RAM Holdings Ltd. suffered a 25 percent fall in profits following a favourable year in 2006.

They reported a second quarter net income of $9.1 million or 33 cents per diluted share compared to $12.2m and 45 cents last year.

Operating earnings were down at 33 cents from 47 cents in 2006, representing a 29.8 percent change, while the effect of refundings reached six cents from seven cents in 2006, a difference of 14.3 percent, and core earnings had decreased to 27 cents from 40 cents last year, a more significant swing of 32.5 percent.

Chief executive officer Vernon Endo declared himself satisfied with the results, despite the big loss in profits.

"We are pleased to be reporting another solid quarter of financial results that are largely consistent with our expectations," he said.

"RAM's satisfactory operating performance is somewhat obscured by comparison to our 2006 results, which benefited significantly from favourable loss experience.

"Despite this, our operating earnings for the first six months were 16 percent above last year's level and our core earnings were 14 percent better than in the first half of 2006.

"Our second quarter dividend on the preferences shares that we issued in late 2006 is an ongoing financing expense, but we note that the dividends are expected to be paid in the second and fourth quarter and, therefore, our sequential quarterly results will reflect this unevenness."

He pointed to a strong growth in written premiums compared to 2006, largely down to the two new reinsurance treaties this year.

"Although general market conditions affecting the production of primary financial guaranty insurance do not appear to us to have changed in any notable way, our position as a highly rated provider of reinsurance to the seven triple A primaries continues to serve us well this year and we believe that we've achieved inroads in gaining share of business ceded by the primaries.

"We anticipate continued second half growth relative to prior periods, but we believe that, barring improvements in the primary financial guaranty market environment, net premiums written and adjusted premiums written are likely to be below the levels achieved during the first six months."