A person with knowledge of the arrangement, who asked not to be named because the details are confidential, said Zurich Insurance Group AG had insured Radiant World against customer non-payment, with Glencore Plc among the counterparties. The same individual added that Radiant World hasn't filed a claim and estimated Zurich's overall exposure at low double-digit millions of dollars.
Separately, Allianz Trade, part of Allianz SE, said it has no material exposure tied to Radiant World or its customers. In an emailed statement, an Allianz Trade spokesperson said, "Fraud is a standard exclusion in most trade credit insurance policies." "Additionally, we have strong and in-depth processes to make sure that our clients comply with our internal standards and policies."
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In July, Bloomberg said a number of leading commodity merchants halted dealings with Radiant World amid worries the firm had given fake paperwork to lenders in order to obtain funding. Radiant World denied any wrongdoing, saying its business is conducted in accordance with rigorous legal and commercial norms. The Financial Times earlier reported that Zurich and Allianz had issued policies that would cover losses on deals connected to Radiant World, citing unnamed individuals familiar with those arrangements.
The tell here is straightforward: Zurich hasn't been hit with a claim and the potential exposure cited is in the low double-digit millions, while Allianz Trade says any links aren't material and underscores its fraud exclusions and screening. If you expected a big hit to insurer balance sheets from this saga, the signals so far point the other way.
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