US-based P&C insurer Travelers Companies has completed the acquisition of 43% interest in JMalucelli Participacoes em Seguros e Resseguros, a Brazil-based surety insurance firm that has over 30% market share in country.

Travelers’ said that investment of nearly $410m in newly issued shares will increase JMalucelli’s capital level, positioning it for substantial growth in Brazil.

US insurer also has an option to increase its stake to 49.9% within 18 months in the Jmalucelli.

Travelers chairman and CEO Jay Fishman said this joint venture enables the firm to leverage the major US 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," Fishman said.