Solvency II should take a 鈥渕ore realistic鈥� approach to the treatment of infrastructure investments, said Kurt Svoboda, CFO and CRO at Austrian insurer Uniqa, after the company鈥檚 annual results press conference.
He said the 50% capital requirement on such investments were 鈥渞elatively high鈥� and 鈥渟trongly hindered鈥� insurers鈥� engagement in this area.
鈥淚f the EU wants institutional investors to help finance this segment, it needs to offer some support, especially when the investments have economic relevance,鈥� Svoboda said.
He added that the idea of a Capital Markets Union across Europe 鈥渕ight help鈥� facilitate institutional lending.
And he is optimistic this capital requirement in Solvency II will be amended, as 鈥渢alks are ongoing鈥� and the demand was supported by EIOPA and other stakeholder groups.
Given Uniqa鈥檚 鈥渞elatively small size鈥�, Svoboda is only looking to invest in funds for infrastructure debt, not directly.
Currently, the market for such vehicles is sufficient only in certain segments such as road construction, he said.
鈥淏ut there are not enough if you look for diversification,鈥� he added.
One region where Svoboda would 鈥渞eally like鈥� to invest in infrastructure is Central and Eastern Europe (CEE) because 鈥渢hey need it, and it would be a good opportunity鈥�.
The problem, he said, was very often lack of political will and stability.
Uniqa chief executive Andreas Brandstetter also confirmed the company鈥檚 strategic interest in CEE.
鈥淚t is the only real chance for growth we have,鈥� he said.
