Zurich, Allianz Insured Transactions Linked to Radiant World, FT Reports

Zurich Insurance Group and Allianz insured transactions linked to iron ore trader Radiant World. According to the Financial Times, Radiant World has faced pressure in recent months due to concerns over the validity of invoices provided to banks. Some banks have frozen the company's accounts and several trading houses have cut ties with it.

The Financial Times reported that Zurich insured Radiant World against non-payment from multiple counterparties, including commodities major Glencore, under a policy that provided cover in the double-digit millions of dollars. Allianz Trade, the German insurer's trade credit insurance arm, also insured Radiant World against non-payment, although its total exposure is smaller than Zurich's, according to people familiar with that policy.

Zurich told the Financial Times that it "does not have any material exposure to Radiant World". The company, along with Allianz and Radiant World, did not immediately respond to requests for comment. LAM Trade Finance Group II, in which US investment bank Jefferies has a minority stake, applied for a freezing injunction in Singapore against Radiant World and its founder.

Brief written by urgent.news from Insurance Journal, The Business Times - Companies & Markets — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.