EXHIBIT 12
 PRIMUS GUARANTY, LTD
 RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
DISTRIBUTIONS OF SUBSIDIARY
 Nine Months EndedSeptember 30,
    
    
    Years Ended December 31,2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006
    
    
    2005Earnings (loss):Net income (loss) available to common shares
    
    $
    127,155
    
    
    $
    1,460,280
    
    
    $
    (1,716,146
    )
    
    $
    (563,541
    )
    
    $
    94,891
    
    
    $
    4,083Provision for taxes
    
    
    77
    
    
    
    185
    
    
    
    61
    
    
    
    52
    
    
    
    42
    
    
    
    46Distributions on preferred securities of subsidiary
    
    
    2,444
    
    
    
    3,417
    
    
    
    6,642
    
    
    
    7,568
    
    
    
    5,683
    
    
    
    3,865Net loss attributable to non-parent interests in CLOs
    
    
    (60,876
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Income (loss) from continuing operations before taxes (a)
    
    
    68,800
    
    
    
    1,463,882
    
    
    
    (1,709,443
    )
    
    
    (555,921
    )
    
    
    100,616
    
    
    
    7,994Add:Fixed charges
    
    
    31,728
    
    
    
    12,533
    
    
    
    23,674
    
    
    
    28,297
    
    
    
    16,532
    
    
    
    6,525Subtract:Distributions on preferred securities of subsidiary
    
    
    (2,444
    )
    
    
    (3,417
    )
    
    
    (6,642
    )
    
    
    (7,568
    )
    
    
    (5,683
    )
    
    
    (3,865
    )Adjusted earnings (loss)
    
    $
    98,084
    
    
    $
    1,472,998
    
    
    $
    (1,692,411
    )
    
    $
    (535,192
    )
    
    $
    111,465
    
    
    $
    10,654Fixed charges:Interest expense
    
    
    29,284
    
    
    
    9,116
    
    
    
    17,032
    
    
    
    20,729
    
    
    
    10,849
    
    
    
    2,660Distributions on preferred securities of subsidiary
    
    
    2,444
    
    
    
    3,417
    
    
    
    6,642
    
    
    
    7,568
    
    
    
    5,683
    
    
    
    3,865Total
fixed charges and preferred
distributions (b)
    
    $
    31,728
    
    
    $
    12,533
    
    
    $
    23,674
    
    
    $
    28,297
    
    
    $
    16,532
    
    
    $
    6,525Ratio of earnings to combined fixed charges and
distributions on preferred securities of subsidiary (c)
    
    
    3.09
    
    
    
    117.53
    
    
    
    (71.49
    )
    
    
    (18.91
    )
    
    
    6.74
    
    
    
    1.63
 (a)
    
    Effective January 1, 2010, the Company adopted the accounting guidance ASC Topic 810,
Consolidation. As a result, the income (loss) from continuing operations before taxes includes the
net income or loss of the consolidated CLOs under management.(b)
    
    CLO interest expense is included in the fixed charges for purposes of the calculation of the
ratio.(c)
    
    Due to the losses for the years ended December 31, 2008 and 2007, respectively, the ratio
coverage was less than 1:1. Additional earnings of approximately $1.7 billion and $563.5 million
for the years ended December 31, 2008 and 2007, respectively, would be needed to achieve the
coverage ratio of 1:1.