Travelers said the newly issues shares will significantly increase J. Malucellis capital level, positioning it for growth. The company already has 30% market share. Travelers expects the transaction to be modestly accretive to earnings in the first year, as it positions the company in one of the fastest growing insurance markets in the world.
Travelers to Invest in Brazilian Surety Insurer J. Malucelli
The Travelers Companies said on Thursday it has entered into a joint venture agreement in which it will invest in J. Malucelli, a Brazilian leader in surety insurance. Travelers will invest $370 million for 43% of the common stock of J. Malucelli, with the option to increase its interest to up to 49.9% within 18 months.
Source: Source: Forbes | Published on November 5, 2010
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