Flagstone Reinsurance Limited, equipped with an 'A-' rating from influential ratings firm A.M. Best and $550 million in initial capital, yesterday became the ninth in a wave of Bermuda reinsurers to throw open its doors in recent weeks.

Flagstone, one of ten major reinsurers to be licensed in the last two months by the Bermuda Monetary Authority, has been sponsored by Haverford (Bermuda) Ltd., an affiliate of Bermuda hedge fund management company West End Capital Ltd.

And the new company is backed by investments from institutional investors led by Lehman Brothers Merchant Banking, as well as by Silver Creek Management.

Flagstone, working from office space in the Church Street building that also houses West End, counts West End principals Mark Byrne and David Brown as chairman and chief executive, respectively.

Also on board is chief underwriting officer Guy Swayne, who joined the company from ACE where he was chief underwriting officer for ACE Tempest Re, to have oversight of the company's international business.

And Gary Prestia is chief underwriting officer for policies sold in the North American market.

Flagstone, and the nine other 'Class four' reinsurance entrants, have all been scrambling to enter the Bermuda market ahead of the pivotal January 1, 2006 renewal period, when the bulk of reinsurance contracts are inked.

Class four companies are required under Bermuda insurance regulations to hold a minimum of $100 million in capital, and generally are set up to sell reinsurance to a broad spectrum of companies.

The ten in the so-called 'Class of 2005' are rushing to get off the ground because of the widespread expectation that insurance and reinsurance rates will rise in 2006, primarily because of the industry being hit by up to $80 billion in losses from hurricanes Katrina, Rita and Wilma.

Flagstone said it now has a complete infrastructure platform to support the business it underwrites, and has hired Tristan Abend, also formerly of ACE Tempest Re, to head modelling of catastrophe risks.

Flagstone's business plan is largely to sell property-catastrophe reinsurance, and a select amount of short-tail casualty policies.

On the employee side, Flagstone has aggressive plan to ramp up staffing to 60 employees around the world ? 35 of whom are to be based in Bermuda.

The company already has a back office established in Halifax, Nova Scotia, in connection with an office already established there earlier this year by West End Capital.

In addition, the company has already hired staff for a research centre it is establishing in India.

Flagstone, which said it has already garnered the support of global brokers and the insurance industry, said it hopes to achieve a second financial strength rating from Standard & Poor's.

A rating of 'A-' or better, especially from A.M. Best of Standard & Poor's, carries considerable clout and is a key consideration for buyers of commercial insurance.