Prudential Financial flags $140 million Japan hit in preliminary third-quarter results
The company also renamed its International Businesses segment Japan Businesses and moved certain emerging markets operations into divested and run-off businesses.
Key takeaways
- Prudential Financial, Inc. (PRU) said in a filing on Oct. 15 that preliminary unaudited results for the quarter ended Sept. 30, 2026 include an estimated $140 million reduction in pre-tax adjusted operating income at its Japan Businesses from a sales suspension at Prudential of Japan. PGIM assets under management were $1.47 trillion. Figures are unaudited.
Prudential Financial, Inc. (PRU) said in a regulatory filing Thursday that preliminary, unaudited figures for the third quarter of 2026 show a hit from a sales suspension at its Japanese insurance unit. The company also changed how it reports its international operations.
Full third-quarter results and the quarterly financial supplement are scheduled for release on Nov. 3, 2026.
The company said it has not completed its financial closing procedures for the quarter ended Sept. 30, 2026. Its actual results could differ materially from the preliminary figures.
The Prudential of Japan sales suspension is estimated to have reduced pre-tax adjusted operating income at the Japan Businesses by about $140 million in the quarter. That figure includes one-time costs tied mainly to Life Planner compensation, lost sales and the impact of surrenders.
Alternative investment income from the general account is estimated at $15 million to $35 million above the company's near-term projections. The figure excludes the Closed Block Division and Funds Withheld portfolios.
Assets under management in the PGIM segment were $1.47 trillion as of Sept. 30, 2026. Other related revenues, net of related expenses, were about $20 million on an adjusted operating income basis. The company defines other related revenues as incentive fees, transaction fees, and revenues from seed and co-investments and mortgage originations.
The filing also changes how the company reports its international businesses. In August, the company announced its intent to exit certain emerging markets businesses. Effective in the third quarter, the results of those businesses, including its Brazil and Mexico operations, are reflected in Divested and Run-off Businesses within Corporate and Other.
The former International Businesses segment has been renamed Japan Businesses. The company's indirect 40% stake in Administradora de Fondos de Pensiones Habitat S.A. now sits within the Retirement segment, which the company said reflects the retirement-focused nature of that business.
The changes are being applied retrospectively. The company said they do not affect any previously issued consolidated financial statements.
Alongside the filing, the company furnished a revised second-quarter 2026 financial supplement as Exhibit 99.1. The company first disclosed that supplement on Aug. 4, 2026. The updated pages are highlighted in yellow.
The filing does not give a consolidated preliminary net income or total adjusted operating income figure for the quarter.