Aercap settlement good news for insurers: Lloyd’s CEO

(Reuters) — A landmark agreement around jets stranded in Russia is positive for insurers, Lloyd’s of London CEO John Neal said Thursday as the commercial insurance market reported a first-half profit of £3.9 billion pounds ($4.9 billion).

Aercap, the world’s largest aircraft lessor, this week agreed to settle an insurance claim over Russia’s refusal to return 17 jets leased to airline Aeroflot, in a dispute over 400 Western planes stranded in the wake of the Ukraine invasion.

The deal, an apparent compromise in an economic war between Moscow and the West, looks set to lower a bill facing insurers, who are locked in court cases over who should pay for the loss of up to $10 billion.

Mr. Neal told Reuters the Aercap settlement was “good news for us, too. It means we can sit down and start to have the conversation about what is the claim.”

Beazley CEO Adrian Cox told Reuters Thursday that the Lloyd’s insurer’s exposure to the stranded jets was small, but added:

“We have been hearing more noises about settlements being negotiated. It wouldn’t be surprising to us if we saw some settlements happen before the trials started.”

Lloyd’s, which recorded a loss of £1.8 billion in the first half of 2022, saw a 22% rise in gross written premiums to £29.3 billion due to expansion in existing syndicates, the introduction of new syndicates and a 9.1% increase in rates, it said in a statement.