For most insurance companies, a significantly higher level of real estate investment makes sense, even after the introduction of the Solvency II regulations concerning equity capital. This is the finding of a recent Irebs study for Corestate, a real estate investment manager. Based on current Solvency II rules, the risk in real estate investment is assessed as too high, leading to this form of investment's being disadvantaged compared to all other investment opportunities. Yet 75% of insurers are sufficiently capitalized to make investment decisions according to the actual risk to their portfolios. The study found that especially in Germany's market, insurers with a very large equity capital base often have extremely low real estate investment rates between 0% and 2%. According to the study's calculations, the optimal rate is 10%, even with a modest equity capital budget.