UK insurer, Prudential, has entered the Nigerian market via a joint venture with Zenith, one of the country’s biggest banks, reports FT.
Prudential has bought a stake in Zenith Life, the bank’s insurance business.
Zenith Life has N6.6 billion of assets under management and annual gross written premium of N3.3 billion.
Prudential has bought a majority stake in Zenith Life but it did not disclose the exact size of the stake, or the amount paid.
Zenith Life is Prudential’s fifth business in Africa. Since entering the market three years ago, it has gone into Ghana, Kenya, Uganda and Zambia. But the African operations are still small compared with the group’s biggest businesses in Asia, the US and the UK.
Matt Lilley, chief executive of Prudential Africa, said the move was an “important milestone for Prudential and our growing portfolio of high-quality life insurance businesses in Africa.”
Peter Amangbo, chief executive of Zenith Bank, said that the partnership with Prudential would enable it to “offer our clients a greater bouquet of products, enhancing our ability to meet their financial needs.”
Many insurers are bullish about the prospects for growth in Africa, where penetration tends to be much lower than in other parts of the world.