New prescriptions are proposed for the ‘reference’ fields in the context of the ‘second-order’ nonlinear homogenization method [P. Ponte Castañeda, Second-order homogenization estimates for nonlinear composites incorporating field fluctuations: I—Theory, J. Mech. Phys. Solids 50 (2002) 737–757], and are used to generate estimates for the effective behavior and first moments of the local fields in nonlinear composites. The new prescriptions yield simple, analytical expressions not only for the effective potentials, but also for the macroscopic stress-strain relation, as well as for the phase averages of the strain and stress fields. For illustrative purposes, ‘second-order’ estimates of the Hashin–Shtrikman type are provided for two-phase, transversely-isotropic composites with power-law phases, and are compared with exact results available for power-law, multiple-rank, sequential laminates. The agreement is found to be quite good for all ranges of nonlinearities and inclusion concentrations considered.