Two specific agreements MBIA mentioned were investment in Capital Asset Holdings GP Inc. and its exposure to US Airways 1998-1 Repacking Trust. The company also said the consultant would examine other insurance securities transactions.

Mr. Chaplin cautioned, “Of course, the independent consultant's work is ongoing and we can't predict the outcome and completion of work with certainty.”

In yesterday's agreement MBIA agreed to pay $75 million in penalty and disgorgement of funds to be paid to stockholders. The company neither admitted nor denied any wrongdoing in the settlement.

In addition to hiring a consultant the company agreed to cease negotiating any similar deals and to restate earnings. It restated them in 2005.

The case stems from the bankruptcy of Allegheny Health, Education and Research Foundation (AHERF) in 1998 when the company defaulted on $256 million in bonds MBIA insured.

To cover up an anticipated $170 million loss, MBIA engaged three insurers in reinsurance contracts that authorities said were in fact loans to cover up the losses and prop up the company's stock at that time.

Mr. Chaplin said the company rescheduled its earnings release to today in anticipation of yesterday's settlement announcement.

For the fourth quarter of 2006, the company's net income dropped 1 percent, or $1.7 million, from $183 million, $1.34 a share, to $181 million, or $1.32 a share. Net premiums written rose 22 percent from $249 million to $204 million.

For the year, net income increased 15 percent, or $108 million, going from $711 million to $819 million in 2006. Net premiums written were down 7 percent, however, from $858 million to $798 million.

MBIA said the net income increase for the year was primarily due to accrued interest on the $75 million reserved in the third quarter of 2005 for the settlement.

Since 2005, it has been business as usual at MBIA, said Mr. Chaplin, except for the implementation of its stock buy-back plan. He said with the settlement, the company plans to begin buying back stock, still subject to approval by the board of directors. He said there is $800 million available for that purpose, but he would not disclose how much the company plans to spend.

Earnings have been challenged by low interest rates and tight credit spreads, said Mr. Chaplin, but “we will continue to adhere to our pricing and underwriting discipline and to hold the line on expenses.”

Moody's Investor Service late yesterday affirmed MBIA's “Aaa” insurance financial strength rating on its insurance company. Moody's said the rating remains stable.