FCMB Group Acquires 96% Stake in AIICO Pensions

  • FCMB Group acquired 96% stake in AIICO Pensions Limited through its pensions arm, FCMB Pensions Limited.
  • The acquisition will bring FCMB Group’s customer base to 8,000,000 and its total AUM to more than N560 billion.
  • In this regard, FCMB Pensions has strengthened its investment committee with the addition of Mrs. Titi Odunfa Adeoye (Founder and Chief Investment Officer of Sankore) to its Board of Directors.

Nigerian Financial services company FCMB Group, has acquired 96% stake in AIICO Pensions Limited through its pensions arm, FCMB Pensions Limited, as part of a deliberate strategy to grow the Group’s investment management portfolio, and build on the inherent synergies between this and banking.

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

Speaking about the acquisition, Chairman of the Board of Directors – FCMB Pensions, Ladi Balogun, said: “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.”

Chairman of the Board of Directors – FCMB Pensions, Ladi Balogun

Industry experts also commented on the acquisition, describing it as “a positive move and a statement of intent from FCMB’s management to leverage its non-banking businesses to drive profitability.”

According to them, “this is a landmark transaction giving a mid-tier player a great opportunity to bulk up.” “We believe the combined entity will be better positioned for stronger organic AUM growth and fee income contribution to the Group’s performance.”

Recall that in 2019, FCMB Group increased its stake in Legacy Pensions (now FCMB Pensions) to 91.6%, and now has total control of the company.

FCMB Pensions has since increased its assets under management (AUM) to N325 billion with 350,000 clients in March 2020, while that of AIICO Pensions is estimated at N126 billion with more than 240,000.

A combined AUM of N451 billion and nearly 600,000 customers will bring the Group’s customer base to 8,000,000 and its total AUM (all investment management activities included) to more than N560 billion.

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

In this regard, FCMB Pensions has strengthened its investment committee with the addition of Mrs. Titi Odunfa Adeoye to its Board of Directors.

Titi Adeoye is the Founder and Chief Investment Officer of Sankore. The new Director 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). Mrs. Adeoye’s 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.

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