Insurers Allianz SE and Zurich Insurance Group AG, who had both written policies covering transactions tied to Radiant World, said they have no material exposure to the iron ore trader.
Zurich had insured Radiant World against non-payment from counterparties including Glencore Plc, according to a person familiar with the matter. The trading company hasn’t made a claim, and the Swiss insurer’s total exposure is in the low double-digit millions of dollars, said the person, who requested anonymity to discuss private information.
Allianz Trade, a subsidiary of the German insurer, said separately that it has no material exposure to Radiant World or its customers.
“Fraud is a standard exclusion in most trade credit insurance policies,” a spokesperson for Allianz Trade said in an emailed statement. “Additionally, we have strong and in-depth processes to make sure that our clients comply with our internal standards and policies.”
Bloomberg reported in July that several top commodity traders had stopped doing business with Radiant World amid concerns it had provided falsified documents to banks to raise financing. Radiant World denied wrongdoing and said it conducts its business to the highest commercial and legal standards.
The Financial Times reported earlier that Zurich and Allianz had written policies covering losses on transactions linked to Radiant World, citing unidentified people familiar with the agreements.
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