SMBC proceeds from Russian jet insurance settlements hit $1.4 billion

(Reuters) — Ireland-headquartered aircraft lessor SMBC Aviation Capital said Thursday it has booked a further $654 million in proceeds from insurance settlements over the past year related to jets stranded in Russia following Western sanctions.

That brought SMBC’s total recoveries from claims following the sanctions over Moscow’s war in Ukraine to $1.41 billion. It was one of six lessors that ended an Irish lawsuit against their insurers last month following a series of settlements.

SMBC recorded an impairment of $1.6 billion in 2022 to cover the full financial impact of having 34 jets stuck in Russia after the sanctions forced the termination of all Russian leases.

SMBC is owned by a consortium that includes Japan’s Sumitomo Corp. and Sumitomo Mitsui Financial Group.