Insurers / Solvency II

A review of the Directive has been launched on 22nd September 2021 and was effectively finalised late 2025 with the publication of the implementing acts. The review introduced significant changes to the treatment of a long-term equity category giving the opportunity to insurers.

How does it affect private equity?

The capital that must be set aside by insurers to address the risks they face for investing in private equity has a significant influence on their asset allocation decisions. With insurers representing around 10% of the investment into European private equity, the Directive affects the amount of capital flowing into private equity and venture capital funds. Over the past few years much attention has been given to improving the criteria allowing insurers to set up "long-term equity portfolios" subject to a preferential capital charge.