Continuing its exit from the Caribbean markets revealed last month, Scotiabank has announced plans to sell its pension and related insurance businesses in the Dominican Republic.

The Canadian financial company has reached an agreement for the sale of Scotia Crecer AFP (the pension business) and Scotia Seguros (the insurance business) to Grupo Rizek, subject to regulatory approvals and customary closing conditions.

Scotiabank has also entered into another agreement to acquire Banco Dominicano del Progreso. Both transactions are in line with the bank’s “strategic decision to focus its Caribbean operations on core markets,” a release said.

Grupo Rizek is a prominent diversified business group in the Dominican Republic with a “long-standing, solid reputation” in the agribusiness and financial services industries.

“This transaction represents the Group’s commitment to the country’s economic growth, confirms its confidence in the financial stability of the Dominican economy, and contributes to a dignified retirement for our customers,” said Grupo Rizek representative Héctor José Rizek Sued.

“With its strong economic growth and population of over 10 million people, the Dominican Republic remains an important market for Scotiabank. This transaction is aligned to recent announcements regarding the Bank’s Caribbean operations, including our agreement to acquire Banco Dominicano del Progreso,” commented Scotiabank group head of international banking and digital transformation Nacho Deschamps.

“We are increasing focus on growing our banking business in the Dominican Republic, where we have the opportunity to achieve enhanced scale and offer the greatest value to customers,” Deschamps added.