EXHIBIT12

PRIMUS GUARANTY, LTDRATIO OF EARNINGS TO COMBINED FIXEDCHARGES AND PREFERRED DISTRIBUTIONS OF SUBSIDIARY(In thousands,exceptratios)

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|-----------------------------------------------------------------------------------------------------|--|--|------------------------------------|---|--------|-----------------------|--|--|------|---|--------|---------|--|--|------|---|--------|---------|--|--|--|---|---------|---------|--|--|--|---|---------|---------|--|--|--|---|---------|---------|
|                                                                                                |  |  | NineMonthsEnded September  30,2006 |   |        | Year EndedDecember31, |
|                                                                                                |  |  | 2005                               |   |        | 2004                  |  |  | 2003 |   |        | 2002    |  |  | 2001 |
| Earnings(loss):                                                                                     |  |  |                                    |   |   |                  |  |  |      |   |   |    |  |  |      |   |   |    |  |  |  |   |    |    |  |  |  |   |    |    |  |  |  |   |    |    |
| Income(loss) from continuing operations beforetaxes(b)                                              |  |  |                                    | $ | 73,742 |                  |  |  |      | $ | 7,994  |    |  |  |      | $ | 25,869 |    |  |  |  | $ | 80,153  |    |  |  |  | $ | (2,815  | )  |  |  |  | $ | (2,787  | )  |
| Add:                                                                                                |  |  |                                    |   |   |                  |  |  |      |   |   |    |  |  |      |   |   |    |  |  |  |   |    |    |  |  |  |   |    |    |  |  |  |   |    |    |
| Fixedcharges                                                                                        |  |  |                                    |   | 12,267 |                  |  |  |      |   | 6,589  |    |  |  |      |   | 3,033  |    |  |  |  |   | 1,854   |    |  |  |  |   | — |    |  |  |  |   | — |    |
| Subtract:                                                                                           |  |  |                                    |   |   |                  |  |  |      |   |   |    |  |  |      |   |   |    |  |  |  |   |    |    |  |  |  |   |    |    |  |  |  |   |    |    |
| Distributionson preferred securities ofsubsidiary                                                   |  |  |                                    |   | (4,206 | )                |  |  |      |   | (3,865 | )  |  |  |      |   | (2,138 | )  |  |  |  |   | (1,854  | )  |  |  |  |   | — |    |  |  |  |   | — |    |
| Adjustedearnings(loss)                                                                              |  |  |                                    | $ | 81,803 |                  |  |  |      | $ | 10,718 |    |  |  |      | $ | 26,764 |    |  |  |  | $ | 80,153  |    |  |  |  | $ | (2,815  | )  |  |  |  | $ | (2,787  | )  |
| Fixedcharges:                                                                                       |  |  |                                    |   |   |                  |  |  |      |   |   |    |  |  |      |   |   |    |  |  |  |   |    |    |  |  |  |   |    |    |  |  |  |   |    |    |
| Interestexpense                                                                                     |  |  |                                    |   | 7,933  |                  |  |  |      |   | 2,660  |    |  |  |      |   | 881    |    |  |  |  |   | — |    |  |  |  |   | — |    |  |  |  |   | — |    |
| Amortizationof capitalized debt issuancecosts                                                       |  |  |                                    |   | 128    |                  |  |  |      |   | 64     |    |  |  |      |   | 14     |    |  |  |  |   | — |    |  |  |  |   | — |    |  |  |  |   | — |    |
| Distributionson preferred securities ofsubsidiary                                                   |  |  |                                    |   | 4,206  |                  |  |  |      |   | 3,865  |    |  |  |      |   | 2,138  |    |  |  |  |   | 1,854   |    |  |  |  |   | — |    |  |  |  |   | — |    |
| Totalfixed charges and preferreddistributions                                                       |  |  |                                    | $ | 12,267 |                  |  |  |      | $ | 6,589  |    |  |  |      | $ | 3,033  |    |  |  |  | $ | 1,854   |    |  |  |  | $ | — |    |  |  |  | $ | — |    |
| Ratioof earnings to combined fixed charges and distributions on preferredsecurities ofsubsidiary(a) |  |  |                                    |   | 6.67   |                  |  |  |      |   | 1.63   |    |  |  |      |   | 8.82   |    |  |  |  |   | 43.23   |    |  |  |  |   | — |    |  |  |  |   | — |    |
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| (a) | In2002 and 2001, the ratio was not applicable as no fixed charges wereincurred in such years. |

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| (b) | Income (loss) fromcontinuing operations before taxes represents income (loss) beforeincome taxes plus adding back distributions on preferred securities ofsubsidiary |

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