R
rdean
Guest
Endurance Specialty was created in December 2001, and was one of the first major investments of Golden Gate Capital a fund started by former Bain Capital managers, consisting primarily of large investments from Bain and from Romney personally.
As Endurance Specialty itself proclaimed in its 2002 prospectus, there was an "attractive opportunity" because "many global property and casualty insurers and reinsurers are currently experiencing significantly reduced capital" due to several factors, including "the World Trade Center tragedy."
In other words, existing insurance companies had their money tied up waiting to sort out 9/11 claims just as fear-driven customers were desperate to add more coverage, and willing to pay skyrocketing premiums. Companies like Endurance Specialty were able to charge 300 to 400 percent more than pre-9/11 rates, according to reports at the time.
That business can be viewed either as profiteering, or meeting a need.
Either way, Endurance Specialty did do one thing Romney is sensitive about: the company avoided paying US income taxes by basing its operations in Bermuda. It set up shop there, even though almost all of its funding and management were American, and two-thirds of its sales were in the US.
In its prospectus, the company even claims to have received assurances from the Bermuda Ministry of Finance that Endurance Specialty would be exempt from any newly passed taxes there until 2016.
New In The Phoenix -- Romney's Shadow Years - Talking Politics
Romney
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This shocking report a "must read".
