Prudential enters Nigeria through Zenith Life acquisition

UK-based life insurer Prudential said on July 12 that it has acquired a majority stake in Zenith Life of Nigeria and formed exclusive bancassurance partnerships with Zenith Bank in Nigeria and Ghana.

The acquisition and bancassurance partnerships will see Prudential enter the market in Nigeria, Africa’s largest economy, with a population of over 180 million.

Zenith Life, incorporated in 2001, has grown its gross written premium at a compound annual growth rate of 22 per cent over the last five years. At the end of 2016, it had NGN 6.6 billion ($20 million) of assets under management and gross written premium of NGN 3.3 billion.

Prudential has £599 billion of assets under management, 24 million insurance customers and has operations in the UK, the US, Africa and 14 markets in Asia. Zenith Life will be rebranded as Zenith-Prudential Life Insurance.

“Today’s announcement is an important milestone for Prudential and our growing portfolio of high-quality life insurance businesses in Africa,” said Matt Lilley, CEO of Prudential Africa.

Jim Ovia, Founder of Zenith Bank and Zenith Life, said: “This landmark transaction is set to redefine the life insurance industry in Nigeria. Given the combination of Zenith Life’s local presence with one of the world’s oldest and most successful life insurers, we expect Zenith-Prudential Life to act as a significant catalyst within the sector."

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