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Landmark Aircraft Leasing Deal

Income failed to reach the projected levels and we advised our clients on their exposure to claims by the insurer. This led to a consideration of the underlying claims by the assured against the insurer. The dispute was highly complex, requiring an in-depth understanding not only of reinsurance practice and the law, but the technical aspects of aircraft leasing arrangements. Having investigated the background to the deal, we argued that the insurer made various misrepresentations and non-disclosures which induced our client to agree to reinsure it. These included the anticipated level of future claims under the FRIP. We commenced arbitration proceedings seeking various forms of relief from liability and ultimately settled the proceedings on favourable terms.

Ince & Co represented a group of major reinsurers in "one of the world's largest contested insurance claims" (Financial Times): a US$1 billion dispute arising from a landmark aircraft leasing deal. The insurer entered into a catastrophe financial risk insurance policy (FRIP) which indemnified the assured against any shortfall in lease income from a portfolio of commercial regional aircraft. The insurer reinsured its liability under the FRIP with a number of reinsurers, including our clients.

Income failed to reach the projected levels and we advised our clients on their exposure to claims by the insurer. This led to a consideration of the underlying claims by the assured against the insurer. The dispute was highly complex, requiring an in-depth understanding not only of reinsurance practice and the law, but the technical aspects of aircraft leasing arrangements. Having investigated the background to the deal, we argued that the insurer made various misrepresentations and non-disclosures which induced our client to agree to reinsure it. These included the anticipated level of future claims under the FRIP. We commenced arbitration proceedings seeking various forms of relief from liability and ultimately settled the proceedings on favourable terms.