Techawk

Entrepreneurship, Innovation and Startups News Hub

FCMB

FCMB Pensions to Acquire 96% Stake in AIICO Pensions

Reading Time: 2 minutes

FCMB Pensions has announced that it has entered into an agreement to acquire a 96 percent stake of AIICO Pensions Limited.

According to a statement signed by the Company secretary, AIICO Insurance Plc, Donald Kanu, he said the move is part of a deliberate strategy to grow the group’s investment management portfolio and build on the inherent synergies between its pensions and banking business.

The statement further disclosed that AIICO Pensions would cease to be a subsidiary of AIICO Insurance Plc at the completion of the proposed sale.

The acquisition by FCMB Group serves as one of several proactive steps, along with digitisation, that the company has embarked upon to enhance its market position and competitiveness as the industry braces itself for the commencement of Retirement Savings Account (RSA) portability.

According to the firm, Investment funds’ performance has been receiving greater traction amid a low-interest-rate environment.

In this regard, FCMB Pensions also strengthened its investment committee with the addition of Titi Odunfa Adeoye to its Board of Directors. Mrs. Adeoye is the Founder and Chief Investment Officer of Sankore.

FCMB had since increased its stake in Legacy Pensions (now FCMB Pensions) to 91.6 percent in 2019 and now has full control of the business.

The pension arm of the bank has since grown its Assets Under Management (AUM) to N325 billion with 350,000 customers as of March 2020, while that of AIICO Pensions is estimated at N126 billion with over 240,000.

A combined AUM of N451 billion and almost 600,000 customers will take the entire Group’s customer base to 8,000,000 and its total AUM (inclusive of all investment management activities) to over N560 billion.

In addition, the enlarged pension business will benefit from FCMB’s extensive distribution platform, comprising 205 branches, a strong web and mobile presence; and the recent launch of its Pensions’ online enrolment platform.

Ladi Balogun, Chairman of the Board of Directors – FCMB Pensions, said that “the business intends to use its scale to positive effect towards investing in the growth of the Nigerian economy while ensuring safety and the most competitive returns for its customers”.

Follow me
Editor, Techawkng.com. I am also a freelancer, part-time copywriter and I love solitude. Send us an email-admin@techawkng.com.
Musa Suleiman
Follow me
Jiji Nigeria
We would like to make you the first to get all our updates!    OK No thanks