The private investment department of the Ontario Teachers' Pension Plan announced today it has entered an agreement to buy AIG's Canadian mortgage insurance business.
"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."
The transaction is subject to closing conditions and regulatory approval. A representative from the Ontario Teachers' Pension Plan said the deal is expected to close later this quarter.
As of last September, AIG United Guaranty had a total equity of $127 million and assets of $274 million. The company has been offering mortgage default insurance in Canada since 2006.