Reinsurance News

Aviation

Munich Re could face Russian jet loss via war risk policies: Jefferies

15th July 2022

Analysts at investment bank Jefferies have contended that Munich Re faces a “non-trivial” exposure to the ongoing aviation crisis concerning jets stranded in Russia, possibly via its “war risk” policies. Munich Re has a 49.96% share of Global Aerospace, which is on the all-risks cover for aircraft lessing giant Aercap, which ... Read the full article

Stranded aircraft lessor brings $3.5bn lawsuit against AIG

14th July 2022

Aercap, the largest global aircraft leasing firm, has sued AIG and other insurers including Lloyd's business Atrium over planes stranded following the outbreak of conflict between Russia and Ukraine, according to reports from City A.M. The lawsuit follows a $3.5 billion all-risk claim filed in March over aircraft lost in Russia, ... Read the full article

Lessor SMBC recognises $1.6bn impairment on aircraft stranded in Russia

8th July 2022

Leading aircraft leasing firm, SMBC Aviation Capital, has said it is "unlikely" that it will be able to recover 34 owned aircraft stranded in Russia following the country's ongoing invasion of Ukraine and subsequent sanctions, leading the company to recognise a $1.6 billion write-off. "34 owned aircraft remain in Russia despite ... Read the full article

Russia’s invasion of Ukraine could cause 30-40% rises in aviation insurance

28th June 2022

Insurance coverage for the aviation sector could rise by 30 to 40 percent or more, according to a new report by CE Noticias Financieras. In addition, service providers are expected to tighten their screening policies to ensure that airport and aircraft operations are safe. Octavio Careaga, president of THB Mexico, an ... Read the full article

Ukraine-Russia conflict market losses estimate narrowed to $10bn

24th June 2022

Swiss Re has reiterated that losses from the Ukraine/Russia conflict appear to be a mid-sized nat cat event, narrowing estimated market losses to $10bn from $15bn previously estimated, according to a Goldman Sachs report for Q1. The report noted that reinsurance and London Market names are potentially exposed in various lines, ... Read the full article

Promising outlook for aviation insurance: Swiss Re Institute

23rd June 2022

Despite recent challenges, the outlook for the aviation insurance industry looks promising, with an estimated premium growth of 4-5% per year to 2030, according to a new report by Swiss Re Institute. In addition to this, with airlines' investment in greener and safer new aircraft, the Institute sees growing opportunities for ... Read the full article

UIB adds Osama Altajer to Aviation & Space Team

20th June 2022

International re/insurance broker UIB has announced the appointment of Osama Altajer as Aviation Production and Risk Management Executive. Based in UIB’s offices in London, he will report directly to Miles Taffs, Managing Director, Aviation Division. Altajer brings over 20 years of experience negotiating with global brokers & insurers, innovating new facilities, handling ... Read the full article

Premiums up twofold for Ukraine-exposed specialty business: reports

31st May 2022

Insurance premiums are being hiked to double or more than their pre-conflict levels for some aviation and marine businesses with exposure to the war in Ukraine, industry sources have reported. Reports from the Financial Express of India suggest that aviation war cover premiums have doubled globally, despite coverage already having been ... Read the full article

Swiss Re’s Ukraine war reserves include aviation as there’s “real loss there” – CFO Dacey

5th May 2022

A portion of the $283 million Swiss Re reserved in the first-quarter of 2022 for the ongoing war in Ukraine is for aviation, as the reinsurer believes "there is real loss there," according to its Chief Financial Officer (CFO), John Dacey. This morning, Swiss Re announced reserves of $154 million within ... Read the full article

Hannover Re’s Ukraine war provision excludes potential aviation losses: CFO Jungsthöfel

4th May 2022

After reporting an additional general provision in the low triple-digit million euro range in relation to the ongoing war in Ukraine, Hannover Re's Chief Financial Officer (CFO), Clemens Jungsthöfel, has explained that this does not include additional reserves for the aviation line of business. This morning, the German reinsurer announced ... Read the full article

Aircraft lessor writes off Russian jets, as hopes of recovery fade

26th April 2022

Lessor company Air Lease Corporation has revealed that it expects to record a write-off of its interests in its owned and managed fleet that remain in Russia, totalling approximately $802.4 million. The company believes it is “unlikely” to regain possession of aircraft that have not been returned by Russia since Western ... Read the full article

Ukraine conflict industry loss could exceed $20bn: PCS

18th April 2022

The insurance and reinsurance industry loss from the conflict in Ukraine could exceed US $20 billion, according to Verisk-owned specialist claims and loss data unit PCS. Property Claim Services (PCS) has analysed data from its three most relevant product offerings, the PCS Global Aviation, PCS Global Marine and Energy, and PCS ... Read the full article

Aircraft lessors face huge insurance cost rise: reports

8th April 2022

With insurers and reinsurers still bracing for potentially historic aviation losses from the conflict between Russia and Ukraine, reports suggest that aircraft lessors are already seeing huge hikes in the cost of their coverage. Quoting the Chief Executive of major lessor BOC Aviation Ltd this week, Reuters has reported that aviation ... Read the full article

Kremlin confirms stranded planes will not be returned

1st April 2022

A statement from Russian Deputy Prime Minister Yuri Borisov has confirmed that all Western planes still in Russia following the termination of leasing contracts earlier this week will remain in the country indefinitely. Borisov said that all planes that have had leasing contracts ended have now been entered into the Russian ... Read the full article

S&P sees worst-case Russia insured loss of $35bn+ across aviation, specialty

31st March 2022

Analysts at S&P Global Ratings have looked at a range of potential loss scenarios for re/insurers arising from the conflict between Russia and Ukraine, with its worst case scenario carrying a potential loss of more than $35 billion across aviation, specialty and cyber business. There has been much speculation about how ... Read the full article