PICC has been ordered to pay more than US$24.5 million after failing to appear to defend a Russia-related aviation insurance claim in the Commercial list of the Irish High Court.
The dispute stems from nine aircraft owned by CDB Aviation entities and leased to Russian airlines when Russia invaded Ukraine on February 24, 2022. At that point, all nine aircraft were on lease to various Russian airlines. The lessors later told the court they had tried and failed to repossess the aircraft and pleaded that each was lost by on or about 8 March 2022.
The aircraft were insured under a Contingent and Possessed Aircraft Hull, Spares and Equipment, Aviation Liability and Personal Accident Insurance Policy running from June 15, 2021 to June 14, 2022. The cover included both all risks and war risks, written on an agreed value basis. The agreed values for the nine aircraft totalled US$441,203,612.18 and were set out in a schedule confirmed between the plaintiffs and their broker, Willis Towers Watson, on May 17, 2021.
Stefania Raimondi, senior vice president on the transaction legal team at CDB Aviation Lease Finance DAC, told the court that agreed value was calculated at 115% of the purchase price to include funding costs and differing aircraft specifications.
The risk was placed in the market using slips. PICC Property and Casualty Company Limited executed a slip on May 18, 2021, agreeing to take 10% of the total liability under the policy. The court accepted that PICC therefore agreed to provide 10% of the total cover at the agreed values for both all risks and war risks losses.
The lessors made their claim on July 18, 2022 and issued proceedings on November 15, 2022. PICC was joined to the action on February 27, 2023. Solicitors entered an appearance for PICC as an all risks insurer on March 23, 2023 but applied to come off record on July 28, 2023. PICC did not appear at the later stages, and the High Court granted judgment in default of appearance on April 29, 2024, leaving damages to be assessed.
By the time of the assessment hearing on November 6, 2025, the plaintiffs had reached settlements with other insurers on seven of the nine aircraft. For four aircraft with a combined agreed value of US$251,350,000, they received US$194,082,419.82 and said PICC remained liable for 10% of the shortfall, US$5,726,758.02.
A settlement on another aircraft valued at US$22,476,097.06 left US$212,707.34 at PICC’s 10% share. A June 19, 2025, settlement on an aircraft with an agreed value of US$40,911,990.06 left US$1,152,896.36, and a 1 July 2025 settlement on an aircraft valued at US$19,772,191.64 left US$867,906.14.
Two aircraft, with agreed values totalling US$106,693,333.42, remained entirely unsettled; PICC’s 10% share of those values was US$10,669,333.34. The plaintiffs also gave PICC credit for currency fluctuations that marginally reduced its liability.
Mr Justice Rory Mulcahy held that PICC had agreed to cover 10% of the total losses and that, because the claim concerned total loss, liability should be measured by the agreed values rather than market value. He awarded US$18,631,601.20 for breach of contract.
The judge then granted damages for delay in payment rather than relying on statutory interest. Using the plaintiffs’ weighted average cost of capital, starting from September 1, 2022, and averaging 6.02% over the period to October 23, 2025, the court accepted a quantified delay loss of US$5,878,835.
In total, judgment was entered against PICC for US$24,510,436.20. The court indicated a provisional view that the plaintiffs should recover their reasonable costs of the proceedings against PICC, subject to any short written submissions on costs from the parties.
In this case, the court calculated PICC’s liability by reference to agreed values and awarded WACC‑based damages for delay in paying a large aviation insurance claim.
