Key facts
- Prudential Financial Inc. extended its voluntary suspension of new life insurance sales in Japan to November 5, 2026.
- The sales pause began February 9, 2026, due to employee misconduct and a regulatory probe.
- Japan's Financial Services Agency is preparing to issue a business suspension order against Prudential Life Insurance.
- Prudential Financial Inc. withdrew its target of increasing EPS by up to 8% by 2027.
- The company estimates a 2026 pre-tax adjusted operating income hit of $525 million to $575 million.
- The estimated pre-tax adjusted operating income impact for 2027 is $400 million to $450 million.
Prudential Financial Inc. is extending its voluntary suspension of new life insurance sales in Japan through November 5, 2026, as it works to implement operational, organizational, and governance changes following employee misconduct. The sales pause, which began on February 9, 2026, was initially expected to end on May 10, but the company stated that the required changes are more complex and time-consuming than anticipated.
Japan's Financial Services Agency is also preparing to issue a business suspension order against Prudential Life Insurance under the Insurance Business Act due to widespread customer fund misappropriation cases. This regulatory action stems from a series of misconduct incidents involving employees.
As a result of the extended suspension, Prudential Financial Inc. has withdrawn its target of increasing earnings per share by up to 8% by 2027. The company estimates the aggregate hit to its 2026 pre-tax adjusted operating income will be approximately $525 million to $575 million, reflecting the initial 90-day pause and the subsequent 180-day extension. For 2027, the estimated impact is between $400 million and $450 million, mainly due to annualized surrenders, suspended new sales, and costs associated with restarting operations. The company is also reviewing its business channels, including Prudential Gibraltar Financial Life and Gibraltar Life, and has received approximately 70 claims related to misconduct, which are under independent review.