Probably few people besides AIG’s top U.S. executives and CEO Robert Willumstad know how things will shake out with the company. The insurance giant is expected to announce a massive restructuring any time now, to shore up its collateral obligations.
As for AIG United Guaranty Canada, AIG’s Canadian mortgage default insurance subsidiary, there’s been no word on how its parent’s U.S. challenges will affect it. A company spokesman we talked to this morning had no knowledge of any impending impact.
For the moment, there is little reason not to be optimistic. According to sources, AIG’s Canadian business is profitable and it’s got a 90% credit guaranty from the federal government. Moreover, it operates in a Canadian mortgage market that’s on very solid ground with reasonable lending standards and miniscule default ratios.
We’ll keep an eye on things and report back if we hear anything further.
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