Prudential Slumps as Firm Tallies Earnings Hit From Japan (1)

Prudential Financial Inc. shares dropped as the insurer said it expects its decision to halt new life insurance sales in Japan to result in a $300 million to $350 million impact on its profit this year, Chief Executive Officer Andy Sullivan said Wednesday.

The estimated hit on its pre-tax adjusted operating earnings in 2026 represents about 5% of Prudential’s earnings in 2025, Sullivan added. The CEO, who was speaking on a call with analysts detailing the insurer’s fourth-quarter results, also warned that the sales pause, which is slated to start Feb. 9, could last longer.

“We will not resume distribution ...