Exhibit 99.1

FOR IMMEDIATE RELEASE

PRIMUS GUARANTY, LTD. REPORTS
FOURTH QUARTER AND FULL YEAR 2010 FINANCIAL RESULTS

Hamilton, Bermuda — February 24, 2011 — Primus Guaranty, Ltd. (“Primus Guaranty” or “the Company”) (NYSE:PRS) today announced its financial results for the fourth quarter and full year ended December 31, 2010.

	•		GAAP net income available to common shares for the fourth quarter 2010 was $128.3 million, or $3.30 per diluted share, compared with GAAP net income available to common shares of $295.0 million, or $7.21 per diluted share, for the fourth quarter 2009. GAAP net income from continuing operations for the fourth quarter 2010 primarily was attributable to net credit swap revenue of $142.4 million, which included unrealized gains in the fair value of Primus Financial’s credit swap portfolio of $133.2 million. GAAP net income for the fourth quarter 2009 primarily was attributable to unrealized gains in the fair value of Primus Financial’s credit swap portfolio of $336.8 million.
	•		GAAP net income available to common shares for the full year 2010 was $255.5 million, or $6.33 per diluted share, compared with GAAP net income available to common shares of $1.5 billion, or $35.26 per diluted share, for the full year 2009. GAAP net income from continuing operations for the full year 2010 primarily was attributable to net credit swap revenue of $267.8 million, which included unrealized gains in the fair value of Primus Financial’s credit swap portfolio of $296.5 million. GAAP net income for the full year 2009 primarily was attributable to unrealized gains in the fair value of Primus Financial’s credit swap portfolio of $1.5 billion.
	•		Economic Results for the fourth quarter 2010 were $(4.8) million, or $(0.12) per diluted share. Economic Results for the full year 2010 were $(40.8) million, or $(1.01) per diluted share. The primary difference between GAAP net income and Economic Results is that changes in the fair value of Primus Financial’s credit swap portfolio are not included in Economic Results. Economic Results for the fourth quarter 2009 were $(35.5) million, or $(0.87) per diluted share, and for the full year 2009 were $(3.7) million, or $(0.09) per diluted share.
	•		Economic Results book value per common share was $7.31 at December 31, 2010, compared with $8.48 at December 31, 2009. The decline in Economic Results book value per common share primarily was attributable to portfolio repositioning transactions and termination payments by Primus Financial in 2010.

	•		The Company incurred $8.1 million of restructuring costs in 2010, predominantly in the fourth quarter. Included in restructuring costs were employee severance, occupancy and data service cancellation costs, which the Company incurred to reduce its ongoing expense base.
	•		The loss from discontinued operations of $(50.4) million for the full year 2010 relates to the collateralized loan obligation (“CLO”) business which Primus divested in 2010. This loss includes standalone operating losses of the CLOs under management of $(61.2) million for the CLO business during 2010, which is attributable to non-parent interests and is not included in net income attributable to Primus common shareholders.
	•		At December 31, 2010, the notional principal of Primus Financial’s consolidated credit swap portfolio totaled $10.4 billion.

Earnings

A copy of this press release and the financial supplement, including additional credit swap portfolio and historical data, is available in the Investor Relations section of the Company’s Web site at www.primusguaranty.com. Also available on the Web site is a letter dated February 24, 2011 to the shareholders from Richard Claiden, Chief Executive Officer.

Economic Results

In managing its business and assessing its profitability from a strategic and financial planning perspective, the Company believes it is appropriate to consider both its U.S. GAAP net income (loss) available to common shares as well as certain non-GAAP financial measures called “Economic Results”. We define Economic Results as GAAP net income (loss) available to common shares, adjusted as follows:

	•		Unrealized gains (losses) on credit swaps sold by Primus Financial are excluded from GAAP net income (loss) available to common shares;
	•		Realized gains from early termination of credit swaps sold by Primus Financial are excluded from GAAP net income (loss) available to common shares;
	•		Realized gains from early termination of credit swaps sold by Primus Financial are amortized over the period that would have been the remaining life of the credit swap. The amortized gain is included in Economic Results;
	•		A provision for CDS on ABS credit events is included in Economic Results; and
	•		A reduction in provision for CDS on ABS credit events upon termination of credit swaps is included in Economic Results.

The Company believes that quarterly fluctuations in the fair market value of Primus Financial’s consolidated credit swap portfolio have little or no effect on the Company’s business operations and that Economic Results provides a useful, alternative view of the Company’s economic performance.

About Primus Guaranty

Primus Guaranty, Ltd. is a Bermuda company with offices in New York. Through its subsidiary, Primus Financial Products, LLC (“Primus Financial”), the Company provides protection against the risk of default on primarily investment grade corporate and sovereign reference entities.

Forward-Looking Statements

Some of the statements included in this press release and other statements Primus Guaranty may make, particularly those anticipating future financial performance, business prospects, growth and operating strategies, market performance, valuations and similar matters, are forward-looking statements that involve a number of assumptions, risks and uncertainties, which change over time. Any such statements speak only as of the date they are made, and Primus Guaranty assumes no duty to, and does not undertake to, update any forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements, and future results could differ materially from historical performance. For a discussion of the factors that could affect the Company’s actual results please refer to the risk factors identified from time to time in the Company’s SEC reports, including, but not limited to, Primus Guaranty’s Annual Report on Form 10-K, as filed with the U.S. Securities and Exchange Commission.

Primus Guaranty, Ltd.
Consolidated Statements of Financial Condition (Unaudited)
(in thousands except share amounts)

		December 31,				December 31,
		2010				2009
Assets
Cash and cash equivalents		$	177,736			$	299,514
Investments (includes $288,815 and $274,275 at fair value as of December 31, 2010 and 2009, respectively)			288,985				274,444
Restricted cash and investments			138,540				127,116
Accrued interest and premiums			5,860				6,163
Unrealized gain on credit swaps, at fair value			2,006				2,207
Goodwill and other intangible assets, net			—				8,017
Debt issuance costs, net			4,072				4,736
Other assets			17,660				10,550
Total assets		$	634,859			$	732,747
Liabilities and Equity (deficit)
Liabilities
Accounts payable and accrued expenses		$	9,776			$	7,855
Unrealized loss on credit swaps, at fair value			395,164				691,905
Payable for credit events			3,447				28,596
Long-term debt			215,828				244,051
Restructuring liabilities			3,729				—
Other liabilities			4,950				9,787
Total liabilities			632,894				982,194
Equity (deficit)
Common shares, $0.08 par value, 62,500,000 shares authorized, 38,078,790 and 38,267,546 shares issued and outstanding at December 31, 2010 and 2009, respectively			3,046				3,061
Additional paid-in capital			275,453				280,685
Accumulated other comprehensive income			3,333				2,148
Retained earnings (deficit)			(372,969	)			(628,443	)
Total shareholders’ equity (deficit) of Primus Guaranty, Ltd			(91,137	)			(342,549	)
Preferred securities of subsidiary			93,102				93,102
Total equity (deficit)			1,965				(249,447	)
Total liabilities and equity (deficit)		$	634,859			$	732,747

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

		Three Months Ended								Years Ended
		December 31,								December 31,
		2010				2009				2010				2009
Revenues
Net credit swap revenue		$	142,387			$	301,203			$	267,756			$	1,455,802
Interest income			3,226				2,030				13,140				6,685
Gain on retirement of long-term debt			1,681				3,560				9,866				43,151
Other income			1,560				333				4,205				3,797
Total revenues			148,854				307,126				294,967				1,509,435
Expenses
Compensation and employee benefits			5,487				3,548				18,650				17,661
Professional and legal fees			1,314				1,834				6,718				6,848
Interest expense			1,666				2,022				7,031				9,116
Restructuring costs			7,956				—				8,108				—
Other			1,574				2,546				6,774				8,507
Total expenses			17,997				9,950				47,281				42,132
Income from continuing operations before provision (benefit) for income taxes			130,857				297,176				247,686				1,467,303
Provision (benefit) for income taxes			(232	)			33				(134	)			184
Income from continuing operations, net of tax			131,089				297,143				247,820				1,467,119
Loss from discontinued operations, net of tax			(2,351	)			(1,465	)			(50,358	)			(3,422	)
Net income			128,738				295,678				197,462				1,463,697
Less:
Distributions on preferred securities of subsidiary			718				677				3,162				3,417
Net loss from discontinued operations attributable to non-parent interests in CLOs			(299	)			—				(61,174	)			—
Net income available to common shares		$	128,319			$	295,001			$	255,474			$	1,460,280
Income (loss) per common share:
Basic:
Income from continuing operations		$	3.45			$	7.55			$	6.38			$	36.46
Income (loss) from discontinued operations		$	(0.05	)		$	(0.04	)		$	0.28			$	(0.08	)
Net income available to common shares		$	3.40			$	7.51			$	6.66			$	36.38
Diluted:
Income from continuing operations		$	3.35			$	7.25			$	6.06			$	35.34
Income (loss) from discontinued operations		$	(0.05	)		$	(0.04	)		$	0.27			$	(0.08	)
Net income available to common shares		$	3.30			$	7.21			$	6.33			$	35.26
Weighted average common shares outstanding:
Basic			37,732				39,276				38,361				40,142
Diluted			38,905				40,908				40,366				41,414

Primus Guaranty, Ltd.
Regulation G and Other Disclosure
Economic Results
December 31, 2010
(Unaudited)

In managing its business and assessing its profitability from a strategic and financial planning perspective, the Company believes it is appropriate to consider both its U.S. GAAP net income (loss) available to common shares as well as certain non-GAAP financial measures called “Economic Results”. We define Economic Results as GAAP net income (loss) available to common shares, adjusted as follows:

	•		Unrealized gains (losses) on credit swaps sold by Primus Financial are excluded from GAAP net income (loss) available to common shares;
	•		Realized gains from early termination of credit swaps sold by Primus Financial are excluded from GAAP net income (loss) available to common shares;
	•		Realized gains from early termination of credit swaps sold by Primus Financial are amortized over the period that would have been the remaining life of the credit swap. The amortized gain is included in Economic Results;
	•		A provision for CDS on ABS credit events is included in Economic Results; and
	•		A reduction in provision for CDS on ABS credit events upon termination of credit swaps is included in Economic Results.

The Company believes that quarterly fluctuations in the fair market value of Primus Financial’s consolidated credit swap portfolio have little or no effect on the Company’s business operations and that Economic Results provides a useful, alternative view of the Company’s economic performance.

Economic Results per GAAP Diluted Share

(in 000’s except per share amounts)

		Three Months Ended								Year Ended
		December 31,								December 31,
		2010				2009				2010				2009
GAAP Net income (loss) available to common shares		$	128,319			$	295,001			$	255,474			$	1,460,280
Adjustments:
Change in unrealized fair value of credit swaps sold (gain) loss by Primus Financial			(133,194	)			(336,799	)			(296,540	)			(1,483,763	)
Amortization of realized gains from the early termination of credit swaps sold by Primus Financial			107				314				810				1,414
Provision for CDS on ABS credit events			—				(966	)			(2,374	)			(16,208	)
Reduction in provision for CDS on ABS credit events upon termination of credit swaps			—				6,912				1,819				34,540
Economic Results		$	(4,768	)		$	(35,538	)		$	(40,811	)		$	(3,737	)
Economic Results earnings (loss) per GAAP diluted share		$	(0.12	)		$	(0.87	)		$	(1.01	)		$	(0.09	)
Economic Results weighted average common shares — GAAP diluted			38,905				40,908				40,366				41,414
Economic Results Book Value per Share
		December 31,				December 31,
		2010				2009
GAAP Shareholders’ equity (deficit) of Primus Guaranty, Ltd.		$	(91,137	)		$	(342,549	)
Adjustments:
Accumulated other comprehensive (income) loss			(3,333	)			(2,148	)
Unrealized fair value of credit swaps sold (gain) loss by Primus Financial			393,158				689,698
Realized gains from early termination of credit swaps sold by Primus Financial			(33,574	)			(33,574	)
Amortized realized gains from the early termination of credit swaps sold by Primus Financial			33,443				32,633
Provision for CDS on ABS credit events			(68,791	)			(66,417	)
Reduction in provision for CDS on ABS credit events upon termination of credit swaps			48,575				46,756
Economic Results Shareholders’ Equity		$	278,341			$	324,399
Economic Results book value per share issued and outstanding		$	7.31			$	8.48
GAAP book value per share issued and outstanding		$	(2.39	)		$	(8.95	)
Common shares issued and outstanding			38,079				38,268

Primus Guaranty, Ltd.
GAAP Net Credit Swap Revenue
December 31, 2010
(Unaudited)

GAAP Net Credit Swap Revenue

(in 000’s)

		Three Months Ended								Year Ended
		December 31,								December 31,
		2010				2009				2010				2009
Net credit swap revenue components
Credit swaps sold — single name (Primus Financial)
Net premium income		$	8,798			$	13,994			$	43,784			$	64,824
Realized gains			—				—				—				25
Realized losses			—				(37,711	)			(40,002	)			(68,475	)
Change in unrealized gains/(losses)			28,072				127,482				108,053				658,245
Credit swaps sold — tranches (Primus Financial)
Net premium income			3,615				4,453				14,304				19,884
Realized gains			—				—				—				—
Realized losses			(6,683	)			(9,998	)			(41,683	)			(9,998	)
Change in unrealized gains/(losses)			108,542				204,385				180,892				800,833
Credit swaps undertaken to offset credit risk (Primus Financial)
Net premium income (expense)			(14	)			—				(101	)			11
Net realized gains (losses)			3,656				497				(299	)			(89	)
Change in unrealized gains/(losses)			(2,801	)			(430	)			1,669				(1,973	)
Credit swaps sold — ABS (Primus Financial)
Net premium income			56				81				268				397
Realized gains			—				—				—				—
Realized losses			—				(6,912	)			(4,597	)			(34,540	)
Change in unrealized gains/(losses)			(619	)			5,362				5,926				26,658
Net credit swap revenue (PARC fund)			(235	)			—				(458	)			—
Net credit swap revenue		$	142,387			$	301,203			$	267,756			$	1,455,802