$ unn
Santiago, August 29, 2022.
Mrs.
Solagne Berstein Jauregui
President of the Commission for the Financial Market
Present
Ref: Essential fact.
From our consideration:
In accordance with the provisions of article 92 of the Decree with Force of Law
N2251, second paragraph of Article 10% of Law N*18,045 and in the Norm of
General Character N*991, being duly authorized, through
I hereby come to inform you as an Essential Fact of society
UNNIO SEGUROS GENERALES S.A., the following:
1.- On October 20, 2020, the Commission for the Financial Market,
hereinafter CMF, through Ordinary Official Letter N*51412, made observations
in relation to the documentation provided by the Company – letters from
Receipts issued by the leading insurance companies in
co-insurance in which UNNIO participated as a “follower” co-insurer –
which support accounts receivable for co-insurance operations do not
leader in its Financial Statements closed as of 31.03.2020.
In summary, that CMF estimated that the letters delivered by the companies
leaders in co-insurance operations in which UNNIO acted as
follower co-insurer (where it assumes lower percentages of participation)
were not sufficient support for accounts receivable arising from those accounts receivable.
operations and as a consequence the latter had to be deteriorated from
according to the effective date of the policies to which they were related,
all this in accordance with the provisions of numeral 2.3 of Section Ill of
Circular No. 1.499 of 2000.
The impairment to be applied in this context amounted to M$ 3,633,943, reducing
the Company’s Equity in an equivalent amount. Also, with
As a result of the aforementioned instruction, the Company would present a deficit of
investments representing technical reserves and risk equity of M$ –
2,502,780, a equity deficit of M$ 1,431,822, a total debt
of 7.30 and financial indebtedness of 1.24 times equity.
Insurance
General
$ unn
2.- On November 3, 2020, the Company responded to the
observations made by the CPM noting, in summary, that the
documentation delivered complied with the standards established in the Circular
N*1499 on accounting and provisions for premiums receivable and recoveries already
It provides, in relation to participating insurance in which the
Company will act as a non-leader participant (follower), that: “There must be a
Letter of receipt issued by the leading company specifying the dates
specifies in which the premium will be paid to the participant”, and which then indicates
that “a provision must be made for 100% of those premiums that
remain past due and unpaid for 1 month or more at the closing date of the
Financial statements. This period shall apply from the aforementioned dates.
in the respective letter of receipt, and in the absence of this letter of receipt, or
stipulation therein of the dates of payment, shall apply from the date of
beginning of the validity of the coverage of the respective policy”.
On the same occasion, the Company proceeded to detail the documentation.
submitted in relation to each of the observations made,
adding that only in 5 cases, totaling MM$117.8 (3.2% of the
proposed deterioration), there was a difference between the date of
Expiration recorded in the letter of receipt and the management database
of those accounts, corresponding accordingly to a provision
additional MM$117.8.
Finally, the Company added that at that time about 95% of the
Premiums whose accounts receivable were impaired, as
was effectively and materially charged and received by the Company in
the same dates indicated in the aforementioned letters of receipt, so that
He dissented from the instruction received, sending the supporting documentation.
3.- On December 24, 2020, by means of Ordinary Official Letter N*64781, the
CMF reiterates, in summary, as appropriate, that in its opinion the Company does not
Credits accounts receivable for operations with sufficient backing
of non-leading co-insurance as of 31.03.2020 and that, therefore, these should be
deteriorated according to their effective date.
4.- On January 4, 2021, the Company responds to the preceding Official Letter
noting that it continues to maintain a well-founded dispute with regard to
assessments made by the CMF in this matter.
It adds, for the sake of completeness, that the Board of Directors of the Company, after
Having analysed the antecedents, it considers it essential to establish objectively the
Status of the aforementioned accounts and establish a position thereon. To do this,
resolved, in addition to what was instructed by the CMF in the aforementioned Office,
Proceed to the hiring of an independent auditing firm, of
international recognition, other than the financial auditors of the
Insurance
General
$ unn
Company that not only performed an audit on the documentation of
Backing up these accounts as of 30.09.2020 as required by that
opportunity by the CMF but, taking advantage of the instance, to carry out a
New audit of the aforementioned accounts as of 31.03.2020 with the
same information provided to the CMF.
5.- On January 18, 2021, the Company delivered the result of the
Procedures applied and the evidence analyzed by the auditors in
relationship to premiums receivable for non-leading co-insurance operations, and
Accounts receivable from policyholders at the close of 31.03.2020, under the
which, in summary, the latter conclude that the operations are
generally endorses in accordance with the Circular in comment and suggest to the
Company, in relation to the Financial Statements as of 31.03.2020 only two
adjustments, namely to constitute an additional provision M$ 123,202 (the Company
had estimated at MM$117.8) and adjusted in installments receivable for payments
received not applied M$ 448,812.
In accordance with the foregoing, the Board of Directors instructed the forwarding to the CPM of the
Financial Statements closed as of 31.03.2020 adjusting the information to
indicated above.
6.- On January 22, 2021, through Exempt Resolution N*498,
Subscribed by the then Intendant of Insurance, Mr. Daniel García Schilling, the
CMF rejected an appeal for administrative reconsideration filed by the
Company against the Ordinary Office N*64.781 already cited, maintaining the
instruction given to send an Essential Fact in the terms indicated
by the preceding Offices by which the Company indicated that at the
31.03.2020 would have presented a deficit of investments representing
technical reserves and risk equity of MM$2,341, a deficit of equity
of MM$ 1,190, a total debt of 6.78 and a financial debt
of 1.15 times the patrimony.
7.- On February 3, 2021, the Company filed a Claim of
The illegality against the foregoing resolution is based, in short, on
that the contested acts infringed Articles 5.1., 20 and 20.1 of the Decree-Law
N*3538, by imposing additional requirements not provided for in Circular 1499
regarding the letters of receipt issued by the leading companies in the
case of co-insurance in which the Company participates as co-insurer
follower, making use of a faculty of interpretation that lies in form
exclusive in the CPM Council. In the species, the Company reiterates that
In accordance with the express wording of the standard in question, the requirements applicable to
Letters of Receipt to Support Receivables for Operations
of non-leading coinsurance were limited to only three aspects: a) there must be a
letter of receipt; b) such letter of receipt must be issued by the
leading company, and (c) it must specify the precise dates on which
Insurance
General
$ unn
shall pay the premium to the participant. It adds that the Authority makes demands
additional and not provided for in the aforementioned Circular, and that by virtue of such
additional requirements, he concludes, that the Company does not have the backups
sufficient to credit accounts receivable for co-insurance operations
no leader by 31.03.2020 ordering them to deteriorate, i.e. not
take into account for the purpose of configuring the Company’s assets the
which also results in establishing that the Company would present the deficits and
levels of indebtedness already indicated at that date.
8.- On June 28, 2022, the Supreme Court has ruled
Finally, the legal controversy presented by stating, in summary, that
The contested act would be lawful, since that act
administrative was dictated by competent official and within its
Powers with respect to current regulations.
9.- In accordance with the above, the Company comes to abide by the resolution and inform in
character of Essential Fact to the market that conforms the interpretation
carried out by the CMF, in its Ordinary Offices N*51.412 and N*64.781 already
cited, the documentation submitted by the Company in relation to the
Premium accounts receivable for non-leader co-insurance operations and accounts
For charging policyholders at the close of 31.03.2020, it was considered insufficient. By
this reason the Company presents at the close of the aforementioned Financial Statements
a deficit of investments representing technical reserves and equity of
risk of MM$2,341; an equity deficit of MM$ 1,190; one
total indebtedness of 6.78; and a financial debt of 1.15 times the
heritage.
10.- Along with the above, it is pertinent to inform that:
a) On November 3, 2020, the Company submitted to the CMF a
complete action plan called “Co-insurance Action Plan”
Participate” by which this Company informed the Authority of the
various measures implemented from 31.03.2020 aimed at
Strengthen your processes, considering the demands and difficulties
additional that then imposed the pandemic situation that the
country and still living, action plan that placed special emphasis
in the supervision of the participating co-insurance businesses and in the control
of its key stages, in particular the control of reception and content
of the reinsured letters delivered by the leading companies in
co-insurance businesses where UNNIO participates as co-insurer
follower.
(b) However, the situation indicated above is
absolutely solved at the close of the Financial Statements
corresponding to the month of September 2020 depending on the
Insurance
General
($) Unnio SS:
implementation of the measures contemplated in the aforementioned Plan
Action, same as – despite the legitimate difference in interpretation of the
Standard in question – adjusted, for procedural economy, the processes and
controls of the Company at the discretion and instructions given by that
CMF in this matter.
c) Finally, to inform that the totality of the premiums to which they said relation
the letters of protection that were observed by the CMF were, in
effect, duly satisfied and paid in full, in full and
timely by leading companies, as reported by
The Company.
Without further ado, greets you sincerely
y
FS
Juan Ignacio/Alvarez Troncoso
General Manager
p.p. UNNIO SEGUROS GENERALES S.A.
Link to file in CMFChile: https://www.cmfchile.cl/sitio/aplic/serdoc/ver_sgd.php?s567=dba2f703968c534d882d0b93daba12a9VFdwQmVVMXFRVFJOUkUxNlQwUlJlRTVSUFQwPQ==&secuencia=-1&t=1682376108
