Norrenberger Pensions: 2023 Audited Accounts Summary

Norrenberger Pensions published its 2023 corporate and pension fund audited accounts, providing a summary overview of its financial health and fund performance. This report provides a summary review and presents key financial highlights, financial ratios, fund performance, and the trend in the number of Retirement Savings Account (RSA) holders.

Financial Highlights

• Total Revenue: The audited accounts revealed a 44% increase in total revenue, growing to ₦1.92 billion in 2023, up from ₦1.33 billion in 2022. The driven by a 27% increase in management fees and a 214% improvement in investment and other income.
• Losses After Tax: The company reduced its in 2023 bringing them down by 91% to ₦40.1 million, compared to losses of ₦425.8 million in 2022.
• Operating Expenses: Operating expenses were relatively unchanged at ₦1.68 billion compared to ₦1.675 billion in 2022. The increase in revenue as such lead to a vast improvement and drop of the company’s cost-to-income ratio, which fell to 87.50% from 125.84% indicating prudent cost management despite inflationary pressures.
• Shareholder’s Funds: Company’s shareholders fund ended the year at ₦5.048 billion in 2023 up slightly by 0.90% from ₦5.003 billion in 2022
• Return on Equity (ROE): ROE was negative at 0.80%, a very long distance away from inflation which closed 2023 at 28.92%.

Financial and Fund Highlights

Corporate Audited Annual Results

Financial Ratios

Fund Performance Highlights

Note: The summary audited accounts published by Norrenberger Pensions did not include the audited NAV per unit for each respective fund. As such we have used the 31 December 2023 NAV published on the company’s website which has been calculated and published in accordance with PenCom regulations.

• RSA Funds Performance: Norrenberger Pensions offers all 7 of the regulated RSA funds to the public. All 7 funds performed better in 2023 than they did in 2022, but 3 underperformed the 2023 industry benchmark for their respective funds (see our article on benchmark returns here). None of the funds outperformed inflation, which closed December 2023 at 28.92%.

5-Year Audited Pension Funds Performance

Number of RSA Holders

• RSA Growth: The number of RSA holders grew by 3.91% in 2023, reaching a total of 165,347, up by 6,226.

Demographic Analysis

• Age Distribution: The majority of 330,000 RSA holders (83.9%) registered in 2023 fell within the age bracket of <30 years to 39 years, indicating a young and growing industry subscriber base. Of the 2023 registrations, Norrenberger Pensions recorded 1.89% of this growth.

Conclusion

Norrenberger Pensions is continuing to show improvement in its financial metrics and has demonstrated stable financial health for its shareholders in 2023. Revenue growth continues to improve, and its cost-to-income ratio is now lower than its prior 5-year average of 102%. The company needs to keep this downward trend. In terms of fund management, improvements in returns on its managed pension funds need to be made, and the company’s investment managers should aim for that which will be welcome from current RSA holders as well as anyone looking to use the transfer window to move to Norrenberger Pensions.

Watch out for the 2024 Money Counsellors Annual Report on Pensions. MCARP 2023 available here.