Flagstone Reinsurance Holdings Ltd. plans to repurchase up to 5 million shares in a move to boost shareholder value.

The Bermuda-based reinsurer had about 85.6 million shares outstanding at the end of June. At the stock's closing price on Monday of $12.07, the 5 million shares would cost about $60.4 million.

"Recent volatile markets have created moments when the repurchase of our shares would have been an excellent use of capital," chairman Mark Byrne said in a statement.

In trading on the New York Stock Exchange yesterday, Flagstone shares traded down 58 cents to close at $11.49.