Report: Paulson Reinsurer PacRe Winding Down
The Bermuda-based reinsurance company set up by the hedge fund manager John A. Paulson has stopped writing policies and is winding down, according to reports from both Bloomberg and the New York Times.
The NYT reports, “The company, PacRe, which Mr. Paulson set up in 2012, has not been writing policies since Jan. 1, according to a statement Tuesday evening by Validus Holdings, a Bermuda reinsurance company that did the PacRe deal with Paulson & Company.”
“The venture has been a target of U.S. officials since 2014, when Ron Wyden, the Oregon Democrat who led the Senate Finance Committee at the time, urged the Treasury Department to crack down on PacRe and similar companies set up by hedge fund managers,” Bloomberg reports.
“He said they were exploiting a loophole that allowed ‘billionaires to benefit from unwarranted and massive tax breaks.’ Hillary Clinton, who is seeking the Democratic nomination for president, pledged to end the Bermuda reinsurance tax advantage.
“PacRe was started in 2012 with $500 million in capital, to be invested in three of Paulson’s funds, Validus said at the time. Paulson, a major donor to Republican candidates, has a net worth estimated at $9.8 billion, according to the Bloomberg Billionaires Index.”
