Canadian investor group completes acquisition of AIG’s canadian mortgage insurance company

An investor group, led by the Ontario Teachers’ Pension Plan (Teachers’) and including National Mortgage Guaranty Holdings, Inc., has completed the acquisition of AIG United Guaranty Mortgage Insurance Company Canada from American International Group, Inc. (AIG). The terms of the transaction were not disclosed.

The mortgage insurance company has been rebranded to Canada Guaranty Mortgage Insurance Company and will continue to serve the Canadian mortgage insurance market from its headquarters in Toronto.

"We’re pleased to be involved in Canada Guaranty as it enters a new era," said Erol Uzumeri, Senior Vice-President of Teachers’ Private Capital. "Under the leadership of a talented management team and with the backing of two strong and committed financial sponsors, we believe the company is well-positioned for growth in an attractive market."

"Today’s launch of Canada Guaranty benefits lenders, mortgage professionals and consumers by fostering a competitive market dynamic and creating new choice in mortgage default insurance providers," said Andrew Charles, President and Chief Executive Officer of Canada Guaranty. "Our company’s commitment to customer service excellence, our experienced team of professionals and the financial strength of the Ontario Teachers’ Pension Plan positions our organization for long-term growth and success."

Canada Guaranty Mortgage Insurance Company is the second largest private mortgage insurance provider in Canada with assets of C$270 million and total equity of C$118 million as of December 31, 2009.