27 Sep 2024

Prudential plc invests in Nigeria

Increases Ownership of Nigerian Operations and Extends
Bancassurance Partnership with Zenith Bank

Prudential plc ('Prudential', the 'Company' or the 'Group') announces that it has reached an agreement to acquire 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.

Zenith Bank is a leading bank headquartered in Nigeria, with a network of over 400 branches and approximately 29 million customers across the region.

The increase in 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% 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, Solmaz Altin, Managing Director, Strategic Business Group, Prudential 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.

PZL is a great business and one we know well, and our relationship with Zenith Bank further strengthens our distribution capabilities in the region."

Emmanuel Aryee Mokobi, CEO, Africa, Prudential said: "This transaction increases our participation in an attractive market with significant growth potential.

Insurance penetration remains low in Nigeria (less than 0.2% 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 US$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."

Nigeria is the largest economy in Africa, with a GDP of US$477 billion as at 2022[1] and a population of 218 million people. Its population is fast growing and is expected to increase to over 370 million by 2050[2], by which time Nigeria is expected to be the third most populous country in the world (currently 6th).

The transaction remains subject to the satisfaction of the applicable conditions precedent for completion.

[1] Source: World Bank

[2] Source: United Nations

*following the transaction, Prudential will own 100% of Prudential Zenith Life.

About Prudential plc

Prudential plc provides life and health insurance and asset management in 24 markets across Asia and Africa. Prudential's mission is to be the most trusted partner and protector for this generation and generations to come, by providing simple and accessible financial and health solutions. The business has dual primary listings on the Stock Exchange of Hong Kong (2378) and the London Stock Exchange (PRU). It also has a secondary listing on the Singapore Stock Exchange (K6S) and a listing on the New York Stock Exchange (PUK) in the form of American Depositary Receipts. It is a constituent of the Hang Seng Composite Index and is also included for trading in the Shenzhen-Hong Kong Stock Connect programme and the Shanghai-Hong Kong Stock Connect programme.

Prudential is not affiliated in any manner with Prudential Financial, Inc. a company whose principal place of business is in the United States of America, nor with The Prudential Assurance Company Limited, a subsidiary of M&G plc, a company incorporated in the United Kingdom.

About Prudential Zenith Life

Prudential Zenith Life Insurance Limited, formerly known as Zenith Life Insurance, was established in 2006 as a subsidiary of Zenith Bank Plc. In 2017, Prudential Group UK acquired a 51% stake in Zenith Life Insurance, leading to the formation of Prudential Zenith Life Insurance Ltd.

Today, Prudential Zenith Life serves a diverse range of corporate and individual clients from various business sectors. Our portfolio includes a comprehensive range of Individual Life Insurance Products, such as Savings & Investment, Endowment, and Protection products, tailored to meet the unique needs of individuals and their families. Additionally, we offer Corporate Products, such as Group life, Key-man assurance, Credit Life, and Mortgage Protection, to cater to the welfare of employees and their families within corporate organizations. Prudential Zenith stands as one of the most capitalized companies in the Nigerian insurance industry, with a resolute goal of helping people get the most out of life.