Flagstone Re Co-Founder Mark Byrne Steps Down as Chairman

Flagstone Reinsurance Holdings S.A. said company co-founder Mark Byrne is stepping down as chairman, but will remain on the board as a nonexecutive member.

Daniel James, a director of the Flagstone board since its inception, will succeed Byrne as chairman. Co-founder David Brown, who has served as Flagstone's chief executive officer since the company's inception in 2005, and all other members of the senior management team will continue in their current roles.

Attempts to reach the company for additional comment were not immediately successful.

James is a founding partner and head of North America of Trilantic Capital Partners, a private equity firm managing more than $3.6 billion. Before joining Trilantic, James was head of North America of Lehman Brothers Merchant Banking.

Before founding Flagstone, Byrne founded and managed West End Capital Management (Bermuda) Ltd., a Bermuda investment management firm engaged primarily in fixed income arbitrage. Along with his professional staff, he managed more than $1 billion of net assets, according to Flagstone Re's website.

Byrne has been involved in the insurance and reinsurance business as an owner/investor and board member for many years. He has invested at early stages in several insurance companies and has served on the boards of a number of insurance companies, including three public companies before Flagstone: White Mountains Insurance Group, Terra Nova (Bermuda) Holdings and Markel Insurance. Byrne is also chairman of Cayman Islands-based Island Heritage Insurance Holdings.

From September 2003 until Flagstone was launched in 2005, Brown served as the CEO of Haverford (Bermuda) Ltd. and as the chief operating officer of West End Capital Management (Bermuda) Ltd. During his time at Haverford, Brown led the team that analyzed, structured and negotiated the acquisition of Merastar Insurance Co. in 2004. As chairman of Merastar, he led the board's oversight of the successful turn-around strategy.

Brown joined Centre Solutions (Bermuda) Ltd. in 1993, and was its president and CEO at the time of his retirement in 1998. At Centre, Brown was responsible for the global operations of a group with more than $7 billion in assets and offices in several countries, according to Flagstone Re's website.

Last week, Flagstone Reinsurance Holdings S.A. completed the planned redomestication of its corporate domicile from Bermuda to Luxembourg (BestWire, May 19, 2010).

Flagstone Re (NYSE: FSR) already had an office in Luxembourg, where it runs its investment management operations. That existing office is now Flagstone Re's corporate holding office. The company will retain its office and operations in Bermuda (BestWire, March 22, 2010).

Flagstone Re's subsidiaries currently have a Best's Financial Strength Rating of A- (Excellent).

Shares of Flagstone Re stock was trading at $11.70 a share on the afternoon of May 24, down 0.17% from the previous close.

(By Meg Green, senior associate editor, BestWeek: [email protected])