Tim Breedon to become ABI chairman

The ABI added that Mr Breedon will be formally appointed at its AGM in July when Archie Kane will step down as chairman having completed a three year term of office.

Mr Breedon has been group chief executive of Legal & General since January 2006, having joined the L&G Board in 2002. He has been a member of the ABI's board since July 2007.

Mr Breedon commented: "It is an honour to be asked to become ABI chairman at this vital time for the insurance industry. The insurance sector was not part of the problem for financial services and the broader economy last year: it weathered the storm of the financial crisis well. Insurers can however be part of the solution.

He continued: "Insurance is already at the heart of a successful and well-functioning society - we price and manage risks for consumers, businesses and governments, enabling individuals to live their lives to the full and economies to grow through the long term investment the industry provides. There is however much more we can do to assist individuals, families, businesses and the economy towards recovery."

He concluded: "As an industry we have to continue to improve our reputation with consumers, demonstrate our value to governments and work with regulators to ensure we are operating effectively. We face major challenges from regulators and governments, particularly in ensuring insurance is not treated as banking, but I am confident that the ABI will continue to engage constructively in the important debates still to come."

Current ABI chairman, Archie Kane, said: "Tim is a hugely respected leader with significant industry experience across all the different areas of the ABI's work. Tim's experience and deep understanding of the challenges ahead will ensure the ABI continues to lead policy debate and speak effectively on behalf of its members."

Kerrie Kelly, ABI director general, said: "On behalf of the whole board, I would like to thank Archie Kane for his considerable personal commitment and dedication in his three years as the ABI's chairman. Archie has provided clear and respected leadership through an incredibly challenging period for financial services in the UK and our members are most grateful for the very meaningful contribution he has made during this time."