AIG Sheds Canadian Unit

A private investor group led by the Ontario Teachers' Pension Plan announced it has acquired the Canadian mortgage insurance business of American International Group Inc (AIG).

Source: Source: WSJ | Published on January 6, 2010

AIG United Guaranty Mortgage Insurance Co. Canada is the second-largest private mortgage insurer in Canada, and had assets of about $263.4 million and equity of about $122 million on Sept. 30. Ontario Teachers' Pension Plan didn't disclose the terms of the transaction.

The announcement follows news last month that Harel Insurance Investments and Financial Services Ltd. agreed to acquire AIG's Israel mortgage insurance business EMI Ltd. for $35.5 million. EMI's net profit for the first three quarters of 2009 was $14.2 million, Harel said.

An AIG spokeswoman confirmed the sales.