Zurich and Allianz provide credit cover for troubled iron-ore trader Radiant World

Zurich Insurance Group and Allianz Trade have each provided trade-credit insurance to Radiant World, a major iron-ore trader now under scrutiny. Zurich’s policy protects against non-payment from multiple counterparties, notably Glencore, for amounts in the double-digit-million-dollar range, while Allianz Trade’s coverage is comparatively limited. Both insurers said they do not have any material exposure to the trader, without providing further details.

Radiant World has faced recent pressure after several banks froze its accounts and trading houses withdrew, citing concerns that its invoicing may be invalid, a claim the company denies. On Monday, LAM Trade Finance Group II sought a freezing injunction in Singapore against Radiant World and its founder. The trader, founded in the early 2000s, handled over 80 million metric tons of iron ore last year.