Prudential Financial Inc.’s Japan insurance head vowed to bolster governance after revelations that improper actions by more than 100 current and former staff cost customers about $20 million.
The chief executive officer of the unit, Kan Mabara, “deeply” apologized for “multiple inappropriate cases,” at a news conference in Tokyo. Prudential Life Insuranc
e Co. had said in a statement last week that employees had received ¥3.14 billion ($20 million) from customers through improper acts. It said last week that Mabara will step down on Feb. 1.
Company executives at the news conference said the pay structure relied heavily on commissions, distorting employee incentives to follow rules.
“We have attracted those who have an excessive desire to make money,” Mabara said. “We had to take extra care in managing them, but we were not as alert to risks as we should have been.”
Japanese policymakers are trying to boost investment activity by individuals as the nation’s shrinking and aging population puts pressure on government
finances. Troubles with customer accounts at financial firms would go against that drive. At Prudential Life, staff have been checking with customers since August 2024 following the discovery of multiple cases of impropriety.
An internal investigation showed that about 106 current and former employees solicited around 500 customers for investment products that weren’t approved by the firm, including cryptocurrencies.
The company’s business segments are Risk Capital (which includes Commercial Risk Solution
s and Reinsurance Solutions) and Human Capital (which includes Health Solutions and Wealth Solutions).
Risk Capital’s revenue increased $171 million, or 7%, to $2.7 billion, and Human Capital revenue decreased $16 million, or 1%, to $1.6 billion.
Commercial Risk Solutions reported $2.3 billion in Q4 revenue, with organic revenue growth of 6%. Aon said this increase reflects strong growth in North America, E
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MEA and Latin America, driven by net new business and ongoing strong retention. Performance was highlighted by strong growth in U.S. core P/C and double-digit growth in construction.
Reinsurance Solutions reported Q4 revenue of $379 million, with organic revenue growth of 8%, which Aon said, reflects double-digit growth in insurance-linked sec
urities and the Strategy and Technology Group. Strong growth in facultative placements w
as driven by net new business and strong retention, partially offset by a modest unfavorable market impact.
Health Solutions’ organic revenue growth of 2% reflects strong growth in core health and benefits a
nd consumer benefits solutions, driven by net new business, ongoing strong retention and positive market impact, partially offset by slower discretionary spend in Talent Solutions and delayed closed sales.