In a letter to Otto Thoreson, director general at the ABI, L&G chief executive Nigel Wilson said the company feels that future engagement with external bodies will be “more individually tailored to individual company situations” and is therefore suited to a “variety of interfaces” over a single body.
“In conclusion, this is a decision that has been made with much sadness, given [our] long and historic involvement with the ABI,” he wrote. “Nevertheless, we believe that our shareholders’ and policyholders’ interests are best served by Legal & General terminating its membership at this time.”
In the letter, written last week but published today, Wilson also notified the ABI that he would be stepping down from its board, a decision he labelled as “appropriate”.
Wilson said that his company has “significantly evolved” since it joined the ABI, causing much of its business to fall outside of the association’s “remit”, as it is now “as much invesment management as insurance”.
He said the increased sharing of sensitive commercial information within its public policy work has also made it increasingly difficult to be part of an organisation which requires intra-membership disclosure.
He added that L&G only had “limited business lines” within the general insurance sector which forms the ABI’s main focus, before requesting its continued engagement with the association over “relevant” initiatives in the future.
‘Disappointed’
Responding to the news, Thoreson said he was “disappointed” by L&G’s resignation, before reaffirming the ABI’s benefits.
“The ABI’s continuing, strong membership represents over 90% of the insurance sector,” he said. “The board of the ABI believes the industry is at its most effective when working together to respond to legislative and regulatory changes.”
In April, the ABI and Investment Management Association partially merged to form a new organisation covering both groups’ investment management activity, including the ABI’s Institutional Voting Information Service.
