August 12, 2014 / 9:01 PM / in 3 years

Legal & General to quit British insurers' association -Sky News

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)

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