Prudential of Japan (POJ) announced on April 21 that it will extend its voluntary suspension of new sales for an additional 180 days, following a 90‑day pause that began on February 9. The extension means that POJ will not offer new insurance policies in Japan for the next six months, effectively halting all new business generation in the country while the company addresses internal concerns and regulatory requirements.
The decision comes after a series of employee misconduct incidents, including inappropriate investment solicitations and the promotion of unapproved cryptocurrency products, which cost customers approximately 3.1 billion yen (about US$19.5 million). An independent review has identified systemic governance gaps, prompting POJ to overhaul its compensation and evaluation systems, sales conduct management, and governance structures. The company is also transforming its “Life Planner” model to align incentives more closely with customer interests.
Prudential Financial estimates that the extended suspension will reduce pretax adjusted operating income by $525 million to $575 million in 2026 and $400 million to $450 million in 2027, a hit that represents a substantial portion of the Japan business’s prior year income and a significant percentage of the parent company’s overall earnings. The company has also withdrawn its medium‑term EPS growth guidance of 5 % to 8 % for 2027, reflecting the uncertainty surrounding the timing of new sales resumption.
Andy Sullivan, Chairman & CEO of Prudential Financial, said, “As we said earlier this year, we would not resume new sales until we were comfortable that POJ’s compliance and oversight environment supports doing so.” He added, “We have moved decisively to strengthen enterprise‑level engagement in Japan, and my leadership team and I are ensuring that the changes underway are comprehensive, durable, and fully aligned with our group‑wide standards. I am confident that we will return POJ to the market as a stronger, more resilient business with a modernized operating model that supports our customers over the long term.” Hiromitsu Tokumaru, President and CEO of POJ, apologized, “I apologize to our customers for the disruption this situation has caused and for falling short of the expectations we expect of ourselves.” He also stated, “Acting in the best interests of our customers is a core value of Prudential and a cornerstone of what we stand for. We are determined to rebuild the trust of our customers through the demonstration of our commitment to customer care, experience, and integrity that best defines us.” Brad Hearn, President and CEO of Prudential Holdings of Japan, added, “Our highest priority is restoring the trust we have built over decades with customers and society in Japan. This extension is a deliberate decision to prioritize the changes needed to critical elements of POJ’s business model to support long‑term consumer outcomes. POJ has strong capabilities, a well‑established brand, and a long‑standing presence in Japan. We believe the business will emerge better positioned to serve customers in this market.”
Investors have reacted to the extended suspension by expressing caution, citing the significant financial impact and the withdrawal of growth guidance. Analysts have noted that the suspension does not affect existing policyholders or the servicing of in‑force policies, but the halt in new business generation is expected to delay revenue recognition and could influence Prudential’s projected growth in the Asia‑Pacific region.
The suspension does not apply to Prudential Financial’s other business units in Japan, including Gibraltar Life and Prudential Gibraltar Financial Life, which continue to operate normally. The company remains financially sound and committed to completing the remediation process, with the goal of resuming new sales when the compliance and oversight environment meets the required standards.
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