Prudential May Leave UK
Published / Last Updated on 26/02/2012
Prudential May Leave UK.
The Prudential is considering moving its headquarters out of the UK to escape tougher new capital rules (Solvency II) for insurers. Prudential is worried that it could be forced to hold billions of pounds of extra capital.
Prudential makes 45% of its sales in Asia and Hong Kong is seen as a likely new base.
Europe's Solvency II rules are due to be implemented in 2014 and could mean that European insurers have to hold extra cash reserves against subsidiaries in countries with less strict rules on reserves. The new rules and US insurance regulations could see Prudential having to keep back substantial sums of money against its US-based Jackson National Life unit if it keeps its headquarters in Europe.