Bermuda-based credit insurer Primus Guaranty Ltd yesterday said fourth-quarter net income fell to $128.3 million, compared with $295 million in the same period last year.The profits were driven by net credit swap revenue of $142.4 million, which included unrealised gains in the fair value of Primus Financial’s credit swap portfolio of $133.2 million.For the full year, net income was $255.5 million, compared to $1.5 billion for 2009.Primus also quoted its economic results, which do not take into account changes in the value of its credit swap portfolio.For the fourth quarter, economic results were negative $4.8 million and for the full year, negative $40.8 million. In a letter to shareholders published on the Primus website, chief executive officer Richard Claiden revealed that Primus Fiancial’s credit swap portfolio had remaining notional principal of $10.4 billion.“During the course of 2011, we anticipate that the portfolio will generate approximately $40 million of credit swap premium revenue and decline by $2.3 billion in notional size,” Mr Claiden said.“Over the course of the last two years, Primus Financial has undertaken a number of repositioning transactions designed to remove or reduce exposures to reference entities which we considered most likely to suffer credit events.”