Prudential Plc takes full control of Nigerian insurance joint venture

Prudential Plc has announced its intention to acquire the remaining shares of its joint venture, Prudential Zenith Life Insurance Limited, taking full ownership of the Nigerian insurance firm.

The disclosure was made by the Managing Director, Strategic Business Group, Prudential, Solmaz Altin, at a press conference on Friday, in Lagos.

He stated that Prudential, which initially acquired a 51 per cent stake in Prudential Zenith Life in 2017, is making this move as part of its strategy to expand its operations across Africa by investing in markets with strong growth potential.

“The increase in ownership of the PZL business is 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 per cent stake in Zenith Life Insurance Limited in Nigeria in 2017, which benefited from an existing bancassurance partnership with Zenith Bank. The consideration for this transaction will be payable in cash and includes a performance-based element”, Altin stated.

Altin added that the acquisition will also strengthen its existing partnerships with Zenith Bank Plc, allowing Prudential to further extend its reach in Nigeria and Ghana.

Speaking at the conference, Altin said, “We are delighted to take full ownership of the business and have the opportunity to better serve our customers in Nigeria while creating long-term value for our shareholders. This acquisition aligns with our strategy to build a sustainable multi-channel growth platform in Africa.”

Also commenting on the deal, Chief Executive Officer, Africa, Prudential, Emmanuel Mokobi emphasised the importance of the Nigerian market in the company’s Africa strategy, stating, “This transaction increases our participation in a market with significant growth potential. Nigeria’s life insurance market remains underpenetrated, representing less than 0.2 per cent of GDP. Acquiring full ownership of Prudential Zenith Life allows us to unlock more value by leveraging customer initiatives and technology-driven distribution.”

Mokobi added that Insurance penetration remains low in Nigeria and there is a growth runway adding that Nigeria’s life insurance market is the fifth largest African market with a gross written premium of $770m.

He added that Zenith, which has been in a long-standing bancassurance partnership with Prudential Zenith Life, also welcomed the deal. With over 400 branches and approximately 29 million customers, the bank remains a strategic partner in Prudential’s expansion in the region.

In July, PUNCH reports that Prudential Zenith Life Insurance has introduced the ‘Dream Big’ campaign that enables customers to secure their financial futures through insurance protection