Prudential is considering moving from its London headquarters overseas due to new European ruling Solvency II.

The most-likely destination for the Institute of Financial Planning-sponsor firm is thought to be Hong Kong but Prudential has not confirmed this.

In a statement released this morning, Britain’s largest insurance company said: “Prudential regularly reviews its range of options to maximise the strategic flexibility of the Group. This includes consideration of optimising the Group’s domicile, including as a possible response to an adverse outcome on Solvency II.

“There continues to be uncertainty in relation to the implementation of Solvency II and implications for the Group’s businesses.”

Solvency II will come into force in 2014 and could mean European insurers have to hold billions of pounds in extra capital to prevent insolvency.

Prudential will be affected by these rules more than other firms as it also has an American business Jackson Life. It is not yet known whether Solvency II will be compatible with the American capital rules.

A more detailed announcement may be given in the company’s full year results which will be released on 13 March.