Question ID: 3262
Regulation Reference: (EU) No 2009/138 - Solvency II Directive (Insurance and Reinsurance)
Topic: Solvency Capital Requirement (SCR)
Status: Rejected
Date of submission: 19 Feb 2025
Question
I have a question regarding minimum capital requirement of uncalled or undrawn investment capital into private equity under Solvency ii. If an insurance company committed to invest on private equity fund for certain amount, but due to capital-call structure of private equity fund (they draw(call) money from the insurance company on need-base), insurance company have committed, but uncalled investment amount on their balance sheet. In that case, how would solvency ii treat those uncalled, but committed investment amount? Regardless of call status, does solvency ii require minimum requirement as a wholesome (initial committed amount)? or does it distinguish call status, and require minimum requirement only for the called investment capital? Would appreciate if you could refer to specific lines in solvency II regarding this topic.
EIOPA answer
This question has been rejected because the question is not sufficiently clear, or has not sufficiently identified a provision of Directive 2009/138 which creates uncertainty for which an explanation is merited regarding its practical implementation or application.