FCMB Group takes over AIICO Pensions with 96% stake

FCMB Group Plc has notified the Nigerian Stock Exchange (NSE) of its intention to acquire 96 per cent stake in AIICO pensions held by AIICO Insurance Plc.

The two are financial institution companies listed on the Nigerian Stock Exchange (NSE) with a track record of stronger fundamentals.

The notice by the bank noted that it also entered the discussion to acquire 26 per cent stake in some other shareholders in AIICO pensions.

The statement jointly signed by Chief Financial Officer, Kayode Adewuyi and Group Chief Executive officer, Ladi Balogun of FCMB group said, “FCMB Group Plc hereby notifies the Nigerian Stock Exchange (NSE) and the investing public that its pension management subsidiary, FCMB Pensions Limited (FCMB Pensions) has entered into discussions with shareholders of AIICO Pension Managers Limited to acquire the 70per cent stake held by AIICO Insurance and 26per cent held by some other shareholders in AIICO Pensions. The proposed acquisition will make AIICO Pensions an indirect subsidiary of FCMB Group Plc.”

The statement added that the proposed transaction is subject to the approvals of the National Pension Commission and the Federal Competition and Consumer Protection Commission.

“We shall notify the NSE and the investing public once the relevant approvals for the transaction are received,” the lender explained in a statement to NSE.

Responding also, Company Secretary, AIICO insurance, Donald Kanu stated that, “AIICO Insurance hereby notifies the NSE that AIICO has entered into discussions with FCMB Pensions Limited, for the sale of 70 per cent stake in its Pension Management subsidiary, AIICO Pensions Managers Limited (“AIICO Pensions”) to FCMB Pensions Limited.

“The proposed sale is AIICO’s stake of 70 per cent and other shareholders stakes of 26 per cent thus bringing the cumulative sale of 96 per cent stake to be purchased by FCMB Pensions. At the conclusion of the proposed sale, AIICO Pensions shall cease to be a subsidiary of AIICO Insurance Plc.

“The proposed transaction is subject to the approvals of the National Pension Commission and the Federal Competition and Consumer Protection Commission. We shall notify the NSE once the relevant approvals for the transaction are received.”

FCMB Group’s Profit before Tax was at N20.13 billion in 2019, compared to N18.44 billion at the end of the 2018 financial year.

Furthermore, the Profit after Tax rose by 15.8 per cent to N17.34 billion in 2019 compared to N14.97 billion recorded in 2018.

With the growth in profits, FCMB Group’s Return on Average Equity (RoAE) closed 2019 at nine per cent; compared to 8.1 per cent in 2018, while Return on Average Assets moved from 1.1 per cent to -2.1per cent in 2019.

For AIICO insurance, its Profit after Tax grew from N3.2 billion it made in 2018 to N5.9 billion as at the end of 2019 which was a whopping 88 per cent in growth. The insurance company’s gross written premiums for 2019 also increased by 33per cent to N50.1 billion last year while gross claims grew by six per cent to N30.6 billion in 2019.