The move comes after changes in the mandate of the ABI due to the merger of its investment affairs division with the Investment Management Association earlier this year. It would be a major setback for the trade body at a time of rapid regulatory changes in the UK financial services sector.

Legal & General chief executive Nigel Wilson said: "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.

"There is also a recognition that even within the insurance sector the ABI often concentrates, for understandable reasons, on the general insurance sector where as you are aware we have only limited business lines."

The ABI plans to concentrate on the general insurance sector, while Legal & General has only limited business.

L&G’s decision underlines the weakening influence of the ABI for insurers; although, it has approximately 300 members, accounting for 90% of the UK insurance market.

Commenting on the L&G’s decision to quit the trade body, ABI, director general Otto Thoresen said: "As a trade association, of course we are disappointed by the resignation of a member however the ABI’s continuing strong membership represents over 90% of the insurance sector.

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"The great advantage of the ABI is that our members work together across the usual corporate boundaries to tackle issues that are important to consumers and to deliver an agenda for reform."

London-headquartered insurer L&G provides an array of life insurance, general insurance, pensions and investments products.