(Feb 4) : Prudential Financial Inc. announced it would voluntarily suspend any new life insurance sales in Japan for 90 days, in a move to restore trust after some of its former employees engaged in financial misconduct.
The suspension, which is slated to begin on Feb. 9, comes as the firm plans to implement operational, organizational and governance changes, the company said in a statement Tuesday. Prudential also plans to reimburse its policyholders that have been wronged.
“Doing right by our customers is core to who we are at Prudential and we take this matter extremely seriously,” Chief Executive Officer Andy Sullivan said in the statement. “We are taking decisive actions to address the compliance, operational, and governance issues identified by the investigation.”
Sullivan said rebuilding customers’ trust is a top priority, and that the firm’s Japanese unit is “committed to restoring the standing that has long set us apart.”
Last month, Prudential said an internal investigation found that more than 100 former employees in its Japanese unit engaged in improper investment solicitation. The misconduct resulted in more than ¥3.1 billion (US$19.9 million) in damages to the insurer’s local clients.
Prudential also said Kan Mabara, the president and CEO of its local life insurance unit, would step down. He was replaced by Hiromitsu Tokumaru on Feb. 1.
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