EXHIBIT 12

PRIMUS GUARANTY, LTD

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED

DISTRIBUTIONS OF SUBSIDIARY

(In thousands, except ratios)



Three Months EndedMarch 31,
        
        Year Ended December 31,2008
        
        2007
        
        2006
        
        2005
        
        2004
        
        2003Earnings (loss):Net earnings (loss)
        
        $
        (670,078
        )
        $
        (563,541
        )
        $
        94,891
        
        $
        4,083
        
        $
        23,685
        
        $
        78,471Provision (benefit) for taxes
        
        
        49
        
        
        52
        
        
        42
        
        
        46
        
        
        46
        
        
        (172
        )Distributions on preferred securities of subsidiary
        
        
        1,805
        
        
        7,568
        
        
        5,683
        
        
        3,865
        
        
        2,138
        
        
        1,854Income (loss) from continuing operations before taxes (b)
        
        
        (668,224
        )
        
        (555,921
        )
        
        100,616
        
        
        7,994
        
        
        25,869
        
        
        80,153Add:Fixed charges
        
        
        6,774
        
        
        28,608
        
        
        16,698
        
        
        6,589
        
        
        3,033
        
        
        1,854Subtract:Distributions on preferred securities of subsidiary
        
        
        (1,805
        )
        
        (7,568
        )
        
        (5,683
        )
        
        (3,865
        )
        
        (2,138
        )
        
        (1,854
        )Adjusted earnings (loss)
        
        $
        (663,255
        )
        $
        (534,881
        )
        $
        111,631
        
        $
        10,718
        
        $
        26,764
        
        $
        80,153Fixed charges:Interest expense
        
        
        4,891
        
        
        20,729
        
        
        10,849
        
        
        2,660
        
        
        881
        
        
        Amortization of capitalized debt issuance costs
        
        
        78
        
        
        311
        
        
        166
        
        
        64
        
        
        14
        
        
        Distributions on preferred securities of subsidiary
        
        
        1,805
        
        
        7,568
        
        
        5,683
        
        
        3,865
        
        
        2,138
        
        
        1,854Total fixed charges and preferred distributions
        
        $
        6,774
        
        $
        28,608
        
        $
        16,698
        
        $
        6,589
        
        $
        3,033
        
        $
        1,854Ratio of earnings to combined fixed charges and distributions on preferred securities of subsidiary
        
        
        (97.91
        ) (c)
        
        (18.70
        )
        
        6.69
        
        
        1.63
        
        
        8.82
        
        
        43.23


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


(c)
        Due to the loss for the three months ended March 31, 2008, the ratio coverage was less than 1:1. 
                        Additional earnings of $670.0 million would be needed to achieve the coverage ratio of 1:1.






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