UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q

[X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2005

OR

[  ]    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from ________ to ________.

Commission File Number: 001-32307

Primus Guaranty, Ltd.
(Exact name of registrant as specified in its charter)
Bermuda				Not Required
(State or other jurisdiction of incorporation or organization)				(I.R.S. Employer Identification No.)
Clarendon House 2 Church Street Hamilton HM 11, Bermuda
(Address of principal executive offices, including zip code)
441-296-0519
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes      No  

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes      No  

As of May 10, 2005, the number of shares outstanding of the issuer's common stock, $0.08 par value, was 43,118,904.

Primus Guaranty, Ltd.
Form 10-Q
For the quarter ended March 31, 2005

Part I.				Financial Information
Item 1.				Financial Statements
				Consolidated Statements of Financial Condition March 31, 2005 (Unaudited) and December 31, 2004					3
				Consolidated Statements of Income (Unaudited) Three months ended March 31, 2005 and 2004					4
				Consolidated Statements of Cash Flows (Unaudited) Three months ended March 31, 2005 and 2004					5
				Notes to Consolidated Financial Statements					6
Item 2.				Management's Discussion and Analysis of Financial Condition and Results of Operations					17
				Cautionary Statement Regarding Forward Looking Information					26
Item 3.				Quantitative and Qualitative Disclosures about Market Risk					27
Item 4.				Controls and Procedures					28
Part II.				Other Information
Item 1.				Legal Proceedings					28
Item 2.				Unregistered Sales of Equity Securities and Use of Proceeds					28
Item 3.				Defaults upon Senior Securities					29
Item 4.				Submission of Matters to a Vote of Security Holders					29
Item 5.				Other Information					29
Item 6.				Exhibits					29
Signatures									29

2

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Part I.    Financial Information
Item 1.    Financial Statements

Primus Guaranty, Ltd.
Consolidated Statements of Financial Condition
(dollars in 000s except per share amounts)

				March 31, 2005				December 31, 2004
				(unaudited)
Assets
Cash and cash equivalents				$	349,627			$	320,989
Short-term investments					133,606				161,101
Accrued interest receivable					2,128				1,381
Accrued premiums on credit swaps					3,162				3,349
Premiums receivable on credit swaps					185				197
Premiums receivable on financial guarantees					700				800
Asset management fee receivable					32				15
Prepaid expenses					715				868
Unrealized gain on credit swaps, at fair value					31,017				46,517
Fixed assets, less accumulated depreciation of $559 in 2005 and $493 in 2004					1,744				1,800
Internal use software costs, less accumulated amortization of $6,342 in 2005 and $5,893 in 2004					4,014				4,297
Income tax receivable					279				279
Debt issuance costs					1,143				1,125
Total assets				$	528,352			$	542,718
Liabilities and shareholders' equity
Accounts payable and accrued expenses				$	1,691			$	904
Compensation payable					1,455				5,317
Brokerage fees payable					19				14
Current state and local taxes payable					46				12
Interest payable					353				364
Long-term debt					75,000				75,000
Unrealized loss on credit swaps, at fair value					4,292				259
Deferred rent payable					450				455
Deferred financial guarantee premiums					707				806
Deferred credit swap premiums					63				69
Total liabilities					84,076				83,200
Preferred securities of subsidiary					98,521				98,521
Shareholders' equity:
Common stock, $0.08 par value, 62,500,000 shares authorized, 43,062,428 and 42,780,033 shares issued and outstanding at March 31, 2005 and December 31, 2004, respectively					3,533				3,535
Additional Paid-in-Capital					263,474				264,860
Warrants					612				612
Retained earnings					78,136				91,990
Total shareholders' equity					345,755				360,997
Total liabilities, preferred securities of subsidiary and shareholders' equity				$	528,352			$	542,718

See accompanying notes.

3

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Primus Guaranty, Ltd.
Consolidated Statements of Operations
(amounts in 000s except per share amounts)

				Three Months Ended March 31,
				2005				2004
				(unaudited)
Revenues
Net credit swap revenue				$	(8,198	)		$	(3,030	)
Premiums earned on financial guarantees					99				99
Interest income					3,693				652
Rental income					—				27
Asset management fees					42				—
Foreign currency revaluation					(564	)			(73	)
Total net revenues					(4,928	)			(2,325	)