Irish lessor AerCap has received an insurance pay-out of approximately USD572 million, fully settling claims with a Russian insurer against Ural Airlines (U6, Ekaterinburg) and S7 Airlines (S7, Novosibirsk) concerning airframes and engines leased to the two carriers as of February 2022.
AerCap confirmed the payment in a December 22, 2023, filing with the US Securities Exchange Commission (SEC). "Effective upon receipt of these insurance settlement proceeds from Limited Liability Company, Insurance Company NSK (NSK), a Russian insurance company, we have released our claims against NSK, these Russian airlines and their international reinsurers with respect to these 47 aircraft and five spare engines," the filing reads. "These insurance settlements and receipt of the settlement proceeds were approved by the US Department of Commerce and the US Department of the Treasury and are consistent with other applicable sanctions regimes."
The filing indicates that AerCap had 18 aircraft and one spare engine placed at Ural Airlines and 29 aircraft and four spare engines at S7 Airlines.
AerCap notes that it had lodged a separate claim for approximately USD836 million against its All Risks insurers under the lessor's contingent and possessed insurance policy. "This claim will be amended in due course to reflect these recoveries," the filing says. "While insurance settlement discussions are ongoing with respect to our remaining claims under the insurance policies of S7 and other Russian airlines, it is uncertain whether any of these discussions will result in any insurance settlement or receipt of insurance settlement proceeds and, if so, in what amount. In particular, it remains uncertain whether the necessary approvals and funding to complete any such further insurance settlements can be obtained."
In the third quarter of 2023, AerCap also fully settled a USD646 million insurance claim against 17 aircraft and five spare engines formerly leased to Aeroflot (SU, Moscow Sheremetyevo) and its sister, Rossiya (FV, St. Petersburg). NSK was also the insurer in this claim. The September SEC filing notes that its separate claim with the All Risks insurers had reduced to USD2.75 billion as a result.