AXA To Pay FIFA For Cancelled World Cup

NU Online News Service, Jan. 2, 11:55 a.m. EST?A German court has ruled that French insurer AXA's cancellation of its 2002 World Cup policy was unlawful and has ordered the company to pay compensation to F?d?ration Internationale de Football Association, world soccer's governing body.[@@]

In a statement, FIFA explained that it began its legal action against AXA after the Paris, France-based insurance giant terminated its $1.12 billion policy for the World Cup in South Korea and Japan following the Sept. 11, 2001 terror attacks.

After AXA canceled its World Cup policy, FIFA signed a new coverage with National Indemnity Company, a subsidiary of Berkshire Hathaway in Omaha, Neb.

In its ruling, the German court said that AXA, as leader of a consortium of 63 insurers, was liable to pay FIFA compensation amounting to its own participation quota of more than 20 percent.

FIFA President Sepp Blatter said in a statement that "FIFA is happy with this judgment."

"The unilateral and, according to the court pronouncement, unlawful termination of insurance by AXA had far-reaching consequences for FIFA, especially from the financial and logistical point of view, for which AXA will therefore be paying compensation," Mr. Blatter commented.

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AXA To Pay FIFA For Cancelled World Cup

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