Germany Extending State Terrorist Insurance by 2 Years

July 11, 2005

The German government is extending its guarantee of a national terrorism-coverage insurance pool for two more years, the finance ministry said last week.

The Extremus Versicherungs AG, founded in the wake of the 2001 terrorist attacks on the United States, offers coverage for damage to property and for business disruption if there is a terrorist attack on Germany. Total coverage under the program is $12 billion annually.

State backing for the pool had been due to expire at the end of 2005, but last week’s bombings in London demonstrated the importance of the program, the ministry said in a statement. The government, in effect, guarantees money can be paid out to policy holders, which include 1,070 German companies.

“With the extension of the state guarantee, and the participation in insuring large risks in Germany, the German government sets a clear signal of support for the German industry,” the ministry said.

Sixteen insurers and reinsurers are shareholders in the pool. The largest, Allianz AG and Munich Re AG, each hold 16 percent.

Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Was this article valuable?

Here are more articles you may enjoy.