Bermuda-based reinsurer Flagstone Holdings Ltd. is set to move its place of incorporation to Luxembourg, citing the need to "settle" the company's identity "as a European company".

Flagstone said its board of directors is recommending to the shareholders a plan to change the company's place of incorporation from Bermuda to Luxembourg. Flagstone's shareholders will be asked to vote in favor of the proposal subject to the US Securities and Exchange Commission declaring effective the proxy statement/prospectus that Flagstone expects to file in connection with the redomestication, the company said.

If approved by shareholders, and subject to certain regulatory approvals and the satisfaction of other conditions, Flagstone expects the redomestication to take place over several months following shareholder approval.

Flagstone's chief executive officer, David Brown said the move would increase the company's strategic and capital flexibility, adding that the change would have no impact on the company's substantial operations in Bermuda.

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

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 also become its corporate holding company office.

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