WASHINGTON (Dow Jones/AP) ? Stock of reinsurance company Ram Holdings Ltd. rose yesterday, in its initial public offering on the Nasdaq Stock Market.

In afternoon trading, the Bermuda-based company?s shares rose three percent to $13.35.

A total of 9.41 million shares were sold in the offering at a price of $13 a share, below the original expected range of $14 to $16 a share.

Ram Holdings specialises in financial guaranty reinsurance, which is issued on securities such as municipal bonds and asset securitisations. Financial guaranty insurance protects against non-payment of principle and interest on financial instruments.

Although Ram?s offering described an upbeat competitive environment marked by the exit of many of its multi-line insurance company rivals, the IPO contained a very high proportion of shares being sold by private owners, a structure that new investors often balk at.

Of the total shares in the offering, 86 percent were sold by the company?s private owners, including Transatlantic Reinsurance Company, MBIA Insurance Corp., private-equity firm CIVC Partners and underwriter Bank of America. None of the proceeds from these shares will go into Ram?s coffers.

RAM warned its business could be affected by Hurricane Katrina and airline-industry bankruptcies. Both issues could affect the ability of bond issuers to meet their obligations.

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