IICO Insurance Plc (AIICO) has entered into discussions with FCMB Pensions Limited for the divestment of its interest in its Pension subsidiary, AIICO Pension Managers Limited. The proposed sale will see a full uptake of AIICO’s 70 per cent stake in the company.
A statement signed by Head, Strategic Marketing & Communications Department, AIICO, Segun Olalandu, said the proposed transaction was subject to the approvals of the National Pension Commission (PenCom) and the Federal Competition and Consumer Protection Commission (FCCPC).
This divestment is for two reasons, according to the Manging Director/CEO, AIICO, Babatunde Fajemirokun.
“The first is to unlock the value that is greater than holding the asset as a subsidiary now and in the future. The second reason is to deploy the ensuing capital in other assets where AIICO has a stronger competitive advantage, thereby maximising long-term value for its stakeholders. It is not driven by the company’s recapitalisation plans which is on its own path and nearly complete,” he said.
AIICO Insurance is a leading composite insurer in Nigeria with a record of accomplishment of serving its clients that dates back over 50 years. Founded in 1963, AIICO provides life and health insurance, general insurance, investment management and pension management services as a means to create and protect wealth for individuals, families and corporate customers.