Prudential says Japan sales suspension cut about $140 million from third-quarter operating income in preliminary update

Prudential Financial put an early price tag on its sales halt in Japan. The insurer said the Prudential of Japan sales suspension reduced third-quarter pre-tax adjusted operating income in its Japan Businesses by about $140 million, according to an 8-K filed Thursday.

That estimate includes one-time costs mainly tied to Life Planner compensation, along with lost sales and the impact of policy surrenders, the company said. Prudential is scheduled to release full third-quarter results and its financial supplement on Nov. 3.

The preliminary update also showed some offsets. Alternative investment income in the company's general account, excluding certain portfolios, is estimated at about $15 million to $35 million above near-term expectations for the quarter.

Assets under management at PGIM, Prudential's investment management arm, stood at $1.47 trillion as of Sept. 30. PGIM's other related revenues, net of related expenses, came to about $20 million on an adjusted operating income basis.

Prudential also reshuffled how it reports results. Following its August announcement that it intends to exit certain emerging markets businesses, operations including Brazil and Mexico now sit in Divested and Run-off Businesses within Corporate and Other, starting with the third quarter.

The former International Businesses segment has been renamed Japan Businesses, and the company's indirect 40% ownership interest in pension fund manager Administradora de Fondos de Pensiones Habitat now falls under the Retirement segment. Prudential said the changes are applied retrospectively and do not affect previously issued consolidated financial statements, and it furnished a recast second-quarter 2026 financial supplement.

By the numbers

• Japan sales suspension hit: about $140 million to Q3 pre-tax adjusted operating income
• Alternative investment income: about $15 million to $35 million above near-term expectations
• PGIM assets under management: $1.47 trillion as of Sept. 30
• Full Q3 results: Nov. 3, 2026

Sources

1. Prudential Financial, Inc., Form 8-K (Items 2.02, 7.01, 9.01), filed Oct. 15, 2026, accession 0001137774-26-000210

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