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The logo of Zurich Insurance is seen at a former office building in Zurich, Switzerland November 11, 2021. REUTERS
Sept 11 (Reuters) – Zurich Insurance Group and Allianz insured transactions linked to embattled iron ore trader Radiant World, the Financial Times reported on Friday.
Reuters could not immediately verify the FT report.
Here are some details:
- 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, 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.
- Zurich, Allianz and Radiant World did not immediately respond to Reuters requests for comment. Zurich told the FT that it “does not have any material exposure to Radiant World”.
- On Monday, LAM Trade Finance Group II, in which U.S. investment bank Jefferies 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.
Reporting by Shivani Tanna and Rishabh Jaiswal in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich
