Reuters report today that Aviva, the UK's largest insurer, has increased its provisions for potential mis-selling claims on endowment mortgages from £50M to £80M.
In its annual report, published today, Aviva said it did not believe there would be any material effect on its shareholders from costs arising from the investment linked mortgages.
Approximately 6 million people in the UK face a £40BN shortfall on these underperforming policies.
Companies have paid out more than £670M to compensate policyholders.
The FSA has fined five companies, including Royal & Sun Alliance and Lloyds TSB, over £5M for misadvising clients.
Sales of endowment mortgages peaked in 1988, when they made up 83% of the market, but have since fallen to about 5%.