-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 DDuO/x1NsthaUZhAcrzYuqWaunM6UbhluunfZf9hLfkAncG7smY4JycgkX1SHaj+
 1JhvjnXoH+FJDx59FC3iWw==

<SEC-DOCUMENT>0001140361-07-003802.txt : 20070216
<SEC-HEADER>0001140361-07-003802.hdr.sgml : 20070216
<ACCEPTANCE-DATETIME>20070216171044
ACCESSION NUMBER:		0001140361-07-003802
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070214
FILED AS OF DATE:		20070216
DATE AS OF CHANGE:		20070216

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			XL CAPITAL LTD
		CENTRAL INDEX KEY:			0000875159
		STANDARD INDUSTRIAL CLASSIFICATION:	SURETY INSURANCE [6351]
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32307
		FILM NUMBER:		07632252

	BUSINESS ADDRESS:	
		STREET 1:		XL HOUSE
		STREET 2:		ONE BERMUDIANA ROAD
		CITY:			HAMILTON HM11 BERMUD
		STATE:			D2
		BUSINESS PHONE:		4412928515

	MAIL ADDRESS:	
		STREET 1:		CAHILL GORDON & REINDEL(IMMANUEL KOHN)
		STREET 2:		80 PINE STREET
		CITY:			NEW YORKI
		STATE:			NY
		ZIP:			10005

	FORMER NAME:	
		FORMER CONFORMED NAME:	EXEL LTD
		DATE OF NAME CHANGE:	19950720

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PRIMUS GUARANTY LTD
		CENTRAL INDEX KEY:			0001170593
		STANDARD INDUSTRIAL CLASSIFICATION:	FINANCE SERVICES [6199]
		IRS NUMBER:				000000000

	BUSINESS ADDRESS:	
		STREET 1:		C/O PRIMUS ASSET MANAGEMENT INC
		STREET 2:		360 MADISON AVE 23RD FL
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017
		BUSINESS PHONE:		2126972227

	MAIL ADDRESS:	
		STREET 1:		C/O PRIMUS ASSET MANAGEMENT INC
		STREET 2:		360 MADISON AVE 23RD FL
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10017

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			XL Insurance (Bermuda) Ltd
		CENTRAL INDEX KEY:			0001303564
		STATE OF INCORPORATION:			D0
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-32307
		FILM NUMBER:		07632253

	BUSINESS ADDRESS:	
		STREET 1:		XL HOUSE
		STREET 2:		ONE BERMUDIANA ROAD
		CITY:			HAMILTON
		STATE:			D0
		ZIP:			HM 11
		BUSINESS PHONE:		441-294-7296

	MAIL ADDRESS:	
		STREET 1:		XL HOUSE
		STREET 2:		ONE BERMUDIANA ROAD
		CITY:			HAMILTON
		STATE:			D0
		ZIP:			HM 11
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>doc1.xml
<DESCRIPTION>FORM 4
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-02-14</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001170593</issuerCik>
        <issuerName>PRIMUS GUARANTY LTD</issuerName>
        <issuerTradingSymbol>PRS</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000875159</rptOwnerCik>
            <rptOwnerName>XL CAPITAL LTD</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>XL HOUSE</rptOwnerStreet1>
            <rptOwnerStreet2>ONE BERMUDIANA ROAD</rptOwnerStreet2>
            <rptOwnerCity>HAMILTON</rptOwnerCity>
            <rptOwnerState>D0</rptOwnerState>
            <rptOwnerZipCode>HM11</rptOwnerZipCode>
            <rptOwnerStateDescription>BERMUDA</rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001303564</rptOwnerCik>
            <rptOwnerName>XL Insurance (Bermuda) Ltd</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>XL HOUSE 1 BERMUDIANA RD</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>HAMILTON</rptOwnerCity>
            <rptOwnerState>D0</rptOwnerState>
            <rptOwnerZipCode>hm11</rptOwnerZipCode>
            <rptOwnerStateDescription>BERMUDA</rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Shares</value>
            </securityTitle>
            <transactionDate>
                <value>2007-02-14</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>X</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionTimeliness>
                <value></value>
            </transactionTimeliness>
            <transactionAmounts>
                <transactionShares>
                    <value>1414747</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>5.18</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>14901482</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Warrants to Purchase Common Shares</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>5.18</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-02-14</value>
            </transactionDate>
            <deemedExecutionDate></deemedExecutionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>X</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionTimeliness>
                <value></value>
            </transactionTimeliness>
            <transactionAmounts>
                <transactionShares>
                    <value>1414747</value>
                    <footnoteId id="F2"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                    <footnoteId id="F3"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2004-09-29</value>
            </exerciseDate>
            <expirationDate>
                <value>2007-03-14</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Shares</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>1414747</value>
                    <footnoteId id="F2"/>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See footnote</value>
                    <footnoteId id="F1"/>
                </natureOfOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The 14,901,482 common shares, par value $.08 per share, are directly owned by XL Insurance (Bermuda) Ltd, a subsidiary of XL Capital Ltd.</footnote>
        <footnote id="F2">At issuance, the warrants, which were due to expire on March 14, 2007, entitled the reporting persons to purchase 11,317,972 common shares.  Following the 8-to-1 reverse split in connection with the Issuer?s initial public offering, the warrants entitled the reporting persons to purchase 1,414,747 common shares.</footnote>
        <footnote id="F3">Warrants were awarded to XL Insurance (Bermuda) Ltd and other affiliates of the Issuer in connection with the initial public offering of the Issuer's common shares.</footnote>
    </footnotes>

    <remarks></remarks>

    <ownerSignature>
        <signatureName>/s/ Kirstin Gould, Secretary</signatureName>
        <signatureDate>2007-02-16</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----