Edgar Filing: Flagstone Reinsurance Holdings Ltd

Ownership Submission

FORM 3

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person ^*

Â LEHMAN BROTHERS HOLDINGS INC

2. Date of Event Requiring Statement (Month/Day/Year)
03/29/2007

3. Issuer Name and Ticker or Trading Symbol
Flagstone Reinsurance Holdings Ltd [N/A]

(Last)

(First)

(Middle)

745 SEVENTH AVENUE

4. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

__X__ Director	__X__ 10% Owner
_____ Officer (give title below)	_____ Other (specify below)

5. If Amendment, Date Original Filed(Month/Day/Year)

(Street)

NEW YORK,Â NYÂ 10019

6. Individual or Joint/Group Filing(Check Applicable Line)
___ Form filed by One Reporting Person
_X_ Form filed by More than One Reporting Person

(City)

(State)

(Zip)

Table I - Non-Derivative Securities Beneficially Owned

1.Title of Security (Instr. 4)	2. Amount of Securities Beneficially Owned (Instr. 4)	3. Ownership Form: Direct (D) or Indirect (I) (Instr. 5)	4. Nature of Indirect Beneficial Ownership (Instr. 5)
Common Stock	15,830,000	I	See footnote ⁽¹⁾
Common Stock	5,833	I	See footnote ⁽²⁾

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.			SEC 1473 (7-02)
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Table II - Derivative Securities Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 4)	2. Date Exercisable and Expiration Date (Month/Day/Year)		3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)		4. Conversion or Exercise Price of Derivative Security	5. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 5)	6. Nature of Indirect Beneficial Ownership (Instr. 5)
	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Reporting Owners

Reporting Owner Name / Address	Relationships
Reporting Owner Name / Address	Director	10% Owner	Officer	Other
LEHMAN BROTHERS HOLDINGS INC 745 SEVENTH AVENUE NEW YORK,Â NYÂ 10019	Â X	Â X	Â	Â
JAMES E DANIEL CRAWFORD HOUSE 23 CHURCH ST HAMILTON,Â D0Â 00000	Â X	Â	Â	Â

Signatures

/s/ Barrett S. DiPaolo		03/29/2007
^**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 5(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	By indirect, wholly-owned subsidiaries of the Reporting Person: 5,117,509 shares held by Lehman Brothers Merchant Banking Partners III L.P.; 1,127,932 held by Lehman Brothers Merchant Banking Fund III L.P; 1,359,223 held by Lehman Brothers Merchant Banking Fund (B) III L.P.; 2,147,199 held by LB I Group Inc.; 172,182 held by Lehman Brothers Co-Investment Capital Partners L.P.; 122,082 held by Lehman Brothers Co-Investment Group L.P.; 4,705,737 held by Lehman Brothers Co-Investment Partners L.P.; 430,000 held by Lehman Brothers Fund of Funds XVIII-Co-Investment Holdings, L.P.; 248,137 held by Lehman Brothers Merchant Banking Capital Partners V L.P.; and 400,000 held by Lehman Crossroads Series XVII Master Holding Fund 66, L.P.
(2)	Mr. James is a director of the Issuer and a Managing Director of Lehman Brothers Inc. ("LBI"), a wholly-owned subsidiary of Lehman Brothers Holdings Inc.("LBHI"). Under the terms of Mr. James' employment with LBI, LBI is the beneficial owner of the 5,833 shares of Common Stock granted to Mr. James as a director of the Issuer. LBHI may be deemed to be the beneficial owner of these shares of Common Stock. Mr. James disclaims beneficial ownership of these shares of Common Stock and the other shares of Common Stock reported herein.
Â Remarks: JOINTÂ FILERÂ INFORMATION TitleÂ ofÂ Securities:Â CommonÂ Stock IssuerÂ &Â Â TickerÂ Symbol:Â FlagstoneÂ ReinsuranceÂ HoldingsÂ Limited DesignatedÂ Filer:Â LehmanÂ BrothersÂ HoldingsÂ Inc. 745Â SeventhÂ Avenue NewÂ York,Â NewÂ YorkÂ 10019 OtherÂ JointÂ Filer: DanielÂ James C/OÂ FlagstoneÂ ReinsuranceÂ HoldingsÂ Limited CRAWFORDÂ HOUSEÂ 23Â CHURCHÂ ST HAMILTONÂ BERMUDAÂ HMÂ D0Â 00000 DateÂ ofÂ EventÂ RequiringÂ Statement: MarchÂ 29,Â 2007 SignatureÂ onÂ behalfÂ ofÂ otherÂ jointÂ filer: /s/Â DanielÂ James

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