SEC Form 4

FORM 4		UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934 or Section 30(h) of the Investment Company Act of 1940	OMB APPROVAL OMB Number: 3235-0287 Estimated average burden hours per response: 0.5
	Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

1. Name and Address of Reporting Person* XL CAPITAL LTD (Last) (First) (Middle) XL HOUSE ONE BERMUDIANA ROAD (Street) HAMILTON D0 HM 11 (City) (State) (Zip)	2. Issuer Name and Ticker or Trading Symbol PRIMUS GUARANTY LTD [ PRS ]	5. Relationship of Reporting Person(s) to Issuer (Check all applicable) Director X 10% Owner Officer (give title below) Other (specify below)
	3. Date of Earliest Transaction (Month/Day/Year) 10/05/2004
	4. If Amendment, Date of Original Filed (Month/Day/Year)	6. Individual or Joint/Group Filing (Check Applicable Line) Form filed by One Reporting Person X Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Shares, par value $.08 per share	10/05/2004		C		14,478,763	A	(1)	14,478,763	I	See Footnote(2)(3)
Common Shares, par value $.08 per share	10/05/2004		S		573,335(4)	D	$13.5(5)	13,905,428	I	See Footnote(3)(6)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Series A Conv. Voting Pref. Shares, par value $.01 per share	(3)(7)	10/05/2004		C			3,000,000	09/29/2004	(8)	Common Shares, par value $.08 per share	14,478,763	$25	0	I	See Footnote(2)(3)

1. Name and Address of Reporting Person* XL CAPITAL LTD (Last) (First) (Middle) XL HOUSE ONE BERMUDIANA ROAD (Street) HAMILTON D0 HM 11 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director X 10% Owner Officer (give title below) Other (specify below)

1. Name and Address of Reporting Person* XL Capital Principal Partners I, L.L.C. (Last) (First) (Middle) XL HOUSE ONE BERMUDIANA ROAD (Street) HAMILTON D0 HM 11 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director X 10% Owner Officer (give title below) Other (specify below)

1. Name and Address of Reporting Person* XL Insurance (Bermuda) Ltd (Last) (First) (Middle) XL HOUSE ONE BERMUDIANA ROAD (Street) HAMILTON D0 HM 11 (City) (State) (Zip) Relationship of Reporting Person(s) to Issuer Director X 10% Owner Officer (give title below) Other (specify below)

Explanation of Responses:

1. Reflects conversion of Series A Convertible Voting Preferred Shares, par value $.01 per share.

2. Includes (i) 14,044,401 Common Shares, par value $.08 per share, directly owned by XL Insurance (Bermuda ) Ltd, a subsidiary of XL Capital Ltd and (ii) 434,362 Common Shares, par value $.08 per share, directly owned by XL Capital Principal Partners I, L.L.C., a subsidiary of XL Capital Ltd.

3. Reflects a one for eight reverse share split, effected immediately prior to the initial public offering of Primus Guaranty, Ltd.

4. Includes (i) 557,666 Common Shares, par value $.08 per share, sold directly by XL Insurance (Bermuda) Ltd, a subsidiary of XL Capital Ltd and (ii) 15,669 Common Shares, par value $.08 per share, sold directly by XL Capital Principal Partners I, L.L.C., a subsidiary of XL Capital Ltd.

5. The reported price of $13.50 per share does not reflect an underwriting discount of $.945 per share.

6. Includes (i) 13,486,735 Common Shares, par value $.08 per share, directly owned by XL Insurance (Bermuda) Ltd, a subsidiary of XL Capital Ltd and (ii) 418,693 Common Shares, par value $.08 per share, direclty owned by XL Capital Principal Partners I, L.L.C., a subsidiary of XL Capital Ltd.

7. Each Series A Convertible Voting Preferred Share, par value $.01 per share, was converted into Common Shares, par value $.08 per share, by multiplying such Series A Convertible Voting Preferred Share by $25.00 and then dividing such number by $5.18.

8. Not applicable.

Remarks:

Exhibit List Exhibit 99--Joint Filer Information

	/s/ XL Capital Ltd	10/07/2004
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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