Alterra Group Insures New Logistics Hub against War Risks

Ukrainian development company Alterra Group has insured the construction of a new logistics center PORT2 in Lviv region. The insurer was the Ukrainian company INGO.

Alterra Group has partially insured the first part of the PORT logistics complex (PORT1), which includes the outbuilding and communications of PORT1. In addition, the construction of the second part of PORT (PORT2) was fully insured against war risks. All buildings, including finishing, communications and glass, as well as construction and installation works and materials (including the construction materials) or building elements, which were not put into operation, are insured. The amount of insurance coverage is UAH 20 million.

Under the insurance contract, INGO undertakes to indemnify for the cost of restoration of the insured objects in case of their damage or destruction as a result of military operations, including missiles or their fragments, drones, other types of armed aggression or defensive actions.

Additionally, in case of the insured event, INGO will indemnify for the costs of clearing the territory of the insured facility, firefighting costs, other measures to prevent or reduce the amount of damage, as well as payment for the services of specialists and overtime costs.

According to Dmytro Kovalchuk, founder of Alterra Group, such an insurance contract will greatly facilitate cooperation with potential clients and investors, especially during construction. If the investor sees that the facility is insured against military risks, he can be calm, because in case of damage, the insurance company will pay indemnity, and the management company will be able to restore the damaged part. Thus, the investor is financially protected and can be sure of indemnification for potential losses.

Andriy Semchenko, Corporate Business Director at INGO Insurance Company, said that insurers should cover the war risks of Ukrainian businesses to help the Ukrainian economy. Even though the Ukrainian insurance market is currently without the support of Western reinsurers for war risks.

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INGO Insurance Company has been providing insurance services to individuals and companies for 30 years. Since 2017, the major shareholder has been the Ukrainian business group DCH. INGO Insurance Company is one of the largest insurance companies in Ukraine in terms of premiums, own assets and insurance claims. The company meets the NBU requirements for transparency of ownership structure, compliance with solvency ratios, capital adequacy and riskiness of operations, and compliance with the requirements for business reputation of the insurer, its owners and managers. 
"INGO is a full member of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU), a member of the American Chamber of Commerce (ACC), the European Business Association (EBA), the National Association of Insurers of Ukraine (NASU) and the International Chamber of Commerce (ICC). On December 08, 2023. the rating agency IBI-Rating confirmed the long-term credit rating of JSIC "INGO" on the national rating scale at uaAA.

ALTERRA GROUP LLC / Alterra Group is a Ukrainian company specializing in the development and management of commercial real estate. The company manages 35 properties with a total area of 170,000 m², including the completed project of the PORT logistics center in Lviv.

PORT is a 48,600 m² logistics hub in Lviv from the development company Alterra Group. This is a modern project that combines industrial, warehouse, retail and office real estate on one territory, giving our clients the opportunity to concentrate all major processes in a single location. PORT2 is a continuation of the already well-known PORT project and additional 28,000 m² of high quality warehouse and retail space.