AIRCRAFT leasing firms working to retrieve planes from Russia are set to collide with an aviation-insurance industry bracing for an unprecedented barrage of claims, reports Bloomberg.
Lessors of planes stuck in Russia have warned insurers of claims to come if the jets aren't returned as insurers cancel policies invoking war risk, according to those involved.
'The magnitude of potential loss here is staggering,' said Garrett Hanrahan, global head of aviation and space for insurance broker Marsh, a unit of Marsh McLennan. 'This could potentially be the biggest aviation insurance loss in market history.'
Leasing firms seeking to repossess have until March 28 to cancel contracts under European Union sanctions after President Vladimir Putin allowed Russian airlines to keep aircraft until the end of their leases.
Foreign lessors had 523 aircraft rented to Russian operators as of March 10, according to aviation consultant IBA. Dublin's AerCap Holdings, the world's biggest leasing firm, had 142 of the total, followed by SMBC Aviation Capital with 35.
Lloyd's of London provides the vast majority of aviation coverage, according to people familiar with the matter who asked not to be identified discussing private information.
Representatives for AerCap and SMBC Aviation declined to comment on whether they had sent any notices of claims. Lloyd's of London didn't immediately respond to requests for comment about the market's exposure to potential claims.
SeaNews Turkey
Lessors of planes stuck in Russia have warned insurers of claims to come if the jets aren't returned as insurers cancel policies invoking war risk, according to those involved.
'The magnitude of potential loss here is staggering,' said Garrett Hanrahan, global head of aviation and space for insurance broker Marsh, a unit of Marsh McLennan. 'This could potentially be the biggest aviation insurance loss in market history.'
Leasing firms seeking to repossess have until March 28 to cancel contracts under European Union sanctions after President Vladimir Putin allowed Russian airlines to keep aircraft until the end of their leases.
Foreign lessors had 523 aircraft rented to Russian operators as of March 10, according to aviation consultant IBA. Dublin's AerCap Holdings, the world's biggest leasing firm, had 142 of the total, followed by SMBC Aviation Capital with 35.
Lloyd's of London provides the vast majority of aviation coverage, according to people familiar with the matter who asked not to be identified discussing private information.
Representatives for AerCap and SMBC Aviation declined to comment on whether they had sent any notices of claims. Lloyd's of London didn't immediately respond to requests for comment about the market's exposure to potential claims.
SeaNews Turkey
