Hong Kong security law will not affect business, says Prudential
BRITISH insurer Prudential has said it will continue doing business in Hong Kong despite the introduction of a draconian new security law.
Anil Wadhwani, chief executive of the FTSE 100 company, said the tough measures do not “necessarily change” how it operates in the region.
That is despite the new laws, which come into force on Saturday, imposing maximum penalties of life imprisonment for crimes such as treason.
The measures, which were passed after being fast-tracked through Hong Kong’s legislature, will further align the city-state with Beijing and fuel uncer- tainty among Western companies.
Commenting on the new security laws, Mr Wadhwani said: “Our focus is to serve customers. And that’s really the priority for us. We have had a history of 175 years ... in different geographies, managing different complexities.
“We have been in Asia for over 100 years now. So it doesn’t necessarily change the way we do business and the way we are employing the focus to serve our customers.”
Shares in Prudential were down more than 6pc yesterday. It comes after Lord Cameron, the Foreign Secretary, warned on Monday that the national security laws and external interference from China will make it harder for those doing business in Hong Kong. The
former prime minister said the overall impact of the new security laws will further damage the rights and freedoms of people working in Hong Kong.
Prudential increased its total profits by 6pc to $2.89bn last year, boosted by new insurance sales across Asia and Africa. The company, founded in 1848, said that the results demonstrate “early progress” of its five-year strategy launched last summer, which includes introducing artificial intelligence across the organisation.
Prudential’s boss also said discussions about its London listing were “not a priority” despite concerns about the UK’S stock market, which has suffered from a string of high-profile exits.
The life and health insurance specialist has dual primary listings in London and Hong Kong, with secondary listings in Singapore and New York.
Mr Wadhwani said: “The listing is not a priority. What is a priority for us is to drive operational performance.”
Prudential is headquartered in London but does no business in the UK. The insurer focuses only on Asia and Africa following a restructuring that spun off M&G, its UK and European investment division, in 2018 and its US business, Jackson, in 2020.
The reopening of the border between Hong Kong and mainland China after the end of Covid restrictions boosted its expected earnings from new business, according to Prudential’s latest results.