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LONDON (Alliance News) - Legal & General Group PLC Wednesday said it is to quit the Association of British Insurers at the end of 2014, prompting the trade body to voice its disappointment at decision.
In a letter to ABI Director General Otto Thoresen, Legal & General Chief Executive Nigel Wilson said that the company has given "considerable thought" to the matter of its membership due to changes in the constitution and mandate of the ABI as a result of the transfer of investment
business to the Investment Management Association.
"This is a reflection of the fact that a large proportion of our business lines will fall outside of the remit of the ABI given that the business of Legal & General has significantly evolved and in 2014 our business is now as much investment management as insurance," Wilson, who is stepping down from the ABI's board immediately, wrote.
Legal & General said it thinks that engagement with government, regulators and other external bodies will be more individually tailored, and "less suited to uniform representation" through one trade body.
Nevertheless, Wilson said that Legal & General wants to work with the ABI on the issues of public policy formulation for the sector, as well as in promoting best practice and codes of conduct.
Thoresen voiced his disappointment but said that the trade body's membership still represents more than 90% of the insurance sector.
"The board of the ABI believes the industry is at its most effective when working together to respond to legislative and regulatory change," Thoresen said in a statement.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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