Endurance Specialty Holdings was one of many insurance and reinsurance startups that cropped up in the wake of 9/11. These companies were designed to purchase debt from insurance companies who faced billions of dollars in claims after the attacks and sold insurance at high prices generated by the soaring rates that resulted from the cash crunch on traditional insurance companies. Mr. Romney was invested in Endurance Specialty Holdings both through Golden Gate Capital, a private equity firm founded by a former Bain Capital executive in 2000 and through his direct interest in another investment firm, CCG Investment Fund, LP.
In documents filed with the SEC ahead of a proposed IPO in late 2002, Endurance Specialty Holdings, which began operations in December 2001, a little over three months after the World Trade Center attacks, boasted about how they were taking advantage of economic opportunities created in the wake of September 11th.
But, but, but...Willard wasn't involved with Bain after 1999, was he? And didn't he have his money in a blind trust controlled by his close personal friend and lawyer? Yeah, that's not a blind trust, and Mitt knew exactly where his money was, because he was one of the original investors.
Endurance made a ton of money on those September 11th attacks, and so did Mitt Romney. But did he pay any taxes on the profit? Doubtful.
In addition to Endurance’s history of profiting from the September 11th attacks, Mr. Romney’s investment in the company is also interesting because the company was domiciled in Bermuda, though none of its initial investors hailed from the island nation and ten of them came from the United States. In SEC filings, Endurance noted this arrangement ensured it was not “subject to taxes computed on profits or income or computed on any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance tax or to any foreign exchange controls.” Throughout this election, the Obama campaign has accused Mr. Romney of using similar offshore investment schemes to avoid paying U.S. taxes.
What a patriot. This is the man who wants to be president, profiteering from a national tragedy and doing so without even paying a dime of taxes on it. Some might call him enterprising. I call it greedy.