Usiminas renews $6.38bn plant policy

LONDON - Usiminas, the consortium responsible for the production of flat steel at Minas Gerais, Brazil, has renewed its all risk policy for its plant in Ipatinga to the value of $6.38bn.The policy insures against breakdown of plant machinery, lost profits through stoppages and investments in expansion estimated at $1.2bn. Lead company for the consortium, Itau Seguros, issued the contract and negotiated the reinsurance with IRB Brasil Re. Coinsurers on the deal include Sul America, AGF Brasil, Americo do Sul Yasuda, America Latina, Brasdesco Generali, Real and Unibanco. IRB Brazil Re negotiated the placement on the international market through Catalyst Re Consulting. The Brazilian insurance market is absorbing $380m of the total $6.38bn amount.