Although the English courts have now delivered a verdict in favour of the claimants in the Russia Aircraft Lessor Policy mega-trial, Gallagher Re has observed that “significant uncertainty” persists, especially regarding how reinsurers might respond and the potential ripple effects on reinsurance pricing that could influence the broader aviation insurance market.
Readers may recall that judegment was handed down on 11 June 2025 concerning the Russia Aircraft Lessor Policy ‘mega-trial’ held in the UK High Court, comprising a combined hearing and judegment of six actions in which the lessors claimed against their relevant Lessor Policy insurers.
The judgement relates to 147 aircraft, 16 standalone engines, and 1 piece of other equipment, which had a total insured value of over $4.5 billion.
“The uncertainty surrounding the Russian aircraft lessor court cases has been a concern for some time, and we have, as a market, held our breath waiting for judgements to be made. Positively, a verdict in favour of claimants has now been reached in the English courts, despite which the direct market, for now at least, remains stable,” Gallagher said in a new report on the matter.
However, the firm noted that significant uncertainty persists with the full and final impact of this and other decisions yet to be truly determined.
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“For example, there is now considerable discussion about the reaction of reinsurers and possible pressure on reinsurance pricing flowing back through the direct aviation insurance market,” Gallagher Re explained.
For the moment, the firm said it anticipates a “period of lag” before any conceivable tremors start to be felt towards year-end.
In response to the verdict, Fidelis Insurance Group recently expressed disappointment with the decision, stating it “respectfully disagrees” with the court’s reasoning and is considering all options, including an appeal.
Fidelis continued, “Notwithstanding this outcome, Fidelis Insurance Group continues to maintain a strong balance sheet and remains well-positioned to advance strategic growth and capital management initiatives.
“In light of this decision, we have reached a resolution in respect of approximately 95% of the exposure related to lessor policy claims in litigation, effectively putting this event behind us.”
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