AIICO Insurance Plc has disclosed that the sale of its 70% stake in AIICO Pension Managers Limited to FCMB Pensions Limited has nothing to do with its recapitalization plans. National Insurance Commission (NAICOM) recently increased the capitalization requirements for insurance companies and most insurance companies have been struggling to meet the new requirements.
The company, in a statement by Mr Segun Olalandu, Head, Strategic Marketing and Communications Department, made available to the News Agency of Nigeria (NAN) in Lagos, quoted Mr Babatunde Fajemirokun, the Managing Director/CEO of AIICO, as saying that the proposal was for two reasons.
“The first is to unlock the value that is greater than holding the asset as a subsidiary now and in the future.”
“The second is to deploy the ensuing capital in other assets where AIICO has a stronger competitive advantage, thereby maximizing long-term value for its stakeholders.”
FCMB Group and AIICO Insurance had on Friday notified the Nigerian Stock Exchange (NSE) and the investing public of discussions for sale of 96% stake of AIICO Pensions Managers to FCMB Pensions.
Read more about the sale here