Japan's Prudential Life Ordered to Halt Biz for over 3 Months
Tokyo, Oct. 9 (Jiji Press)--Japan's Financial Services Agency on Friday ordered Prudential Life Insurance Co. and Gibraltar Life Insurance Co., both part of the U.S. Prudential Financial Inc. group, to suspend some operations for more than three months over fraud committed by their employees. The FSA also issued a business improvement order to Prudential Holdings of Japan Inc., the parent c...
On October 9, Japan's Financial Services Agency (FSA) issued an order suspending operations for Prudential Life Insurance Co. and Gibraltar Life Insurance Co., part of the U.S. Prudential Financial Inc. group, for over three months due to employee fraud. The FSA also imposed a business improvement order on Prudential Holdings of Japan Inc., Prudential Life's parent company, emphasizing the need for stronger corporate governance.
During the suspension period, which runs from Tuesday to the end of January 2027, the two insurers are prohibited from entering new insurance contracts or selling insurance products. This decision aims to allow them to concentrate on rebuilding their management and oversight systems. Prudential Life had already voluntarily halted new sales since February, and the FSA's order further delays the resumption of its sales activities.
In January, Prudential Life disclosed that more than 100 of its current and former employees improperly received a total of 3.1 billion yen from customers. The incident led to the resignation of then-President Kan Mabara and an on-site inspection by the FSA.
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