Why did Prudential Financial halt new life insurance sales in Japan?

Prudential Financial halted new life insurance sales in Japan due to employee misconduct, including fraud and borrowing money from customers, which also prompted a regulatory probe.

What is the estimated financial impact of Prudential's Japan sales pause?

The company estimates the halt in new life insurance sales in Japan will result in a $300 million to $350 million impact on its profit for the year.

When did Prudential's Japan life insurance sales pause begin, and could it be extended?

The sales pause began on February 9th, 2026, and Prudential's CEO indicated it could be extended beyond the initial 90-day period if internal compliance and oversight issues are not resolved.

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 Halts Japan Life Sales, Faces $350M Hit

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.