The name AIG United Guaranty is no longer after the Ontario Teachers' Pension Plan, along with other investors, successfully completed the acquisition of the private mortgage insurer and renamed it Canada Guaranty Mortgage Insurance Company.
The transaction - for which details were not disclosed - means the company has no more ties to the U.S. or its former parent company, American International Group (AIG). In addition to the name, the new owners are rebranding the company as the only 100 per cent Canadian-owned private mortgage insurer.
"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, the insurer's president and CEO, who remained on board from AIG United Guaranty.
While the private investment arm of the Ontario Teachers' Pension Plan led the acquisition process, which was first announced in January, a private holding company called National Mortgage Guaranty Holdings led by First National president Stephen Smith also had significant involvement.
Canada Guaranty, which is headquartered in Toronto, has identified its key differentiators in the marketplace as financial strength, including the backing of the Ontario Teachers' Pension Plan, and service excellence.
It added mortgage insurance policies that were underwritten prior to today will receive mortgage insurance coverage through Canada Guaranty.