Bermuda-based insurer Flagstone Reinsurance Holdings Ltd. last night announced it had overcome estimated catastrophe losses of more than $50 million to record first-quarter net income of $31.5 million.

In the earnings statement, Flagstone chairman Mark Byrne said the company's previously announced intended move of domicile from Bermuda to Luxembourg "firmly establishes our identity as a truly global company with a strong European footprint".

The company also announced it has re-branded its Lloyd's of London platform, Marlborough Underwriting Agency Ltd., which from yesterday became known as Flagstone Syndicate Management Ltd., "more fully reflecting the completed integration of Marlborough into the Flagstone Group".

Flagstone said its diluted book value per share was $14.25 at the end of March, up 2.1 percent for the quarter.

Net income attributable to common shareholders was $31.5 million, or 38 cents per diluted share, compared to $35.7 million, or 42 cents per share, for the same period in 2009.

Flagstone chief executive officer David Brown said: "From an underwriting perspective, we performed well despite the occurrence of multiple international catastrophes including winter storm Xynthia in France, Australian storms and the earthquake in Chile. The only individually material loss to us was from Chile and we still believe that our initial estimate of $50 million is reasonable.

"However, we also believe that the overall industry loss from this event will develop towards the higher end of the range of industry estimates and out of caution have recorded a net reserve of $55 million against this event."

Mr. Brown said he had been pleased with the renewal book of business written for the first quarter as there had generally been disciplined underwriting, with rates only marginally pressured downward, while the international book saw rates flat to down five percent. Overall, gross premiums written increased 10.7 percent.

Chairman Mark Byrne said: "Given the amount and severity of catastrophes in the quarter, our positive results are a confirmation of our diversification and risk management strategy. Flagstone's investment portfolio remains conservatively positioned and we are comfortable with our high quality portfolio of mainly fixed income securities and cash.

"This position gives us a stable capital base from which to underwrite and provides us with the advantage of being a high-quality credit to our clients and counterparties."

Flagstone's total return on investments during the first quarter was 0.8 percent, compared to minus-0.1 percent in the first three months of last year.

Mr. Byrne also mentioned the reincoproration plans. "We believe the change in incorporation from Bermuda to Luxembourg will increase our strategic and capital flexibility while maintaining our operating model and long-term strategy," he said.