AXA RE: world's first humanitarian insurance policy issued

The United Nations World Food Programme announced that AXA Re has been awarded the world's first insurance contract for humanitarian emergencies. The contract provides contingency funding in case of an extreme drought during Ethiopia's 2006 agricultural season.

The policy complements recent UN moves towards greater effectiveness through the creation of an emergency fund which could provide fast injections of cash to aid operations in the first few days after disaster strikes.

"As a worldwide leader in Financial Protection and one of the pioneers of weather cover through its subsidiary AXA RE, AXA is happy to provide its financial expertise in implementing this innovative coverage. This is the first time that an insurance cover transferring risk to financial players is used for protecting people against the consequences of extreme drought. We are proud that our business can contribute to the struggle against the devastation caused by natural disasters in developing countries," said Hans-Peter Gerhardt, CEO of AXA RE.