UPDATE 1-Travelers to buy 43 pct stake in Brazilian insurer

* Initial investment of $370 mln for 43 pct interest

* Option to raise holding to up to 49.9 pct within 18 mths

* Deal to be modestly accretive to earnings in first year

Nov 4 (BestGrowthStock) – Travelers Cos (TRV.N: ) said it inked a
joint venture agreement with J. Malucelli Participacoes em
Seguros e Resseguros S.A. to invest about $370 million for a 43
percent stake in the Brazilian surety insurer.

Travelers, the largest publicly traded U.S. property
insurer, said under the deal it has the option to increase its
stake in J. Malucelli to up to 49.9 percent within 18 months.

“We expect this transaction will be modestly accretive to
Travelers’ earnings in the first year, and it positions us in
one of the fastest growing insurance markets in the world,”
Travelers Chief Executive Jay Fishman said.

The transaction is expected to close in the first half of
2011.

Shares of Travelers, a Dow component, closed at $55.91
Wednesday on the New York Stock Exchange.
(Reporting by Brenton Cordeiro in Bangalore; Editing by
Unnikrishnan Nair)

UPDATE 1-Travelers to buy 43 pct stake in Brazilian insurer