Fidelis considers appeal after 'disappointing' High Court ruling in aircraft lessor suit

By Scott Vincent

June 11 - (The Insurer) - Fidelis Insurance Holdings said it will review all options including a possible appeal after Wednesday’s High Court ruling in London that claimants in the Russian aircraft lessor "mega-trial" will be able to recover from war-risk rather than all-risk covers.

In a 6-K filing with the Securities and Exchange Commission, Fidelis said it was “disappointed by and respectfully disagrees with the English High Court’s decision”.

However, the company said it now has certainty on 95% of its Russia-Ukraine-related aviation exposures following Wednesday’s judgment.

Fidelis said its total costs related to the claims are expected to be in line with previous guidance, which had an upper limit of $150 million. A further hearing is scheduled for September to determine costs.

“Looking ahead, we are excited about future opportunities as our underlying portfolio continues to perform well, and we remain focused on capitalizing on attractive opportunities to drive growth and optimize margins,” Fidelis said in a statement.

KBW analyst Meyer Shields said shares in Fidelis were likely to trade down following Wednesday's judgment.

The judgment handed down by Justice Butcher related to 147 aircraft, 16 standalone engines and one other piece of equipment, court documents showed, with an insured value of more than $4.5 billion.

Some settlements with domestic Russian and international insurers, albeit at prices below the insured value, are thought to have reduced the value to nearer $3.0 billion.

The judgment covers actions bought by individual lessors including AerCap, Dubai Aerospace Enterprise, Merx Aviation, KDAC Aviation Finance and Falcon. (Re)insurers named in the actions included Lloyd's of London, AIG, Chubb and Swiss Re.