LONDON, (Reuters) – Lloyd’s of London is facing major claims from Ukraine this year, but it will not cause solvency problems, according to the commercial insurance market.

According to Lloyd’s, the company is in contact with market partners to assess their exposure to conflict-related risks.

Lloyd’s is home to around 100 syndicates that underwrite complex risk such as ships, planes and oil rigs.

It is believed that the aviation insurance market will be most affected by Russia’s invasion in Ukraine and any subsequent sanctions by Western countries.

The sanctions deadline for global leasing firms to seize over 400 Russian aircraft worth nearly $10 billion is imminent, experts say. This comes as legal wrangling among airlines, lessors, and insurers can last up to a decade.

Lloyd’s business in Ukraine, Russia, and Belarus is currently less than 1 percent of total market business.

Lloyd’s was badly affected by the COVID-19 Pandemic 2020. However, Lloyd’s recovered ground after increasing premiums and exclusions of the virus.

Following a loss of approximately 900,000,000 pounds in 2020, the company posted a 2021 profit pre-tax of 2.3billion pounds ($3.04billion).

“The market’s underwriting discipline will enable sustainable profitability in the years to come, coupled with a balance sheet that can support our ambition to grow profitably,” Chief Executive John Neal said.

($1 = 0.7571 pound)