Bermuda-based bond reinsurer Ram Holdings Ltd. posted net income of $31.1 million in the third quarter, compared to a loss of $40.4 million in the same period last year.

The company said in a statement on Friday that earned premiums in the quarter of $7.7 million were 63 percent lower than the $20.7 million earned in the third quarter of 2008.

The decline in premiums reflects the reduction in ongoing earnings due to the commutation of treaties with three of Ram's ceding companies during 2008 and 2009, along with the change in earnings following the adoption of the new accounting for Financial Guarantee Insurance Contracts on January 1, 2009.