EPRA: Solvency II rules are still too restrictive

The changes made to Solvency II capital requirements on 8 June mark significant progress for the listed real estate sector. The requirements, which previously demanded that insurers allocate an eye-watering 39% of capital invested in equities – including LRE – to liquidity reserves, have almost halved to 22% for a new sub-category, essentially making the sector almost twice as attractive to investors. Even with the best intentions, the previous conditions were harsh. A study by Insurance Europe found that 48% of insurers cited Solvency II capital requirements as the reason