According to The Wall Street Journal, MBIA’s (MBI) third-quarter earnings jumped as the bond insurer benefited from derivative-related gains that offset declines in net premiums written, as well as some large expenses and write-downs. The paper further explained:

MBIA — one of the world's largest bond insurers — earlier this year reached a series settlements related to flawed mortgage securities issued before the U.S. housing crisis. However, the once-stable municipal-bond market has been posing new financial headaches for the bond insurers such as MBIA, as more municipalities struggle with fiscal problems and investors seek out the bond guarantees for safety.

MBIA reported a profit $132 million, or 67 cents a share, up from $7 million, or four cents a share, a year earlier. Analysts polled by Thomson Reuters recently expected a loss of three cents a share.