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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 HqHa9AeeLcfRH3D/QR5ZGcHiilSJVtQi2yVOGacgAIMeMEdna/uQn8VzD9xSnX+d
 Fb7P154GW8uA51XTLv4svQ==

<SEC-DOCUMENT>0000910662-07-000227.txt : 20070514
<SEC-HEADER>0000910662-07-000227.hdr.sgml : 20070514
<ACCEPTANCE-DATETIME>20070514182306
ACCESSION NUMBER:		0000910662-07-000227
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070510
FILED AS OF DATE:		20070514
DATE AS OF CHANGE:		20070514

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Flagstone Reinsurance Holdings Ltd
		CENTRAL INDEX KEY:			0001347815
		STANDARD INDUSTRIAL CLASSIFICATION:	FIRE, MARINE & CASUALTY INSURANCE [6331]
		IRS NUMBER:				000000000

	BUSINESS ADDRESS:	
		STREET 1:		CRAWFORD HOUSE 23 CHURCH ST
		CITY:			HAMILTON BERMUDA HM 11
		STATE:			D0
		ZIP:			00000

	MAIL ADDRESS:	
		STREET 1:		CRAWFORD HOUSE 23 CHURCH ST
		CITY:			HAMILTON BERMUDA HM 11
		STATE:			D0
		ZIP:			00000

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			JAMES E DANIEL
		CENTRAL INDEX KEY:			0001241077

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33364
		FILM NUMBER:		07848462

	MAIL ADDRESS:	
		STREET 1:		4909 S E INTERNATIONAL WAY
		CITY:			PORTLAND
		STATE:			OR
		ZIP:			97222

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			LEHMAN BROTHERS HOLDINGS INC
		CENTRAL INDEX KEY:			0000806085
		STANDARD INDUSTRIAL CLASSIFICATION:	SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1130

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33364
		FILM NUMBER:		07848463

	BUSINESS ADDRESS:	
		STREET 1:		LEHMAN BROTHERS
		STREET 2:		745 SEVENTH AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019
		BUSINESS PHONE:		2125267000

	MAIL ADDRESS:	
		STREET 1:		LEHMAN BROTHERS
		STREET 2:		745 SEVENTH AVENUE
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

	FORMER NAME:	
		FORMER CONFORMED NAME:	SHEARSON LEHMAN HUTTON HOLDINGS INC
		DATE OF NAME CHANGE:	19901017
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>lehman_jamesform4ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-05-10</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001347815</issuerCik>
        <issuerName>Flagstone Reinsurance Holdings Ltd</issuerName>
        <issuerTradingSymbol>FSR</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000806085</rptOwnerCik>
            <rptOwnerName>LEHMAN BROTHERS HOLDINGS INC</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>745 SEVENTH AVENUE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>NEW YORK</rptOwnerCity>
            <rptOwnerState>NY</rptOwnerState>
            <rptOwnerZipCode>10019</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001241077</rptOwnerCik>
            <rptOwnerName>JAMES E DANIEL</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>FLAGSTONE REINSURANCE HOLDINGS LTD.</rptOwnerStreet1>
            <rptOwnerStreet2>CRAWFORD HOUSE, 23 CHURCH STREET</rptOwnerStreet2>
            <rptOwnerCity>HAMILTON</rptOwnerCity>
            <rptOwnerState>D0</rptOwnerState>
            <rptOwnerZipCode>HM 11</rptOwnerZipCode>
            <rptOwnerStateDescription>BERMUDA</rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Restricted Share Units</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F1"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-05-10</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>6240</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F1"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Shares</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>6240</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>12073</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnote 3</value>
                    <footnoteId id="F3"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The Restricted Share Units (&quot;RSUs&quot;) vest 100% on the date of the grant.</footnote>
        <footnote id="F2">Each 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 the grant certificate evidencing each
 grant.  In the discretion of the Compensation Committee, upon vesting the value of the RSU grant alternatively may be
 paid in cash, or partly in cash and partly in common shares.</footnote>
        <footnote id="F3">Mr. James is a director of the Issuer and a Managing Director of Lehman Brothers Inc. (&quot;LBI&quot;), a wholly-owned subsidiary of
 Lehman Brothers Holdings Inc. (&quot;LBHI&quot;). Under the terms of Mr. James' employment with LBI, LBI is the beneficial owner of
 the 12,073 RSUs granted to Mr. James as a director of the Issuer. LBHI may be deemed to be the beneficial owner of
 these RSUs. Mr. James disclaims beneficial ownership of the RSUs reported herein.</footnote>
    </footnotes>

    <remarks>JOINT FILER INFORMATION Title of Derivative Securities: Restricted Share Units Issuer &amp; Ticker Symbol: Flagstone Reinsurance
 Holdings Limited [FSR] Designated Filer: Lehman Brothers Holdings Inc. 745 Seventh Avenue New York, New York 10019 Other
 Joint Filer: E. Daniel James  C/O Flagstone Reinsurance Holdings Limited CRAWFORD HOUSE 23 CHURCH ST HAMILTON BERMUDA HM 11
 Date of Event Requiring Statement: May 10, 2007</remarks>

    <ownerSignature>
        <signatureName>/s/Barrett S. DiPaolo</signatureName>
        <signatureDate>2007-05-14</signatureDate>
    </ownerSignature>

    <ownerSignature>
        <signatureName>/s/E. Daniel James</signatureName>
        <signatureDate>2007-05-14</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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