Flagstone Re Announces Controlling Position in Island Heritage Group of Companies

Flagstone Reinsurance Holdings Limited (NYSE:FSR) announced today that they have taken a majority position in Island Heritage Holdings Ltd. The Island Heritage Group, domiciled in the Cayman Islands, specializes in insurance and insurance services in the Caribbean. Flagstone will assume control of the Island Heritage companies. Butterfield Bank and Ace Insurance will remain major shareholders of Island Heritage, with further participation by the local management of the companies. This change in control will not alter any of the existing products and services, but over time will enhance service and broaden product distribution. Mark Byrne, Chairman of Flagstone, will become the new Chairman of Island Heritage Holdings. Mr. Byrne commented: "We are excited to start this new chapter in the Island Heritage story. We believe that through technical cooperation with Island Heritage staff, we can further optimize the returns of this business. We are pleased that all key members of Island Heritage management, and all strategic shareholders, have chosen to stay involved.” About Flagstone Reinsurance Holdings Limited Flagstone Reinsurance Holdings Limited, through its operating subsidiaries, is a global reinsurance company formed and headquartered in Bermuda. Flagstone Re employs a focused, technical approach to the Property Catastrophe, Property, and Specialty reinsurance business. Flagstone Re and Flagstone Réassurance Suisse have received "A-" financial strength ratings from both A.M. Best and Fitch Ratings, and "A3" ratings from Moody's Investors Service. About Island Heritage Group Island Heritage was formed in 1996 in the Cayman Islands and is currently licenced to transact domestic insurance business in sixteen Caribbean countries. The Company is a property insurance specialist and is rated by A.M. Best as A- "Excellent".