Lancashire and MS Amlin agree settlements with aviation lessors

By Rebecca Delaney Oct 13 (The Insurer) — Lancashire and MS Amlin have separately entered into confidential settlement agreements with three aviation leasing companies over aircraft detained following Russia's invasion of Ukraine, according to court documents published on October 5. A Tomlin order published by the High Court of England and Wales shows MS Amlin Corporate Member Limited agreed to confidential settlement terms in two cases with GTLK Europe DAC, one case with STLC Europe Four Leasing Limited and one case with Aurum Leasing One (Ireland) Limited.

Around 20 war-risk reinsurers are defendants in the litigation, which relates to (re)insurance policies covering aircraft and engines stranded in Russia after its February 2022 invasion of Ukraine. According to the order, all further proceedings between the claimants and MS Amlin will be stayed upon the terms set out in the confidential settlement agreement. Any application made by the claimants for an order against other war-risk defendants under the discontinuance costs order shall be reduced by MS Amlin's share. A separate Tomlin order, also published on October 5, said Lancashire had agreed confidential settlement terms in the same four cases.

The underwriting members of Lancashire Syndicates 3010 and 2010 were included as war-risk reinsurer defendants. Lancashire also agreed settlement terms in another suit brought by GTLK Europe in its capacity as a war-risk reinsurer and an all-risk reinsurer. According to the order, the claimants shall not subsequently seek any order under which Lancashire and/or their affiliates will be liable to pay the costs of any other party in these proceedings. The Insurer reported in May that a group of war-risk insurers' appeal against AerCap over a London High Court ruling last June in favour of aircraft lessors is set for a one-day Court of Appeal hearing ​on February 22, 2027.

Lancashire declined to comment. MS Amlin declined to comment.