PacRe runs into dead end

Validus announced last week that its Paulson & Co joint
venture PacRe had been placed in run-off from January, in another
demonstration of the difficulties facing the hedge fund reinsurance
model.
It is understood that Validus decided to pull the plug on the joint
venture, which dropped its rating from AM Best in August last
year.
Validus initially said it would be prepared to write
business on its own balance sheet to transfer to PacRe, but sources
said the reinsurer...