Is a disaster looming for Principal?

China’s Three Gorges Dam is a hydroelectric gravity dam that spans the Yangtze River by the town of Sandouping, in Yiling District, Yichang, Hubei province, central China, downstream of the Three Gorges. The Three Gorges Dam has been the world’s largest power station in terms of installed capacity since 2012.

In recent months, heavy rains have caused the dam to reach it’s water holding capacity, and it appears will soon breach the spillway, possibly washing out the structure and inundating millions of china’s population downstream. If this was to happen, there are projections that as many as 4 million Chinese living downstream could die.

Principal has been providing insurance related services to China for almost three decades, including having an extensive portfolio of holdings in partnership with China’s largest bank, the China Construction Bank (CCB) of China.

Built decades ago, the Three Gorges Dam cost $25 billion, undoubtedly financed through the CCB. Principal also provides recordkeeping services for millions of Chinese citizens as well, which will include guaranteed annuities and life insurance.

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Author: Dennis Myhre

Mr. Myhre can be contacted at..... dmyhre@fiduciaryfactor.com