What I said in a previous post, which most people have ignored, is that when calculating the viability and economy of repairs from an insurers perspective, the costs for the engine damage will almost certainly be excluded. There is no coverage for a mechanical failure.
Insurers will only be paying for the airframe and associated repairs. Therefore, now there has been a physical inspection of the damage, the numbers probably add up.
As suggested by some posters, BA nor anyone I know of , do not "self insure" their engines. How could they afford to at $20 or $30 million a piece? Imagine an A380 runoff where all 4 engines damaged!
BA will pay for the engine damage ( they may sue someone after to try and get everything back including insurers proportion) and Insurers will pay for the resultant airframe damage.
Hope that clarifies?