Japan's Financial Services Agency (FSA) has today ordered Prudential Life Insurance Co. and Gibraltar Life Insurance Co., both part of the US 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 company of the two Tokyo-based life insurers, calling for stronger corporate governance.
Under the partial business suspension order, which runs from Tuesday to the end of January 2027, the two insurers will be prohibited from entering into new insurance contracts or selling insurance products, so that they can focus on rebuilding their management and oversight systems.
Prudential Life has voluntarily refrained from making new sales since February, and the FSA's order will further delay the resumption of its sales activities.
In January, Prudential Life said that more than 100 of its current and former employees had improperly received a total of 3.1bn yen from customers, prompting the resignation of then President Kan Mabara and an on-site inspection by the FSA.
