Aug 12 (Reuters) - Life insurance and pensions company Legal& General Group Plc will cut its ties with theAssociation of British Insurers, Sky News reported on Tuesday,citing sources.
The 177-year-old company is expected to make a statement onWednesday, Sky said.
Although the reason behind L&G's decision was unclear, theseparation could help the insurer lobby more effectively onsignificant issues affecting its business, Sky said.
L&G and ABI could not immediately be reached by Reuters fora comment. However, Sky quoted ABI, whose members manage assetsworth a quarter of Britain's economy, as saying it would alsoissue a statement on Wednesday.
A rival of L&G criticised its decision to walk away, warningthat it could undermine the ABI's ability to influence keypolicy in the UK at a time when the country is introducingtougher regulations, Sky said without naming the competitor.
Finance Minister George Osborne announced far-reachingreforms to UK's pensions market in March, scrapping arequirement for savers to buy an annuity from an insurer uponretirement.
Sky said the exit from the ABI would also result in L&GChief Executive Nigel Wilson stepping down from the tradeassociation's board. (Reporting by Esha Vaish in Bangalore. Editing by Andre Grenon)
Legal & General (LGEN)