PRIMUS GUARANTY LTD - FORM 10-K - EX-12 - EXHIBIT 12 - March 16, 2010

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10-K - FORM 10-K - PRIMUS GUARANTY LTDc97760e10vk.htm
EX-23 - EXHIBIT 23 - PRIMUS GUARANTY LTDc97760exv23.htm
EX-21 - EXHIBIT 21 - PRIMUS GUARANTY LTDc97760exv21.htm
EX-32 - EXHIBIT 32 - PRIMUS GUARANTY LTDc97760exv32.htm
EX-31.1 - EXHIBIT 31.1 - PRIMUS GUARANTY LTDc97760exv31w1.htm
EX-31.2 - EXHIBIT 31.2 - PRIMUS GUARANTY LTDc97760exv31w2.htm
EXHIBIT 12
PRIMUS GUARANTY, LTD
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED DISTRIBUTIONS OF SUBSIDIARY
(In thousands, except ratios)
                                         
    Years Ended December 31,  
    2009     2008     2007     2006     2005  
 
                                        
Earnings (loss):
                                        
Net income (loss) available to common shares
   $ 1,460,280     $ (1,716,146 )   $ (563,541 )   $ 94,891     $ 4,083  
Provision (benefit) for taxes
     185       61       52       42       46  
Distributions on preferred securities of subsidiary
     3,417       6,642       7,568       5,683       3,865  
 
                              
Income (loss) from continuing operations before taxes (a)
     1,463,882       (1,709,443 )     (555,921 )     100,616       7,994  
 
                                        
Add:
                                        
Fixed charges
     12,533       23,674       28,297       16,532       6,525  
 
                                        
Subtract:
                                        
Distributions on preferred securities of subsidiary
     (3,417 )     (6,642 )     (7,568 )     (5,683 )     (3,865 )
 
                                        
 
                              
Adjusted earnings (loss)
   $ 1,472,998     $ (1,692,411 )   $ (535,192 )   $ 111,465     $ 10,654  
 
                              
 
                                        
Fixed charges:
                                        
Interest expense
     9,116       17,032       20,729       10,849       2,660  
Distributions on preferred securities of subsidiary
     3,417       6,642       7,568       5,683       3,865  
 
                                        
 
                              
Total fixed charges and preferred distributions
   $ 12,533     $ 23,674     $ 28,297     $ 16,532     $ 6,525  
 
                              
Ratio of earnings to combined fixed charges and distributions on preferred securities of subsidiary (b)
     117.53       (71.49 )     (18.91 )     6.74       1.63  
 
                              
 
     
(a)   Income (loss) from continuing operations before taxes represents income (loss) before income taxes plus adding back distributions on preferred securities of subsidiary.
 
(b)   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.

 

 

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