Primus Guaranty, Ltd. posted income of $10.7 million, or 24 cents per share for its second quarter 2006 versus a loss of $9.2 million, or 21 cents per share in the same period 2005 helped by declining premiums for new swaps which improved the value of the company?s portfolio of existing swaps.

The Bermuda-based company which offers protection against the risk of default on corporate and sovereign obligations through Primus Financial Products, LLC, reported operating earnings, which exclude changes in value to the company?s credit portfolio, of $12.4 million, or 28 cents per share, on par with an estimate of analysts polled by Thomson Financial.

?We managed to grow our portfolio by approximately 25 percent, while increasing premium income by more than 30 percent over the year earlier quarter,? Primus Guaranty chief executive officer, Thomas W. Jasper, said.

?We also made significant progress in the execution of our asset management strategy, including making key hires and in establishing some important dealer relationships which will facilitate the capital raising for both our high yield and relative value activities.?

The company continues to focus on growing its credit swap portfolio at good risk adjusted returns while continuing to expand into asset management.