Prudential Financial (NYSE: PRU) announced that Japan's Financial Services Agency (FSA) has issued business suspension and improvement orders against two of its Japan subsidiaries, extending restrictions on new business solicitation through January 31, 2027.

The FSA issued a business suspension order to Prudential of Japan (POJ), barring it from soliciting new business until January 31, 2027. A partial business suspension order was issued to Gibraltar Life Insurance, applying specifically to its Life Consultant channel through the same date. Gibraltar's independent agency channel is not affected by the order.

Both orders were issued under Article 132, Paragraph 1 of Japan's Insurance Business Act. The FSA also issued a business improvement order to Prudential Holdings of Japan (PHJ) under a separate provision of the same act.

Under the business improvement orders, PHJ, POJ, and Gibraltar are required to submit business improvement plans to the FSA by the end of November 2026 and report on their progress regularly.

Gibraltar conducted outreach to over two million customers in recent months as part of its review of its operating model. POJ's suspension was tied to an ongoing remediation process, with findings from a Special Investigation Committee previously disclosed on October 8, 2026, and FSA inspection results informing the path forward.

"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.

Prudential Financial stated that POJ and Gibraltar remain financially sound and capable of meeting their obligations. The suspension orders do not apply to Prudential Financial's or PGIM's other Japan business units, including Prudential Gibraltar Financial Life.

According to the company's press release, Prudential Financial's chairman and chief executive officer Andy Sullivan said the work underway reflects the company's determination to address current challenges and strengthen its Japan franchise.