New York insurer Travelers Co. Inc., with major operations in Hartford, said Monday it finalized its buyout of 43 percent of Brazilian insurance company JMalucelli Participacoes em Seguros e Resseguros S.A.
Travelers said its $410 million investment will increase JMalucelli’s capital and position it for growth in Brazil. Travelers claims to control more than 30 percent of that South American nation’s surety insurance market.
Travelers has an option to increase its stake to 49.9 percent in the next 18 months, the statement said.
JMalucelli currently provides surety insurance, which provides bonding for contracts to ensure they are completed under set terms. Travelers said the deal will give it a platform to expand the venture into the growing property and casualty market.
Travelers said the acquisition will add modestly to its earnings this year.
