Weekly Insurance Notes: Travelers, Manulife

In this weekly roundup of recent developments in the U.S. insurance space, we take a look at how The Travelers Companies Inc. (NYSE:TRV) is strengthening its presence in the Brazilian property and casualty insurance business. We also review the status of Manulife’s (NYSE:MFC) acquisition of New York Life’s Retirement Plan Services business.

Travelers Increases Stake In Brazilian Joint Venture

Earlier this week, Travelers announced its plan to acquire a 95% stake in the property and casualty insurance business of J. Malucelli Participações em Seguros e Resseguros S.A. (J. Malucelli). ^[1] This is a joint venture between Travelers and J. Malucelli. According to the company’s official press release, the deal will strengthen Travelers’ position in the growing Brazilian property and casualty insurance market.

Travelers’ stock, which was relatively stable through the week, witnessed a decline of more than 2% in reaction to a downgrade by Barclays, ending the week at $105. We have a price estimate of $112 for Travelers’ stock, valuing the company at approximately $36 billion. The company is expected to release its first quarter earnings report on April 21 and we expect prolonged winters to affect performance.

See Full Analysis for Travelers Here

Manulife Completes New York Life Acquisition

During the week. Manulife completed its previously announced acquisition of New York Life’s Retirement Plan Services business. The business will be part of Manulife’s John Hancock Retirement Plan Services brand in the U.S. ^[2] At the closure of this transaction, John Hancock’s retirement assets under management increased by nearly 60% to $135 billion. Also, the new entity now has about 55,000 retirement plans and nearly 2.5 million plan participants under its coverage, making it one of the largest providers of retirement services in the country. With this acquisition, Manulife expects to strengthen its position in the U.S. retirement market as well as increase growth of its wealth and asset management businesses internationally.

Manulife’s stock ended the week’s trading at $18, remaining unchanged from Monday’s opening. We have a price estimate of $19 for Manulife’s stock, valuing the company at about $37 billion.

See our full analysis of Manulife here

1. Travelers to Acquire Majority Interest in Property Casualty Business of its J. Malucelli Joint Venture in Brazil, Travelers Press Release [↩]
2. Manulife Completes Transaction with New York Life, Significantly Expanding John Hancock’s Retirement Plan Services Business, Manulife Press Release [↩]