Recent Updates — PFH

Prudential Financial has entered into definitive agreements to sell its wholly-owned subsidiaries in Brazil and Mexico to the CNP Assurances Group for an aggregate purchase price of approximately $4.025 billion in cash, subject to closing adjustments. The transaction is expected to close in the second half of 2027, pending regulatory approvals and customary conditions. Proceeds will support capital allocation priorities and investments in U.S., Japanese, and select European markets. This sale advances Prudential’s strategy to exit emerging markets following recent divestitures in Indonesia, South Africa, and Kenya. Prudential Financial operates as a global financial services leader providing insurance, retirement security, and asset management solutions.

Prudential Financial disclosed preliminary financial information for the quarter ended September 30, 2026. The company reported that a sales suspension at Prudential of Japan reduced pre-tax adjusted operating income by approximately $140 million due to compensation costs and lost sales. PGIM segment other related revenues were estimated at $20 million, while alternative investment income in the General Account is expected to be $15-$35 million above near-term expectations. The filing also announced a retrospective segment reporting change, renaming the International Businesses segment to Japan Businesses and moving Brazil and Mexico operations to Corporate and Other. Prudential Financial Inc. operates as a diversified financial services company providing insurance, retirement, and asset management products.

Prudential Financial announced that Japan’s Financial Services Agency extended the business suspension order for its Prudential of Japan subsidiary until January 31, 2027. The regulator also issued partial suspension orders for Gibraltar Life and business improvement orders for all three Japanese entities, requiring remediation plans by November 2026. These actions address misconduct findings and aim to strengthen governance and sales practices in the region. Prudential Financial operates as a global financial services leader and investment manager.

Prudential Financial's Japanese subsidiary published the full Special Investigation Committee report on past sales employee misconduct and outlined comprehensive remediation measures. The company is overhauling its agency structure from 139 to 40-50 units, revising compensation to emphasize long-term retention, and establishing independent sales oversight roles. Reimbursement progress shows 492 of 498 initially identified customers have been resolved, with an additional 329 cases approved for payment totaling approximately $17 million in yen-equivalent claims. The firm is also suspending new business recruitment until the new governance framework proves effective. Prudential Financial operates as a diversified financial services company providing insurance and asset management products.

Prudential Financial reported second quarter 2026 net income of $985 million, or $2.80 per diluted share, compared to $533 million, or $1.48 per share, in the prior year period. After-tax adjusted operating income rose to $1.438 billion, or $4.08 per share, from $1.284 billion, or $3.58 per share. The quarter included a net after-tax charge of $299 million related to annual assumption updates and other refinements. Book value per common share increased to $90.50 from $85.98 year-over-year. Capital returned to shareholders totaled $743 million, comprising $250 million in share repurchases and $493 million in dividends paid at $1.40 per share. Assets under management grew 4% to $1.642 trillion. Prudential Financial operates as a global financial services company providing insurance, retirement security, and investment management solutions.