Nova Scotia

Layoffs coming at Flagstone Management in Halifax

Flagstone Management Services Ltd., a Bermuda-based financial services firm that set up in Halifax seven years ago, has notified many employees they will lose their jobs at the end of the month.

Flagstone Management Services Ltd., a Bermuda-based financial services firm that set up in Halifax seven years ago, has notified many employees they will lose their jobs at the end of the month.

Flagstone Management Services Ltd. is the Halifax branch of Flagstone Reinsurance Holdings Ltd., which was recently taken over by Validus Holdings Ltd. for $623.2 million.

Neither company disclosed exactly how many employees in Halifax have received notices.

A spokesman with Validus Holdings Ltd. said in an emailed statement to CBC News that employees found out about the layoffs on Tuesday.

"Flagstone announced to a number of their employees that their positions will be eliminated upon closing of the transaction with Validus due to overlapping job responsibilities," said the statement.

The job cuts will occur after a meeting of Validus Holdings Ltd. shareholders at the end of the month.

Flagstone Reinsurance Holdings Ltd. was wooed to Nova Scotia in 2005, in part because of financial incentives from the province.

The company — which covers large claims too big for other insurance companies to pay — has since hired nearly 100 workers and has received $1.68 million from Nova Scotia taxpayers through payroll rebates and recruitment incentives.

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