Prudential Plc Acquires Full Ownership Of Prudential Zenith Life Insurance

Prudential Plc has announced its acquisition of the remaining 49 percent shares in Prudential Zenith Life Insurance Limited (PZL).

This marks a significant milestone in Prudential’s strategy to expand its African operations, building on its initial 51 percent stake in Zenith Life Insurance Limited, acquired in 2017.

The recent acquisition, which will be settled in cash and includes a performance-based component, is set to deepen Prudential’s footprint in Nigeria, a market the company views as having strong long-term growth potential.

PZL currently benefits from an established bancassurance partnership with Zenith Bank, which spans across Nigeria and Ghana. Zenith Bank, a leading financial institution in the region, boasts over 400 branches and serves approximately 29 million customers.

Solmaz Altin, Managing Director (MD) of Prudential’s Strategic Business Group, expressed optimism about the deal, stating: “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 aligns with our new strategy to build a sustainable multi-channel growth platform through targeted investments in structural growth markets across Asia and Africa.”

Prudential plans to build on its bancassurance partnerships, direct distribution channels, and its network of agents in Nigeria. The company is committed to leveraging its relationship with Zenith Bank to further strengthen its distribution capabilities in the region.

Mr. Emmanuel Aryee Mokobi, Chief Executive Officer (CEO) for Africa at Prudential, highlighted the low insurance penetration in Nigeria, noting that it presents a significant opportunity for growth. He pointed out that insurance penetration in the country remains below 0.2 percent of gross domestic product (GDP), and Nigeria’s life insurance market, valued at $770 million in gross written premiums, is the fifth largest on the continent.

“Nigeria is a highly attractive market with significant growth potential,” Mr. Mokobi said.

“This acquisition allows us to fully realise the potential of our Nigerian platform by implementing initiatives in customer service, technology-powered distribution, and health insurance.”

Prudential’s increased stake in PZL comes at a time when Nigeria, the largest economy in Africa with a GDP of $477 billion as of 2022, is experiencing rapid population growth. With an estimated population of 218 million people, Nigeria is expected to grow to over 370 million by 2050, making it the third most populous country in the world.

The acquisition remains subject to the fulfillment of regulatory conditions. Nonetheless, Prudential is optimistic about the future of its Nigerian operations as it continues to invest in high-growth African markets.