The property casualty business, in which Travelers is now 95% stakeholder, will operate under the Travelers brand. The business will now focus on property, general liability, construction and financial insurance products. The company expects to serve its customers with enhanced and expanded product and services and hence capitalize on the opportunities in the Brazilian market offers.The remaining 5% will be owned by Paraná Banco, the parent company of J. Malucelli. Travelers will retain the 49.5% stake in the surety business of the J. Malucelli.
In Dec 2012, Travelers had made a similar attempt by increasing its stake in J. Malucelli Participações to 49.5% from 43.4%.
The acquisition bears testimony to Travelers’ prudent investment strategy, wherein it strives to expand in the attractive and growing market place outside the United States. Recently, the company, in a joint venture with J. Malucelli, acquired a majority stake in Columbia-based surety provider Cardinal Compañía de Seguros in its effort to build on the surety business there. The acquisition of The Dominion of Canada General Insurance Company by Travelers in Nov 203 is largely contributing to its Financial, Professional & International Insurance segment results.
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