BOC Aviation Sues 16 Insurance Companies Over Russia Losses

In August, the company reported to its investors in a 6-month update that it was writing down the book value of 17 aircraft stuck in Russia as a loss valued at $804 million.

Michael Wildes

Wednesday, November 16, 2022 at 05:20 PM ET

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One credit rating agency says the grounding of airplanes in Russia could force insurers to face as much as $10 billion in claims. [Courtesy: Shutterstock]

Key Takeaways:

BOC Aviation has filed a lawsuit against 16 insurance companies to recoup $804 million for 17 aircraft stranded and nationalized in Russia.
This legal action is part of a broader trend, with other major aircraft lessors like AerCap and Carlyle Aviation also suing insurers for billions in losses due to planes stuck in Russia.
Russia's nationalization of foreign-registered aircraft has severely impacted the insurance sector, potentially leading to total claims as high as $10 billion, which could be devastating for the industry.
The situation is expected to result in prolonged litigation and may necessitate a complete rethinking of aviation insurance.

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BOC Aviation has become one of the latest aircraft leasing firms to launch legal action against insurers to recoup losses from airplanes stranded in Russia. The Dublin-based aircraft lessor, is suing 16 insurance companies, including Swiss Re, Chubb European Group, Lloyd’s of London, and AIG Europe, Reuters reported.

BOC Aviation is a subsidiary of Singapore-based BOC, the largest aircraft leasing company in Asia. In August, the company reported to its investors that 17 aircraft stuck in Russia amounted to a loss valued at $804 million.