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PRIMUS GUARANTY, LTD. REPORTS THIRD QUARTER 2011 GAAP NET LOSS AVAILABLE TO COMMON SHARES OF $283.1 MILLION AND ECONOMIC RESULTS OF $10.2 MILLION
November 08, 2011
Hamilton, Bermuda – November 8, 2011 – Primus Guaranty, Ltd. (“Primus Guaranty” or “the Company”) (NYSE:PRS) today announced its financial results for the third quarter ended September 30, 2011.
- GAAP net loss available to common shares for the third quarter 2011 was $283.1 million, or $7.76 per diluted share, compared with GAAP net income available to common shares of $229.0 million, or $5.72 per diluted share, for the third quarter 2010. GAAP net loss available to common shares for the third quarter 2011 was substantially due to a net unrealized mark-to-market loss of $293.3 million on Primus Financial Products, LLC (“Primus Financial”)’s consolidated credit swap portfolio.
- Economic Results for the third quarter 2011 were $10.2 million, or $0.28 per diluted share, compared with an Economic Results loss of $2.0 million, or $0.05 per diluted share, for the third quarter 2010. Economic Results for the third quarter 2011 primarily comprised premium revenue of $9.9 million, interest income of $2.4 million, and gains on retirement of debt of $2.1 million, partly offset by net operating costs of $3.1 million and financing costs of $2.1 million.
- Economic Results book value per common share was $8.20 at September 30, 2011, compared with Economic Results book value per common share of $7.31 at December 31, 2010.
- At September 30, 2011, the notional principal of Primus Financial’s consolidated credit swap portfolio totaled $8.5 billion.