operations, Business Insurance said this week.

RAM Reinsurance Company Ltd., a subsidiary of RAM Holdings Ltd., would join New York-based Enhance Reinsurance Co., a unit of Enhance Financial Services Group Inc., and New York-based Capital Reinsurance Co., a Capital Re Corp.

unit.

The new reinsurer, expected to be operational by the end of March, will focus principally on facultative reinsurance for structured financial transactions with some municipal bond reinsurance as well.

Robert Meyer, formerly president of financial guarantee insurer Bond Investors Guaranty Insurance Co., acquired by MBIA Inc.

Mr. Meyer was reported in the final stages of raising about $85 million in capital through New York investment banker Smith Barney Inc.

PMI Group, which operates San Francisco-based PMI Mortgage Insurance Co., is expected to invest $20 million to $25 million in RAM.

Financial guarantee insurance companies insure municipal bonds and asset-backed securities.