Chubb and Fidelis Face $340 Million Loss in Russian Aircraft Claims Ruling

By International Desk: In a significant setback for aviation insurers, the Commercial High Court of England and Wales has rejected claims by Chubb European Group and Fidelis Insurance Ireland seeking to recover approximately $340 million from war-risk underwriters related to aircraft stranded in Russia following the country’s invasion of Ukraine. The ruling, handed down by Justice Picken on May 13, 2026, dismissed the insurers’ contribution and indemnity claims, directing them instead toward subrogation routes for potential recovery.

The case stems from the broader Russian aircraft litigation triggered by the 2022 full-scale invasion. Western-leased aircraft operated by Russian airlines were effectively detained or seized under Russian decrees, leading to substantial losses for aircraft lessors such as AerCap and Merx Aviation Finance.

In a prior June 2025 judgment, Chubb and Fidelis were found liable under contingent war risk policies in lessor insurance programs. Chubb paid $57.6 million to AerCap and settled separately with Merx, while Fidelis paid around $240 million to AerCap and approximately $50 million to Merx, totaling over $340 million in combined payouts.

Chubb and Fidelis had argued that war-risk underwriters, who provided primary coverage under operator policies taken out by Russian airlines, bore the initial responsibility for these losses. They contended that their contingent payments effectively discharged liabilities that the primary underwriters should have covered, entitling them to contribution or reimbursement.

However, the court ruled that the insurers, as secondary or contingent obligors, had no direct right to indemnity or contribution from the war-risk reinsurers in this manner. The judgment emphasized that any recourse must come through subrogation, stepping into the shoes of the lessors to pursue claims under the operator policies.

This decision highlights the complexities of war risk exclusions, contingent coverage structures, and the interplay between lessor and operator policies in aviation insurance. It comes amid ongoing litigation in the Russian aircraft cases, with operator policy trials still scheduled for later in 2026.

The outcome may influence how similar claims are handled across the market, potentially affecting reinsurance arrangements and loss allocation in geopolitical risk scenarios.

For Chubb and Fidelis, the ruling represents a substantial hit, though both companies maintain strong overall financial positions in the global insurance market. Industry observers note that the case underscores persistent challenges in recovering losses tied to state actions and war perils, which often fall into gray areas of policy language.

As the aviation insurance sector continues to navigate the repercussions of the Ukraine conflict, this judgment could prompt greater scrutiny of policy wordings and risk pricing for exposures involving geopolitical instability.