GO
Loading...

We are not concerned about China: Prudential CEO

Despite fears surrounding growth in the world's second biggest economy, Tidjane Thiam, CEO, of insurance firm Prudential, is not worried about the future of China.

(Read More: Prudential profits grow on robust Asian demand)

He told CNBC at the World Economic Forum in Davos that his biggest fear for 2014 was "short-termism" and investors over-egging the slowdown in emerging markets.

"I think a lot of the adjustments we have seen are necessary. They are just markets doing what they do..countries that are running current account deficits need to fall," he said.

Emerging market assets - and their currencies - have seen volatility in the last year with the tapering of U.S. stimulus, but Thiam said that this was a "healthy" adjustment and interest rates needed to rise.

(Read More: Prudential hikes dividend, profit jumps 22%)

He added that a rise in real interest rates would be beneficial for his company, and savers in general, and would be a sign that the economy is performing normally.

Thiam has previously stated that Asia and emerging markets are one of the key drivers for his company's profits and was no unduly concerned on a slowdown or a sell-off in these markets.

Bloomberg | Bloomberg | Getty Images

In November, Prudential reported that its earnings growth in the third quarter was driven by new business profit in Asia, up 20 percent year-to-date to £990 million ($1.58 billion).


It reported total group new business profit for the year to date of £1.95 billion up 12 percent on this time last year. Third-quarter new business profit for insurance was up 14 percent at £682 million.

—By CNBC.com's Matt Clinch. Follow him on Twitter @mattclinch81

Videos

Latest Special Reports