FCMB Pensions set to acquire 96% of AIICO Pensions
FCMB Group has reached an agreement with Aiico Pensions Limited to acquire 96% of the company, a source told The Guardian on Monday.
The agreement, stakeholders in the finance and insurance industry, believe is 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.
Prior to this, FCMB Group increased its stake in Legacy Pensions (now FCMB Pensions) to 91.6 per cent in 2019 which has given it full ownership of the business.
FCMB Pensions 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 Groups 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 Group’s distribution platform, comprising of 200 branches, a strong web and mobile presence; and the recent the launch of its Pensions’ online enrolment platform.
Analysts in the financial and insurance sector applauded the agreement which they describe as a broadly positive move and a statement of intent from FCMBs management to leverage its non-banking businesses to drive profitability.
In another development, FCMB Pensions has strengthened its investment committee with the addition of Mrs Titi Odunfa Adeoye to its Board of Directors.
Adeoye is the founder and chief investment officer of Sankore. She holds an MBA from Harvard Business School, a BBA in Accounting (summa cum laude) from Howard University and is a Certified Public Accountant (Gold Award).
Her skills in investment strategy were honed at firms like Goldman Sachs in New York. Her area of expertise is strategies for the creation, growth and preservation of individual or family wealth with a focus on alternative asset classes.