Prudential still sees ~$1B impact on pretax adjusted operating income from POJ suspension

Prudential Financial (PRU) still expects its pretax adjusted operating income across 2026 and 2027 to be reduced by ~$1.0B due to the suspension of new sales activity at two of its Japanese businesses, the company said Friday in an update.

Earlier, the company said Japan's Financial Services Authority extended suspensions of soliciting new business at its Prudential of Japan and the Life Consultant channel of its Gibraltar Life unit until Jan. 31, 2027, to remedy employee misconduct that had been discovered.

In April 2026, Prudential (PRU) had estimated that the suspension would hurt its pretax adjusted operating income across 2026 and 2027 by ~$925M-$1.03B — with $525M-$575M of that hit coming in 2026 and $400M-$450M in 2027.

The updated estimated financial impacts, disclosed during the company's conference call on Friday, assume that sales remain suspended through Jan. 31, 2027, with a 12-18-month phased reopening.

Prudential (PRU) sees no material impact to capital, economic solvency ratio, or cash flows in 2026 or 2027, it added.

Prudential (PRU) stock dropped 1.3% in premarket trading.

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