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PRIMUS GUARANTY, LTD. REPORTS SECOND QUARTER 2011 GAAP NET INCOME AVAILABLE TO COMMON SHARES OF $61.1 MILLION AND ECONOMIC RESULTS OF $5.4 MILLION
August 09, 2011
Hamilton, Bermuda – August 9, 2011 – Primus Guaranty, Ltd. (“Primus Guaranty” or “the Company”) (NYSE:PRS) today announced its financial results for the second quarter ended June 30, 2011.
- GAAP net income available to common shares for the second quarter 2011 was $61.1 million, or $1.62 per diluted share, compared with a GAAP net loss available to common shares of $188.4 million, or $4.84 per diluted share, for the second quarter 2010. GAAP net income available to common shares for the second quarter 2011 was driven by a net unrealized mark-to-market gain of $57.5 million on Primus Financial Products, LLC (“Primus Financial”)’s consolidated credit swap portfolio.
- Economic Results for the second quarter 2011 were $5.4 million, or $0.14 per diluted share, compared with an Economic Results of $6.8 million, or $0.18 per diluted share, for the second quarter 2010. Economic Results for the second quarter 2011 were primarily a result of premium revenue of $10.2 million, offset by net credit mitigation costs of $4.7 million and net operating costs of $3.3 million.
- Economic Results book value per common share was $7.76 at June 30, 2011, compared with Economic Results book value per common share of $7.31 at December 31, 2010.
- At June 30, 2011, the notional principal of Primus Financial’s consolidated credit swap portfolio totaled $9.3 billion.