This announcement was made by Solmaz Altin, Managing Director of the Strategic Business Group at Prudential, during a press conference held in Lagos on Friday. He noted that Prudential, which initially secured a 51 percent stake in Prudential Zenith Life in 2017, is pursuing this acquisition as part of its strategy to enhance its operations throughout Africa by investing in markets with significant growth opportunities.
“The increase in our ownership of the PZL business represents a crucial step in Prudential’s commitment to deploying capital in our existing operations that show the most promise. Our initial investment in Zenith Life Insurance Limited in Nigeria in 2017 was bolstered by a pre-existing bancassurance partnership with Zenith Bank. The payment for this transaction will be made in cash and will include a performance-based component,” Altin explained.
He further mentioned that this acquisition will reinforce Prudential's current partnerships with Zenith Bank Plc, enabling the company to broaden its presence in both Nigeria and Ghana.
During the conference, Altin expressed enthusiasm about the acquisition, stating, “We are pleased to take full ownership of the business, which will allow us to better serve our customers in Nigeria and create long-term value for our shareholders. This move is in line with our strategy to establish a sustainable multi-channel growth platform in Africa.”
Emmanuel Mokobi, Chief Executive Officer for Africa at Prudential, also highlighted the significance of the Nigerian market within the company’s broader African strategy, asserting, “This transaction enhances our involvement in a market with considerable growth potential. Nigeria’s life insurance sector remains underdeveloped, accounting for less than 0.2 percent of GDP.”
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| [L-R] 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 |
Acquiring complete ownership of Prudential Zenith Life enables us to enhance value by utilizing customer initiatives and technology-driven distribution methods.
Mokobi noted that insurance penetration in Nigeria is still relatively low, presenting significant growth opportunities. He highlighted that Nigeria's life insurance sector ranks as the fifth largest in Africa, with a gross written premium of $770 million.
Furthermore, he mentioned that Zenith, which has maintained a long-term bancassurance partnership with Prudential Zenith Life, has expressed support for the acquisition.
With over 400 branches and around 29 million customers, the bank plays a crucial role in Prudential's regional expansion efforts.
In July, reports indicated that Prudential Zenith Life Insurance launched the 'Dream Big' campaign, aimed at helping customers secure their financial futures through insurance protection.