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Prudential reimburses about 437 people in Japan for misconduct

Prudential said Japan life insurance sales remain suspended until Nov. 5 while it implements a management and organizational overhaul ordered by regulators.

Reported · Written up by our desk · Industry & Deals

Prudential Financial has begun reimbursing individuals in Japan tied to a regulatory probe into employee misconduct at its Japan business, saying it reimbursed 437 people totaling about 2.85 billion yen, or $17.4 million, as remediation.

The insurer added that an independent panel reviewed 365 subsequent individual inquiries, with 125 eligible for reimbursement representing claims of 792 million yen. It also said the misconduct led to more than $20 million in damages to local clients.

Prudential suspended new life insurance sales in Japan until Nov. 5 after an internal investigation earlier this year found more than 100 former employees engaged in improper investment solicitation. Japan’s Financial Services Agency ordered the company to conduct a fundamental review of its organizational structure during the suspension period.

In its filing, Prudential said it is running customer awareness initiatives and investigations to prevent further harm, while reforming its management structure to prevent recurrence, and it plans to provide quarterly updates on reimbursements. The company said higher expenses related to the Japan suspension contributed to a 4% dip in adjusted operating income for its international businesses in the first quarter of 2026 versus a year earlier.

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