AIICO Insurance ends pension business, sells assets worth N126bn to FCMB

FCMB Pensions Limited has acquired AIICO Pension Managers Limited as the FCMB Group plans to combine both businesses. The deal was, however, slashed by regulators.

FCMB Pensions had proposed to acquire 96.3 percent stake in AIICO Pension, but the offer was reduced to 60 percent stake to meet with the transaction structure.

The company acquired the shares in two tranches, purchasing AIICO Insurance’s 33.9 percent stake and the 26.1 percent stake held by other shareholders in AIICO Pensions.

It was gathered that the deal is worth millions of dollars considering AIICO Pension has an assets under management (AUM) worth N126 billion according to FCMB.

This is, however, low when compared to the worth of assets under FCMB Pension, which is placed at N325 billion. Both companies‘ client base is put at 350,000 and 240,000 respectively.

In a statement released by FCMB Group, it stated that regulators had given necessary approval and it has concluded the deal which was first announced last year June.