JMalucelli expects JV with Travelers to start in 1 or 2 months, says director

Bnamericas Published: Monday, June 06, 2011
Brazilian insurance and reinsurance group JMalucelli expects its joint venture with US P&C insurer Travelers (NYSE: TRV) to start operations in one or two months, insurance unit JMalucelli Seguradora's director, Gustavo Henrich, told BNamericas. Travelers and JMalucelli announced a JV deal in November 2010, in which Travelers will have a 43.4% voting stake in JMalucelli. After the launch, the JV will offer commercial, engineering, civil liability and D&O insurance to JMalucelli's surety insurance clients through the Brazilian company's brokers and taking advantage of Travelers' know-how of the P&C business, Henrich said. The partners will also strengthen JMalucelli's surety business and expand the operations of reinsurance unit JMalucelli Reseguradora to other countries in Latin America. SURETY GROWTH PICKING UP Last year, the surety segment in Brazil saw premiums grow only 3%, but Henrich expects a major pickup this year due to large-scale investments in infrastructure projects. During the first four months of this year, surety premiums increased by 14% year-on-year, and the executive believes growth could be as high as 25-30% for the full year. JMalucelli Seguradora and JMalucelli Resseguradora posted combined earnings of 16.4mn reais (US$10.4mn) in the first quarter, a year-on-year jump of 67.3%. They made up 50% of parent Paraná Banco's net profit in the quarter.

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