EULER HERMES DECLINES TO COVER MFI AD CAMPAIGN

UK-based retailer MFI has confirmed that Franco-German credit insurer Euler Hermes had declined to provide cover for a £24m television advertising campaign and that as a result M&C Saatchi and Zenith Optimedia had pulled out of the deal, reports The Times . McCann Erickson Birmingham is now arranging the campaign. MFI’s owner Merchant Equity Partners said that it was not worried by the Euler Hermes move, noting that “it seems to be a policy of Euler Hermes to cut back on providing insurance in the sector”. Euler Hermes recently reported a significant fall in its Q1 profits compared with Q1 2007, and stated at the time that its had undertaken a range of new measures in terms of risk underwriting”.