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 is suing 16 insurers for $804 million to cover losses from 17 aircraft stranded in Russia following the country's nationalization of foreign-registered planes.
This legal action is part of a broader trend, with other major lessors like AerCap and Carlyle Aviation also filing multi-billion dollar lawsuits against insurers for similar losses.
Industry experts estimate that total claims from aircraft grounded in Russia could reach up to $10 billion, posing a potentially devastating and unprecedented challenge for aviation insurers.

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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.