British insurer Prudential said Monday that it was considering switching its headquarters out of London to avoid new European capital requirement regulations for the insurance sector.
There has been long-running media speculation that Prudential could switch to Asia, where the group makes about 45 per cent of its total sales.
“Prudential notes recent press speculation in relation to the group,” it said in an official statement. The London-listed company is worried about the potential impact of an upcoming European capital regime for insurers called Solvency II.
“Prudential regularly reviews its range of options to maximise the strategic flexibility of the group,” it said.
“This includes consideration of optimising the group’s domicile, including as a possible response to an adverse outcome on Solvency II.
“There continues to be uncertainty in relation to the implementation of Solvency II and implications for the group’s businesses. Clarity on this issue is not expected in the near term.”
London, Feb 27, 2012 (AFP)
