Prudential is seriously contemplating to wash its hand from its UK life annuity business as its operation in the UK is not fetching sumptuous profit.
The same move has been termed as a "disaster", by its chief executive officer Tidjane Thiam, the Financial Times reported.
The underwriter group is battling to emerge from bad financial shape by raising its capital base and selling its loss making entities across the world.
The course of actions include "every single recombination, reconfiguration of the group from selling Asia, to selling the US, to selling the UK, to selling [the asset manager] M&G."
Thiam has also highlighted the business prospect for Prudential in Asia Pacific region, as the insurer booked handsome profit in its Asian operations.
The European Union’s Solvency II regulations requires underwriters to stanch additional reverse and Prudential finds its strangulating action for European insurers with operations in the US and threatened to give up the UK business.
Thiam indicated that any such move is highly unexpected at least before the company achieved the financial targets it had set for 2013.
Prudential’s first-half of 2012 operating profits from the Pru’s Asia operations grew to £440m, up 30% to £442m at Jackson, the US life assurance operation.
Overall, its statutory pre-tax profits rose from £1.11bn to £1.26bn, and the company lifted its interim dividend 5.7%.