SMBC settles with more insurers in lawsuit over stranded jets

(Reuters) — Aircraft lessor SMBC Aviation Capital has settled Irish lawsuits against more insurers over jets stranded in Russia following Western sanctions in 2022, a company spokesperson said Friday.

SMBC has discontinued proceedings against “certain insurers,” including Fidelis, the spokesperson said in an email. The Irish Times Friday reported that SMBC had reached agreement with Fidelis and was at an “advanced stage of resolution” with Chubb.

The Irish Times reported that CDB Aviation had also reached agreement with Fidelis and Ping An. A spokesperson for CDB Aviation declined to comment.

The Irish Times also reported that all cases against “war risk” defendants in the case had now been settled. The case has treated “all risk” and “war risk” policies separately.

SMBC had previously reached settlements with Swiss Re and Scor Europe, two of the 18 insurers it sued as part of a group of six lessors’ Irish High Court action that began last June.

Lessors are suing dozens of insurers around the world over losses of at least $8 billion after more than 400 planes were stranded in Russia following the sanctions over Moscow’s war in Ukraine that forced the termination of their leases.

Avolon and BOC Aviation, two of the world’s largest aircraft lessors, and smaller rival Nordic Aviation Capital fully settled their lawsuits in the Dublin case last month.

The Irish High Court trial concerns around €2.5 billion ($2.6 billion) of insurance claims.

The trial in Ireland, where more than 60% of the world’s leased aircraft are owned or managed, is the largest ever heard in the country by number of lawyers.

Since launching the lawsuits, lessors have disclosed settlements with Russia totaling more than $2.5 billion for more than 100 jets, with ownership transferred to Russian airlines.