Zurich, Allianz Underwrite Radiant World Trades as Iron Ore Firm Faces Scrutiny
Insurance Coverage and Financial Scrutiny of Radiant World
Sept 11 (Reuters) - Zurich Insurance Group and Allianz insured transactions linked to embattled iron ore trader Radiant World, the Financial Times reported on Friday.
Background and Recent Developments
Here are some details:
Bank Actions and Trading House Responses
• 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 Insurance Involvement
• 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 Credit Insurance
• 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.
Statements from Insurers
• Zurich told Reuters in a statement that it "does not have any material exposure to Radiant World." Allianz and Radiant World did not immediately respond to requests for comment.
Legal Actions and Company Profile
Freezing Injunction in Singapore
• 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.
Radiant World’s Market Position
• 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 Credits
(Reporting by Shivani Tanna and Rishabh Jaiswal in Bengaluru; additional reporting by Gargi Gupta; Editing by Sherry Jacob-Phillips and Rashmi Aich)
