Prime minister slams EU capital regime as Prudential seeks UK exit

UK prime minister David Cameron hit out at Solvency II yesterday, dubbing the capital regime a “good example of ill thought-out EU legislation”.

Cameron made the comments at yesterday’s session of prime minister’s questions following news that UK life insurer Prudential was considering leaving the UK for Hong Kong to avoid cost associated with the EU’s pending new capital regime for insurers.

On 2 March, London mayor Boris Johnson wrote to Prudential chief executive Tidjane Thiam vowing to tackle the problems with Solvency II and urging him to keep the company in the UK.

Cameron said yesterday in reference to the Prudential news that Solvency II was “endangering a great British business that should have its headquarters in the UK”.