1. Why’s so much of this in the Caribbean?

2. How is this used to avoid taxes?

3. What’s a reinsurer?

4. Why not just base the hedge fund in a tax-free country?

5. How much money is avoiding taxes this way?

6. This is legal?

7. Can the U.S. really go after these funds?

The Reference Shelf

• A Bloomberg report on how insurance has become the hot new way to avoid taxes, and another from 2016: "Dan Loeb’s Hedge Fund Is Biggest Winner in Dan Loeb’s Reinsurer."’
• From Bloomberg Businessweek, why hedge funds turned to reinsurance companies.
• A 2014 report by the U.S. Congress Joint Committee on Taxation on hedge fund reinsurance.
• The Paradise Papers report on how the Mercer family used offshore vehicles to avoid taxes.
• QuickTake explainers on the U.S. tax-cut debate and on profit shifting.