The Globe and Mail reports in its Wednesday edition that Bank of Nova Scotia's decision to exit the life insurance market in Jamaica and Trinidad and Tobago paved the way Tuesday for one of the Caribbean's oldest and largest insurers, Sagicor Financial Corp., to make its debut on Canadian markets.
The Globe's Andrew Willis writes that Barbados-based Sagicor is paying $203-million (U.S.) for Scotiabank's insurance operations in two of the Caribbean's most populous countries, along with a 20-year agreement to sell its products to the bank's clients in the two countries. Sagicor has 50-per-cent-plus market share in Jamaica and a number of other countries. In Caribbean markets, Scotiabank typically offers two types of coverage to clients, while Sagicor sells 15 different kinds of insurance.
Scotiabank also said Tuesday that it is selling branch networks on nine islands to Trinidad-based Republic Financial Holdings Ltd.
Sagicor will list its shares on the Toronto Stock Exchange through a reverse takeover. The insurance company is being acquired by a special purpose acquisition corporation (SPAC) called Alignvest Acquisition II Corp., which raised $515.5-million when it went public on the TSX in 2017.
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