The Travelers Companies, Inc. announced Tuesday it has completed its acquisition of a 43 per cent interest in JMalucelli Participações em Seguros e Resseguros S.A., the market leader in the surety insurance business in Brazil with a market share in excess of 30 per cent.

Travelers’ investment in newly issued shares will significantly increase JMalucelli’s capital level, positioning it for substantial growth in Brazil. Travelers has made an investment of approximately US$410 million and has an option to increase its interest to up to 49.9 per cent within 18 months.

Jay Fishman, Traveler’s Chairman and Chief Executive Officer, noted that the joint venture will enable the company leverage its leading U.S. surety franchise to participate in the growing Brazilian market and to do so with the benefit of a local market leader. Travelers’ expect this transaction will be modestly accretive to its earnings in the first full calendar year, said Fishman.

Alan Schnitzer, Vice Chairman and head of Travelers’ Financial, Professional & International Insurance business segment, said he believes the combination of Travelers’ broad insurance expertise with JMalucelli’s established distribution network and extensive customer base provides the company with an exceptional platform for expanding the joint venture beyond the surety business into the growing property and casualty market.

The Travelers Companies, Inc. is a leading provider of property casualty insurance for auto, home and business. A component of the Dow Jones Industrial Average, Travelers has more than 30,000 employees and generated revenues of approximately $25 billion in 2010.

Today, more than 150 years after its founding, Travelers is one of the US’ largest property casualty companies, with around 13,000 independent agents and 22 product lines across the personal, business, financial and international insurance segments. Travelers has become a symbol of financial strength and is a component of the Dow Jones Industrial Average and ranks 106 on the Fortune 500.

Minimizing risk, preventing loss and helping its customers prepare for the unknown, Travelers’ boasts comprehensive products, services and support that give individuals and businesses the confidence they need to feel secure.

The Brazilian foray marks an important milestone for the company, giving it a wider access to the Latin America’s largest economy. The investment considerably increases Travelers’ position in the international market, as well bolstering its Latin America offering.