Flagstone goes to Luxembourg

Flagstone Re is to redomicile from its Hamilton, Bermuda, home for Luxembourg, but will keep a substantial presence in Bermuda.

Flagstone's shareholders will be asked to vote on the move, subject to the US Securities and Exchange Commission (SEC) agreeing.

Flagstone expects the move to take place over several months following shareholder approval.

Major financial centre

"After careful consideration of this decision, our board of directors and management team believe that changing Flagstone's place of incorporation to Luxembourg is in the best interests of the company and its shareholders," said Flagstone's chief executive officer, David Brown.

"Luxembourg is a major financial centre known for its stability as well as its financial sophistication, and we believe this move will increase our strategic and capital flexibility while maintaining our operating model and our long-term strategy.

“This change will have no impact on our operations and in particular Flagstone will retain its substantial offices and operations in Bermuda, where we have conducted business since our founding."

European share listing

Flagstone's chairman Mark Byrne said: “We are pleased to have the opportunity to increase our presence in Luxembourg, where our investment management operations have been located for some time.

"Luxembourg has a network of excellent relations with major developed and developing countries around the world. And, in addition to our listing on the New York Stock Exchange, this change in incorporation has the potential to make a listing of our common shares on a European exchange more attractive.

“We are proud of our unique global business and this change, which results in our holding and principal operating companies being in Europe, settles our identity as a European company with a substantial and important branch in the thriving Bermuda market."

Swiss operating centre

Flagstone has operated in Luxembourg for most of its corporate history and is familiar with its regulatory and legal environment. Flagstone's existing office in Luxembourg will become its corporate holding company office.

Flagstone’s reinsurance and insurance operations worldwide will continue to operate without material changes, and its principal operating centre will remain in Switzerland.