ING is Packing But Prudential Is Visiting

Prudential, Britain's biggest insurer, wants to expand its foothold in emerging southeast Asian economies after the region drove a better than expected 13 percent increase in its half-year profit. The 160-year old insurer, which relies on fast-growing Asia for 45 percent of its sales, plans to enter Cambodia and is also considering a move into Myanmar, Chief Executive Tidjane Thiam.

Thiam said less developed Asian economies where take-up of insurance is low had the potential to drive "double growth" as rising economic expansion encouraged more people to insure themselves as well as others to take on more cover.

Profits at Prudential's Asian division, which spans 13 markets including Hong Kong, Indonesia and Malaysia, rose 20 percent in the first six months of the year, fuelling a 13 percent increase in group operating profit to 1.16 billion pounds ($1.81 billion).

Meanwhile Prudential, which warned in February it might quit Britain to avoid the European Union's proposed new Solvency II capital rules for insurers, said it was still weighing up a potential move in case the new regime proves too onerous.

Prudential is concerned the new regulations could force it to raise capital requirements at its Jackson National Life business in the United States, making it uncompetitive against local rivals. There has long been speculation Prudential could move to Hong Kong, irrespective of Solvency II,  in recognition of its growing focus on Asia.

Thiam said the company was on track to achieve its target of doubling its 2009 operating profit in Asia by 2013. That would allow the Asian business to fund itself securely, giving Prudential the option of breaking itself up, analysts have said.