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Paramount Nets $71 Million Insurance Payout for Mission: Impossible Delays

By Xueyang
Sep. 18, 2023 updated 07:54

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Paramount has disclosed that it secured 57 million GBP (around 71 million USD) from Swiss insurance company Chubb due to COVID-19 production delays for Mission: Impossible — Dead Reckoning Part One. The film, the seventh in the franchise, struggled at the box office but this financial boost should aid its path to profitability.

While filming occurred in glamorous locations like Rome and Abu Dhabi, much of it took place in the UK studios of Leavesden and Longcross. The production hit several roadblocks due to global health measures, prompting Paramount to claim insurance money from Chubb. The insurer initially paid only 4.4 million GBP (5.5 million USD), despite a policy that could cover up to 80 million GBP (100 million USD). Paramount subsequently sued Chubb’s parent company, Federal Insurance, last year.

The lawsuit was settled in July 2022, and details have remained under wraps until now. Movies produced in the UK, like this one, reveal their budgets due to the government's film tax relief program, which refunds up to 25% of money spent within the country. To comply, studios create separate entities for each film.

In this case, Paramount’s UK subsidiary Jupiter Spring Productions, responsible for the Mission: Impossible films, recently reported 58 million USD in insurance income for 2022. Its total insurance payout is 71 million USD, and it has received 140 million USD in taxpayer funds since 2016. So far, the three Mission: Impossible films under this subsidiary have cost an eye-watering 905 million USD, with expenses set to climb due to ongoing labor strikes delaying Dead Reckoning Part Two.

Source: The Times