
Reserve for losses and loss expenses	Gross			Recoveries			Net			Gross			Recoveries			Net			Gross			Recoveries			Net			Gross			Recoveries			Net			Gross			Recoveries			Net

Beginning of period	$	161,442		$	-		$	161,442		$	135,143		$	-		$	135,143		$	66,540		$	-		$	66,540		$	22,516		$	-		$	22,516		$	-		$	-		$	-

Incurred		30,415			-			30,415			37,439			-			37,439			77,257			-			77,257			47,748			-			47,748			26,660			-			26,660

Other ⁽¹⁾		(352	)		-			(352	)		5,542			-			5,542			-			-			-			-			-			-			-			-			-

Paid		(10,527	)		-			(10,527	)		(16,682	)		-			(16,682	)		(8,654	)		-			(8,654	)		(3,724	)		-			(3,724	)		(4,144	)		-			(4,144	)

End of period	$	180,978		$	-		$	180,978		$	161,442		$	-		$	161,442		$	135,143		$	-		$	135,143		$	66,540		$	-		$	66,540		$	22,516		$	-		$	22,516

Paid to incurred percentage		34.6	%		0.0	%		34.6	%		44.6	%		0.0	%		44.6	%		11.2	%		0.0	%		11.2	%		7.8	%		0.0	%		7.8	%		15.5	%		0.0	%		15.5	%



(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.

Flagstone Reinsurance Holdings Limited
CAPITALIZATION (Unaudited)


	December 31, 2007			September 30, 2007			June 30, 2007			March 31, 2007			December 31, 2006

		---			---			---			---			---
Long term debt	$	264,889		$	264,469		$	238,290		$	137,361		$	137,159
Shareholders' equity		1,210,485			1,158,933			1,085,845			1,061,236			864,519

Total Capitalization	$	1,475,374		$	1,423,402		$	1,324,135		$	1,198,597		$	1,001,678

Leverage ratio:
Debt to total capitalization		18.0	%		18.6	%		18.0	%		11.5	%		13.7	%




	December 31, 2007						December 31, 2006
	Debt or Facility Principal			In use			Debt or Facility Principal			In use
Debt and financing arrangements
Junior Subordinated Deferrable Debentures (a)	$	25,000		$	25,000		$	-		$	-
Junior Subordinated Deferrable Debentures (b)	$	100,000		$	100,000		$	-		$	-
Junior Subordinated Deferrable Debentures (c)	$	120,000		$	120,000		$	120,000		$	120,000
Junior Subordinated Deferrable Debentures (d)	€	13,000		€	13,000		€	13,000		€	13,000
Other long term debt	$	945		$	883		$	459		$	459
Letter of credit facility (e)	$	400,000		$	72,229		$	200,000		$	67,800
Letter of credit facility (f)	$	200,000		$	-		$	-		$	-


Notes:
(a) The Junior Subordinated Deferrable Debentures 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 Debentures 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 Junior Subordinated Deferrable 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 Junior Subordinated Deferrable 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 December 31, 2007 was secured by $80.3 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.

Flagstone Reinsurance Holdings Limited
EARNINGS PER COMMON SHARE INFORMATION - AS REPORTED, GAAP (Unaudited)


	Three months ended				Year ended
	December 31,				December 31,
		2007		2006		2007		2006

Net income available to common shareholders	$	51,369	$	63,583	$	167,922	$	152,338

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic weighted average common shares outstanding ⁽¹⁾		85,414,160		71,601,718		81,975,384		70,054,087

Dilutive share equivalents:
Unvested performance share units ⁽²⁾		-		356,845		-		339,734
Unvested restricted share units		115,512		10,141		136,206		-
Diluted weighted average common shares outstanding		85,529,672		71,968,704		82,111,590		70,393,821

EARNINGS PER COMMON SHARE
Basic	$	0.60	$	0.89	$	2.05	$	2.17
Diluted	$	0.60	$	0.88	$	2.05	$	2.16


(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 ditluted EPS until the end of the performance period, when the
numbers of shares issuable under the PSU Plan will be known. As at December 31, 2007, there were 1,658,700 PSUs outstanding under the PSU Plan.

Flagstone Reinsurance Holdings Limited
NON-GAAP FINANCIAL MEASURES RECONCILIATION
BASIC AND DILUTED BOOK VALUE PER COMMON SHARE (Unaudited)


		As at December 31,			As at September 30,			As at June 30,			As at March 31,			As at December 31,
			2007			2007			2007			2007			2006

	DILUTIVE COMMON SHARES AS IF OUTSTANDING

	Common shareholders' equity	$	1,210,485		$	1,158,933		$	1,085,845		$	1,061,236		$	864,519

	Dividends declared	$	6,977		$	3,412		$	-		$	-		$	-

	Common shares outstanding		85,309,107			85,297,891			85,297,891			84,547,891			71,547,891
	add in:
	vested restricted share units		105,060			-			-			-			-
	Total common shares and common share equivalents outstanding		85,414,167			85,297,891			85,297,891			84,547,891			71,547,891

	Basic book value per common share	$	14.17		$	13.59		$	12.73		$	12.55		$	12.08

	Basic book value per common share adjusted for dividends	$	14.25		$	13.63		$	12.73		$	12.55		$	12.08

	Diluted book value on an "as if converted basis"
	Common shareholders' equity	$	1,210,485		$	1,158,933		$	1,085,845		$	1,061,236		$	864,519
	add in:
	proceeds on exercise of warrant ⁽¹⁾		-			-			-			-			-

	Adjusted shareholders' equity	$	1,210,485		$	1,158,933		$	1,085,845		$	1,061,236		$	864,519

	Dividends declared	$	6,977		$	3,412		$	-		$	-		$	-

	As if converted diluted shares outstanding
	Common shares and share equivalents outstanding		85,414,167			85,297,891			85,297,891			84,547,891			71,547,891
	add in:
	vesting of performance share units		1,658,700			1,538,000			1,538,000			1,381,000			713,000
	vesting of restricted share units		221,550			326,538			326,538			254,477			117,727

	Diluted common shares outstanding		87,294,417			87,162,429			87,162,429			86,183,368			72,378,618


	Diluted book value per common share	$	13.87		$	13.30		$	12.46		$	12.31		$	11.94

	Diluted book value per common share adjusted for dividends ⁽³⁾	$	13.95		$	13.34		$	12.46		$	12.31		$	11.94




	Change in diluted book value per share: Quarter		4.3	%		6.7	%		1.2	%		3.1	%		7.7	%
	Change in diluted book value per share adjusted for dividends ⁽²⁾: Quarter		4.6	%		7.1	%		1.2	%		3.1	%		7.7	%
	Change in diluted book value per share adjusted for dividends ⁽²⁾: Rolling 12 months		16.8	%		20.3	%		21.3	%		23.3	%		21.2	%
	Annualized change in diluted book value per share adjusted for dividends since inception		19.0	%		18.9	%		16.9	%		19.5	%		21.2	%


	(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 is calculated by dividing common shareholders' equity by the sum of cumulative dividends declared and diluted common shares outstanding.

Flagstone Reinsurance Holdings Limited
Summary Consolidating Balance Sheet - Mont Fort (unaudited)


	As at December 31, 2007

	Flagstone Consolidated Excluding Mont Fort			Mont Fort		Consolidation/Elimination			Flagstone Consolidated
ASSETS
Investments:
Fixed maturity investments, at fair value	$	1,021,504		$	87,601	$	-		$	1,109,105
Short term investments, at fair value		23,616			-		-			23,616
Equity investments, at fair value		74,357			-		-			74,357
Other investments		294,683			-		(1,517	)		293,166
Total investments		1,414,160			87,601		(1,517	)		1,500,244

Cash and cash equivalents		273,295			89,385		-			362,680
Reinsurance premium balances receivable		135,204			1,351		-			136,555
Unearned premiums ceded		22,544			-		(7,936	)		14,608
Accrued interest receivable		8,753			1,162		-			9,915
Deferred acquisition costs		30,219			842		(454	)		30,607
Funds withheld		6,666			-		-			6,666
Goodwill		10,781			-		-			10,781
Other assets		31,476			241		-			31,717
Due from related parties		4,788			-		(4,788	)		-
TOTAL ASSETS	$	1,937,886		$	180,582	$	(14,695	)	$	2,103,773

LIABILITIES
Loss and loss adjustment expense reserves	$	180,978								180,978
Unearned premiums		175,607			7,936		(7,936	)		175,607
Insurance and reinsurance balance payable		11,498			1,044		(454	)		12,088
Payable for investments purchased		41,750			-		-			41,750
Long term debt		264,889			-		-			264,889
Other liabilites		33,165			33		-			33,198
Due to related parties		(34	)		4,822		(4,788	)		-
TOTAL LIABILITIES		707,853			13,835		(13,178	)		708,510



Minority Interest		19,547			-		165,231			184,778


SHAREHOLDERS' EQUITY

Common shares		853			128,118		(128,118	)		853
Additional paid-in capital		905,316			-		-			905,316
Accumulated other comprehensive (loss)		7,426			-		-			7,426
Retained earnings		296,890			38,630		(38,630	)		296,890
TOTAL SHAREHOLDERS' EQUITY		1,210,485			166,748		(166,748	)		1,210,485

TOTAL LIABILITIES, MINORITY INTEREST AND SHAREHOLDERS' EQUITY	$	1,937,885		$	180,583	$	(14,695	)	$	2,103,773

Flagstone Financial Holdings Limited
Summary Consolidating Income Statements - Mont Fort (Unaudited)

	Quarter ending December 31, 2007												YTD December 31, 2007
	Flagstone Consolidated Excluding Mont Fort			Mont Fort			Consolidation/Elimination			Flagstone Consolidated			Flagstone Consolidated Excluding Mont Fort			Mont Fort			Consolidation/Elimination			Flagstone Consolidated

REVENUES
Gross premiums written	$	65,088		$	1,554		$	(1,554	)	$	65,088		$	577,150		$	37,038		$	(37,038	)	$	577,150
Reinsurance premiums ceded		(10,856	)		-			1,554			(9,302	)		(87,157	)		-			37,038			(50,119	)
Net premiums written		54,232			1,554			-			55,786			489,993			37,038			-			527,031

Change in net unearned premiums		61,948			7,536			-			69,484			(49,295	)		(599	)		-			(49,894	)
Net premiums earned		116,180			9,090			-			125,270			440,698			36,439			-			477,137
Net investment income		20,497			2,127						22,624			65,372			8,436			-			73,808
Net realized and unrealized gains (losses)		(3,395	)		1,456			(46	)		(1,985	)		(8,488	)		(1,356	)		23			(9,821	)
Other income		5,212			(1,852	)		(434	)		2,926			13,987			(6,287	)		(1,889	)		5,811
Total revenues		138,494			10,821			(480	)		148,835			511,569			37,232			(1,866	)		546,935


EXPENSES
Loss and loss adjustment expenses		30,415			-			-			30,415			192,859			-			-			192,859
Acquisition costs		25,642			892			(480	)		26,054			80,592			3,566			(1,866	)		82,292
General and administrative expenses		24,374			(145	)		-			24,229			72,455			6			-			72,461
Interest expense		6,020			-			-			6,020			18,677			-			-			18,677
Net foreign exchange gains		(2,109	)		-			-			(2,109	)		(5,289	)		-			-			(5,289	)
Total expenses		84,342			747			(480	)		84,609			359,294			3,572			(1,866	)		361,000

Income before income taxes, minority interest
and interest in earnings of equity invetsments		54,152			10,074			-			64,226			152,275			33,660			-			185,935
Provision for income tax		(432	)		-			-			(432	)		(783	)		-			-			(783	)
Minority interest		(796	)		-			(10,056	)		(10,852	)		(2,206	)		-			(33,588	)		(35,794	)
Interest in earnings of equity investments		18			-			(18	)		-			1,462			-			(72	)		1,390

NET INCOME	$	52,942		$	10,074		$	(10,074	)	$	52,942		$	150,748		$	33,660		$	(33,660	)	$	150,748

Change in currency translation adjustment		1,652			-			-			1,652			7,945			-			-			7,945

COMPREHENSIVE INCOME	$	54,594		$	10,074		$	(10,074	)	$	54,594		$	158,693		$	33,660		$	(33,660	)	$	158,693


KEY RATIOS

Loss ratio		26.2	%								24.3	%		43.8	%								40.4	%
Acquisition cost ratio		22.1	%								20.8	%		18.3	%								17.2	%
General and administrative expense ratio		21.0	%								19.3	%		16.4	%								15.2	%
Combined ratio		69.3	%								64.4	%		78.5	%								72.8	%

Note: Mont Fort was consolidated starting in Q1, 2007.

Fisker Inactive 8-KFlagstone Re Reports Diluted Book Value per Share of $13.87 for End of Fourth Quarter 2007