Home / Business and Economy / Prudential Halts Japan Life Sales, Faces $350M Hit
Prudential Halts Japan Life Sales, Faces $350M Hit
5 Feb
Summary
- Prudential anticipates a $300M-$350M profit impact from halted Japan sales.
- Sales pause begins February 9th due to employee misconduct and regulatory probe.
- Shares dropped up to 7.8% following the announcement of the sales suspension.
Prudential Financial Inc. has suspended new life insurance sales in Japan, a move expected to reduce its profit by an estimated $300 million to $350 million in 2026. This financial impact, representing about 5% of projected 2025 earnings, could also cause the company to land at the lower end of its 2025-2027 adjusted operating earnings per share growth target.
The sales pause, effective February 9th, stems from recent employee misconduct, including fraud and borrowing funds from clients. This led to a regulatory investigation and damages exceeding ¥3.1 billion ($19.8 million) for the insurer's Japanese customers. Prudential's CEO indicated the distribution halt through the Life Planner channel may last longer than 90 days.
As of Wednesday, February 5th, 2026, Prudential's stock price fell as much as 7.8% on the New York Stock Exchange. The company's Chief Financial Officer elaborated that the financial hit encompasses $150 million to $180 million in business costs during the suspension, approximately $70 million in one-time expenses for customer reimbursement, and an $80 million earnings reduction during sales ramp-up.
