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Securitisation reforms
A new chapter for European insurers’ portfolios.
European insurance regulations are changing. From January 2027, Solvency II reforms will significantly reduce capital requirements for some securitised assets, unlocking higher-yielding investments like AAA CLOs for insurers. This paves the way for European insurers, who today allocate less than 1% to securitised credit[1] to seek
to catch up to global peers and target returns with diversified, capital-efficient assets.
In this article, we focus on publicly listed securitised assets, rather than private or asset-based finance (ABF) strategies, where the regulatory and liquidity considerations can differ. We explain what securitisations are, why we believe they fit well on insurance balance sheets, what exactly is changing in the rules, and how insurers can seek to take advantage of this new opportunity.
Key risks
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, and the investor may get back less than the original amount invested.
[1] Source: EIOPA
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