NEW YORK (Bloomberg) ? MBIA Inc., the world?s largest bond insurer, said policy sales are trailing the company?s forecast because it has refused to match some competitors? rates.

?We have seen very significant competitive activity that, frankly, we had not anticipated,? MBIA president Gary Dunton said. ?It was activity that we have chosen not to meet.?

MBIA turned down business because prices weren?t high enough to be profitable and offset the risk of potential claims.

MBIA competes against Ambac Financial Group Inc., Dexia SA?s Financial Security Assurance and Financial Guaranty Insurance Co.. Bermuda-based XL Ltd. and Ace Ltd. also sell bond insurance.

MBIA is also forming a Bermuda-based bond reinsurer, Channel Re, in partnership with Bermuda-based RenaissanceRe and Partner Re.