Sources say Cathedral Capital Ltd is the lead event cancellation insurer on Jackson concerts
Talbot Underwriting has confirmed that it provided event cancellation cover for AEG Live, the promoter of Michael Jackson’s O2 concerts. The company said it has a maximum net exposure of $3m, net of reinsurance recoveries and reinstatement costs. “We have 25% participation but we are not the lead,” said Rupert Atkin, chief executive of Talbot.
The King of Pop Michael Jackson (50) passed away on Thursday 25 June at 2:26pm. He was due to perform 50 concerts at the O2 arena starting 13 July this year.
According to a source familiar with the situation the lead of the event cancellation policy is Cathedral Underwriting Ltd with 50% exposure. Cathedral confirmed that it provides event cancellation policies but would not comment on whether it had covered Michael Jackson’s gigs.
Reports in the UK press said broker Robertson Taylor, a subsidiary of Oxygen Holdings, placed the cancellation cover on behalf of AEG Live. Robertson Taylor refused to comment.
Lloyds of London said that cancellation had been placed with the market. “We can confirm that some insurance for Michael Jackson’s concerts has been placed in Lloyd’s market but any losses are not likely to be significant,” said a spokesperson.
A source said a handful of Lloyd’s syndicates were exposed for accident and health and cancellation.
It is still unclear what the total cost of claims will be. First estimates of exposure as a result of the singer's death are up to the $400m mark. Revenues from ticket sales, including VIP packages, are estimated at $100m, and sales from merchandise would have fetched $15m according to reports.
The Times said total cover for the first 10 dates had been arranged for a total of £80m.
A statement from the Ronald Reagan UCLA Medical Center said that it is believed Jackson suffered from cardiac arrest. Attempts to resuscitate Jackson were unsuccessful when he arrived at the hospital at 1:14pm on Thursday.