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Prudential, a British insurance giant, has announced that it has acquired a majority stake in Zenith Life, a leading Nigerian insurance company, as part of a joint-venture with Zenith Bank of Nigeria, according to a statement released on Wednesday.

Prudential also said it has signed an exclusive “bancassurance” agreement with Zenith Bank in order to sell life and other insurance products via the bank’s branches in Nigeria and Ghana.

Zenith Life will become Prudential’s fifth business in Africa after the UK insurer’s operations in Ghana, Kenya, Uganda, and Zambia. The company will be rebranded Zenith-Prudential Life Insurance after the acquisition deal closes.

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

“We are excited by the opportunity of partnering with Zenith Bank, one of the largest and most dynamic banks in Africa, and working with our new colleagues to build Zenith-Prudential into a leader in Nigeria’s growing life insurance industry.”

Incorporated in 2001, Zenith Life 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 N6.6 billion of assets under management and gross written premium of N3.3 billion.

“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,” said Jim Ovia, Founder and Chairman of Zenith Bank and Zenith Life. “We anticipate creating thousands of employment opportunities in Nigeria by embarking on this transformational deal.”  

Prudential was founded in London in 1848. The company 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.