The Listing Committee of the Bermuda Stock Exchange (BSX) on Friday announced the approval of the listing of Montana Re's Ltd.'s Principal At-Risk Variable Note Program & Series 2009-1, Classes A & B Notes.

Montana Re is a special purpose Class B reinsurer based in the Cayman Islands, which is providing extra capacity for Bermuda reinsurer Flagstone Re.

Flagstone Réassurance Suisse SA has bought three years of fully collateralised retrocessional coverage from Montana Re.

Capital G BSX Services Ltd. sponsored the listing of both the program and the initial two classes of Series 2009-1 Notes.

James McKirdy, chief compliance officer of the BSX welcomed the Montana Re listing and said: "This is yet another programme and notes that have taken advantage of the Exchange's Listing Regulations for Insurance Related Securities."

Montana Re was formed as a programme structure enabling further issuance of additional series of notes in the future. It offers Flagstone protection on its reinsurance portfolio through two separate tranches, using a PCS index trigger with state and peril-specific personal and commercial payout factors.

Montana Re has issued $100 million of Series 2009 - 1, Class A principal-at-risk variable rate notes and $75 million of Series 2009-1, Class B principal-at-risk variable rate notes, both due on December 7, 2012 to collateralise its obligations under the retrocession agreements.