Prudential Plc has acquired the remaining shares of Prudential Zenith Life Insurance Limited (PZL), its joint venture business in Nigeria.
PZL has existing bancassurance partnerships with Zenith Bank in Nigeria and Ghana.
The increase in ther 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.
Commenting on the deal during a press briefing in Lagos yesterday, 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, Altin said, is consistent with its new strategy to build a sustainable multi-channel growth platform, through targeted investment in structural growth markets across Asia and Africa, adding that, ‘We see substantial long-term opportunities in Nigeria and plan to build on our existing agents, bancassurance partnerships and direct distribution capabilities.’
PZL is a great business and one we know well, and our relationship with Zenith Bank further strengthens our distribution capabilities in the region, he said.
CEO, Africa, Prudential, Emmanuel Aryee Mokobi, said: “This transaction increases our participation in an attractive market with significant growth potential.
“Insurance penetration remains low in Nigeria (less than 0.2 per cent 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 $770 million, and we have an established presence there.
“Prudential Africa’s strategy is to focus on building its presence and investing in growth and scale in our chosen insurance markets in Africa. 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.”
