By Ryan Hewlett

Feb 26 - (The Insurer) - AerCap Holdings recognised $168 million in insurance settlements during the fourth quarter of 2024 relating to aircraft seized as a result of the war in Ukraine.

• AerCap recovered $23 million in the first half of 2024

• Irish lessor secured return of a single aircraft in H1 2024

• AerCap received cash insurance settlements totalling $1.3 billion in 2023

• High-profile contingent and possessed court hearings concluded in February

The Dublin-headquartered lessor disclosed in a trading update on Wednesday that the figure consisted of cash insurance settlement proceeds received from insurers under its contingent and possessed insurance policy.

The fourth-quarter settlement takes Aercap's total insurance and other recoveries related to the Ukraine conflict to $195 million in 2024.

AerCap is currently pursuing London market (re)insurers in the UK's High Court for $2.1 billion under its AIG-led hull all-risks policy. It has an alternative claim for 1.2 billion pounds ($1.53 billion) on its Atrium-led contingent war placement.

While settlement talks were ordered by the court last year, the case went to trial in October and concluded earlier this month. A judgment is expected in late 2025.

The lessor is separately pursuing claims worth a further $1.8 billion in the aggregate from international markets. These claims refer to so-called operator policies which were taken out by airlines and carriers with domestic insurers and reinsured in the London market.

In March 2024, the Commercial Court in London rejected the challenge to its jurisdiction brought by certain reinsurers in respect of the claims under the operator reinsurance policies, in a victory for lessors. A trial is anticipated in the second half of 2025.

AerCap has now received a number of settlements from insurers in relation to jets stranded as result of Russia’s invasion of Ukraine. This includes the $23 million recovered in H1 2024 relating to a Boeing 777-300ER retrieved from Ukraine.

AerCap became the first international lessor to publicly disclose an insurance settlement with insurers and airlines when it received a $645 million payout from NSK in September 2023 to cover the loss of 17 aircraft previously on lease to Russian flag carrier Aeroflot.

The commercial settlement provided a model and framework that has since been replicated by several international lessors, such as Dubai Aerospace Enterprise, SMBC and CDB Aviation.

Following the landmark settlement, AerCap said it had reduced its claim against insurers to $2.75 billion from $3.5 billion.