Scotia Group Jamaica on Tuesday announced that it is selling its insurance operations in Jamaica as well as Trinidad and Tobago to Sagicor Financial Corporation.
In a media release, the company said it will enter into a 20-year distribution agreement through which insurance products and solutions, underwritten by Sagicor, will be offered to Scotiabank customers in Jamaica.
As part of this partnership, Scotiabank Jamaica has agreed to sell its insurance subsidiary: Scotia Jamaica Life Insurance Company to Sagicor.
The agreement is subject to regulatory approval and closing conditions.
The transaction is also subject to the closing of the announced transaction whereby Sagicor will be acquired by Alignvest
Acquisition Corporation.
The surviving entity will continue the Sagicor brand and be publicly-listed on the Toronto Stock Exchange.
Until the transaction closes, all Scotia Jamaica Life Insurance Company operations will continue as usual.
Scotiabank says as part of the agreement, employees of Scotia Jamaica Life Insurance Company will join Sagicor, or a new licensed insurance sales entity that will be created as a result of this transaction.
Banking operations
Bank of Nova Scotia has also announced that it plans to exit nine countries in the Caribbean.
Scotiabank said it is planning to sell its banking operations in Anguilla, Antigua, Dominica, Grenada, Guyana, St Kitts & Nevis, St Lucia, St Maarten as well as St Vincent & the Grenadines to Republic Financial Holdings.
BITU meeting
A media briefing was held at the headquarters of the Bustamante Industrial Trade Union (BITU) in Kingston on Tuesday regarding the developments at Bank of Nova Scotia Jamaica and the implications for staff in the wake of the bank's decision to transfer at least three of its service units to the Dominican Republic.
The BITU estimates that at least 100 employees will lose their jobs.
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