An investor group led by the Ontario Teachers' Pension Plan has agreed to buy American International Group Inc.'s Canadian mortgage insurance business for an undisclosed price.
Teachers says AIG's United Guaranty Mortgage Insurance Company is primed to grow its market position and calls the Canadian mortgage insurance industry market an "attractive" opportunity.
Toronto-based United Guaranty Canada is the second-largest private mortgage insurance provider in Canada, with $274-million worth of assets and total equity of $127-million.
AIG has been trying to sell assets and raise capital to help repay the American government, which bailed it out last year with a loan package worth more than $180-billion (U.S.).