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Banks, Insurance Firms Mergers For Increased Low Cost Funds: A Win Win Situation For Both

The Oasis Reporters

December 5, 2022







Herbert Wigwe, GMD/CEO, Access Corp… ‘plans to build synergies, create a formidable pension funds administration.


With the latest move by Access Holdings (which trades as Access Corporation) to complete the acquisition of indirect equity stake In Sigma pensions after merging FGPL with Sigma, a discernible pattern is being noticed by economy watchers in the Nigerian financial space.

The development followed the sanction of the scheme of merger between Sigma and FGPL by the Federal High Court on December 1st 2022. On this note, FGPL has been dissolved without winding up, leaving Sigma as the surviving entity.

Hitherto before the huge interest banks are currently having in insurance forms, they were laid back in their business outlays making insurance sales slow, boring and uninteresting.

Having understudied the potentials in insurance, banks moved in to jazz it all up, make the marketing upbeat and put them as an integral part of financial institutions.

The governance structure has now changed with early and prompt claims, as banks inject their upbeat marketing to bear on insurance.

What did the banks see in insurance?

Well, a cheap source of funds. Most insurance funds are long term savings, and that is pure delight to banks that want to lend to the real sector desirous of cheap funds, which boosts the economy.

This is why Dr Herbert Wigwe, the Group Chief Executive of Access Corporation, plans to build synergies between the entities which would be used to create a formidable pension funds administration.

According to him, “Following the successful completion of the merger, our plan is to leverage the synergies of these entities as well as the corporation’s expansive distribution network, strong risk management culture and best-in-class governance standards to create a formidable pension funds administration business.”

Thus, the National Pension Commission (PENCOM) and the Federal Competition and Consumer Protection Commission (FCCPC) approved the proposed acquisition by First Guarantee Pension Limited (FGPL) and First Ally Asset Management Limited of the entire issued shares of Actis Golf Nigeria Limited (AGNL), owner of Sigma Pension.

The holding company intends to merge the operations of FGPL and Sigma to create Nigeria’s fourth-largest Pension Fund Administrator by asset under management subject to receiving all relevant regulatory approvals.

Zenith Bank equally did the same thing with Prudential Insurance and this led them to grabbing the highest number of million dollar round table qualifiers only last month in November when Prudential Africa announced that 222 of its sales representatives across seven of its markets in Africa qualified for the Million Dollar Round Table (MDRT) in the first half of 2022.

In mid 2021, FCMB Group Plc announced that it had purchased a 60 percent stake in AIICO Pension Managers Limited.

Marriage between banks and insurance firms is now a fait accompli, just for the mutual benefit of it.

Greg Abolo

Greg Abolo

Blogger at The Oasis Reporters.

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