Prudential Plc Takes Full Ownership of Nigerian Insurance Firm, Prudential Zenith Life
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 Solmaz Altin, Managing Director, Strategic Business Group, Prudential, at a press conference in Lagos.
According to Altin, the acquisition is part of Prudential’s strategy to expand its operations across Africa by investing in markets with strong growth potential. The company initially acquired a 51% stake in Prudential Zenith Life 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 emphasized that the acquisition will also strengthen Prudential’s existing partnerships with Zenith Bank Plc, allowing the company to further extend its reach in Nigeria and Ghana. “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,” Altin said. “This acquisition aligns with our strategy to build a sustainable multi-channel growth platform in Africa.”
Emmanuel Mokobi, Chief Executive Officer, Africa, Prudential, also commented on the deal, highlighting the importance of the Nigerian market in the company’s Africa strategy. “This transaction increases our participation in a market with significant growth potential,” Mokobi said. “Nigeria’s life insurance market remains underpenetrated, representing less than 0.2% 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, with a growth runway, and that Nigeria’s life insurance market is the fifth largest African market with a gross written premium of $770m. He also mentioned that Zenith Bank, which has been in a long-standing bancassurance partnership with Prudential Zenith Life, has welcomed the deal.
In July, Prudential Zenith Life Insurance introduced the ‘Dream Big’ campaign, which enables customers to secure their financial futures through insurance protection. With over 400 branches and approximately 29 million customers, Zenith Bank remains a strategic partner in Prudential’s expansion in the region.
The acquisition is expected to enhance Prudential’s presence in Nigeria and Ghana, while also creating opportunities for growth and expansion in the region.
