Ambac Financial Group, the bond insurer that emerged from bankruptcy in May, reported $206 million of net income in the two months after the company's exit from Chapter 11, and $3.1 billion in income during the prior month. The result compares with an $811 million loss in the second quarter of last year.

Ambac, which emerged from bankruptcy on May 1, applied "Fresh Start Accounting" to incorporate the discharge of debt obligations, issuance of new common stock, and fair value adjustments, according to a press release. Reporting of net premiums earned was not affected by the accounting policy.

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