European Insurance and Occupational Pensions Authority launches consultation on supervisory expectations for private equity-linked insurers and reinsurers

The European Insurance and Occupational Pensions Authority (EIOPA) has opened a public consultation on a supervisory statement covering the authorisation and ongoing supervision of (re)insurance undertakings related to private equity firms, aiming to support consistent, high-quality and risk-based supervision across the EU. The draft statement responds to a decade-long increase in private equity acquisitions of European insurers and reinsurers and the associated changes in strategy, governance, risk management and asset allocation. After reviewing recent cases, EIOPA and national supervisory authorities identified risks and supervisory challenges including short or misaligned investment horizons versus long-term policyholder commitments, shifts in business models such as increased use of private credit, illiquid assets and balance-sheet optimisation, greater reliance on reinsurance including from third-country reinsurers (sometimes within the same private equity group), and complex ownership structures that can hinder effective supervision. The statement sets supervisory expectations for acquisitions of qualifying holdings, portfolio transfers and mergers, as well as for ongoing supervision, to be applied in line with risk-based and proportionate supervision. Stakeholders can submit feedback via EIOPA’s online survey until 30 April 2026, with responses to be published on EIOPA’s website unless confidentiality is requested.