Prudential Life Insurance Company, Ltd. (“Prudential of Japan” or “POJ”) has extended its suspension of new business in Japan for an additional 180 days as it continues to implement operational and governance changes following previously disclosed employee misconduct. Prudential of Japan and its US-based parent, Prudential Financial, Inc., said the extended pause follows the 90-day voluntary suspension of new sales that began on Feb. 9, 2026. Taken together, the measures will keep Prudential of Japan from writing new business for most of 2026. The suspension applies only to new sales and does not affect existing policyholders or the servicing of in-force policies, according to the companies.
The decision to lengthen the suspension reflects a reassessment of the work required to remediate issues identified earlier this year at Prudential of Japan, including misconduct by certain employees involving inappropriate investment solicitations. The companies said the reform program spans operational processes, organizational structure, sales conduct oversight, and governance arrangements, including accountability mechanisms across head office and branch operations. Prudential has also commissioned an independent, third-party review of Prudential of Japan’s management system as part of its governance framework. That review is in progress and is expected to take several more months.
“I apologize to our customers for the disruption this situation has caused and for falling short of the expectations we expect of ourselves. 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,” said Hiromitsu Tokumaru, president and chief executive officer of Prudential of Japan. During the extended suspension period, Prudential of Japan plans to continue changes to compensation and evaluation systems, sales activity conduct management, and governance between head office and sales branches. The company also intends to adjust its captive Life Planner distribution model to more closely align incentives and decision-making with customer interests.
The 180-day extension builds on measures announced on Feb. 3, 2026, when Prudential of Japan and Prudential Financial first disclosed a 90-day voluntary halt in new sales. That move followed an internal investigation into misconduct by some employees, including inappropriate investment solicitations. At that time, Prudential of Japan outlined a set of responses: steps to reimburse impacted customers, a restructuring of employee incentive compensation, strengthened oversight of sales practices, governance and risk management, and enhanced education, training, and recruitment standards for staff.
“I would like to deeply apologize for the harm this matter has caused to our customers and stakeholders. The decision to enter into a voluntary suspension of new sales activity is an important step to rebuild trust and implement necessary changes to our organization,” Tokumaru said in the February statement. In parallel with the remedial program, Prudential of Japan made a leadership change. Kan Mabara, then president and CEO of Prudential of Japan, left the company effective Feb. 1, 2026, and will not serve as an advisor. He was succeeded by Tokumaru, previously president and CEO of Prudential Gibraltar Financial Life. The company said Tokumaru had not been part of Prudential of Japan’s former management team.
Executives overseeing Prudential’s Japan operations have described the prolonged suspension as intended to provide time to complete structural and governance changes rather than to serve as a short-term response. “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,” said Brad Hearn, president and chief executive officer of Prudential Holdings of Japan.
At the parent-company level, Prudential Financial has increased its direct oversight of the Japan businesses and linked the resumption of new sales to the state of compliance and controls at Prudential of Japan. “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. 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,” said Andy Sullivan, chairman and chief executive officer of Prudential Financial. In earlier comments, Sullivan added: “Doing right by our customers is core to who we are at Prudential, and we take this matter extremely seriously,” describing the rebuilding of customer trust as a top priority for the group.
