Prudential appeared to play down suggestions it is considering quitting London for Hong Kong today in response to tougher solvency rules due from the EU.
The giant insurer followed the major banks in hinting that such a move is a possibility, though officially it is merely something it ponders from time to time.
A statement today, in response to a weekend press report, said: "There continues to be uncertainty in relation to the implementation of Solvency II and implications for the group's businesses.
Clarity on this issue is not expected in the near term."
Solvency II is a Euro regulation that will force insurers to increase capital requirements. It has been in the works for years.
Some in the City think Pru's threat is serious, however. Michael Wainwright, partner at international law firm Eversheds, said:
"It is not surprising that the tightening of financial regulation around the world in response to the recent crisis will cause some industry players to reposition their operations. Certainly today's news fits with our own "Regulation in the City" report, which reveals a significant degree of frustration about the UK regulatory regime.
Half of those surveyed in our report were concerned that businesses will move to other financial centres in an attempt to avoid regulatory pressures, with 44% thinking that businesses will relocate to Hong Kong and 37% to New York."
One City analyst said that if such a move looked likely, the regulations would be relaxed. He said: "If the Pru leave then so will axa and Allianz. The EU would sort it out instead."
