EXHIBIT 12

PRIMUS GUARANTY, LTD
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DISTRIBUTIONS OF SUBSIDIARY
(In thousands, except ratios)

	Years Ended December 31,
	2010			2009			2008			2007			2006
Earnings (loss):
Income (loss) from continuing operations before taxes (a)	$	246,872		$	1,467,303		$	(1,699,903	)	$	(558,774	)	$	101,874
Add:
Fixed charges		10,193			12,533			23,674			28,297			16,532
Subtract:
Distributions on preferred securities of subsidiary		(3,162	)		(3,417	)		(6,642	)		(7,568	)		(5,683	)
Adjusted earnings (loss)	$	253,903		$	1,476,419		$	(1,682,871	)	$	(538,045	)	$	112,723
Fixed charges:
Interest expense		7,031			9,116			17,032			20,729			10,849
Distributions on preferred securities of subsidiary		3,162			3,417			6,642			7,568			5,683
Total fixed charges and preferred distributions	$	10,193		$	12,533		$	23,674		$	28,297		$	16,532
Ratio of earnings to combined fixed charges and distributions on preferred securities of subsidiary		24.91			117.80			(b	)		(b	)		6.82

(a)	Income (loss) from continuing operations before taxes does not include income (loss) from discontinued operations, distributions on preferred securities of subsidiary or net loss attributable to non-parent interests in CLOs.
(b)	Due to the losses for the years ended December 31, 2008 and 2007, respectively, the ratio coverage was less than 1:1. Additional earnings of approximately $1.7 billion and $566.3 million for the years ended December 31, 2008 and 2007, respectively, would have been needed to achieve the coverage ratio of 1:1.