Flagstone Re Announces Quarterly Dividend

HAMILTON, Bermuda--(Business Wire)--
Flagstone Reinsurance Holdings Limited (NYSE:FSR) announced today
that its Board of Directors has declared a quarterly dividend of $0.04
per Common Share. The dividend is payable on June 10, 2008 to
shareholders of record at the close of business on May 30, 2008.

About Flagstone Reinsurance Holdings Limited

Flagstone Reinsurance Holdings Limited, through its operating
subsidiaries, is a global reinsurance and insurance company that
employs a focused, technical approach to the Property, Property
Catastrophe, and Specialty reinsurance and insurance businesses.
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.

Flagstone Reinsurance Holdings Limited is traded on the New York
Stock Exchange under the symbol "FSR" and the Bermuda Stock Exchange
under the symbol "FSR BH". Additional financial information and items
of interest are available at the Company's website located at
http://www.flagstonere.bm.

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.

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

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