Prudential Financial has extended its suspension of new life insurance sales in Japan by 180 days, pushing the pause into November. The company discovered misconduct by over 100 former employees at its Japanese unit, including the sale of fictitious financial products and borrowing money from customers.

Initially triggered in February, the suspension was set to end in May but will now last until at least November. Prudential estimates the sales halt will cost close to $1 billion in 2026 and 2027 if sales resume by year-end. The company is also awaiting results from an independent investigation expected to take several months.

The scandal has already forced Prudential to overhaul governance, replace senior management including its Japan CEO, and identify $20 million in client damages. Despite the misconduct triggering a financial regulator investigation, Prudential maintains its commitment to the Japanese market and aims to emerge with a stronger, modernized operating model.