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Press release from Business Wire

Travelers Acquires Interest in JMalucelli, the Market Leader in Brazilian Surety

Monday, June 20, 2011

Travelers Acquires Interest in JMalucelli, the Market Leader in Brazilian Surety06:00 EDT Monday, June 20, 2011 NEW YORK (Business Wire) -- The Travelers Companies, Inc. announced today that the company has completed its acquisition of a 43 percent 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 percent. 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 percent within 18 months. "This joint venture enables us to leverage our leading U.S. surety franchise to participate in the growing Brazilian market and to do so with the benefit of a local market leader," said Jay Fishman, Chairman and Chief Executive Officer. "We expect this transaction will be modestly accretive to Travelers' earnings in the first full calendar year." "We believe that the combination of Travelers' broad insurance expertise with JMalucelli's established distribution network and extensive customer base provides us with an exceptional platform for expanding the joint venture beyond the surety business into the growing property and casualty market," said Alan Schnitzer, Vice Chairman and head of Travelers' Financial, Professional & International Insurance business segment. "We are very enthusiastic about both the surety and the property casualty insurance opportunities." About Travelers The Travelers Companies, Inc. (NYSE:TRV) 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. For more information, visit Forward-Looking Statements Statements in this press release about the financial performance and prospects of the joint venture are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results involve risks and uncertainties and may differ substantially from those expressed or implied. Some of the factors that could cause actual results to differ include, but are not limited to: risks relating to pursuing new markets and opportunities; risks relating to conducting business in emerging markets; and the risk that Travelers may not realize the anticipated benefits of the proposed transaction. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” in our most recent Form 10-K filed with the Securities and Exchange Commission. We undertake no obligation to update any forward-looking statements. The Travelers Companies, Inc.Media:Shane Boyd, 917-778-6267Jennifer Wislocki, 860-277-7458orInstitutional Investors:Gabriella Nawi, 917-778-6844Andrew Hersom, 860-277-0902orIndividual Investors:Marc Parr, 860-277-0779