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 at the announcement of Prudential PLCs’ acquisition of the remaining 49% shares in Prudential Zenith Life Insurance
Prudential plc has reached an agreement to acquire the remaining 49 percent of Prudential Zenith Life Insurance Limited (PZL), granting them full ownership of the company in Nigeria.
Emmanuel Aryee Mokobi, Chief Executive Officer for Africa at Prudential Insurance, announced the acquisition while addressing journalists today in Lagos. He revealed that the insurance company will maintain its bancassurance relationship with Zenith Bank.
It is noteworthy that Prudential Insurance previously purchased a 51 percent stake in Zenith Life Insurance Limited in Nigeria in 2017, benefiting from the existing partnership with Zenith Bank.
According to Mokobi, increasing ownership of the PZL business is a strategic step in Prudential’s focus on deploying capital in existing operations with the greatest potential. “Our purpose is to protect lives and be a partner for the future. The acquisition is a powerful testament to that,” he stated.
Speaking on the bancassurance partnership with Zenith Bank, he emphasized its efficiency as a distribution channel. Mokobi expressed optimism that with this acquisition, the company will create innovative insurance solutions tailored to customer needs.
He noted, “When we entered the market, we were ranked tenth in pure insurance, excluding annuities. Currently, we are fifth, and our target is to become number one.”
Mokobi added that part of the strategy to achieve this goal involves enhancing the agency model, which has proven successful in other regions. “We are very strong in our agency model; it has worked for us in Asia, Ghana, Uganda, and Zambia. We recognize the need to learn and adapt to succeed here,” he said.
However, he acknowledged that the retail space is challenging globally, requiring significant investment without immediate returns. “It necessitates that you invest and prepare to navigate the challenges that will arise,” he noted.
Afolabi Lawal, Chief Financial Officer of Prudential Zenith, also spoke on the opportunities presented by low market penetration. He stated, “Our partnership with Zenith Bank has been instrumental in expanding our bancassurance model and distribution capabilities.”
“The combination of Prudential, a leader in the global space, has expanded our footprint in Nigeria and enabled us to provide solutions that meet the evolving needs of our customers,” he concluded.
Commenting on the deal, Solmaz Altin, Managing Director of the Strategic Business Group at Prudential Insurance 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 is consistent with our new strategy to build a sustainable multi-channel growth platform through targeted investment in structural growth markets across Asia and Africa. We see substantial long-term opportunities in Nigeria and plan to build on our existing agents, bancassurance partnerships, and direct distribution capabilities.”
