Aircraft lessor SMBC Aviation Capital has settled lawsuits against several insurers related to jets stranded in Russia following Western sanctions imposed in 2022, according to a company spokesperson.
SMBC has discontinued proceedings against specific insurers, including Fidelis. Reports indicate that the company has reached an agreement with Fidelis and is in advanced discussions with Chubb.
CDB Aviation has also reached agreements with Fidelis and Ping An, though a spokesperson for CDB declined to comment on the matter. Additionally, it has been reported that all cases against "war risk" defendants have now been settled, with "all-risk" and "war-risk" policies treated separately.
Previously, SMBC had settled with Swiss Re and Scor Europe, two of the 18 insurers involved in a legal action initiated by a group of six lessors in the Irish High Court last June.
The lessors are pursuing claims against numerous insurers for losses amounting to at least $8 billion after more than 400 aircraft were stranded in Russia due to sanctions related to Moscow's war in Ukraine, which led to the termination of their leases. Avolon, BOC Aviation, and Nordic Aviation Capital, three prominent aircraft lessors, have fully resolved their lawsuits in the Dublin case.
The High Court trial concerns approximately 2.5 billion euros ($2.6 billion) in insurance claims. SMBC's parent company, Sumitomo Corporation, reported that SMBC received $445 million in insurance settlement proceeds related to the case during the second half of its fiscal 2024.
Since the lawsuits began, settlements with Russia have totaled over $2.5 billion for more than 100 aircraft, with ownership transferred to Russian airlines. The trial in Ireland, where over 60% of the world’s leased aircraft are owned or managed, represents the largest case of its kind in the country by the number of lawyers involved.