NEW YORK--(BUSINESS WIRE)--
The Travelers Companies, Inc. (NYSE:TRV)
today announced that it has agreed to acquire a majority interest in the
property casualty business of its J. Malucelli Participações em Seguros
e Resseguros S.A. (J. Malucelli) joint venture in Brazil. J. Malucelli
commenced writing property casualty business in 2012.
As a result of the transaction, Travelers will own 95 percent of the
property casualty business, with Paraná Banco, the parent company of J.
Malucelli, retaining a five percent interest. The property casualty
company will operate under the Travelers brand. Travelers’ interest in
the surety business of the J. Malucelli joint venture will remain at
49.5 percent.
“We have developed a strong partnership with J. Malucelli and will
continue jointly to build on that platform,” said Alan Schnitzer, Vice
Chairman and Chief Executive Officer of Business and International
Insurance at Travelers. “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.”
Paraná Banco will deploy the capital from the transaction to its bank
operations for ordinary course use.
The property casualty company will continue to be based in São Paulo and
led by Leonardo Semenovitch. The transaction is expected to close in the
fourth quarter of 2015, subject to regulatory approvals and customary
closing conditions. Terms of the transaction were not disclosed.
Forward-Looking Language
All statements in this press release, other than statements of
historical facts, are “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995. Actual results of
matters addressed in these forward-looking statements involve risks and
uncertainties and may differ substantially from those expressed or
implied. Some of the factors that could cause actual results to differ
are discussed under the heading “Risk Factors” in the company’s most
recent Form 10-K and Form 10-Q. Additional factors that could cause
actual results to differ include, but are not limited to, risks relating
to pursuing new markets and opportunities, including opportunities in
emerging markets. In addition, the transaction is subject to conditions
to closing and may not occur. The forward-looking statements in this
release speak only as the date of this release, and we undertake no
obligation to update any forward-looking statements.
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
approximately 30,000 employees and generated revenues of approximately
$27 billion in 2014. For more information, visit www.travelers.com.
The Travelers Companies, Inc.
Media:
Patrick
Linehan, 917-778-6267
or
Institutional Investors:
Gabriella
Nawi, 917-778-6844
Source: The Travelers Companies, Inc.