PRIMUS GUARANTY, LTD. REPORTS FIRST QUARTER 2011 GAAP NET INCOME AVAILABLE TO COMMON SHARES OF $84.7 MILLION AND ECONOMIC RESULTS OF $8.7 MILLION
May 12, 2011
Hamilton, Bermuda – May 12, 2011 – Primus Guaranty, Ltd. (“Primus Guaranty” or “the Company”) (NYSE:PRS) today announced its financial results for the first quarter ended March 31, 2011.
§ GAAP net income available to common shares for the first quarter 2011 was $84.7 million, or $2.21 per diluted share, compared with GAAP net income available to common shares of $86.5 million, or $2.15 per diluted share, for the first quarter 2010. GAAP net income available to common shares for the first quarter 2011 was driven by a net unrealized mark-to-market gain of $82.7 million on Primus Financial Products, LLC (“Primus Financial”)’s consolidated credit swap portfolio.
§ Economic Results for the first quarter 2011 were $8.7 million, or $0.23 per diluted share, compared with an Economic Results loss of $40.9 million, or $1.01 per diluted share, for the first quarter 2010. Economic Results for the first quarter 2011 was primarily a result of premium revenue of $11.2 million, gains on retirement of debt of $2.8 million, offset by net operating costs of $4.3 million.
§ Economic Results book value per common share was $7.53 at March 31, 2011, compared with Economic Results book value per common share of $7.31 at December 31, 2010.
§ At March 31, 2011, the notional principal of Primus Financial’s consolidated credit swap portfolio totaled $9.6 billion.