The Travelers Companies announced that the company has completed its acquisition of a 43 percent interest in JMalucelli Participa莽玫es em Seguros e Resseguros S.A., the market leader in the surety insurance business in Brazil with a market share in excess of 30 percent.
Travelers said it’s “investment in newly issued shares will significantly increase JMalucelli’s capital level, positioning it for substantial growth in Brazil.” It’s invested approximately $410 million and has an option to increase its interest to up to 49.9 percent within 18 months.”
Chairman and CEO Jay Fishman commented: “This joint venture enables us to leverage our leading U.S. surety franchise to participate in the growing Brazilian market and to do so with the benefit of a local market leader. We expect this transaction will be modestly accretive to Travelers’ earnings in the first full calendar year.”
Alan Schnitzer, Vice Chairman and head of Travelers’ Financial, Professional & International Insurance business segment, added: “We believe that the combination of Travelers’ broad insurance expertise with JMalucelli’s established distribution network and extensive customer base provides us with an exceptional platform for expanding the joint venture beyond the surety business into the growing property and casualty market. We are very enthusiastic about both the surety and the property casualty insurance opportunities.”
Source: Travelers
Topics Mergers & Acquisitions Carriers
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