Aug 12 (Reuters) - Life insurance and pensions company Legal & General Group Plc will cut its ties with the Association of British Insurers, Sky News reported on Tuesday, citing sources.
The 177-year-old company is expected to make a statement on Wednesday, Sky said.
Although the reason behind L&G’s decision was unclear, the separation could help the insurer lobby more effectively on significant issues affecting its business, Sky said.
L&G and ABI could not immediately be reached by Reuters for a comment. However, Sky quoted ABI, whose members manage assets worth a quarter of Britain’s economy, as saying it would also issue a statement on Wednesday.
A rival of L&G criticised its decision to walk away, warning that it could undermine the ABI’s ability to influence key policy in the UK at a time when the country is introducing tougher regulations, Sky said without naming the competitor.
Finance Minister George Osborne announced far-reaching reforms to UK’s pensions market in March, scrapping a requirement for savers to buy an annuity from an insurer upon retirement.
Sky said the exit from the ABI would also result in L&G Chief Executive Nigel Wilson stepping down from the trade association’s board. (Reporting by Esha Vaish in Bangalore. Editing by Andre Grenon)