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Solvency II

Updated study of real estate volatility challenging Solvency II SCRs released

An updated independent study confirms that the current solvency capital requirement (SCR) of 25% for European real estate investment under the Solvency II Directive, including through funds, does not reflect the true volatility of real estate investment in Europe. As a result, the amount of capital that must be set aside to cover potential losses from real estate investment is higher than is necessary for sound prudential management.