European Commission hits back at Prudential Insurance over threat to leave - by David Sandham

The European Commission said it had issued the statement in response to news stories that said the Prudential insurance company was considering leaving London because of the future Solvency II rules.

'The Commission fundamentally disagrees with statements made by some insurance companies that Solvency II leaves them with no choice but to leave the EU,' the statement said.

The Prudential's chief executive Tidjane Thiam had attacked the Solvency II rules earlier this week, saying: "We love London, we're a British company and we've been here for 160 years. It's not a debate about London but about the things that are happening in Brussels. Without Solvency II we wouldn't be having this debate.'

The European Commission vigorously defended its position. 'Solvency II – which the industry campaigned for in the first place – will improve the international competitiveness of insurers, not undermine it,' it claimed. 'The financial crisis demonstrated only too clearly how important good risk management and sound governance are. This is true for all financial actors, and not just banks. And this is not time for complacency in the financial sector.'

Note EU-Digest: maybe Prudential should get out of the EU and give up a market of close to half a billion people. This is the EU and Prudential will have to follow the rules of the land. It's as simple as that.

For more: European Commission hits back at the Pru over threat to leave - New Model Adviser®