Topline
Billionaire financier Ronald Perelman is suing a group of insurance companies for more than $410 million over five multimillion dollar paintings Perelman claims were damaged in a 2018 fire at his East Hamptons estate, though the insurers say the artwork wasn’t hurt, according to Artnet.
Ronald Perelman attends the Apollo Spring Gala and 80th Anniversary Celebration at The Apollo … [+]
Key Facts
Court documents reported on by Artnet Wednesday revealed a 2020 lawsuit brought by Perelman against his insurers, in which three LLCs tied to Perelman — together known as AGP Holdings — claimed they were owed $410 million for five insured pieces of art they said were hurt in the fire: two Andy Warhol pieces, two by Ed Ruscha and a Cy Twombly work, according to Artnet.
The defendants include “certain underwriters” at Lloyds of London, Great Lakes Insurance SE of Germany, Swiss Re International of Luxembourg, AIG Property Casualty of New York, and Federal Insurance Company of New Jersey, according to Artnet.
Perelman said in court documents seen by Artnet that after the fire the five pieces “lost their luster, lost their depth, lost some of their definition, and lost a lot of their character.”
The insurers–which have already shelled out about $141 million for fire damage under the policies–deny the allegations, claiming the damage predates the 2018 blaze and that Perelman’s lawsuit launched before their investigation was completed.
Big Number
$125 million. That’s what Perelman’s side claims is the estimated worth of the most valuable of the five works, Cy Twombly’s “Untitled (1971).” The alleged $125 million value is significantly more than the most expensive Twombly piece to ever sell at auction, “Untitled (New York City)” which went for $70.5 million in 2015. AGP claims the two Warhol paintings, “Elvis 21 Times” and “Campbell’s Soup Can” are worth $75 million and $100 million, respectively. Ed Ruscha’s “Standard Station” is valued at $60 million, while the artist’s “Vicksburg” is claimed to be worth $50 million. Perelman purchased all five works through art megadealer Larry Gagosian, according to Artnet.
Contra
The insurers said in court documents the lawsuit coincided with a period in time in which Perelman was reportedly “desperately seeking cash to satisfy debts that had come due.” The five paintings the lawsuit deals with also happen to be insured for the highest values under Perelman’s insurance policies, they said.
Crucial Quote
“It just didn’t have its spark. It didn’t have its distinctive definition in the lines, in the swirls. It just lost—it just lost its oomph,” Perelman said of the Twombly’s alleged damage, according to Artnet. He compared the issues with the artwork to music, saying that “if the piano is out of key, and you’ve heard the piece performed on a piano that’s in tune, you know the difference.”
Our Valuation
Perelman is worth $1.9 billion, according to Forbes’ estimate. He was once worth more than $14 billion.
Key Background
Starting in the 1970’s, Perelman built an empire investing in a wide range of industries, including chocolate, cosmetics, entertainment, retail and pharmaceuticals through his holding company MacAndrews & Forbes. But the onset of the Covid-19 pandemic in 2020 took a toll on many of his companies, he said. His biggest blow came when Revlon, which he took control of in a 1985 hostile takeover, filed for bankruptcy in June after facing increased competition over the past few years. Perelman has reportedly been unloading billions worth of assets. He’s parted with millions of dollars in art and real estate along with his Gulfstream 650.
Further Reading
Why Larry Gagosian Bought Andy Warhol’s Marilyn Monroe Portrait For A Record $195 Million (Forbes)
Source: https://www.forbes.com/sites/carlieporterfield/2022/10/26/billionaire-ron-perelman-claims-410-million-in-damage-to-art-collection-after-hamptons-house-fire—but-insurance-companies-disagree/