Based on the terms of the contract, Brasil Insurance will own 99.96% of the shares representing the capital stock of Fidelle.

The total transaction cost has been valued at approximately BRL$17m ($7.3m), of which 40% would be paid in cash and 60% in Brasil Insurance shares.

Brasil Insurance said that the transaction is in line with its strategy of growth through acquisition of interest in insurance and reinsurance intermediaries in the region.

Following the completion of the transaction, Fidelle will become the 51st brokerage firm of the Brasil Insurance Group.

Founded in 1996, Fidelle with head office in Belo Horizonte (Minas Gerais) operates as a brokerage firm and sells nearly R$40m ($17.17m) in annual insurance premiums.

The Brasil Insurance Group offers insurance products, such as health and dental plans, automobile insurance, fleet insurance, large risks, insurance guarantees, civil liability, engineering risk, transportation, among others.