Advice by EIOPA to the European Commission on Treatment of Infrastructure Corporates under Solvency II

European Insurance and Occupational Pensions Authority (EIOPA) has published its final advice to the European Commission regarding the definition and treatment of infrastructure corporates under Solvency II. LTIIA has been involved in the consultation process with EIOPA and other stakeholders over the last seven months,

By way of selected highlights, EIOPA recommends:

  • extending the definition of infrastructure projects to “project-like” corporate entities; and
  • a 36% capital risk charge for equities in other infrastructure corporates (that is, between 39% for type 1 equities and 30% for projects and project-like corporates).

We welcome this advice as it supports continuing recognition of infrastructure as a low-risk, long-term asset class. LTIIA will continue following up with the European Commission on the implementation of specific amendments to Solvency II based on this advice.