OREANDA-NEWS. Ingosstrakh Insurance Company and SOGAZ OJSC won the tender for the right to insure the assets of Magnitogorsk Iron and Steel Works OJSC (MMK, in Magnitogorsk town in Chelyabinsk Region). Several other major Russian insurance companies participated in the tender to provide insurance for MMK OJSC. As a result of the offer selection process, Ingosstrakh Insurance Company and SOGAZ OJSC were recognized as the best and were granted the right to conclude a contract of insurance for the company's assets for a period of one year. The share of each company in the coinsurance contract is 50%. Ingosstrakh Insurance Company is the leading contractor.

The insurance coverage is provided for a wide range of risks, including the risk of loss and damage, to buildings, structures, drag-over skids, machinery, equipment and other assets involved in the production process at the iron and steel works.

In accordance with the requirements of the customer, the risks of MMK JSC will be reinsured in the domestic and international markets under contracts of compulsory and optional reinsurance.

According to the agreement between the parties, the insured amount is not to be disclosed.

Magnitogorsk Iron and Steel Works OJSC is among the world's largest steel producers and is the leader in the Russian ferrous industry.

The company's operations in Russia are represented by a large steel producing complex with a complete production chain that includes processes from iron ore raw materials preparation to high-level processing of ferrous metals. In 2013 MMK Group produced 11.9 million tons of steel and 11 million tons of finished metal products. MMK Group revenue in 2013 was USD 8,190 bn, and EBITDA USD 1,223 bn.