From The Boston Phoenix article by David s. Bernstein, July 18, 2012...
ROMNEY'S SHADOW YEARS
There's the case of Endurance Specialty, one of several casualty insurance companies that sprang up immediately after the 9/11 tragedy, which some accussed of profiteering off the tragedy.
Endurance Security was created in December 2001, and was one of the first investments of Golden Gate Capital - the fund started by former Bain Capital managers consisting primarily of funds from Bain and 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 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.
Either way, Endurance Specialty did do one thing Romney is sensitive about: the company avoided paying U.S. income taxes by basing its operation 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 U.S.
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.
...article is long - a very worthwhile read!
"If you don't think too good, don't think too much"
-Ted Williams
