Dublin-based SMBC Aviation Capital has received approximately US$710 million in cash insurance settlement proceeds for claims involving planes previously leased to Russian carrier Aeroflot.
In its announcement, the Irish firm said: “The amount represents a settlement of SMBC Aviation Capital’s insurance claims under Aeroflot’s insurance and reinsurance policies relating to 16 aircraft and associated engines. An additional insurance settlement has been concluded for one aircraft and associated engines managed by SMBC Aviation Capital.
“The insurance settlement and receipt of the settlement proceeds from limited liability company Insurance Company NSK, a Russian insurance company, were carried out in full compliance with all applicable laws, sanctions, and regulations and have been approved by the US Department of Commerce and the US Department of the Treasury.”
The aircraft operating lease company, which was acquired in 2012 by a consortium comprised of Sumitomo Mitsui Financial Group and Sumitomo Corporation, added that it will continue to actively pursue its litigation in the Irish courts under its own insurance coverage. Efforts to seek to mitigate its losses in respect of aircraft that were previously leased to other Russian airlines will also be continued.
Separately, Sumitomo Corporation noted: “Due to the receipt of the insurance settlement, the company expects to recognise a profit on its share of the insurance proceeds received (approximately 30 billion yen after tax effect considerations) in its consolidated financial results for the third quarter of the fiscal year 2024.”
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