Canadian Investor Group completes acquisition of AIG's Canadian Mortgage Insurance Company
Canadian company rebranded as Canada Guaranty Mortgage Insurance Company
TORONTO - 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.
About the investor group
The Ontario Teachers' Pension Plan is an independent organization responsible for investing the pension fund and administering the pensions of Ontario's 289,000 active and retired teachers. National Mortgage Guaranty Holdings, Inc. is a family owned private holding company of Mr. Stephen Smith.
Teachers' Private Capital, the private investment department of the Ontario Teachers' Pension Plan, is one of the world's largest private equity investors, having participated as a long-term investor in numerous management buyouts in Canada, the United States and Europe. Current investments of Teachers' Private Capital include: Acorn Care & Education, Alliance Laundry Systems, Aquilex Corporation, General Nutrition Centers, Inc., GCAN Insurance, Maple Leaf Sports & Entertainment, National Bedding Company (Serta) and Simmons Bedding Company, among others. Teachers' Private Capital provides long-term, flexible capital and support to high-quality management teams seeking to grow and add value to their businesses over time.
Director, Communications and Media Relations
Ontario Teachers' Pension Plan
Vice President, Marketing and Product Development
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