This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Flagstone Re Reports Second Quarter 2012 Results

Flagstone shareholders’ equity

During the second quarter of 2012, the Company made no repurchases pursuant to its buyback program. As of June 30, 2012, authority to make up to $11.2 million of repurchases remained available under the buyback program.

At June 30, 2012, Flagstone’s shareholders' equity was $0.8 billion and diluted book value per common share was $11.52.

Additional information

The Company will host a conference call on Tuesday, August 7, 2012, at 9:30 a.m. (EDT) to discuss this release. Live broadcast of the conference call will be available on the Financial & Investor section of the Company’s website at www.flagstonere.com.

The Company, through its operating subsidiaries, is a global reinsurance company that employs a focused and technical approach to the property, property catastrophe, and short-tail specialty and casualty reinsurance businesses. The Company 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 other items of interest are available on the Company’s website located at www.flagstonere.com.

For more detailed financial information, please refer to the unaudited June 30, 2012, Financial Supplement, which will be posted on the Company’s website.

 
 
Unaudited Consolidated Condensed Balance Sheets
As at June 30, 2012 and December 31, 2011

(Expressed in thousands of U.S. dollars, except share data)

       
As at June 30, As at December 31,
  2012     2011  
ASSETS
Investments:
Fixed maturity investments, at fair value (Amortized cost: 2012 - $342,491; 2011 - $1,135,755) $ 333,674 $ 1,138,435
Short term investments, at fair value (Amortized cost: 2012 - $696,837; 2011 - $10,620) 696,838 10,616
Other investments   142,504     125,534  
Total investments 1,173,016 1,274,585
Cash and cash equivalents 186,251 249,424
Restricted cash 17,823 17,538
Premium balances receivable 273,744 236,375
Unearned premiums ceded 58,679 30,550
Reinsurance recoverable 232,784 271,183
Accrued interest receivable 2,607 12,950
Receivable for investments sold 2,435 18
Deferred acquisition costs 50,144 38,155
Funds withheld 25,983 25,116
Other assets 110,919 160,950
Assets held for sale including discontinued operations   439,641     461,652  
Total assets $ 2,574,026   $ 2,778,496  
 
LIABILITIES
Loss and loss adjustment expense reserves $ 682,329 $ 897,368
Unearned premiums 292,109 215,316
Insurance and reinsurance balances payable 45,454 75,433
Payable for investments purchased 2,494 6,255
Long term debt 250,202 250,575
Other liabilities 70,964 54,059
Liabilities of discontinued operations   393,814     472,957  
Total liabilities   1,737,366     1,971,963  
 
EQUITY
Common voting shares, 300,000,000 authorized, $0.01 par value, issued (2012 - 84,464,259; 2011 - 84,464,259) and outstanding (2012 - 71,058,922; 2011 - 70,167,142) 845 845
Common shares held in treasury, at cost (2012 - 13,405,337; 2011 - 14,297,117) (150,202 ) (160,448 )
Additional paid-in capital 857,714 872,819
Accumulated other comprehensive loss (12,788 ) (12,584 )
Retained earnings   141,091     88,416  
Total Flagstone shareholders' equity 836,660 789,048
Noncontrolling interest in subsidiaries   -     17,485  
Total equity   836,660     806,533  
Total liabilities and equity $ 2,574,026   $ 2,778,496  
 
 
Unaudited Consolidated Condensed Statements of Operations and Comprehensive Income (Loss)
For the three and six months ended June 30, 2012 and 2011

(Expressed in thousands of U.S. dollars, except share and per share data)

     
For the three months ended June 30, For the six months ended June 30,
2012   2011 2012   2011
 
REVENUES
Gross premiums written $ 171,150 $ 264,128 $ 341,378 $ 616,803
Premiums ceded   (6,285 )   (44,409 )   (91,184 )   (163,159 )
Net premiums written 164,865 219,719 250,194 453,644
Change in net unearned premiums   (62,366 )   (101,099 )   (33,950 )   (133,971 )
Net premiums earned 102,499 118,620 216,244 319,673
Net investment income 3,866 12,300 8,933 21,498
Net realized and unrealized gains (losses) - investments 5,365 (7,905 ) 23,468 2,866
Net realized and unrealized (losses) gains - other (4,990 ) 13,986 1,393 13,296
Other income   1,546     1,554     4,357     2,686  
Total revenues   108,286     138,555     254,395     360,019  
 
EXPENSES
Loss and loss adjustment expenses 55,483 96,490 121,932 399,489
Acquisition costs 22,113 25,613 44,766 63,684
General and administrative expenses 18,822 19,744 40,682 35,819
Interest expense 2,965 2,892 5,923 5,742
Net foreign exchange (gains) losses   (3,354 )   27,445     877     37,048  
Total expenses   96,029     172,184     214,180     541,782  
Income (loss) from continuing operations before income taxes and interest in earnings of equity investments 12,257 (33,629 ) 40,215 (181,763 )
(Provision) recovery for income tax (185 ) 827 (313 ) 1,073
Interest in earnings of equity investments   270     (171 )   288     (456 )
Income (loss) from continuing operations 12,342 (32,973 ) 40,190 (181,146 )
Income from discontinued operations, net of taxes   1,148     13,960     13,620     1,737  
Net income (loss) 13,490 (19,013 ) 53,810 (179,409 )
Less: Income attributable to noncontrolling interest   -     (1,197 )   (1,135 )   (2,021 )
NET INCOME (LOSS) ATTRIBUTABLE TO FLAGSTONE $ 13,490   $ (20,210 ) $ 52,675   $ (181,430 )
 
Net income (loss) $ 13,490 $ (19,013 ) $ 53,810 $ (179,409 )
Change in currency translation adjustment (4,669 ) 873 (132 ) 3,750
Change in defined benefit pension plan obligation   136     (158 )   (72 )   (158 )
Comprehensive income (loss) 8,957 (18,298 ) 53,606 (175,817 )
Less: Comprehensive income attributable to noncontrolling interest   -     (1,197 )   (1,135 )   (2,021 )
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO FLAGSTONE $ 8,957   $ (19,495 ) $ 52,471   $ (177,838 )
 
Weighted average common shares outstanding—Basic   71,352,487     70,380,852     71,015,712     69,869,195  
Weighted average common shares outstanding—Diluted   71,763,904     70,380,852     71,572,129     69,869,195  
Income (loss) from continuing operations per common share—Basic $ 0.17   $ (0.49 ) $ 0.55   $ (2.62 )
Income from discontinued operations per common share—Basic $ 0.02   $ 0.20   $ 0.19   $ 0.02  
Net income (loss) attributable to Flagstone per common share—Basic $ 0.19   $ (0.29 ) $ 0.74   $ (2.60 )
Income (loss) from continuing operations per common share—Diluted $ 0.17   $ (0.49 ) $ 0.55   $ (2.62 )
Income from discontinued operations per common share—Diluted $ 0.02   $ 0.20   $ 0.19   $ 0.02  
Net income (loss) attributable to Flagstone per common share—Diluted $ 0.19   $ (0.29 ) $ 0.74   $ (2.60 )
Distributions declared per common share $ 0.04   $ 0.04   $ 0.08   $ 0.08  
 
 

Cautionary Statement Regarding Forward-Looking Statements

This report may contain, and the Company may from time to time make, written or oral “forward-looking statements” within the meaning of the U.S. Federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the Company’s control, that could cause actual results to differ materially from such statements. In particular, statements using words such as “may”, “should”, “estimate”, “expect”, “anticipate”, “intend”, “believe”, “predict”, “potential”, or words of similar import generally involve forward-looking statements.

5 of 10

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs