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 initiated legal action against 16 insurers to recoup $804 million in losses from 17 aircraft stranded and effectively nationalized in Russia.
This move is part of a larger trend, as major aircraft lessors like AerCap and Carlyle Aviation have filed similar multi-billion dollar lawsuits against their insurers.
The unprecedented nationalization of foreign aircraft by Russia has triggered extensive litigation across the aviation insurance sector, potentially reshaping its future.
Analysts project that insurers could face claims totaling up to $10 billion, which industry experts describe as a devastating amount for the global aviation insurance market.

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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.