Table of Contents

EXHIBIT12

PRIMUS GUARANTY, LTDRATIO OF EARNINGS TO COMBINEDFIXED CHARGES AND PREFERRED DISTRIBUTIONS OF SUBSIDIARY(Inthousands, exceptratios)

|                                                                                                     |  |  |                             |   |        |                       |  |  |      |   |        |      |  |  |      |   |        |   |  |  |  |   |         |   |  |  |  |   |         |   |  |  |  |   |         |   |
|-----------------------------------------------------------------------------------------------------|--|--|-----------------------------|---|--------|-----------------------|--|--|------|---|--------|------|--|--|------|---|--------|---|--|--|--|---|---------|---|--|--|--|---|---------|---|--|--|--|---|---------|---|
|                                                                                                |  |  | SixMonths Ended June30,2006 |   |        | Year EndedDecember31, |
|                                                                                                |  |  | 2005                        |   |        | 2004                  |  |  | 2003 |   |        | 2002 |  |  | 2001 |
| Earnings(loss):                                                                                     |  |  |                             |   |   |                       |  |  |      |   |   |      |  |  |      |   |   |   |  |  |  |   |    |   |  |  |  |   |    |   |  |  |  |   |    |   |
| Income(loss) from continuing operations beforetaxes(b)                                              |  |  |                             | $ | 48,587 |                       |  |  |      | $ | 7,994  |      |  |  |      | $ | 25,869 |   |  |  |  | $ | 80,153  |   |  |  |  | $ | (2,815  | ) |  |  |  | $ | (2,787  | ) |
| Add:                                                                                                |  |  |                             |   |   |                       |  |  |      |   |   |      |  |  |      |   |   |   |  |  |  |   |    |   |  |  |  |   |    |   |  |  |  |   |    |   |
| Fixedcharges                                                                                        |  |  |                             |   | 7,957  |                       |  |  |      |   | 6,589  |      |  |  |      |   | 3,033  |   |  |  |  |   | 1,854   |   |  |  |  |   | — |   |  |  |  |   | — |   |
| Subtract:                                                                                           |  |  |                             |   |   |                       |  |  |      |   |   |      |  |  |      |   |   |   |  |  |  |   |    |   |  |  |  |   |    |   |  |  |  |   |    |   |
| Distributionson preferred securities ofsubsidiary                                                   |  |  |                             |   | (2,769 | )                     |  |  |      |   | (3,865 | )    |  |  |      |   | (2,138 | ) |  |  |  |   | (1,854  | ) |  |  |  |   | — |   |  |  |  |   | — |   |
| Adjustedearnings(loss)                                                                              |  |  |                             | $ | 53,775 |                       |  |  |      | $ | 10,718 |      |  |  |      | $ | 26,764 |   |  |  |  | $ | 80,153  |   |  |  |  | $ | (2,815  | ) |  |  |  | $ | (2,787  | ) |
| Fixedcharges:                                                                                       |  |  |                             |   |   |                       |  |  |      |   |   |      |  |  |      |   |   |   |  |  |  |   |    |   |  |  |  |   |    |   |  |  |  |   |    |   |
| Interestexpense                                                                                     |  |  |                             |   | 5,102  |                       |  |  |      |   | 2,660  |      |  |  |      |   | 881    |   |  |  |  |   | — |   |  |  |  |   | — |   |  |  |  |   | — |   |
| Amortizationof capitalized debt issuancecosts                                                       |  |  |                             |   | 86     |                       |  |  |      |   | 64     |      |  |  |      |   | 14     |   |  |  |  |   | — |   |  |  |  |   | — |   |  |  |  |   | — |   |
| Distributionson preferred securities ofsubsidiary                                                   |  |  |                             |   | 2,769  |                       |  |  |      |   | 3,865  |      |  |  |      |   | 2,138  |   |  |  |  |   | 1,854   |   |  |  |  |   | — |   |  |  |  |   | — |   |
| Totalfixed charges and preferreddistributions                                                       |  |  |                             | $ | 7,957  |                       |  |  |      | $ | 6,589  |      |  |  |      | $ | 3,033  |   |  |  |  | $ | 1,854   |   |  |  |  | $ | — |   |  |  |  | $ | — |   |
| Ratioof earnings to combined fixed charges and distributions on preferredsecurities ofsubsidiary(a) |  |  |                             |   | 6.76   |                       |  |  |      |   | 1.63   |      |  |  |      |   | 8.82   |   |  |  |  |   | 43.23   |   |  |  |  |   | — |   |  |  |  |   | — |   |
|                                                                                                     |

|  |
|--|
|  |  |
|  |

|     |                                                                                               |
|-----|-----------------------------------------------------------------------------------------------|
| (a) | In2002 and 2001, the ratio was not applicable as no fixed charges wereincurred in such years. |

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

----