RAM Holdings Ltd. Subsidiary Signs Quota Share Treaty with Assured Guaranty Corp.HAMILTON, Bermuda -- RAM Holdings Ltd. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :RAMR) announced today that its operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , RAM Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Company Ltd. (RAM Re), has entered into a quota share For This article is about quota shares (shares of the quota). For other usages of quota, see, see . A quota share is a specified number or percentage of the allotment as a whole (quota), that is prescribed to each individual entity (see Non-tariff barriers to trade). reinsurance treaty Reinsurance Treaty (June 18, 1887) Secret agreement between Germany and Russia. Arranged by Otto von Bismarck after the collapse of the Three Emperors' League, it provided that each party would remain neutral if either became involved in a war with a third nation, and that with Assured Guaranty Corp. Assured Guaranty Corp. (Assured) is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Assured Guaranty Ltd. (NYSE NYSE See: New York Stock Exchange :AGO). The Assured treaty is for an initial term of one year, effective January 1, 2007, subject to renewal, and requires Assured to cede, and RAM Re to assume, a proportionate share of financial guaranty policies written by Assured, subject to limitations and exclusions. "We are pleased to have this opportunity to strengthen our relationship with our customer, Assured," said Vernon M. Endo, President and Chief Executive Officer of RAM Holdings. "As a result of the new treaty with Assured, we now have quota share treaties with six of the seven triple-A rated primaries, and have taken another step forward in executing our strategy to increase our market presence." Forward-Looking Statements This release contains statements that may be considered "forward looking statements" regarding our quota share treaty with Assured. All forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of uncertainties and other factors, many of which are outside our control, that could cause actual results to differ materially from such statements. Our quota share treaty is subject to early termination or re-pricing at Assured's option under certain circumstances, and we cannot assure you that the quota share treaty will continue for one year or will be renewed. In addition, we cannot assure you that the quota share treaty with Assured will result in a growth in the overall volume of business written by us. The amount of business ceded under the quota share treaty depends upon the volume of business written by Assured that meets the criteria for inclusion in the treaty, which in turn depends upon factors beyond our control such as the market for financial guaranty insurance and general economic conditions. Please see the "Risk Factors" section of our Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , filed with the Securities and Exchange Commission on March 9, 2007, for a more complete discussion of the risks to our business and strategy related to our treaty terms and customer relationships. RAM Holdings undertakes no obligation to revise or update any forward-looking statement to reflect changes in conditions, events, or expectations, except as required by law. About RAM RAM Holdings Ltd. is a Bermuda-based holding company. Its operating subsidiary RAM Reinsurance Company Ltd. provides financial guaranty reinsurance for U.S. and international public finance and structured finance transactions. More information can be found at www.ramre.com. |
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