EXHIBIT 12

PRIMUS GUARANTY, LTDRATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DISTRIBUTIONS OF SUBSIDIARY

(In thousands, except ratios)

|                                                                                                        |  |  |                               |   |        |                         |  |  |      |   |         |         |  |  |      |   |        |         |  |  |  |   |        |         |  |  |  |   |         |         |  |  |  |   |         |         |
|--------------------------------------------------------------------------------------------------------|--|--|-------------------------------|---|--------|-------------------------|--|--|------|---|---------|---------|--|--|------|---|--------|---------|--|--|--|---|--------|---------|--|--|--|---|---------|---------|--|--|--|---|---------|---------|
|                                                                                                   |  |  | ThreeMonthsEndedMarch 31,2007 |   |        | Year Ended December 31, |
|                                                                                                   |  |  | 2006                          |   |        | 2005                    |  |  | 2004 |   |         | 2003    |  |  | 2002 |
| Earnings (loss):                                                                                       |  |  |                               |   |   |                         |  |  |      |   |    |         |  |  |      |   |   |         |  |  |  |   |   |         |  |  |  |   |    |         |  |  |  |   |    |         |
| Net earnings (loss)                                                                                    |  |  |                               | $ | (9,718 | )                  |  |  |      | $ | 94,891  |         |  |  |      | $ | 4,083  |         |  |  |  | $ | 23,685 |         |  |  |  | $ | 78,471  |         |  |  |  | $ | (3,069  | )  |
| Provision (benefit) for taxes                                                                          |  |  |                               |   | 56     |                         |  |  |      |   | 42      |         |  |  |      |   | 46     |         |  |  |  |   | 46     |         |  |  |  |   | (172    | )  |  |  |  |   | 254     |         |
| Distributions on preferred securities of subsidiary                                                    |  |  |                               |   | 1,902  |                         |  |  |      |   | 5,683   |         |  |  |      |   | 3,865  |         |  |  |  |   | 2,138  |         |  |  |  |   | 1,854   |         |  |  |  |   | — |         |
| Income (loss) from continuing operations before taxes(b)                                               |  |  |                               |   | (7,760 | )                  |  |  |      |   | 100,616 |         |  |  |      |   | 7,994  |         |  |  |  |   | 25,869 |         |  |  |  |   | 80,153  |         |  |  |  |   | (2,815  | )  |
| Add:                                                                                                   |  |  |                               |   |   |                         |  |  |      |   |    |         |  |  |      |   |   |         |  |  |  |   |   |         |  |  |  |   |    |         |  |  |  |   |    |         |
| Fixed charges                                                                                          |  |  |                               |   | 6,842  |                         |  |  |      |   | 16,698  |         |  |  |      |   | 6,589  |         |  |  |  |   | 3,033  |         |  |  |  |   | 1,854   |         |  |  |  |   | — |         |
| Subtract:                                                                                              |  |  |                               |   |   |                         |  |  |      |   |    |         |  |  |      |   |   |         |  |  |  |   |   |         |  |  |  |   |    |         |  |  |  |   |    |         |
| Distributions on preferred securities of subsidiary                                                    |  |  |                               |   | (1,902 | )                  |  |  |      |   | (5,683  | )  |  |  |      |   | (3,865 | )  |  |  |  |   | (2,138 | )  |  |  |  |   | (1,854  | )  |  |  |  |   | — |         |
| Adjusted earnings (loss)                                                                               |  |  |                               | $ | (2,820 | )                  |  |  |      | $ | 111,631 |         |  |  |      | $ | 10,718 |         |  |  |  | $ | 26,764 |         |  |  |  | $ | 80,153  |         |  |  |  | $ | (2,815  | )  |
| Fixed charges:                                                                                         |  |  |                               |   |   |                         |  |  |      |   |    |         |  |  |      |   |   |         |  |  |  |   |   |         |  |  |  |   |    |         |  |  |  |   |    |         |
| Interest expense                                                                                       |  |  |                               |   | 4,862  |                         |  |  |      |   | 10,849  |         |  |  |      |   | 2,660  |         |  |  |  |   | 881    |         |  |  |  |   | — |         |  |  |  |   | — |         |
| Amortization of capitalized debt issuance costs                                                        |  |  |                               |   | 78     |                         |  |  |      |   | 166     |         |  |  |      |   | 64     |         |  |  |  |   | 14     |         |  |  |  |   | — |         |  |  |  |   | — |         |
| Distributions on preferred securities of subsidiary                                                    |  |  |                               |   | 1,902  |                         |  |  |      |   | 5,683   |         |  |  |      |   | 3,865  |         |  |  |  |   | 2,138  |         |  |  |  |   | 1,854   |         |  |  |  |   | — |         |
| Total fixed charges and preferred distributions                                                        |  |  |                               | $ | 6,842  |                         |  |  |      | $ | 16,698  |         |  |  |      | $ | 6,589  |         |  |  |  | $ | 3,033  |         |  |  |  | $ | 1,854   |         |  |  |  | $ | — |         |
| Ratio of earnings to combined fixed charges and distributions on preferred securities of subsidiary(a) |  |  |                               |   | (0.41  | )(c)               |  |  |      |   | 6.69    |         |  |  |      |   | 1.63   |         |  |  |  |   | 8.82   |         |  |  |  |   | 43.23   |         |  |  |  |   | — |         |
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| (a) | In 2002, the ratio was not applicable as no fixed charges were incurred in such years. |
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| (b) | Income (loss) from continuing operations before taxes represents income (loss) before income taxes plus adding back distributions on preferred securities of subsidiary |
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| (c) | Due to the loss for the three months ended March 31, 2007, the ratio coverage was less than 1:1. Additional earnings of $9.7 million would be needed to achieve the coverage ratio of 1:1. |
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