NEW YORK (Bloomberg) — Flagstone Reinsurance Holdings Ltd., the company formed in response to the 2005 hurricane season, said chief executive officer David Brown's compensation fell 57 percent last year as the firm posted a loss.

Brown's compensation was valued at $1.38 million in 2008, compared with $3.19 million in 2007, the Bermuda-based reinsurer said yesterday in a filing with the US Securities and Exchange Commission. Chairman Mark Byrne's package more than tripled to $4.47 million as he received stock options valued at $3.3 million, after getting no such award in 2007.

Flagstone posted a $187.3 million loss in 2008 compared with a $167.9 million profit the previous year. Flagstone shares slipped 30 percent last year.