Attached files
file | filename |
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10-Q - FORM 10-Q - PRIMUS GUARANTY LTD | c08324e10vq.htm |
EX-32 - EXHIBIT 32 - PRIMUS GUARANTY LTD | c08324exv32.htm |
EX-31.1 - EXHIBIT 31.1 - PRIMUS GUARANTY LTD | c08324exv31w1.htm |
EX-10.1 - EXHIBIT 10.1 - PRIMUS GUARANTY LTD | c08324exv10w1.htm |
EX-10.2 - EXHIBIT 10.2 - PRIMUS GUARANTY LTD | c08324exv10w2.htm |
EX-10.4 - EXHIBIT 10.4 - PRIMUS GUARANTY LTD | c08324exv10w4.htm |
EX-31.2 - EXHIBIT 31.2 - PRIMUS GUARANTY LTD | c08324exv31w2.htm |
EX-10.3 - EXHIBIT 10.3 - PRIMUS GUARANTY LTD | c08324exv10w3.htm |
EXHIBIT 12
PRIMUS GUARANTY, LTD
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
DISTRIBUTIONS OF SUBSIDIARY
(In thousands, except ratios)
DISTRIBUTIONS OF SUBSIDIARY
(In thousands, except ratios)
Nine Months Ended | ||||||||||||||||||||||||
September 30, | Years Ended December 31, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | 2005 | |||||||||||||||||||
Earnings (loss): |
||||||||||||||||||||||||
Net income (loss) available to common shares |
$ | 127,155 | $ | 1,460,280 | $ | (1,716,146 | ) | $ | (563,541 | ) | $ | 94,891 | $ | 4,083 | ||||||||||
Provision for taxes |
77 | 185 | 61 | 52 | 42 | 46 | ||||||||||||||||||
Distributions on preferred securities of subsidiary |
2,444 | 3,417 | 6,642 | 7,568 | 5,683 | 3,865 | ||||||||||||||||||
Net 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 | 7,994 | ||||||||||||||||
Add: |
||||||||||||||||||||||||
Fixed charges |
31,728 | 12,533 | 23,674 | 28,297 | 16,532 | 6,525 | ||||||||||||||||||
Subtract: |
||||||||||||||||||||||||
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 | $ | 10,654 | ||||||||||
Fixed charges: |
||||||||||||||||||||||||
Interest expense |
29,284 | 9,116 | 17,032 | 20,729 | 10,849 | 2,660 | ||||||||||||||||||
Distributions on preferred securities of subsidiary |
2,444 | 3,417 | 6,642 | 7,568 | 5,683 | 3,865 | ||||||||||||||||||
Total
fixed charges and preferred
distributions (b) |
$ | 31,728 | $ | 12,533 | $ | 23,674 | $ | 28,297 | $ | 16,532 | $ | 6,525 | ||||||||||||
Ratio 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. |