Aircastle files $266m lawsuit on confiscated Russian aircraft
Aircraft leaser Aircastle Ltd. filed suit against a who's who list of global insurers including via a long string of Lloyd's syndicates, seeking payment on $265.86 million in claims for aircraft loss following the Russian invasion of Ukraine and ensuing sanctions.
Aircastle lost seven Airbus and three Boeing aircraft following the invasion, the initial summons and claim indicates. The aircraft had $265.86 million in insured value under a policy with both 'All-Risk' and 'War and Other Perils' coverage that ran December 1, 2020, to March 1, 2022, then an insured value of $222.45 million for a policy running March 1, 2022, to March 1, 2023.
The 59-entry defendant list is a who's who of the insurance world, chiefly via a list of 23 Lloyd's syndicates.
Chubb was given top billing for its double-digit share in near every cross-section of the policies, including over 21.5% of the all-risk coverage on the policy running into March 2022, 10% of that policy's total-loss cover and nearly 10% of that policy's war cover. Swiss Re and AIG unit Lexington join with double digit shares of the all-risk cover. Beazley syndicates are deep into the first policy's total loss cover. XL Catlin syndicate 2003, Liberty Specialty's 4472 and MS Amlin 2001 are stand-outs on the initial policy war cover.
For the second policy with coverage beginning in 2022, Chubb retains its stakes, Talbot, AXA XL and Fidelis rank high amongst new entrants while Beazley backed down from its heavy total loss position.
Scratch beneath the surface, and such names as Axis Specialty, Berkshire Hathaway, Convex, Hartford, HDI Global, Liberty Mutual, Mapfre and others are all present.
Aircastle claims its policies covered aircraft hull, spares, and equipment against "all risks of physical loss or damage" plus "loss or damage caused by war, invasion, or hostilities, any act for political purpose whether accidental or intentional, and confiscation or restraint, among other aviation perils" among other coverages. Defendants "improperly denied coverage or failed to confirm coverage within a reasonable time such that it constituted an effective denial."
The list of lawsuits on aviation covers following the Russian confiscation has grown notably in recent days on top of the major lawsuit from AerCap filed mid-year. Recent additions include a move by leasing firm Avolon to initiate proceedings against Lloyd's and twelve insurers and a suit by Dubai Aerospace Enterprise (DAE) against Lloyd's and ten insurers for similar losses .
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