Prudential Group acquires total shares of Prudential Zenith Life Insurance

 

Harboursandport.com: Lagos – October 1, 2024: Global Insurance giant, Prudential Insurance Group plc has acquired 100 percent stake in Prudential Zenith Life Insurance Ltd (PZL).

The group had since 2017 acquired 51 percent shares of the Nigerian Life underwriting firm owned by Zenith Bank plc.

Before now, PZL has been existing as bancassurance partnerships with Zenith Bank in Nigeria and Ghana.

From left: Afolabi Lawal, Chief Financial Officer, Prudential Zenith; Emmanuel Aryee Mokobi, Chief Executive Officer, Prudential Africa; Nashiba Nalubega, Regional Communications Manager, Prudential Africa; and Nick Holder, Deputy Chief Executive Officer, Prudential Africa at the announcement of Prudential PLCs’ acquisition of the remaining 49% shares in Prudential Zenith Life Insurance in Lagos.

Zenith Bank is a leading bank headquartered in Nigeria, with a network of over 400 branches and approximately 29 million customers across the region.

The Prudential group said increase in ownership of the PZL business was a further step in executing Prudential’s focus in Africa on deploying capital in its existing operations that have the greatest potential.

Prudential originally purchased a 51 percent stake in Zenith Life Insurance Limited in Nigeria in 2017, which benefited from an existing bancassurance partnership with Zenith Bank.

The group said consideration for this transaction would be payable in cash and includes a performance-based element

Commenting on the deal, the Managing Director, Strategic Business Group, Prudential Solmaz Altin, said “we are delighted to take full ownership of the business and have the opportunity to better serve the needs of our customers and create long-term value for our shareholders. Acquiring the remaining stake is consistent with our new strategy to build a sustainable multi-channel growth platform, through targeted investment in structural growth markets across Asia and Africa. We see substantial long-term opportunities in Nigeria and plan to build on our existing agents, bancassurance partnerships and direct distribution capabilities”.

According to him, PZL was a great business and one we know well, and our relationship with Zenith Bank further strengthens our distribution capabilities in the region.

Also speaking, CEO, Africa, Prudential Emmanuel Aryee Mokobi, said the transaction increases the group’s participation in an attractive market with significant growth potential.

“Insurance penetration remains low in Nigeria (less than 0.2 percent of GDP) and there is a significant growth runway. Nigeria’s life insurance market is the fifth largest African market with a gross written premium of US$770 million, and we have an established presence there”.

He said Prudential Africa’s strategy was to focus on building its presence and investing in growth and scale in the group’s chosen insurance markets in Africa.

Speaking further he said “The Nigerian business is profitable, and the acquisition of the remaining stake will allow us to realise the full potential of the platform by implementing initiatives in areas such as customer, technology-powered distribution and health.”Nigeria is the largest economy in Africa, with a GDP of US$477 billion as at 2022 and a population of 218 million people. Its population is fast growing and is expected to increase to over 370 million by 2050 by which time Nigeria is expected to be the third most populous country in the world (currently 6th).He however said the transaction remained subject to the satisfaction of the applicable conditions precedent for completion.

He said following the transaction, Prudential will own 100 percent of Prudential Zenith Life.

Prudential plc provides life and health insurance and asset management in 24 markets across Asia and Africa.

Prudential’s mission is to be the most trusted partner and protector for this generation and generations to come, by providing simple and accessible financial and health solutions.