Flagstone Re Announces Quarterly Dividend

  Flagstone Re Announces Quarterly Dividend

Business Wire

LUXEMBOURG, Luxembourg -- November 15, 2012

Flagstone Reinsurance Holdings, S.A. (NYSE:FSR) announced today that its Board
of Directors declared a quarterly dividend of $ 0.04 per Common Share. The
dividend is payable on December 28th, 2012 to shareholders of record at the
close of business on December 14th, 2012. Flagstone shareholders will only be
entitled to this quarterly dividend if the transaction with Validus Holdings,
Ltd. is completed after the close of business on December 14th, 2012, the
record date for Flagstone’s quarterly dividend.

About Flagstone Reinsurance Holdings, S.A.

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

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 at the Company’s website
located at www.flagstonere.com.

Cautionary Note Regarding Forward-Looking Statements:

This press release may include forward-looking statements, both with respect
to Flagstone and Validus and their industries, that reflect Flagstone’s
current views with respect to future events and financial performance.
Statements that include the words “expect,” “intend,” “plan,” “believe,”
“project,” “anticipate,” “will,” “may,” “would” and similar statements of a
future or forward-looking nature identify forward-looking statements. All
forward-looking statements address matters that involve risks and
uncertainties, many of which are beyond Flagstone’s and Validus’ control.
Accordingly, there are or will be important risks and uncertainties that could
cause actual results to differ materially from those indicated in such
statements and, therefore, you should not place undue reliance on any such
statements. Flagstone believes that these risks and uncertainties include, but
are not limited to, the following: (1) unpredictability and severity of
catastrophic events; (2) issues relating to claims and coverage that may
emerge from changing industry practices or changing legal, judicial, social or
other environmental conditions; (3) rating agency actions; (4) adequacy of
Flagstone’s and Validus’ risk management and loss limitation methods; (5)
competition in the insurance and reinsurance markets; (6) cyclicality of
demand and pricing in the insurance and reinsurance markets; (7) adequacy of
Flagstone’s and Validus’ respective loss reserves; (8) the estimates and
judgments that Flagstone and Validus use in preparing their respective
financial statements, which are more difficult to make than if Flagstone and
Validus were mature companies; (9) retention of key personnel; (10) potential
conflicts of interest with Flagtone’s and Validus’ respective officers and
directors; (11) continued availability of capital and financing; (12)
potential loss of business from one or more major insurance or reinsurance
brokers; (13) the credit risk that each of Flagstone and Validus assume
through their dealings with their respective insurance and reinsurance
brokers; (14) Flagstone’s and Validus’ respective ability to implement,
successfully and on a timely basis, complex infrastructure, distribution
capabilities, systems, procedures and internal controls, and to develop
accurate actuarial data to support the business and regulatory and reporting
requirements; (15) the risk that Flagstone and Validus could be bound to
policies that contravene their respective underwriting guidelines by managing
general agents and other third parties who support certain of their
businesses; (16) availability of reinsurance and retrocessional coverage; (17)
the effect on Flagstone’s and Validus’ investment portfolios of changing
financial market conditions including inflation, interest rates, liquidity and
other factors; (18) the impact of currency fluctuations on Flagstone’s and
Validus’ operating results; (19) the impact of heightened European sovereign
debt risk on Flagstone’s and Validus’ fixed income portfolios; (20) the
integration of Flagstone or other businesses Validus may acquire or new
business ventures Validus may start; (21) the legal, regulatory and tax
regimes under which Flagstone and Validus operate; and (22) acts of terrorism
or outbreak of war, as well as Flagstone and Validus management’s response to
any of the aforementioned risks and uncertainties.

Additionally, the proposed transaction is subject to risks and uncertainties,
including: (A) that Flagstone and Validus may be unable to complete the
proposed transaction because, among other reasons, conditions to the
completion of the proposed transaction may not be satisfied or waived; (B)
uncertainty as to the timing of completion of the proposed transaction, (C)
uncertainty as to the actual premium (if any) that will be realized by
Flagstone shareholders in connection with the proposed transaction; (D)
uncertainty as to the long-term value of Validus common shares; (E) failure to
realize the anticipated benefits of the proposed transaction, including as a
result of failure or delay in integrating Flagstone’s businesses into Validus;
and (F) the outcome of any legal proceedings to the extent initiated against
Validus, Flagstone and others following the announcement of the proposed
transaction, as well as Validus and Flagstone management’s response to any of
the aforementioned risks and uncertainties.

The foregoing review of important risks and uncertainties should not be
construed as exhaustive and should be read in conjunction with the other
cautionary statements that are included herein and elsewhere, including the
risk factors included in Flagstone’s most recent reports on Form 10-K and Form
10-Q and the risk factors included in Validus’ most recent reports on Form
10-K and Form 10-Q and other documents of Flagstone and Validus on file with
the Securities and Exchange Commission (“SEC”). In addition to the risks
described above, risks and uncertainties relating to the proposed transaction
are more fully discussed in the proxy statement/prospectus included in
Amendment No. 2 to the registration statement on Form S-4 filed by Validus
with, and declared effective by, the SEC on October 23, 2012. Any
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 or Validus will be realized or, even
if substantially realized, that they will have the expected consequences to,
or effects on, Flagstone or Validus or their respective businesses or
operations. Each forward-looking statement speaks only as of the date of the
particular statement and, except as may be required by applicable law,
Flagstone and Validus undertake no obligation to update publicly or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.

The contents of any websites referenced in this press release are not
incorporated by reference herein.

Additional Information about the Proposed Transaction and Where to Find It:

This press release does not constitute an offer to sell or the solicitation of
an offer to buy any securities or a solicitation of any vote or approval.
Flagstone shareholders are urged to read the proxy statement/prospectus
included in Amendment No. 2 to the registration statement on Form S-4 filed by
Validus with, and declared effective by, the SEC on October 23, 2012 in
connection with the proposed transaction and any supplement or amendment
thereto that may be filed, and any other relevant documents that may be filed
with the SEC because they will contain important information. This press
release is not a substitute for the proxy statement/prospectus or any other
documents which Validus or Flagstone have filed or may file with the SEC and
have sent or may send to Flagstone shareholders in connection with the
proposed transaction.

All such documents, when filed, will be available free of charge at the SEC’s
website (www.sec.gov) or by directing a request to Validus through Jon
Levenson, Executive Vice President, at +1-441-278-9000, or Flagstone through
Brenton Slade, Chief Marketing Officer, at +1-441-278-4303.

Participants in the Solicitation:

Flagstone and Validus and their respective directors and officers may be
deemed to be participants in any solicitation of Flagstone shareholders in
connection with the proposed transaction. Information about Flagstone’s
directors and officers is available in Flagstone’s definitive proxy statement,
dated March 28, 2012, for its 2012 annual general meeting of shareholders.
Information about Validus’ directors and officers is available in Validus’
definitive proxy statement, dated March 21, 2012, for its 2012 annual general
meeting of shareholders. Other information regarding the participants in the
proxy solicitation and a description of their direct and indirect interests,
by security holdings or otherwise, are contained in the proxy
statement/prospectus included in Amendment No. 2 to the registration statement
on Form S-4 and other relevant materials filed with, and declared effective
by, the SEC on October 23, 2012. You can obtain such documents free of charge
at the SEC’s website (www.sec.gov) or by using the contact information above.

Contact:

Flagstone Reinsurance Holdings, S.A.
Brenton Slade, +352 2 735 1515