Diversification by type of asset

(1) Direct and indirect investments under section 2(1) number 2 letter a and number 8, as well as investments with debtors having their seat in a state outside the EEA where it is not assured that the priority right under section 315 of the Insurance Supervision Act extends to them, must be limited to a prudent extent.
(2) Investment in individual forms of investment is limited as follows: 1. direct and indirect investments under section 2(1) number 10 may not exceed 7.5 per cent of the restricted assets; 2. direct and indirect investments under section 2(1) number 17, assets held via section 2(1) number 16 that cannot be assigned to any of the categories of the investment catalogue under section 2(1), and other direct and indirect investments under section 2(1) whose return or repayment is tied to hedge-fund or commodity risks, may not exceed 7.5 per cent of the restricted assets; 3. direct and indirect investments under section 2(1) number 4 letter c may not exceed 5 per cent of the restricted assets.
(3) Direct and indirect investments under section 2(1) numbers 9, 12 and 13, taken together with investments subject to the quotas under subsection (2) numbers 2 and 3, may not exceed a total of 40 per cent of the restricted assets. Investments under section 2(1) number 2 letter a are also counted towards this quota to the extent that investments under section 2(1) number 12 are the subject of securities lending. Within the quota under sentence 1, the proportion of assets under section 2(1) number 9 letter a and number 13 that are not admitted to trading on, or included in, an organised market, and are not admitted to trading on an exchange, or admitted to or included in another organised market, in a state outside the EEA, may not exceed 15 per cent of the restricted assets.
(4) For investments in units and shares in investment undertakings under section 2(1) numbers 15 and 16 that, through the use of derivatives under section 197(2) of the Investment Code or the corresponding provisions of another EEA state, exhibit more than a single multiple of their market-risk potential, the increased market-risk potential is to be counted towards the quota under subsection (3) sentence 1. Where the increased market-risk potential cannot be determined in a timely manner, the maximum permissible amount is to be applied.
(5) Direct and indirect investments in loans under section 2(1) number 4 letter b, in real estate under section 2(1) number 14 letters a, b and c, and in real estate held via investment undertakings under section 2(1) number 16 that satisfy the requirements of section 2(1) number 14 letter c, may not exceed 25 per cent of the restricted assets.
(6) The supervisory authority may reduce, to as low as 10 per cent of the restricted assets, the direct and indirect investments under section 2(1) number 2 letter a, numbers 9, 12 and 13, and investments subject to the quotas under subsection (2) numbers 2 and 3, where this is necessary to safeguard the interests of policyholders. The supervisory authority has the same power in the case referred to in section 135(1) first alternative of the Insurance Supervision Act.
(7) Direct and indirect investments for the financing of infrastructure assets and infrastructure undertakings are not counted towards the quotas under subsections (1) to (6), up to an amount of 5 per cent of the restricted assets. Investments under sentence 1 must be permissible under section 2 and must serve the construction, expansion, refurbishment, maintenance, provision, holding, operation or management of infrastructure.