Prudential looks to reassure on capital strength

British insurer Prudential today set out to allay capital strength fears with news of a £1.7bn (€1.9bn) buffer and annuity funds that could withstand a repeat of the Great Depression.

The group said even if equity markets plunged by another 40% since the end of last year, its capital surplus would reduce by £350m (€394m).

Pru’s assurances came as the group announced better-than-expected full year new business figures, with UK sales ahead by 4% at £947m (€1.06bn) in 2008.