United Guaranty Canada acquired by Canadian owners
TORONTO - A private investor group, in which Ontario Teachers' Pension Plan ("Teachers'") is the lead sponsor, has entered into a definitive agreement to acquire American International Group, Inc.'s ("AIG") Canadian mortgage insurance business, AIG United Guaranty Mortgage Insurance Company Canada ("United Guaranty Canada"). Terms of the transaction were not disclosed.
"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, Teachers' Private Capital. "The company has a strong management team, and Teachers' is prepared to support the growth of the business."
United Guaranty Canada, headquartered in Toronto, is the second largest private mortgage insurance provider in Canada with assets of C$274 million and total equity of C$127 million as of September 30, 2009.
The transaction is subject to the fulfilment of customary closing conditions and receipt of regulatory approval.
About Teachers' Private Capital
Teachers' Private Capital is one of the world's largest private equity investors. It is the private investment department of the Ontario Teachers' Pension Plan, the largest single-profession pension plan in Canada. 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. For more information visit www.otpp.com.
Director, Communications and Media Relations
Ontario Teachers' Pension Plan