© Reuters. FILE PHOTO: The logo of insurance company Swiss Re in front of its headquarters in Zurich, Switzerland, February 12, 2019. REUTERS/Arnd WIegmann/File Photo
By Carolyn Cohn and Kirstin Ridley
LONDON (Reuters) – Swiss Re (OTC) is among a growing list of reinsurers dropping its claim in a nearly $10 billion battle with aircraft leasing companies, which are seeking payouts of more than $200. planes stranded in Russia, can be heard in Moscow. court documents show.
Swiss Re's decision to accept the jurisdiction of the English courts follows a similar decision by peer Chubb (NYSE:) late last year as a battle against lessors including Ireland's AerCap, listed Carlyle Aviation Partners in the United States, and Merx Aviation, based in New York and Dublin. heats up.
Swiss Re and Chubb declined to comment.
The two heavyweights are among around 35 defendants who will now allow the case to be heard in England, court documents showed, as the first day of a High Court jurisdiction hearing in London began on Wednesday.
More than 400 planes have been stuck in Russia since Western nations imposed sanctions on the country following its invasion of Ukraine two years ago, triggering a wave of lawsuits including two complex group claims in London.
Wednesday's case revolves around “carrier” policies, under which Russian airlines leased planes through international lessors, insured them through Russian insurers and reinsured those policies through the London market. Landlords are considered insured and can therefore in some cases also claim directly.
Reinsurers fighting the claim say their policies stipulate that this case must be heard in Moscow. But landlords argue there are strong reasons not to enforce jurisdiction clauses that would put them at risk of unfair hearings and inconsistent rulings.
“It is a common fact that the Russian state may be willing to interfere in the hearing of cases in Russia where its interests are sufficiently involved,” Tom Weitzman, a lawyer for the landlords who is leading the jurisdiction challenge, told the court.
However, about 20 reinsurers, including AIG (NYSE:), AXA and some Lloyd's of London syndicates, still want the claims to be heard in Russia.
Lloyd's declined to comment. AIG and AXA did not immediately respond to a request for comment.
“While many insurers have felt that the prospect of a hearing in Moscow is completely unviable, others are maintaining their jurisdictional challenges for purely tactical reasons in a crude exploitation of the Russian invasion of Ukraine and the dire situation that exists today. “said a Carlyle spokesperson. He said Aviation Partners.
Some landlords led by AerCap, the world's largest landlord, are also suing insurers under “contingent and owned” policies in London, Dublin and some US states. A “mega-trial” is scheduled for October in London.
Meanwhile, agreements with Russia have begun to reduce the size of claims. Since filing their lawsuits, the lessors have secured settlements totaling more than $2.5 billion for more than 100 planes, ownership of which was transferred to Russian airlines.
