UPDATE 1-Brazil's Magalu inks $200 mln deal with Cardif over insurance business

(Adds details, share reaction, analyst comment)

SAO PAULO, May 11 (Reuters) - Brazil's Magazine Luiza SA said Thursday it extended a commercial agreement with insurer Cardif which includes selling it a stake in their insurance venture, in a 1.01 billion-real ($201.87 million) deal which boosted shares.

Magalu, as the retailer is popularly known, said it would launch new products and maintain a partnership with Cardif offering insurance to clients through December 2033.

As part of the deal, Magalu said Cardif had agreed to buy out its stake in their insurance joint venture known as Luizaseg.

The retailer said it would receive a net of 850 million reais ($169.89 million) under the deal's terms, in addition to monthly commissions and additional payments if certain targets are met.

The sale of its stake in Luizaseg, meanwhile, was valued at 160 million reais, the company added.

Shares of Magazine Luiza rose more than 2% in morning trading, making it one of the top gainers on Brazil's Bovespa stock index, which was down 0.5%.

Analysts at JPMorgan said the transaction was positive for Magalu as the $200 million the company is set to receive would strengthen its balance sheet, while noting "the market attributed limited value to Luizaseg operations."

The Luizaseg deal still requires regulatory approval, Magalu said. ($1 = 5.0033 reais) (Reporting by Gabriel Araujo; Editing by Steven Grattan, Alexandra Hudson)