EIOPA · 2026
Solvency Capital Requirement (SCR)
- Regulation
- (EU) No 2009/138 - Solvency II Directive (Insurance and Reinsurance)
- Article
- NA
- Topic
- Solvency Capital Requirement (SCR)
- Submitted
- 2019-09-20
- Answered
- 2021-06-18
Question
Is the risk charge for investments in listed property investments under Solvency II the same as equities at 39% or can they qualify for a 25% charge like real estate? If yes, when was this changed please as I did not see any press releases to this effect.
Background
Solvency risk charges
Answer
In case of a look-through, property held by the entity would be included in the calculation of the capital requirement for property risk. In this case, the actual risk charge (in %) on the carrying amount of the listed entity in the SII balance sheet would depend on whether the entity holds other assets than property and whether it has issued debt (i.e. the amount of leverage used).
Please have also a look at Guideline 3 in the EIOPA Guidelines on look-through approach Please refer as well to the Q&A 1856.
This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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