Lloyd's wrote cover for downed airplane.

The crash of an Armenian jetliner, with the loss of 113 lives, isn't likely to cause major problems for underwriters, according to Steve Jutton, claims manager for Beaufort Underwriting Agency Ltd., the lead insurer on the loss at Lloyd's.

The hull was insured for $25 million, with a combined single-limit liability cover up to $750 million, Jutton said.

Beaufort wrote its cover through Lloyd's Syndicate Pritchard 318.

The Airbus A320 crashed in bad weather on May 3 into the Black Sea near Sochi, a resort in southern Russia. The plane was operated by Armavia, Armenia's national airline. The flight had originated in the Armenian capital of Yerevan.

There were no survivors in the crash, described as the worst in Armenia's history.

Jutton wouldn't detail the syndicate's share of the loss, nor identify any of the other insurers. Beaufort Underwriting manages Pritchard 318.

"There's a fairly extensive following market on this one," Jutton said.

Only a fraction of the liability limit is likely to be used, Jutton said, noting that losses in the former Soviet Union tend to be lower than those in Western Europe and North America.

"It won't be the largest aviation loss we've ever seen," Jutton said.

Jutton said he is inclined to accept the opinion of local authorities that the crash wasn't the result of terrorism. Pilot error has been suggested.

The plane crashed apparently after making a second attempt to land. Jutton noted the jet lies deep in the Black Sea.

The states of the former Soviet Union are sometimes criticized for lax attitudes toward air safety. In 1994, an Aeroflot pilot let his teenage son take the controls of an Airbus. The plane crashed, and 70 people died.