Prudential Financial announced that Japan's insurance regulator, the Financial Services Agency, issued new business suspension orders and business improvement orders to the firm's Japan subsidiaries on Oct. 9.
Prudential has reduced exposure to riskier products like variable annuities with minimum guarantees and has increased investments in segments with steadier cash flows like the investment management and institutional retirement businesses.
Bears
Prudential could suffer from elevated credit costs in the current private credit cycle, reducing profitability.
Prudential Financial is one of the largest US life insurers, offering annuities, life insurance, and asset management products. The United States and Japan are its two largest markets. Its US business contributed about 50% of adjusted 2025 earnings and includes institutional retirement (mostly pension risk transfer), individual retirement (annuities), group insurance, and individual life insurance. Its international business represented about 39% of adjusted earnings, with a strong market position in Japan, and the firm also has a presence in emerging markets like Brazil. The company's investment management business, PGIM, contributed approximately 11% of its 2025 adjusted earnings. PGIM had around $1.47 trillion in assets under management at the end of the fourth quarter of 2025.