Prudential Says London Still Attractive Amid New EU Regulationsby
Solvency II to affect less than one-fifth of operations
Sunday Times had reported insurer weighing a move to Asia
Prudential Plc downplayed a report that it is considering a move to Asia, saying that more stringent European Union capital rules will affect less than one-fifth of its operations.
“London, our historic home, remains a very attractive place to be domiciled,” the company said Sunday in an e-mailed statement. “We have always said that, as a large, international group, we regularly look at the structure of our business to ensure that it remains optimal.”
The Sunday Times reported that the insurer may relocate to Hong Kong or Singapore to avoid EU regulations. Solvency II rules, which come into force in January, will make all insurers in the EU increase their capital reserves. Prudential is “understood” to have revived a plan drawn up three years ago for a move to Asia, the newspaper reported, without saying where it got the information.
Prudential, the U.K.’s biggest insurer by market value, has sought to drive growth from Asia while implementing Solvency II.