In its most recent annual report, Prudential warned of a £1.9bn capital cull for its Asian business (Luke Macgregor / Reuters)

PRUDENTIAL, Britain’s biggest insurer, is examining plans to move its headquarters from Britain to escape onerous new European Union regulations.

The radical plan could see the £36bn insurer sell its British operations, or spin them out into a separate listed company, City sources said.

The departure of Prudential — probably to Hong Kong or Singapore — would deal a blow to London’s status as a global financial centre, and heap yet more pressure on George Osborne, who is already struggling to mollify Britain’s big banks.

The chancellor was this year forced into a U-turn over the bank levy after HSBC, Britain’s biggest bank, threatened to quit the country, citing tough regulation.

Prudential is understood to have revived a plan first drawn up three years ago