Two major guarantee insurers reported improved second-quarter results as they continued to work their way out of losses suffered from the economic meltdown.

New York guarantee insurer Ambac Financial Group Inc. trimmed its second-quarter loss, while Armonk, N.Y.-based MBIA Inc. continued to improve its earnings outlook.

On Monday, Ambac reported a second-quarter net loss of $57.6 million, or net loss of 20 cents a share, compared to net loss of $2.4 billion, or net loss of $8.24 a share, for the same period a year ago. Total revenues grew to $381 million compared to revenue loss of $477 million during the second quarter last year.

For the first six months of 2010, net loss stood at $748 million, or net loss of $2.59 a share, compared to $2.76 billion, or net loss of $9.60 a share in 2009. Total revenues stood at a loss of $118 million compared to $650 million for the previous year.

The results were affected by commutation settlements on credit default obligations of asset-backed securities and claim payments on residential mortgage-backed securities and investment losses related to securities.

MBIA reported 2010 second-quarter net income of $1.3 billion, or $6.32 a share, up from the previous year's $898 million, or $4.30 a share. Revenues grew from $992 million to $2.1 billion.

For the first six months of the year, net income dropped from $1.4 billion, or $7.64 a share, to a net loss of $185 million, or net loss of 90 cents a share. Revenues fell from $2.9 billion to $221 million.

"In the second quarter, we saw both our paid losses and new delinquencies on insured RMBS exposures continue to decline," said Chuck Chaplin, president and chief financial officer for MBIA, in a statement. "In addition, more market participants are recognizing that many of the loans in these securitizations should never have been in them in the first place, and that the seller/servicers must repurchase them."

He said the company has reduced its exposure to certain debt vehicles.

"The net incurred loss on insured exposures demonstrates that credit stress continues to be a reality, but the volatility of losses appears to be declining," he noted.