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World Cup insurance deal expected

France will defend their crown in Korea and Japan

The French company, which is the main insurer of the tournament in Korea and Japan, is confident of reaching agreement with Fifa, world football's governing body.

"We expect there will be a new agreement in one form or the other," said an Axa spokeswoman.

"The parameters have changed so this could work through into higher premiums but it's still too early to say."

No date has yet been set for talks with Fifa.

Increased risk

The French group's German unit, Axa Colonia, cancelled its existing contract with Fifa on Thursday.

Axa said the risk that the World Cup would have to be called off had increased significantly since the attacks on 11 September.

Football's world governing body was paying instalments of £12m for insurance cover for the 2002 finals, which are due to begin on 31 May next year.

Fifa general secretary Michael Zen-Ruffinen said on Friday he was hopeful an agreement could be reached with AXA.