AerCap Holdings N.V. announced a favorable judgment from the Commercial Court in London, entitling its subsidiary, AerCap Ireland Limited, to recover approximately $1 billion from insurers. This award is under the 'War and Allied Perils' coverage of its contingent and possessed insurance policy.
The payment is in respect of aircraft and engines that AerCap and its affiliates formerly leased to Russian airlines and were not recovered following Russia's invasion of Ukraine in February 2022. The indemnity amount is due to be paid by July 2, 2025.
This award significantly contributes to AerCap's total pre-tax recoveries related to the Ukraine conflict, bringing the total to approximately $2.5 billion. This follows a pre-tax net charge of $2.7 billion recognized in 2022 and previous recoveries of $1.3 billion in 2023 and $195 million in 2024.
The company stated that claims against insurers and reinsurers of the Russian airlines' insurance policies for a number of these assets remain ongoing. This legal victory substantially mitigates the financial impact of the unrecovered assets and strengthens AerCap's balance sheet.
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