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Fifa Signs New Insurance Deal

October 29th 2001

Fifa have successfully secured a new cancellation insurance contract for the 2002 World Cup finals thus guaranteeing the event will go ahead as scheduled. The new deal comes as a welcome relief to Fifa and the football world in general.

The new contract, with US-based National Indemnity Company, follows the decision by insurance giant AXA to withdraw its insurance cover for the finals in South Korea and Japan following last month's terror attacks in the United States and the explosion at a Toulouse chemical plant 10 ten days later.

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World Cup 2002: Fully covered

Both these incidents hit the French company particularly hard and it has estimated its exposure to related claims at over US$500m.

"I'm delighted that, in just a few days, Fifa has managed to seal a new contract and that we can count on a strong insurance partner in an emergency," said Fifa president Sepp Blatter. The new contract cannot be canceled.

Fifa spokesman Andreas Herren declined to say how much the insurance contract would cost. Fifa had previously agreed to pay AXA $17million in premiums to protect themselves against the possibility of having to cancel the event.

"Fifa claimed there were no valid grounds for this move. Subsequent negotiations with AXA did not bring satisfactory results and Fifa has since commenced legal action against AXA."

National Indemnity Company, based in Nebraska and with assets of over US$38 billion is a subsidiary of the Berkshire Hathaway Insurance Group.

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