Solvency II Rules on Real-Estate Assets ‘Too High,’ Study Shows

Capital requirements for European insurers’ real estate investments under proposed new Solvency II rules are “too high,” according to a study carried out Investment Property Databank and backed by Germany’s BVI association of investment and asset management.

The study found a “stress factor” of 15 percent, instead of the proposed 25 percent, would be sufficient to calculate the amount of capital required to back real-estate assets held by insurers, BVI said in an e-mailed statement today.

To contact the editor responsible for this story: Christiane Lenzner at clenzner@bloomberg.net