RAM Reinsurance Co. has entered an agreement to pay MBIA Insurance Corp. $156.5 million to commute its exposure to the $10.6 billion portfolio of business it had assumed from MBIA, RAM Holdings Ltd. announced earlier this week

As of Sept. 30, the portfolio consisted of a par of $6.8 billion in structured finance exposure and $3.8 billion in public finance exposure, representing a small portion of MBIA's overall portfolio. The bond insurer had $778 billion in net par outstanding as of Sept. 30, including the $159 billion of Financial Guaranty Insurance Co.'s public finance book it earlier this year agreed to reinsure, according to third-quarter earnings documents.

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