Prudential sees $300M-$350M impact on FY26 adj. operating income from POJ issues

Says that in January, Prudential (PRU) of Japan announced findings of an internal investigation into instances of misconduct by certain of its employees. “This misconduct very clearly does not meet our standards or what our customers expect of us” and that in consultation with the regulators of Japan, “we have made the decision to voluntarily halt new sales and POJ for a 90 day period to fully address the root causes of the misconduct.” Prudential says it will also be restructuring employee compensation and enhancing education, compliance training and recruiting standards for all POJ employees. Says working with local regulators and other key stakeholders to address these issues thoroughly, implement the necessary remediation measures, and uphold the highest standards of governance and customer care. Going forward, Prudential sees an impact on 2026 pre-tax adjusted operating income of $300M-$350M, or equivalent to approximately 5% of 2025 FY earnings. Comments taken from Q4 earnings conference call.