February 24, 2017 / 2:00 PM / 9 months ago

Prudential to review enhanced annuity sales, compensate customers

LONDON (Reuters) - Insurer Prudential (PRU.L) said on Friday it had agreed with regulator the Financial Conduct Authority to review how it sold annuities and would compensate customers where appropriate.

The FCA said in October a “small number” of insurers had not made it clear to customers that they might be eligible for an enhanced annuity, which pays a larger fixed income to pensioners in poor health.

Prudential UK & Europe will review annuities sold without advice after July 1, 2008, the insurer said in a statement on its website, to see whether they were given enough information about enhanced annuities.

“Prudential will contact customers who may not have been given sufficient information and will provide redress, where appropriate,” the insurer said.

Rival Standard Life SL.L said earlier on Friday it had set aside 175 million pounds in provisions as a result of the FCA review.

Reporting by Carolyn Cohn; editing by Simon Jessop

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