Japan FSA orders hit Prudential Financial units

m. --()--October 09, 2026- The Prudential Life Insurance Company, Ltd. ("Prudential of Japan" or "POJ"), Gibraltar Life Insurance Company, Ltd. ("Gibraltar"), and Prudential Holdings of Japan, Inc.

("PHJ"), subsidiaries of Prudential Financial, Inc. (NYSE: PRU) ("Prudential Financial"), announced today the receipt of business suspension and improvement orders issued by Japan's Financial Services Agency ("FSA"). The FSA issued business suspension and business improvement orders to POJ and business improvement and partial business suspension orders to Gibraltar. The orders to both businesses were issued under Article 132, Paragraph 1 of the Insurance Business Act (Act No.

105 of 1995) (the "IBA"). In addition, the FSA issued a business improvement order to PHJ under Article 271-29, Paragraph 1 of the IBA. In POJ, the business suspension order extends the period in which POJ cannot solicit new business to January 31, 2027, to allow additional time to advance the remediation actions already underway. Both the Special Investigation Committee's investigation, as previously disclosed on October 8, 2026, and the FSA's inspection findings examined the conditions that contributed to the misconduct in POJ.

The findings validated the priorities established at the beginning of the voluntary suspension to strengthen governance and accountability, enhance the sales model to place greater emphasis on customer outcomes, simplify the organization, and reinforce a culture of accountability, positioning POJ to deliver better customer and business outcomes. "We once again extend our deepest apologies to the customers and all other stakeholders who have been affected by this situation," said Hiromitsu Tokumaru, president and chief executive officer of Prudential of Japan. "We are fundamentally reshaping how we operate.

Through our established priorities, we are creating a business that will be more resilient, more accountable, and better equipped to earn and maintain our customers' trust. " In Gibraltar, the partial business suspension order, also concluding on January 31, 2027, applies to the Life Consultant channel and not the independent agency channel. Gibraltar conducted outreach to over two million of its customers in recent months and continues to evaluate and enhance its operating model to ensure delivery of customer-focused outcomes.

"Gibraltar has a strong foundation, and our focus will be on making it even stronger," said Hiroyoshi Kaburagi, president and chief executive officer of Gibraltar. "As we enhance our operating model, we will do so with an unwavering commitment to serving our customers and earning their trust every day. " Under the business improvement orders, PHJ, POJ, and Gibraltar will submit business improvement plans to the FSA by the end of November 2026 and report on their progress regularly.

"The actions we are taking are about creating a stronger foundation for the future of our Japan businesses," said Brad Hearn, president and chief executive officer of Prudential Holdings of Japan. "While POJ and Gibraltar are following paths tailored to their unique circumstances, our shared objective is clear: to strengthen governance, enhance accountability, and restore and reinforce the customer trust that has underpinned our business in Japan for nearly four decades. " POJ and Gibraltar remain financially sound and able to meet their obligations.

Japan continues to be a key strategic priority and a core component of Prudential Financial's global business portfolio, and the parent company continues to provide full support and resources as these reforms advance. The suspension does not apply to Prudential Financial's or PGIM's other business units in Japan, including Prudential Gibraltar Financial Life ("PGFL"). "Japan remains one of Prudential's most important markets and a cornerstone of our global franchise," said Andy Sullivan, chairman and chief executive officer of Prudential Financial.

"The work underway reflects our determination not only to address current challenges, but to build an even stronger foundation for the future. m. ET to discuss this announcement in more detail. com.

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ET on October 9 through October 23, dial (877) 660-6853 (domestic) or (201) 612-7415 (international) and use replay code 13763227. About Prudential Financial Prudential Financial, Inc. 6 trillion in assets under management as of June 30, 2026, has operations in the United States, Asia, Europe, and Latin America. Prudential's diverse and talented employees help make lives better and create financial opportunity for more people by expanding access to investing, insurance, and retirement security.

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