Prudential Life Ordered to Halt Some Operations
TOKYO (Jiji Press) — The 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 Financial Services Agency has mandated Prudential Life Insurance Co. and Gibraltar Life Insurance Co., both subsidiaries of U.S. Prudential Financial Inc., to cease specific operations for over three months due to employee fraud. The FSA also issued a business improvement directive to Prudential Holdings of Japan Inc., the parent entity of the two Tokyo-based insurers, emphasizing the need for enhanced corporate governance.
Effective from Tuesday until the end of January 2027, the partial suspension order will preclude the insurers from issuing new insurance contracts or selling insurance products. This measure aims to allow them to concentrate on revitalizing their management and oversight systems. Prudential Life had previously pledged a cessation of new sales in February, and the FSA's directive will further postpone the resumption of its sales operations.
In January, Prudential Life disclosed that more than 100 of its current and former employees had illicitly received a combined total of ¥3.1 billion from customers, leading to the resignation of former President Kan Mabara and an on-site investigation by the FSA.
Written by urgent.news from The Japan News by The Yomiuri Shimbun's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
