The policy has a $1.2bn aggregate cap and has the potential to open the gates for other lessors to follow down the same path, claiming on their all-risk policies with no aggregate cap and inflating the industry’s exposure to the crisis. The news of BOC’s insurance claim, reported by Bloomberg, comes shortly after fellow lessor Air Lease announced it was “vigorously pursuing” insurance claims related to $802.4mn of stranded equipment.Īir Lease confirmed it expects to “record a write-off” for the total value of the stranded equipment, as “it is unlikely the company will regain possession of the aircraft that have not been returned”.Īs previously reported by this publication, the world’s biggest aircraft lessor AerCap is pursuing a $3.5bn claim on its contingent all-risks policy – a claim substantially higher than the value of aircraft it owns on the ground in Russia, worth around $2.7bn.ĪerCap has a contingent war policy written in the London market led by Atrium. Founded in 1993, BOCA had aircraft assets with a net book value of US19.6bn at the end of December 21 and has recorded 28 consecutive years of cumulative profit in excess of US5.5bn since inception. One of BOC’s planes leased to a Russian airline, AirBridgeCargo, was outside Russia for maintenance before sanctions were introduced and was able to be recovered. BOCs Martin said the consequences of the battle ahead may force the aviation business to completely rethink how it does insurance and that having too much concentrated on one single market is not. BOC Aviation (BOCA) is the largest Asia-headquartered aircraft operating lessor, as measured by the value of owned aircraft. In its annual report, the lessor confirmed it has 17 aircraft still on the ground in Russia, worth $589mn and representing roughly 4.5% of its aircraft assets by book value.
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