Aircraft lessor Air Lease Corp. said on Monday it has received $328.5 million in cash, as part of certain insurance settlements related to its aircraft which were blocked from leaving Russia after the country’s invasion of Ukraine.
Before the invasion in early 2022, Russia was a key market for aircraft lessors, who purchased jets from Boeing and Airbus and leased them to the country’s airlines.
Lessors canceled these leases following Western sanctions, but Moscow refused to return the aircraft, effectively detaining them. Since then, lessors have been pursuing their insurers to recover losses on the stranded jets.
Air Lease said in a regulatory filing on Monday that it has recovered about $424.3 million from its initial $791.0 million claim to date.
The leasing firm remains in settlement talks with other insurers.
Concerns about Florida-based insurance carriers masking profits with the help of affiliated companies has spilled across the border into Georgia, with one state senator calling for an investigation.
Sen. Nabilah Islam Parkes, D-Duluth, this week sent a letter to Georgia Insurance Commissioner John King, asking for a comprehensive look at whether insurers in the state are “running a shell game” and diverting revenue to managing general agents, according to local and state news reports.
King’s office issued a statement noting that the Florida market has faced unique challenges and a probe by the Georgia insurance department is unnecessary, according to Atlanta News First and WSB news reports. King’s office already reviews insurers’ agreements with affiliates.
Parkes urged the investigation after Tampa and Miami newspapers obtained a Florida regulator’s draft report that suggested that some Florida property insurance carriers had reported losses of $432 million in recent years but their MGAs chalked $1.8 billion in profits.
The Florida House of Representatives’ Insurance and Banking Subcommittee held a hearing last week on the matter and has scheduled another for Thursday. Industry insiders have said the allegations raised by the OIR report don’t tell the complete story.
The issue could play a role in Georgia Gov. Brian Kemp’s move to push significant tort reform through the General Assembly this year. Senate Bill 68 was approved by a House committee Tuesday, a month after it won a Senate vote. Kemp and other supporters have said the changes could limit excessive lawsuits and help trim insurance costs.
Crowds of business owners and doctors came to the Georgia Capitol to support the bill. But people who had sued businesses in recent weeks rallied as Democrats argue the bill is a handout to businesses and insurance companies, the Associated Press reported.
