NU Online News Service, Nov. 4, 3:21 p.m. EDT
The Travelers Companies will acquire 43 percent of the common stock of Brazilian surety insurance provider J. Malucelli Parcipacoes em Seguros e Resseguros S.A. for approximately $370 million, the company announced.
The deal also allows for an option for Travelers to increase its interest to 49.9 percent within 18 months.
Jay Fishman, chairman and chief executive officer of Travelers, said "This is a very significant opportunity for Travelers to leverage its leading U.S. surety franchise to enter the Brazilian market and to do so with a local market leader."
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 J. Malucelli'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."
The transaction is subject to Brazilian regulatory approvals and other customary closing conditions and is expected to close in the first half of 2011, Travelers said.
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