The Travelers Companies Inc. will snatch up the bulk of the property casualty business from its joint venture in Brazil, underscoring insurers’ increasing focus on emerging markets.
Financial details were not disclosed, though the deal is expected to close in the 2015 fourth quarter, pending regulatory approval and other closing conditions.
Plans call for Travelers to acquire a majority stake in the property casualty business of its J. Malucelli Participações em Seguros e Resseguros S.A. (J. Malucelli) joint venture in Brazil.
J. Malucelli began writing property casualty business in 2012, and now Travelers will own 95 percent of it. Paraná Banco, J. Malucelli’s parent company, will keep the remaining 5 percent. With the deal done, the property casualty business will take on the Travelers brand and be based in São Paulo.
The joint venture with J. Malucelli isn’t done yet. It continues as far as the surety business, and Travelers still plans to keep a 49.5 percent interest, according to the deal announcement.
“Our decision to acquire a controlling interest in the property casualty business reflects Travelers’ commitment to Brazil and our optimism about the long-term growth potential the market offers,” Alan Schnitzer, vice chairman and CEO of Business and International Insurance at Travelers, said in prepared remarks.
Travelers plans to hold its 2015 first-quarter results conference call on April 21.
Source: Travelers