The Solvency II Delegated Regulation (2015/35) has been amended to make it easier for (re)insurers to invest in infrastructure.
The amending legislation was published in the Official Journal of the European Union on 1 April, and came into force on 2 April, 2016.
The amending legislation has:
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Reduced the risk charge on unlisted equity investments in qualifying infrastructure projects, from 49% to 30%;
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Reduced the risk charge on debt investments in qualifying infrastructure projects by up to 40%; and
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Reduced the risk charge on (a) equities traded on multi-lateral trading facilities (MTFs); and (b) investments in European Long-Term Investment Funds (ELTIFs), to the same level as the risk charge that applies to equities traded on a regulated market.
The Commission’s press release is here. Our blog posts on this topic include “Infrastructure investments by insurers – EIOPA’s advice to the Commission“, which is available here.
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