TORONTO (Reuters) – The Ontario Teachers’ Pension Plan said on Tuesday it is buying AIG Inc’s (AIG.N) Canadian mortgage insurance business, which has assets of C$274 million ($263 million).
Teachers, one of Canada’s largest investors, said it is the lead sponsor of a private investor group in the deal to buy AIG United Guaranty Mortgage Insurance Company Canada, the second-largest private mortgage-insurance provider in Canada.
“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,” Erol Uzumeri, senior vice-president of Teachers’ Private Capital, said in a statement.
“The company has a strong management team, and Teachers is prepared to support the growth of the business,” Uzumeri said.
Terms of the deal were not disclosed.
($1=$1.04 Canadian) (Reporting by Andrea Hopkins; editing by Peter Galloway)