Prudential Financial's Japanese arm just stretched its self-imposed sales halt to nine months. New life insurance policies won't sell until November. The extension, announced April 21, piles fresh pain on a unit already reeling from employee fraud.

Back in January, Prudential of Japan uncovered misconduct by about 100 current and former staffers. They improperly siphoned roughly ¥3.1 billion—around $21 million—from nearly 500 customers through unauthorized borrowing and investments dating back decades. Complaints have snowballed. The Japan Times reports roughly 400 more claims since, pushing the total near 700. An independent reimbursement committee has fielded about 70 so far, though none verified yet, per a company spokesperson speaking to Life Insurance International in a Yahoo Finance article.

Prudential’s Japan Scandal Forces Nine-Month Sales Freeze, $1 Billion Earnings Blow

The initial 90-day freeze kicked off February 9. Now, another 180 days tacks on, ending November 5. Existing policies? Untouched. Customer service rolls on. But new business grinds to a stop across Prudential of Japan, or POJ. Gibraltar Life and Prudential Gibraltar Financial Life, other channels, keep operating.

Why prolong? Reforms proved thornier than thought. POJ needs time to overhaul compensation, sales oversight, governance, and its 'Life Planner' agent model—once skewed too hard toward new recruits over client care. "The scope of required changes is greater than originally anticipated," the company stated in its press release. An external review of management systems, launched early 2026, drags into months more.