Nigeria’s insurance sector is recording increasing patronage evidenced by its recent growth. The sector grew by 17.28% in the second quarter of 2022, according to data published by the National Bureau of Statistics’ Gross Domestic Product report for the period.
This growth is also notable in the performance of individual insurance companies in Nigeria. Many of them have overcome the years of underperformance that use to characterize the insurance sector to report mouth-watering yearly financial results.
For instance, in its audited financial results for the year that ended 31st December 2021, Prudential Zenith Life Insurance Limited (PZL), a subsidiary of Prudential Plc, reported a 75% growth in profit after tax (PAT) of ?1.13b compared to the ?646m recorded in the corresponding period in 2020.
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According to the statement issued by the company, the results, which was approved by the Board of Directors of Prudential Zenith and the insurance industry regulator, the National Insurance Commission (NAICOM), shows that Gross Written Premium (GWP) and Annualized Premium Equivalent (APE) grew year on year by 16.3% and 9.3% respectively.
The company said the growth was primarily driven by 27% growth in new business acquisition for Group Life written during the period. Investment income grew by 30% year-on-year due to a significant increase in the interest-generating assets of the company, and commission income also increased by 43% during the period.
With more than 19 million life customers, PZL is listed on stock exchanges in London (PRU), Hong Kong (2378), Singapore (K6S), and New York (PUK).
Prudential Plc has insurance operations in eight countries in Africa: Nigeria, Cameroon, Cote d’Ivoire, Ghana, Kenya, Togo Uganda, and Zambia. With over one million customers, Prudential Africa works with over 11,000 agents and six exclusive bank partnerships, with access to over 600 branches to bring value-added insurance solutions to its customers.
The company said the financial performance is a testament to the continued focus on investments, as it remains committed to building a strong market-leading position in Nigeria by enhancing its capabilities, strengthening its digitally-enabled multi-channel distribution network, and broadening the range of products and services that are available to customers in order to meet their needs.
“Despite the challenges experienced during the Covid-19 pandemic in 2020, Prudential Zenith was able to achieve this strong growth in 2021 and is poised to continue improving its performance in the upcoming financial years.
“Prudential Zenith will continue to develop and launch unique products to meet customers’ needs, leveraging technology and its core corporate governance structure to deliver faster claims settlement. The company will also continue to prioritize the health, safety, and welfare of customers, who subscribe to its unique insurance product offerings,” it said.
Founded in 2017 when it acquired a 51% holding in Zenith Life Insurance, PZL has grown to become one of the most capitalized companies in the Nigerian insurance industry with a wide range of individual products including savings and investments-linked products, endowment, and protection products designed to meet the needs of individuals and their families.
Part of the company’s product offerings for corporate clients include Group Life, Key-Man Assurance, Credit Life, School Fees Protection, and Mortgage Protection, ensuring that the welfare of clients’ staff and families are met.
Prudential Plc provides life and health insurance, and asset management in Africa and Asia, helping people get the most out of life by making healthcare affordable and accessible and by promoting financial inclusion. Prudential protects people’s wealth, helps them grow their assets, and empowers them to save for their goals.