Prudential Zenith Life Insurance Company Limited has announced that it has exceeded the minimum capital requirement set under the new Nigerian Insurance Industry Reform Act (NIIRA) by N19.3 billion, positioning itself among the strongest insurers in the country.
The company disclosed this achievement in its audited financial results for 2024, which were approved by the National Insurance Commission (NAICOM). According to the report, Prudential Zenith Life demonstrated solid financial growth across key performance indicators, underlining its ability to withstand the new risk-based capital regime introduced by NIIRA 2025.
The Act, which took effect in 2025, has raised the bar for insurance firms in Nigeria by introducing new minimum capital requirements while shifting the industry towards a risk-based capital framework. Under this approach, insurers are expected to calculate their capital based on the specific risks they face—including insurance, market, credit, and operational risks—rather than a uniform capital structure that applied to all players previously.
For example, the new minimum capital for non-life insurance business has been raised to N25 billion from N10 billion, for life insurance to N15 billion from N8 billion, and for reinsurance to N35 billion from N20 billion. However, companies that can demonstrate strong capital adequacy under NAICOM’s risk-based capital model may meet requirements differently.
In its 2024 financials, Prudential Zenith Life posted a 21 per cent rise in profit after tax, closing the year at N7.4 billion. The company’s total assets also rose 29.5 per cent to N82.0 billion, largely supported by a 29.6 per cent increase in financial assets. Shareholders’ equity climbed 32.2 per cent to N30.5 billion, up from N23.1 billion recorded in 2023.
A major driver of this performance was a sharp rise in retained earnings, which increased by 51.8 per cent to N19.5 billion. The firm’s solvency margin also improved significantly, strengthening by 28.3 per cent to N29.3 billion. This leaves Prudential Zenith Life with a surplus of N19.3 billion above the N10 billion regulatory minimum requirement, reflecting its strong capital base.
Insurance contract liabilities expanded by 29.7 per cent during the period and now make up 95.4 per cent of the firm’s total liabilities. This underscores the company’s commitment to meeting its obligations to policyholders, even as it expands its financial strength.
Speaking on the results, the Chief Executive Officer of Prudential Zenith Life, Ms. Funmi Omo, described the performance as a validation of the company’s strategic focus and resilience.
“Our 2024 performance is a testament to our unwavering commitment to excellence,” she said. “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 N19.3 billion buffer from the original shareholders’ funds of N29.3 billion empowers us to innovate, expand, and deliver unparalleled value to our customers and shareholders as we embark on the next phase of growth.”
The company further explained that its strong capital position would allow it to play a greater role in the Nigerian insurance sector, especially as the industry transitions into a more competitive and risk-sensitive regulatory era.
Prudential Zenith Life added that its robust financial health aligns with its mission to secure the future of customers through innovative insurance products and services. It said the combination of profitability, capital strength, and rising asset base positions it as a trusted partner for policyholders seeking stability and value.
Industry observers note that the company’s performance is likely to strengthen confidence among customers and investors at a time when several insurance firms are struggling to adjust to the new NIIRA rules. With the reform reshaping capital requirements, firms unable to meet the higher thresholds or risk-based capital standards may face mergers, acquisitions, or exits.
By contrast, Prudential Zenith Life appears well-prepared for the transition, not only meeting but surpassing the capital requirements by a wide margin.
