The annualized net operating return on average Flagstone shareholders' equity (ROE), was -29 percent for 2011, according to the company’s full year results.
The Bermuda reinsurer also posted a net loss of $326 million for 2011, compared to the $97 million profit it posted in 2010. Despite this Flagstone Re’s chief executive David Brown remained upbeat about the future.
“We continue to work closely with our clients and brokers and we are pleased with our book of business at the January 1 renewal period,” he says.
“We offer over $1 billion of underwriting capital, and our rating agency capital adequacy measures continue to be in excess of our normal operating buffer and expect them to increase further as a result of our divestitures, making us a key and valued trading partner for our clients.”