Pru Asia move 'dead in the water'

PrudentialPrudential looks set to keep its headquarters in the UK after concluding a review into whether it should move to Asia, it has been reported.

Concerns about European capital requirements for the insurance industry have been cooled by signals that the potentially damaging Solvency II legislation could be delayed until 2016, the Sunday Telegraph said.
A board report conducted in conjunction with consultants Deloitte suggested that Singapore was the most likely Asian domicile should a move take place.

However, the domicile-change project is now all but over, with one source telling the newspaper that the issue was virtually "dead in the water".

The Pru had feared that the new EU rules would force it to hold additional capital if it retained its primary tax domicile in the UK. It has been headquartered in London since its foundation in 1848.

However, the legislation has been held up by arguments between the French and German insurance sectors and is now unlikely to be passed before 2016, rather than the 2014 date first envisaged by the EU.

The bulk of the Pru's operating profits now come from overseas, in particular Asia.
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