Global aircraft leasing firm AerCap Holdings has collected over $600 million of insurance settlements over the fourth quarter of 2023, for a total of $1.3 billion collected during 2023.
“During the fourth quarter of 2023, we recognized recoveries related to the Ukraine Conflict of $614 million, primarily consisting of cash insurance settlement proceeds received from four Russian airlines and their Russian insurers in settlement of our insurance claims in respect of 50 aircraft and five spare engines on lease to these airlines at the time of Russia’s invasion of Ukraine in February 2022,” the firm stated.
Back in July 2022, it was reported that AerCap had sued AIG and other insurers, including Lloyd’s business Atrium, over the stranded planes following the outbreak of the Russia-Ukraine conflict.
The lawsuit followed a $3.5 billion all-risk claim filed in March over aircrafts lost in Russia, which the lessor’s insurers refused to pay out on.
AerCap argued that its insurers were in breach of policy by refusing its claim, and was seeking to recoup its losses in court.
AerCap is not the only aircraft lessor that has sued insurance companies over Russia losses, as it was joined by Singapore-based BOC Aviation and dozens others.
The Irish firm began legal action against 16 insurance companies, including Lloyd’s of London, Chubb European Group, AIG Europe and Swiss Re, in November 2022.
It’s thought that more than 400 foreign-leased planes worth $10 billion had remained in Russia after the country moved to nationalise vehicles left in its territory, in response to Western sanctions.
In total, over 40 leasing firms are struggling with insurers over who should bear up to these costs and have urged the High Court to allow a reinsurance dispute to be heard in London, as well as in other jurisdictions, not Moscow.
