Prudential chief issue warning over low interest rates

Outgoing CEO Tidjane Thiam warned of a downward spiral of low income and lower growth, due to reduced long-term rates

Prudential's outgoing chief executive, Tidjane Thiam, warned about the impact of low, long-term interest rates, as the insurer's investment returns were hit in the UK and US, despite strong growth in Asia.

Britain's biggest insurer reported a 6% drop in new business profits in the first quarter as double-digit growth in Asia was offset by declines in the UK and the US. This reflected the impact of UK pension reform and reduced interest rates. Interest rates in the UK and the US have been near zero for years.