AIG UNITED GUARANTY–CANADA OBTAINS LETTERS PATENT OF INCORPORATION FROM MINISTER OF FINANCE

Mortgage Insurer Nears Completion of Application Process to Commence Operations

TORONTO – AIG United Guaranty¹, whose affiliate companies provide mortgage guaranty insurance designed to increase home ownership, has been issued letters patent of incorporation from the Minister of Finance upon recommendation from the Office of the Superintendent of Financial Institutions. AIG United Guaranty is a member company of American International Group, Inc. (AIG), which has operated in Canada since 1963.

The incorporation of AIG United Guaranty Mortgage Insurance Company Canada officially makes it the second private mortgage insurance company in the Canadian market. According to President and CEO Andy Charles, “Our entry to the Canadian market marks a new and exciting chapter in the mortgage insurance industry, since it has been more than a decade since a new mortgage insurer has entered the market. We are working diligently to meet OSFI’s final requirements in order to commence business.”

AIG United Guaranty’s unique business model is designed to deliver the following:

• Increased competition and choice within the mortgage insurance market.
  
• Innovative solutions to facilitate increased home ownership for Canadians.
  
• Flexible technology to make financial institution connectivity fast and efficient.

The mortgage insurance operations expects to employ an additional 90 staff positions over the next four years with offices in Toronto, Vancouver, Calgary, and Montreal. According to Chief Operating Officer John Gaines, “Our organization is operationally ready to serve financial institutions with a unique technology named MI Guidesm – a proprietary automated underwriting system designed to streamline the mortgage insurance process.” 

 The mortgage insurance subsidiaries of AIG United Guaranty provide mortgage guaranty insurance service to financial institutions worldwide, helping to minimize reliance on government fiscal support through private-sector risk management. Mortgage insurance coverage on low-down-payment loans protects a lender against losses due to homeowner default. Home ownership studies show that loans with limited down payments have an increased likelihood of default, particularly in periods of severe or prolonged economic distress.

About AIG United Guaranty

United Guaranty Corporation (AIG United Guaranty) and its subsidiaries are member companies of American International Group, Inc. (AIG). The company has been headquartered in Greensboro, North Carolina, since it was established in 1963.

Subsidiaries of AIG United Guaranty provide mortgage guaranty insurance for first and second mortgages that protects against mortgage credit losses. In addition, AIG United Guaranty’s comprehensive range of financial products and services to lenders and investors includes mortgage fraud recovery services and private education loan default insurance. AIG United Guaranty’s international locations include offices in Jerusalem, Hong Kong, Taipei, Tokyo, Seoul, London, Dublin, Milan, Madrid, Budapest, Mexico City, Toronto, Paris, Copenhagen, and Sydney.

About AIG

American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed in the U.S. on the New York Stock Exchange and ArcaEx, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.