Principal initiated consultation process established in FTA for advance of annuities

The Principal Financial Group notified the Minister of Foreign Affairs, Andrés Allamand, of the beginning of the consultation process established in Chile’s treaties with the United Kingdom and the United States for advances of annuities. As they explain this is because “he has not received a response” to a letter sent on June 10 to President Sebastián Piñera, which expresses concern about the bill of the fourth withdrawal that allows the second advance of annuities. As for the consequences that the initiative may bring, Principal Financial Group notes that it “will cause irreparable harm to insurance companies, including Principal.” More importantly, the project could make it impossible for companies to meet their contractual (to their pensioners) and regulatory obligations.” For the same reason, the insurer requested to activate the measure “before additional measures are taken that imply that the project becomes law, since this can cause serious damage to Principal and exposes Chile to substantial financial responsibility under the Treaties.” It is seriously committed to seeking an amicable solution to the dispute. However, it reserves all rights to initiate a resolution of the conflict against Chile under international laws and applicable treaties, in the event that the consultations do not result in a solution,” the statement concludes.

Original source in Spanish