NEW YORK--(BUSINESS WIRE)--
The Travelers Companies, Inc. announced today that the company has
completed its acquisition of a 43 percent interest in JMalucelli
Participações 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' investment in newly issued shares will significantly increase
JMalucelli's capital level, positioning it for substantial growth in
Brazil. Travelers has made an investment of approximately US$410 million
and has an option to increase its interest to up to 49.9 percent within
18 months.
"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," said Jay Fishman, Chairman
and Chief Executive Officer. "We expect this transaction will be
modestly accretive to Travelers' earnings in the first full calendar
year."
"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," said Alan Schnitzer, Vice Chairman and head of
Travelers' Financial, Professional & International Insurance business
segment. "We are very enthusiastic about both the surety and the
property casualty insurance opportunities."
About Travelers
The Travelers Companies, Inc. (NYSE:TRV) is a leading provider of
property casualty insurance for auto, home and business. A component of
the Dow Jones Industrial Average, Travelers has more than 30,000
employees and generated revenues of approximately $25 billion in 2010.
For more information, visit http://www.travelers.com.
Forward-Looking Statements
Statements in this press release about the financial performance and
prospects of the joint venture are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995.
Actual results involve risks and uncertainties and may differ
substantially from those expressed or implied. Some of the factors that
could cause actual results to differ include, but are not limited to:
risks relating to pursuing new markets and opportunities; risks relating
to conducting business in emerging markets; and the risk that Travelers
may not realize the anticipated benefits of the proposed transaction.
Additional factors that could cause actual results to differ are
discussed under the heading “Risk Factors” in our most recent Form 10-K
filed with the Securities and Exchange Commission. We undertake no
obligation to update any forward-looking statements.
Source: The Travelers Companies, Inc.
Contact:
The Travelers Companies, Inc.
Media:
Shane Boyd, 917-778-6267
Jennifer
Wislocki, 860-277-7458
or
Institutional Investors:
Gabriella
Nawi, 917-778-6844
Andrew Hersom, 860-277-0902
or
Individual
Investors:
Marc Parr, 860-277-0779