EIOPA · 2169
Other
- Regulation
- Other
- Article
- 171a
- Topic
- Other
- Submitted
- 2020-07-29
- Answered
- 2021-06-25
Question
Criteria for Long-term Equity Investments (Article 171a of the Solvency II Directive) d) Covered liabilities only represent a part of total technical provisions What is the maximum share of obligations that can be covered by the assigned portfolio including the LTE investments?
Background
Criteria for Long-term Equity Investments (Article 171a of the Solvency II Directive)
Answer
According to the recital 26 of the delegated regulation 2019/981, to avoid regulatory arbitrage, the portfolio of assets and the portfolio of obligations should have similar values, and each of them should not represent more than half of the total size of the balance sheet of the insurance or reinsurance undertaking. Thus, in accordance with the recital, the portfolio of obligations should not exceed 50%.
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.
Similar Q&As
More Q&As on this topic
📋 Track EU financial regulation continuously
Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.
14-day free trial. No credit card required.