Until now, PZL has existed in Nigeria and Ghana as a bank over-the-counter partnership with Zenith Bank. Zenith Bank is a leading bank headquartered in Nigeria with a network of over 400 branches and approximately 29 million customers across the region.
Prudential Group said the increased ownership of the PZL business is a further step in delivering on Prudential’s focus in Africa, injecting capital into existing businesses with the greatest potential.
Prudential initially purchased a 51% stake in Nigeria’s Zenith Life Insurance Company in 2017, benefiting from an existing bank partnership with Zenith Bank.
The group said consideration for the transaction will be paid in cash and will include a performance-based component.
Commenting on the transaction, Solmaz Altin, Managing Director of Prudential’s Strategic Business Group, said: “We have the opportunity to take full ownership of the business, better serve our customers’ needs and create long-term value for our shareholders. I’m glad I was able to do so.” .
“The acquisition of the remaining stake is in line with our new strategy to build a sustainable multi-channel growth platform through targeted investments in structural growth markets in Asia and Africa.
“We see significant long-term opportunities in Nigeria and plan to strengthen our existing distributors, over-the-counter partnerships and direct distribution capabilities.”
He said PZL is a great business, one that we know well, and the relationship with Zenith Bank further strengthens our distribution capabilities in the region.
Prudential Africa CEO Emmanuel Aliyi Mokobi also said the transaction increases the group’s exposure to an attractive market with significant growth potential.
“Insurance penetration remains low in Nigeria (less than 0.2% of GDP) and there is significant growth runway.Nigeria’s life insurance market is the fifth largest market in Africa, with gross written premiums of 7. 70 million USD and we have an established presence there.”
He said Prudential Africa’s strategy is to increase its presence in the group’s selected African insurance markets and focus on investing in growth and scale.
He added: “Nigeria’s business is profitable and by acquiring the remaining stake, we can maximize the platform’s potential by implementing initiatives in areas such as customers, technology-enabled distribution and health.” “I will be able to perform to the best of my ability.”
Nigeria is Africa’s largest economy, with a GDP of US$477 billion and a population of 218 million in 2022. Nigeria’s population is growing rapidly and is expected to increase to more than 370 million people by 2050, by which time Nigeria is expected to become the third most populous country in the world ( Currently in 6th place).
However, he said the transaction is subject to the satisfaction of applicable conditions prior to completion. He said that after the transaction, Prudential will own 100% of Prudential Zenith Life. Prudential plc provides life insurance, health insurance and wealth management in 24 markets across Asia and Africa.
Prudential’s mission is to be the most trusted partner and guardian for this generation and generations to come by providing simple and accessible financial and health solutions.
