DAE files lawsuit against 11 insurers after $600m aircraft write-off

Two months after Aircraft leasing firm Dubai Aerospace Enterprise (DAE) was forced to write-off almost $600m in aircraft stranded in Russia, the firm has filed a mass lawsuit against 11 London-based insurers.

Related topics:  insurance,  Ukraine
Tabitha Lambie | Editorial assistant, Barcadia Media
28th October 2022

The High Court claim names Lloyd’s of London, AIG, Swiss Re, and Chubb amongst others.

Stranded assets due to the Ukraine War has been an ongoing issue for both aviation providers and insurers alike. Several insurers, including AXA, have experience significant losses, which, following its interim results earlier this year, AXA chief executive Thomas Buberl confirmed was due to “hundreds of planes being left stranded.”

READ MORE: Thomas Buberl comments on AXA Partners’ €300m loss during Ukraine war

Since losing control of more than 400 leased planes worth close to $10bn due to Moscow blocking jets leaving Russia, lessors have vowed to pursue insurers financially.

DAE, which said in August it had written off $576.5 million for its planes, noted in its half-year results statement in August that it had "no way to determine whether these aircraft will be returned at any point in the future."

"The group has insurance in respect of the aircraft in question under a number of insurance policies and the group has filed insurance claims to recover amounts due under the policies," it added.

A spokesperson for Lloyd's said the insurer was "not at liberty to share information on any specific claim, policy or policyholder," reports Reuters.

Munich Re, AIG and Swiss Re declined to comment while other insurers and DAE did not immediately respond to requests for comment.

Details of the claim, which was filed last week, are not yet publicly available.

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