SMBC Aviation Capital Settles Legal Dispute with Insurers Over Aircraft in Russia

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Resolution of Legal Dispute Over Stranded Aircraft

SMBC Aviation Capital has reached a settlement, concluding its legal proceedings against several insurers in an Irish court regarding aircraft stranded in Russia. The specifics of these commercial agreements remain confidential.

SMBC Aviation Capital has formally ended its legal action against selected insurers following commercial resolutions. “The terms of these agreements are confidential,” a representative confirmed in an email to BestWire.

Progress has also been made with the remaining insurers, as the company disclosed: “As noted during public hearings in Dublin on March 26, 2025, SMBC Aviation Capital has reached an agreement in principle with its remaining insurers, with final orders to discontinue proceedings expected soon.”

Industry Trends and Similar Settlements

This development comes on the heels of a similar resolution by Air Lease Corp., which recently achieved a partial settlement amounting to $328.5 million concerning aircraft stranded in Russia. This sum will be reported as an insurance recovery in their first-quarter 2025 financial statements, according to their U.S. Securities and Exchange Commission filing.

Despite this progress, Air Lease Corp.’s litigation in California continues against the majority of insurers under a contingent and possessed insurance policy to recover losses associated with aircraft detained in Russia.

Earlier Settlements and Legal Actions

In October 2023, SMBC secured an impressive $710 million settlement with a Russian insurer for claims related to aircraft leased to Russian airline Aeroflot. This settlement involved both insurance and reinsurance claims.

The recent settlements are part of a series of legal actions initiated in 2022, when SMBC filed a lawsuit in the Irish High Court against 11 aviation underwriters, including Lloyd’s Insurance Co. SA. This lawsuit was reflective of a broader trend of legal challenges by aircraft lessors against insurers following the Russia-Ukraine conflict.