Prudential CEO Urges Equivalence for Solvency II

Prudential Plc Chief Executive Officer Tidjane Thiam said last week that some versions of the European Union’s Solvency II regime currently being discussed by regulators continue to be “completelywrong.”

Thiam objects to proposals that would force EU insurers to hold extra capital with their U.S. divisions if regulators conclude the Solvency II Directive is not “equivalent” to, or clashes with, U.S. solvency rules.

Thiam has said in the past that Solvency II, which codifies and harmonizes EU insurance rules, could destroy Prudential’s American business and may drive the insurer’s headquarters out of the U.K. Prudential, the U.K.’s biggest insurer by market value, gets more than a third of its revenue from its U.S. operations.

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