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European Insurance and Occupational Pensions Authority

1291

Q&A

Question ID: 1291

Regulation Reference: (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII)

Article: 174

Status: Final

Date of submission: 12 Mar 2018

Question

We run a timber fund, investing in forests (not leveraged). Our investors want to know whether timber can be treated the same way as real estate with a capital charge of 25%.

Would this also apply to agricultural land?

EIOPA answer

Notwithstanding any potential consequences resulting from the own risk and solvency assessment and the supervisory review process, silvicultural properties and agricultural land should be covered in the property risk sub-module.