Bond insurer MBIA Inc. will restate its earnings for the past seven years, as well as set aside $75 million in anticipation of settling with regulators over an accounting probe into defaulted bonds.

MBIA said that the $75 million figure comes from ongoing discussions with investigators examining its accounting for losses from defaulted bonds issued by a unit of the Pittsburgh-based Allegheny Health, Education and Research Foundation. In 1998, MBIA used $170 million of reinsurance contracts to offset losses from the $265 million AHERF deal. The company said in March 2005 that $70 million of those reinsurance contracts did not remove its risk, and it restated seven years of earnings as a result.

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