BOC Aviation takes insurers to court over claim for jets in Russia (updated)

BOC Aviation

14/11/2022 15:57

(Adds Lloyd's, Swiss Re no-comment)
       DUBLIN, Nov 14 (Reuters) - BOC Aviation Ltd  2588.HK 
has begun legal action in pursuit of claims against 16 insurers
over aircraft the lessor owns that are stuck in Russia, an Irish
High Court filing shows.
    The insurers named in the proceedings, which the filing
shows were issued on Nov.3, include Lloyd's of London Ltd
 SOLYD.UL , AIG Inc  AIG.N , Chubb Ltd  CB.BN  and Swiss Re AG
 SRENH.S . 
    Lloyd's and Swiss Re declined to comment and AIG and Chubb
did not immediately respond to requests for comment on BOC's
legal move, which did not include details on the size of the
lessor's claim.
    Leasing firms have begun pursuing claims over huge losses
since losing control of more than 400 leased planes worth almost
$10 billion after Western countries sanctioned Russia over its
February invasion of Ukraine and Moscow blocked the jets from
leaving.
    Singapore-based BOC recognised an $804 million asset
write-down in August relating to the 17 aircraft it owns that
remain in Russia, saying it was unlikely to be able to recover
the jets "in the foreseeable future, if ever".
    BOC said in August that it had filed insurance claims to
recover the losses and would vigorously pursue them. 
    Its Chief Executive Robert Martin told analysts in August
that the proceedings "will keep lawyers busy for many years" and
may require a complete rethinking of aviation insurance.
    Dublin-based AerCap Holdings NV  AER.N , the world's biggest
aircraft lessor, in June filed a $3.5 billion lawsuit at
London's High Court over its insurance claim for more than 100
seized planes, the largest claim by any lessor related to the
conflict.
    Other major lessors including Avolon and Dubai Aerospace
Enterprise (DAE) have also begun proceedings. 
 (Reporting by Padraic Halpin in Dublin; additional reporting by
Carolyn Cohn in London; editing by Alexander Smith and Jonathan
Oatis)
 ((padraic.halpin@thomsonreuters.com; +353 1 500 1504; Reuters
Messaging: padraic.halpin.thomsonreuters.com@reuters.net))