Flagstone in October said it is undertaking a number of strategic initiatives to realign its strategy and core capabilities.

Going forward, the company notes, it intends to concentrate primarily on its property, property catastrophe and highest margin short-tail specialty lines of reinsurance businesses, while adjusting its geographic diversification in order to decrease the threat of frequency risk.

Flagstone reports a third-quarter combined ratio of 136.5 percent compared to 100.1 percent in 2010.

Zug, Switzerland-based Allied World reports a third-quarter net loss of $11.0 million compared to net income of $254.5 million for the same time last year.

During the quarter, the company was impacted by $33.5 million of net losses from Hurricane Irene and additional losses from catastrophes occurring in the first half of 2011.

Operating income decreased to $86.2 million from $143.6 million last year, and the company’s combined ratio climbed to 83.9 from 70.3 in the 2010 third quarter.

Allied World President and Chief Executive Officer Scott Carmilani says, “When including mark-to-market losses on investments, we are reporting a net loss for the quarter driven by market losses taken against our trading-investment portfolio.”

He says investment returns have “continued to outperform many of our peers and our benchmarks over the last several years” despite the losses.

Hamilton, Bermuda-based Argo Group International Holdings, Ltd., an international underwriter of specialty insurance and reinsurance products, posts a 2011 third-quarter net loss of $12.1 million, compared to net income of $23 million a year ago.

The company says pre-tax catastrophe losses net of estimated reinstatement premiums were $26.7 million in the quarter and aggregate reinsurance cover losses were approximately $10 million. Catastrophe losses net of estimated reinstatement premiums were $12.8 million for the third quarter of 2010, the company says.

The company’s combined ratio for the quarter was 114.1, compared to 101.3 a year ago.