Exploring capital efficient equity investing

Equities may only make up a small proportion of most
insurers' investment portfolios, but the punitive charges for
holding them under the new Solvency II rules is causing chief
investment officers to re-evaluate allocations.
Under the new regime, the solvency capital requirement (SCR) for
equity ranges between 29 and 59 percent, depending on whether the
equity is a type one or type two asset, meaning that retaining
these risk assets has become an expensive business.
Furthermore, the regulator's