Prudential Japan extends sales suspension
After initiating a voluntary 90-day pause on new sales at its Japan unit, Prudential Financial is extending the suspension by another 180 days.
The extension reflects Prudential’s conclusion that the scope and complexity of the required changes within POJ are greater than previously anticipated and will take additional time to design and implement. These include the operational, governance, organizational, and related changes necessary to resume sales. Prudential also initiated an independent, third-party review of POJ’s management system earlier this year as part of its governance process. That review is ongoing and is expected to take several months to complete.
Kan Mabara, president and CEO of Prudential of Japan, has left the company in February when the first suspension took place, and was replaced by Hiromitsu Tokumaru.
Prudential Financial’s Chairman & CEO and CFO will host a conference call on Tuesday, April 21 at 5:30 p.m. ET to discuss this announcement in more detail.
“I apologize to our customers for the disruption this situation has caused and for falling short of the expectations we expect of ourselves. Acting in the best interests of our customers is a core value of Prudential and a cornerstone of what we stand for. We are determined to rebuild the trust of our customers through the demonstration of our commitment to customer care, experience, and integrity that best defines us.” – Hiromitsu Tokumaru, president and chief executive officer of Prudential of Japan.
“Our highest priority is restoring the trust we have built over decades with customers and society in Japan. This extension is a deliberate decision to prioritize the changes needed to critical elements of POJ’s business model to support long-term consumer outcomes. POJ has strong capabilities, a well-established brand, and a long-standing presence in Japan. We believe the business will emerge better positioned to serve customers in this market.” – Brad Hearn, president and chief executive officer of Prudential Holdings of Japan.
“As we said earlier this year, we would not resume new sales until we were comfortable that POJ’s compliance and oversight environment supports doing so. We have moved decisively to strengthen enterprise-level engagement in Japan, and my leadership team and I are ensuring that the changes underway are comprehensive, durable, and fully aligned with our group-wide standards. I am confident that we will return POJ to the market as a stronger, more resilient business with a modernized operating model that supports our customers over the long term.” – Andy Sullivan, chairman and chief executive officer of Prudential Financial .
