CANADA - The Ontario Teachers' Pension Plan (OTPP) has led a group of investors in the acquisition of American International Group's (AIG) Canadian mortgage insurance business, OTPP said.
The terms of the deal for the acquisition of AIG United Guaranty Mortgage Insurance Company Canada were not revealed, nor were the names of the other investors.
OTPP's private equity arm, Teachers' Private Capital, senior vice president Erol Uzumeri said: "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. The company has a strong management team, and Teachers' is prepared to support the growth of the business."
Troubled insurer AIG has been selling off assets in order to repay government funds.
In September, AIG agreed to sell its asset management unit to Hong Kong-based private equity firm Pacific Century Group for US$500m. The asset management business was later rebranded as PineBridge Investments. (Global Pensions; November 20, 2009)
United Guaranty Canada is the second largest private mortgage insurance company in Canada and has assets of C$274m (US$263.8m).
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