CHICAGO -(Dow Jones)- Despite reporting a 2007 net loss of $31.38 a share as bond insurance business deteriorated along with the U.S. housing market, Ambac Financial Group Inc. (ABK) rewarded some of its executives with bonuses and stock options and grants of more than $2 million.

But the bonuses so far have not gone to those most closely involved with its troubled credit derivatives business.

The bonuses, reported Friday, went to executives in charge of Ambac's structured finance business, the company's credit risk management chief and the chief financial officer.

The release does not note whether any other executives received bonuses. No bonus was listed for Michael A. Callen, who took over as chairman and interim chief executive in January, succeeding longtime Chief Executive Robert J. Genader, who retired. The chief of its credit derivatives business was not listed for a bonus.

John W. Uhlein III, the executive vice president for structured finance excluding collateralized debt obligations, or CDOs, received a $750,000 bonus, stock options worth $712,320, and a restricted stock grant of $640,000.

Douglas C. Renfield-Miller, the executive vice president in charge of Ambac's international business except for emerging markets who is also the chairman of Ambac U.K., received a bonus of $800,000, stock options worth $712,320 and $640,000 in restricted stock.

William T. McKinnon, who is in charge of credit risk management, received an $800,000 bonus, $361,725 in stock options and $425,000 in restricted stock.

Chief Financial Officer Sean T. Leonard received a $700,000 bonus, $511,900 in stock options and $460,000 in restricted stock.

Shares of Ambac surged Friday after a Wall Street Journal report that a consortium of eight U.S. and European banks were in talks to put up capital to help the insurer regain its triple-A rating. Maintaining triple-A ratings is crucial to these companies' ability to write new business.

Fitch Ratings downgraded Ambac in recent weeks, putting the insurer at double-A, and downgrades could follow from Standard & Poor's and Moody's Investors Service.

Downgrades, meantime, could force large financial institutions to take big write-downs on securities that are guaranteed by the bond insurers.

Ambac shares closed Friday at $13.20, up $1.56, or 13%.

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By Lavonne Kuykendall, Dow Jones Newswires

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