RAM Holdings Ltd. (NASDAQ:RAMR) (RAM) today announced that its operating
subsidiary, RAM Reinsurance Company Ltd. ("RAM Re"), has entered into a
Commutation Agreement, dated April 7, 2009, to commute its entire $7.4
billion portfolio of business assumed from Ambac Assurance Corporation
and affiliate (“Ambac”) effective upon receipt by Ambac of a commutation
payment of $97 million and claims payments of $1.3 million. The $7.4
billion portfolio consists of $4.95 billion of public finance par
outstanding and $2.45 billion of structured finance par outstanding,
including $507.3 million of U.S. RMBS transactions. This commutation
will be effective in, and reflected in our results for, the second
quarter of 2009.
RAM will update its insured portfolio disclosure on its website at www.ramre.bm,
under Investor Information/Exposure Info and Updates, to show the effect
of the Ambac commutation on RAM’s insured portfolio on a pro forma basis
as of December 31, 2008.
Forward-Looking Statements
This release contains statements that may be considered "forward-looking
statements." These statements are based on current expectations and the
current views of the economic and operating environment and are not
guarantees of future performance. A number of risks and uncertainties,
including economic competitive conditions, could cause actual results to
differ materially from those projected in forward-looking statements.
Our actual results could differ materially from those expressed or
implied in the forward-looking statements. Among the factors that could
cause actual results to differ materially are: (i) our ability to
execute our business strategy including new business lines; (ii) changes
in general economic conditions, including inflation, foreign currency
exchange rates, interest rates and other factors; (iii) decreased demand
for our reinsurance products; (iv) the loss of significant customers
with whom we have a concentration of our reinsurance in force; (v)
legislative and regulatory developments; (vi) changes in regulation or
tax laws applicable to us or our customers; (vii) a downgrade in
financial strength ratings of RAM Re by Standard & Poor's; (viii) more
severe losses or more frequent losses associated with our products; (ix)
losses on credit derivatives; (x) changes in our accounting policies and
procedures that impact the Company's reported financial results; and
(xi) other risks and uncertainties that have not been identified at this
time. The Company undertakes no obligation to revise or update any
forward-looking statement to reflect changes in conditions, events, or
expectations, except as required by law.
RAM Holdings Ltd., Hamilton
Victoria Guest, 441-298-2116
vguest@ramre.bm
or
RAM
Holdings Ltd., Hamilton
Ted Gilpin, 441-298-2107
tgilpin@ramre.bm
