The Travelers Companies Inc. announced that it has agreed to acquire a majority interest in the property and casualty business of its J. Malucelli Participações em Seguros e Resseguros S.A. joint venture in Brazil. J. Malucelli commenced writing P&C 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 P&C 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 P&C 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.

Source: The Travelers Companies Inc.