Insurance provider The Travelers Companies has agreed to buy a majority stake in the property casualty business of its J. Malucelli Participações em Seguros e Resseguros joint venture in Brazil.
Terms of the deal have not been disclosed.
With the latest deal, Travelers will own 95% of the property casualty business and the remaining 5% will be owned by the parent company Paraná Banco.
Travelers’ interest will remain at 49.5% in the surety business of the J. Malucelli joint venture.
Travelers business and international insurance CEO and vice-chairman Alan Schnitzer said: "We have developed a strong partnership with J. Malucelli and will continue jointly to build on that platform.
"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."
J. Malucelli had commenced the operations of property casualty business in 2012.
Based in São Paulo, the property casualty company will be headed by Leonardo Semenovitch and will operate under the Travelers brand.
Subject to regulatory approvals and customary closing conditions, the deal is expected to be completed in the fourth quarter of this year.
With around 30,000 employees, Travelers provides property casualty insurance for auto, home, and business, and reported revenues of about $27bn in 2014.
Image: Travelers Tower, Hartford Connecticut. Photo: courtesy of John Phelan.