In replying to suggestions in the Sunday Times, that instead of complying with new solvency rules for all EU insurers from 2014, Prudential could move its head office to a region with less onerous requirements, in Hong Kong, the insurance group gave an unusual answer.
This company has been a household name in Britain for over a century, but instead of denying the suggestion, or even saying that as British company it would always back Britain -it came out with a rather mealy mouthed response, “Prudential regularly reviews its range of options to maximise the strategic flexibility of the group. 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.“
Perhaps David Cameron will add Prudential to the ever-increasing list of insurance, banking and industry companies and organisations invited to 10 Downing Street for informal discussions.