Prudential ‘considering’ move to Hong Kong

Prudential, Britain’s biggest insurer, is reportedly considering moving its headquarters from London to Hong Kong to escape tough new capital rules for European insurers.

Prudential is concerned that a conflict between Europe’s Solvency II regime and US insurance regulations could force it to hold billions of pounds of extra capital against its US-based Jackson National Life unit if it remains domiciled in Europe, The Sunday Times said. A Prudential spokesman declined to comment.

Solvency II, due to come into force in 2014, could force European insurers to hold extra cash reserves against subsidiaries operating in countries that have less exacting capital standards.