A few London residents may be relocating to Hong Kong as they follow Prudential. Prudential is a UK based insurer that is going to relocate to Hong Kong. Those in charge of the company stated it is natural to move the business to Hong Kong. A company spokesperson stated that the company could face a large hit if it stays in the UK, but moving to Hong Kong will save the company. This is after the announcement of new capital standards.
The new standards could mean Prudential has to hold extra capital. This is against the American based structure it has. Prudential already operates in the UK, Asia and US, so it makes sense to head to a place where they will have fewer restrictions, such as Hong Kong. If the company is moved it would be able to waive the need for extra capital to cover any US issues, given that the US regulations are stricter when it comes to solvency.
The speculation that the company would move to Hong Kong is not new. In fact, this is not the first time Prudential has considered the move since its business has started growing in Asia. The move to Hong Kong would break up the insurer where the standalone value would actually be more than the entire group as it is right now.
For those with jobs at Prudential in the UK, it could mean a loss of jobs or relocating to Hong Kong, depending on what the company is willing to offer.