X0304 4 2012-02-27 0 0001347815 Flagstone Reinsurance Holdings, S.A. FSR 0001411821 WATSON PETER F C/O FLAGSTONE REINSURANCE HOLDINGS SA 65, AVENUE DE LA GARE LUXEMBOURG N4 L-1611 LUXEMBOURG 1 0 0 0 Restricted Share Units 0 2012-02-27 4 A 0 4885 0 A 2012-02-27 Common Shares 4885 19151 D Each Restricted Share Unit ("RSU") represents the right to receive, without payment to the Company, one newly issued, fully paid and non-assessable common share of the Company, subject to the terms and conditions of the RSU Plan and grant certificate evidencing each grant. In the discretion of the Compensation Committee, upon exercise, the RSU grant may alternatively be paid in cash, or partly in cash and partly in common shares. The RSUs vest 100% on the date of the grant. The RSUs have no expiry date. /s/ William F. Fawcett by power of attorney 2012-02-29