January 5, 2010 by Canadian Underwriter
Ontario Teachers’ Pension Plan is leading a private investor group that has agreed to acquire American International Group Inc. (AIG)’s Canadian mortgage insurance business, AIG United Guaranty Mortgage Insurance Company Canada.
Terms of the transaction were not disclosed. The transaction is subject to customary closing conditions and regulatory approval.
United Guaranty Canada, headquartered in Toronto, is the second-largest private mortgage insurance provider in Canada, with assets of $274 million and total equity of $127 million as of Sept. 30, 2009.
The Ontario Teachers’ Pension Plan is an independent corporation responsible for investing the fund and administering the pensions of Ontario’s 284,000 active and retired teachers.
“We believe the mortgage insurance industry in Canada to be an attractive market, and that United Guaranty Canada is well positioned to grow its market position,” said Erol Uzumeri, senior vice president of Teachers’ Private Capital. “The company has a strong management team, and Teachers’ is prepared to support the growth of the business.”