UK-based insurance titan Prudential could be upping sticks and moving its headquarters outside Europe to avoid strict new capital rules for European insurers.
In response to week-end press speculation that the Pru's increasing focus on Asia could see it shift its headquarters there the company has issued a statement that only went so far as to admit that it regularly reviews its range of options to maximise its strategic flexibility. "This includes consideration of optimising the group's domicile, including as a possible response to an adverse outcome on Solvency II."
The Solvency II framework is scheduled to be introduced in Europe in 2014 and is expected to oblige European shareholders to keep bundles of cash in reserve to cover subsidiaries in countries which have flimsier capital requirements.
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"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," Prudential said.
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