Insurance giant Prudential has been forced to set aside £175m to cover a review into incorrectly sold annuities.
The group is reviewing annuities sold without advice after 1 July 2008.
This comes after a thematic paper from the Financial Conduct Authority (FCA) that identified failings at a "small number" of providers, specifically affecting pensioners who could have been eligible for enhanced annuities because of ill-health or other life-limiting factors.
"The FCA's thematic review of non-advised annuity sales practices showed that, in a portion of annuity sales that the UK business made since July 2008, it was not adequately explained to customers that they may have been eligible for an enhanced annuity. We are continuing to work to ensure we put things right," chief executive Mike Wells said.
The group is writing to pensioners who may have been affected, while the FCA has also said that it is launching a redress scheme.
The FCA said when the paper was published that affected firms are also being investigated by the FCA's Enforcement Division to determine whether further action is necessary.
Prudential posted a 33 per cent increase in UK retail Life sales to £1.16bn as part of strong full year figures.
The company stated assets managed by its investment arm M&G on behalf of external clients increased by eight per cent to £137bn, with internal assets taking the total to £265 billion.
For the group as a whole IFRS operating profit for the year grew seven per cent to £4.26bn, beating analyst forecasts.
The company's Asian operating profit was up 15 per cent, and the company lifted its dividend to 43.5 pence per share, a 12 per cent increase.
Mr Wells said that the company's position had been boosted by demographic changes in the UK, US and Asia.
"In Asia, growing numbers of middle-class consumers increasingly require our health and protection products, and ageing populations in the UK and the US are seeking ways to invest their savings to produce secure income for retirement." he said.
"The Group's performance demonstrates our ability to capitalise on the significant growth opportunities in these regions. We are well positioned to continue to deliver high-quality products and services to our 24 million life customers, and retain our distinctive ability to generate both growth and cash for our shareholders."
