Prudential Zenith Life Insurance Company Limited has revealed that it has crossed the minimum regulatory capital threshold set by the new Nigerian Insurance Industry Reform Act by N19.3bn.
In a statement made available to our correspondent, the firm stated that its National Insurance Commission-approved audited financial results for 2024 showcased exceptional financial strength.
NIIRA 2025 mandates new minimum capital requirements, including the crucial shift to a risk-based capital framework. This means insurers will now calculate their capital based on the specific risks they face, encompassing insurance, market, credit, and operational risks, moving away from a one-size-fits-all approach previously in place. For instance, the proposed new minimum for non-life insurance business rose to N25bn (or RBC as determined by NAICOM) from N10bn, life insurance to N15bn from N8bn, and reinsurance to N35bn from N20bn.
In its 2024 financial report, Prudential Zenith Life posted a 21 per cent rise in profit after tax to N7.4bn and a 29.5 per cent expansion in total assets to N82.0bn, driven by a 29.6 per cent rise in financial assets. Shareholders’ equity rose 32.2 per cent to N30.5bn (2023: N23.1bn), fuelled by a 51.8 per cent increase in retained earnings to N19.5bn
The solvency margin strengthened 28.3 per cent to N29.3bn, achieving a N19.3bn surplus over the N10bn regulatory minimum, whilst Insurance Contract Liabilities expanded 29.7 per cent, comprising 95.4 per cent of total liabilities.
Commenting on the results, the Chief Executive Officer of Prudential Zenith Life, Ms. Funmi Omo, said, “Our 2024 performance is a testament to our unwavering commitment to excellence. Achieving a 21 per cent profit increase while maintaining a capital surplus nearly double the regulatory requirement demonstrates our financial resilience and strategic foresight.
“The N19.3bn buffer from the original shareholders’ funds of N29.3bn empowers us to innovate, expand, and deliver unparalleled value to our customers and shareholders as we embark on the next phase of growth.”
Prudential Zenith Life said its robust financial health reinforces its mission to secure the future of its customers through innovative insurance solutions.
