Exhibit 99.1

FLAGSTONE RE ANNOUNCES PURCHASE OF MAJORITY STAKE IN IMPERIAL REINSURANCE
COMPANY LIMITED

HAMILTON, Bermuda--(BUSINESS WIRE)--March 11, 2008--Flagstone Reinsurance
Holdings Limited (NYSE:FSR) announced today that it has signed an agreement to
invest, via a subsidiary, in the capital stock of Imperial Reinsurance Company
Limited and thereby acquire 65% of the company. The transaction, subject to
regulatory approvals and closing conditions, is expected to close in the second
quarter of 2008. Imperial Re, domiciled in South Africa, writes multiple lines
of reinsurance in sub-Saharan Africa.

Current owner Imperial Holdings will hold 35% of Imperial Re and will be
represented on the board. In addition, Steve Smith will continue to be the
managing director of the company. Flagstone's capital and technical support will
enhance the company's services, increase market penetration and broaden product
distribution, both by line of business and geographically within Africa.

Mark Byrne, Chairman of Flagstone, will become the new Chairman of Imperial Re.
Mr. Byrne commented: "We are excited about this further strengthening of our
relationship with Imperial Re and the Imperial Group. This acquisition dovetails
with our strategy, giving Flagstone capacity in a fast growing, technically
adequate market, in a strong economy. Our colleagues at Imperial Holdings, a
large and respected conglomerate in South Africa will make great partners for
Imperial Re, as we seek to leverage existing relationships in the Republic of
South Africa as well as the broader region. Steve Smith and his team have our
full confidence and support."

Hubert Brody, Imperial CEO said: "The sale of our stake in the business will
create a re-insurance company with equity of approximately R220m and will free
up approximately R80m of capital for Imperial Holdings. It unlocks Imperial Re's
true potential throughout sub-Saharan Africa."

Mr. Smith commented: "Imperial Re's management and staff are excited by this
development; it will significantly enhance the company's value proposition for
the short term insurance market in South Africa and we are sure that it will be
welcomed by both insurers and reinsurance brokers. We will be in an unique
position in the South African reinsurance market by having a blend of
international and South African ownership"

About Flagstone Reinsurance Holdings Limited

Flagstone Reinsurance Holdings Limited, through its operating subsidiaries, is a
global reinsurance company that employs a focused, technical approach to the
Property, Property Catastrophe, and Specialty reinsurance business. Flagstone Re
and Flagstone Reassurance Suisse have received "A-" financial strength ratings
from both A.M. Best and Fitch Ratings, and "A3" ratings from Moody's Investors
Service.






About Imperial Holdings

Imperial Holdings Ltd, listed on the Johannesburg Stock Exchange, is a
diversified multinational mobility group with activities spanning logistics,
motor vehicle and related financial operations. Its interests include a 49.9%
shareholding in Imperial Bank. While capitalizing on the synergies between its
business entities, its decentralized management structure actively encourages
entrepreneurship, innovation and industry-specific best practices.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

This press release may contain "forward-looking statements" within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. All statements, other than statements of historical facts,
included or referenced in this release which address activities, events or
developments which we expect or anticipate will or may occur in the future are
forward-looking statements. The words "will," "believe," "intend," "expect,"
"anticipate," "project," "estimate," "predict" and similar expressions are also
intended to identify forward-looking statements. These forward-looking
statements include, among others, statements with respect to Flagstone's: growth
in book value per share or return on equity; business strategy; financial and
operating targets or plans; incurred losses and the adequacy of its loss and
loss adjustment expense reserves and related reinsurance; projections of
revenues, income (or loss), earnings (or loss) per share, dividends, market
share or other financial forecasts; expansion and growth of our business and
operations; and future capital expenditures.

These statements are based on certain assumptions and analyses made by Flagstone
in light of its 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: the risks described in our Annual
Report or Form 10-Q; claims arising from catastrophic events, such as
hurricanes, earthquakes, floods or terrorist attacks; the continued availability
of capital and financing; general economic, market or business conditions;
business opportunities (or lack thereof) that may be presented to it and
pursued; competitive forces, including the conduct of other property and
casualty insurers and reinsurers; changes in domestic or foreign laws or
regulations, or their interpretation, applicable to Flagstone, its competitors
or its clients; an economic downturn or other economic conditions adversely
affecting its financial position; recorded loss reserves subsequently proving to
have been inadequate; other factors, most of which are beyond Flagstone's
control.






Consequently, all of the forward-looking statements made in this press release
are qualified by these cautionary statements, and there can be no assurance that
the actual results or developments anticipated by Flagstone will be realized or,
even if substantially realized, that they will have the expected consequences
to, or effects on, Flagstone or its business or operations. Flagstone assumes no
obligation to publicly update any such forward-looking statements, whether as a
result of new information, future events or otherwise.

CONTACT:
Flagstone Reinsurance Holdings Limited, Hamilton
Brenton Slade, 441-278-4303