FCMB Pensions Acquires 60% Stake in AIICO Pensions

By Aduragbemi Omiyale

The ownership structure of AIICO Pensions Managers Limited (AIICO Pensions) has changed with the acquisition of 60 per cent of the company by FCMB Pensions Limited (FCMB Pensions).

This has now made FCMB Pensions, a subsidiary of the FCMB Group, the majority shareholder of the company.

The new company acquired the largest chunk of the company’s equities by purchasing a 33.9 per cent stake from AIICO Insurance and a 26.1 per cent stake from other shareholders.

Initially, FCMB Pensions intended to buy the 70 per cent held by AIICO Insurance, but the regulatory agencies involved in the transaction only approve the sale of 33.9 per cent held by the insurance company.

Business Post reports that in line with a directive of the National Pension Commission (PenCom), AIICO Pensions is now a subsidiary of FCMB Group.

In a circular issued on September 21, 2015, with a reference number of PENCOM/INSP/CIR/SURV/15/03, the regulator had emphasised that “no individual, group of individuals or company shall have direct or indirect ownership/shareholding of 5 per cent and above in more than one licensed Pension Fund Operator.”

This has now made AIICO Pensions cease to be a subsidiary of AIICO Insurance.

AIICO Pensions is one of the major players in the pension industry and its acquisition by FCMB Pensions is expected to boost the earnings of FCMB Group, which trades its equities on the nation’s main bourse.

In 2017 and 2018, AIICO Pensions made N317.3 million and N219.4 million as profit after tax respectively, representing 0.7 per cent and 0.4 per cent of the industry profit in those years while on the other hand, FCMB Pensions made N1.03 billion PAT in 2018 and N879.5 million PAT in 2017 to account for 2.1 per cent and 1.8 per cent of the industry profit respectively in those years.