The company, which has been rocked by credit default obligations related to the depressed housing market, said it commuted or restructured its exposure to four impaired multisector CDOs in the quarter. This reduced its exposure to these transactions by approximately $2.7 billion in exchange for payments totaling $558 million.

Net premiums written were $1.5 billion and $261 million for the full year and fourth quarter of 2008, up from $892 million for full-year 2007 and $238 million for fourth-quarter 2007.

The company said MBIA Insurance Corp., as of Dec. 31, 2008, had $2.5 billion in cash and short-term investments. MBIA Inc. had a total of $452 million in cash and investments.

During an investment analyst's conference call, Jay Brown, chief executive officer for the company, said the government is taking the wrong approach to solving the troubled loan crisis with the housing market by placing "a variety of band-aids" on the problems.

He said the only solution, to "stabilize the housing market and at the same time fix the financial system," would be to refinance all housing loans and securitizations, including the good ones, "in order for those loans to be financed at a lower rate."

He said this would allow the country time to absorb the losses "on the small portion of loans that ultimately will default."

Mr. Brown added, "Buying wholesale and reissuing the loans is the only answer that will have a significant effect on housing and mortgage securitizations."