EXHIBIT 12

PRIMUS GUARANTY, LTD

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND

PREFERRED DISTRIBUTIONS OF SUBSIDIARY

(In thousands, except ratios)

	Year Ended December 31,
	2006			2005			2004			2003			2002
Earnings (loss):
Net earnings (loss)	$	94,891		$	4,083		$	23,685		$	78,471		$	(3,069	)
Provision (benefit) for taxes		42			46			46			(172	)		254
Distributions on preferred securities of subsidiary		5,683			3,865			2,138			1,854			—
Income (loss) from continuing operations before taxes (b)		100,616			7,994			25,869			80,153			(2,815	)
Add:
Fixed charges		16,698			6,589			3,033			1,854			—
Subtract:
Distributions on preferred securities of subsidiary		(5,683	)		(3,865	)		(2,138	)		(1,854	)		—
Adjusted earnings (loss)	$	111,631		$	10,718		$	26,764		$	80,153		$	(2,815	)
Fixed charges:
Interest expense		10,849			2,660			881			—			—
Amortization of capitalized debt issuance costs		166			64			14			—			—
Distributions on preferred securities of subsidiary		5,683			3,865			2,138			1,854			—
Total fixed charges and preferred distributions	$	16,698		$	6,589		$	3,033		$	1,854		$	—
Ratio of earnings to combined fixed charges and distributions on preferred securities of subsidiary (a)		6.69			1.63			8.82			43.23			0.00

(a) In 2002, the ratio was not applicable as no fixed charges were incurred in such years.

(b) Income (loss) from continuing operations before taxes represents income (loss) before income taxes plus adding back distributions on preferred securities of subsidiary