Aug 12 Life insurance and pensions company Legal
& General Group Plc will cut its ties with the
Association of British Insurers, Sky News reported on Tuesday,
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
Sky said the exit from the ABI would also result in L&G
Chief Executive Nigel Wilson stepping down from the trade
(Reporting by Esha Vaish in Bangalore. Editing by Andre Grenon)