Zurich, Allianz insured transactions linked to Radiant World, FT reports
XLF•Zurich and Allianz insured Radiant World transactions
Sept. 11 (Reuters) - Zurich Insurance Group ZURN.S and Allianz ALVG.DE insured transactions linked to embattled iron ore trader Radiant World, the Financial Times reported on Friday.
Here are some details:
Insurers deny material exposure; other parties involved
- In response to the FT report, both Zurich and Allianz Trade told Reuters that they do not have any material exposure to Radiant World, without giving details. Radiant World did not immediately respond to a request for comment.
- On Monday, LAM Trade Finance Group II, in which U.S. investment bank Jefferies JEF.N has a minority stake, applied for a freezing injunction in Singapore against Radiant World and its founder.
- Founded in the early 2000s, Radiant World became one of the world's largest iron ore traders, handling more than 80 million metric tons of the steelmaking ingredient last year, according to its website.
Radiant World faces pressure over invoices and frozen accounts
- Radiant World has come under pressure in recent months after some banks froze its accounts and several trading houses cut ties on concerns that invoices it provided to banks may not have been valid. The company has denied wrongdoing.
- Zurich insured Radiant against non-payment from multiple counterparties, including commodities major Glencore GLEN.L, under a policy that provided cover in the double-digit millions of dollars, the FT report said.
- Allianz Trade, the German insurer's trade credit insurance arm, also insured Radiant against non-payment, although its total exposure is smaller than Zurich's, the report added, citing people familiar with that policy.
