Pru threat to move to Asia

Prudential may move its head office out of Europe because of new rules on how much cash it must hold in reserve, the insurer warned yesterday, as it unveiled a better-than-expected 9 per cent rise in first-quarter sales.

The London-based group is concerned the regime, known as Solvency II, could make its American business less competitive than local rivals, because it would have to hold more capital reserves to comply with the European directive.

Prudential chief executive Tidjane Thiam said that, if the group did not win concessions, it would possibly move to Asia, where new business profits soared 22 per cent to £260 million in the first quarter.

The group reported total insurance sales of £964m for the first three months of the year, up from £888m a year earlier.