Solvency II May Decrease Insurers’ Real Estate Investment
The Solvency II directive is likely to have an impact on real estate investments, according to research conducted by Preqin. Solvency II updates the regulations affecting insurance firms in the European Union, and many of these insurance firms are significant investors in private real estate.
“The precise impact that Solvency II will have on the real estate investments of insurance companies is unclear, and institutions are expecting to adopt very different strategies in response to the directive,” says Andrew Moylan, manager – real estate data, at Preqin. “The responses to the survey, however, do indicate that Solvency II will significantly alter the investment approach of these institutions and, given the size of the real estate portfolios of many of these firms, it will have a major imp