UK general insurer Prudential is reportedly considering transferring its management jobs from its home country to India, in a move that could save the company millions of pounds, according to The Times.
The insurer is already reportedly using an office of 200 members of staff in Bombay to carry out financial accounting, analysis and risk-profiling work, with more possibly heading its way, The Times said.
Prudential’s CEO, Mark Tucker, has placed 2,000 UK jobs and an additional 1,000 overseas positions under review as part of its cost-saving strategy, which aims to save GBP195 million annually by the end of the decade, reported the newspaper.
Furthermore, according to the Financial Times, it has also emerged that the insurance provider could be forced by investors to pay GBP250 million to raise the stake in its Indian joint venture ICICI Prudential, as a result of the rapid expansion of the operation and a higher than expected valuation of its Indian business partner.
The Financial Times stated that the Indian government plans to raise the limit on foreign direct investments in insurance companies to 49% from 26% and, as a result, analysts have estimated that Prudential will have to pay around GBP250 million to raise its stake to this level.