Insurer Legal and General have denied a new allegation that they continued to sell endowment policies even though they knew that they would likely result in a shortfall.

The allegations were made by a former L&G director, John Maguire, in the Daily Mail. Mr Maguire said that although the policies needed an annual growth of 7.5% in order to pay off the mortgage at the end of the term, the company doubted that this was realistic.

L&G Chief Executive David Prosser refuted the claims, and said that he could provide documentary evidence that the board of the company believed that the required growth rate would be achieved.

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