Prudential warns EU solvency regime could destroy its US business

Britain’s largest insurer, Prudential, has warned that the EU’s strict Solvency II capital regime for insurers could destroy its lucrative US business if EU regulators do not recognise US capital rules as equally rigorous.

Prudential chief executive Tidjane Thiam said: “I can tell you, fighting US competitors who don’t have to worry about Solvency II, we just won’t have a market, we won’t be able to sell any products at all. We think that the US is a reasonable place, and that they have a reasonable solvency regime, and all we want is for the EU to accept that.”

Prudential warned last month that it could move its headquarters out of London to escape Solvency II.