Bermuda bond reinsurer Ram Holdings Ltd. has agreed to pay almost $100 million to Ambac to terminate its $7.4 billion portfolio of business with the US bond insurer.

Ram said the portfolio included $4.95 billion of public finance par outstanding and $2.45 billion of structured finance par outstanding, including $507.3 million of US residential mortgage-backed securities.

The commutation will be effective on payment of $97 million by Ram to Ambac, plus a claims payment of $1.3 million.

Last week Ram reported a loss of $159.5 million for 2008, as its earnings were hit hard by its exposure to the credit crisis.

Last year, the company paid more than $250 million in total to commute its entire portfolios of business with MBIA and Bermuda-based Syncora Holdings, moves which cut its exposures by some $14 billion.

The company is considering delisting from the Nasdaq Stock Exchange to cut expenses.