Insurers Prudential, Manulife seal tech alliances amid Beijing’s tightened tax rules

Japan's FSA will temporarily suspend Prudential Life Insurance due to employee financial scams involving JPY3.1bn. The insurer, part of US-based Prudential Financial Inc., has already halted new contracts and is compensating customers. The FSA may order further sales halts and management restructuring.

Moonshot AI, backed by Alibaba (BABA) and Tencent, raised its valuation to $50B after a funding round and filed for a Hong Kong IPO. Alibaba's P/S ratio is 1.79x, below historical and industry medians, reflecting market skepticism. Alibaba's GF Score™ is 76/100, with strengths in valuation and growth but weaknesses in momentum. Insiders have net sold shares, while 17 gurus hold BABA, with more trimming than adding positions.

Prismic Life agreed to reinsure $5B of Prudential's Japanese whole life policies. The deal expands Prismic's reinsurance platform to $25B in assets. Prudential will retain policyholder obligations. Both companies cited strategic benefits.

Prudential Financial (PRU) agreed to a $5B reinsurance deal with Prismic for U.S. dollar-denominated policies issued by its Japanese affiliates. The deal covers over $22B of liabilities. Prudential reported Q2 net income of $985M ($2.80 per share), up from $533M ($1.48 per share) in 2025. Its International Businesses unit saw pre-tax adjusted operating income rise to $855M, though constant-dollar sales fell 33% due to a sales suspension in Japan.

Japan's FSA plans to restrict Prudential Life Insurance from new business for at least 3 months, citing systemic failures. The regulator will also target the local holding company, Prudential Holdings of Japan, for governance reforms. The scandal involves fraud by employees over 30 years, costing the US parent, Prudential Financial, an estimated $525M-$575M in 2026 pre-tax adjusted operating income.

Prismic Life agreed to reinsure $5bn of Prudential Financial's Japanese whole life policies, expanding its assets under management to $25bn. Prudential will retain administrative and policyholder obligations. The deal strengthens Prismic's growth and Prudential's capital strategy, according to both companies.