Prudential Life Extends Sales Suspension by 180 Days

Tokyo, April 22 (Jiji Press)–Prudential Life Insurance Co. said Wednesday that it will extend its voluntary suspension of sales activities for new contracts by 180 days until Nov. 5, following a fraud scandal involving its employees. The suspension was originally scheduled for 90 days from February in response to the scandal, in which employees swindled a total of about 500 customers out of some 3.1 billion yen. However, Prudential Life concluded that more time is needed for fundamental reforms, including a review of sales and management systems, according to a statement issued by the company and its parent, Prudential Holdings of Japan Inc. The two companies, both based in Tokyo, belong to U.S. financial giant Prudential Financial Inc. Additionally, a survey is being conducted into about 70 suspected fraud cases involving Gibraltar Life Insurance Co., another Prudential Financial group company. “I apologize for the serious concerns we caused,” Prudential Life President and CEO Hiromitsu Tokumaru said at a press conference. Yasuhiro Akiyama, vice president of the insurer, said that the sales suspension will significantly impact the company’s earnings for the fiscal year ending March 2027, but added that the company is unlikely to incur a substantial net loss. Prudential Life also announced the progress of compensation. As of Friday, an independent committee’s review process has been completed or compensation payments have been made for 259 individuals, totaling 1.7 billion yen. Meanwhile, the number of damage claims has more than doubled to about 700 from roughly 300 as of February. The company aims to proceed swiftly with damage assessments. Since 1991, more than 100 Prudential Life employees have been found to have illegally received money from customers. The Financial Services Agency has conducted an on-site inspection of Prudential Life, investigating its sales staff management system. It has also launched an inspection of Prudential Holdings of Japan. END [Copyright The Jiji Press, Ltd.]