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Follow Up On Steve Smith & AIGUG

Today’s FP article was somewhat ambiguous on Stephen Smith’s involvement in the new United Guaranty.  The story noted that:  “The pension giant (OTPP) said it had teamed up with Stephen Smith” to make its investment in AIGUG.

Here is further clarification on that point from AIG…

  • “Mr. Stephen Smith was part of this investment group.”
  • He “is a Toronto investor who made this investment through his family holding company National Mortgage Guaranty Holdings Inc and not through First National Financial.”
  • “First National Financial was not part of the private investment group that was led by Ontario Teachers'.”

Smith has impressive credentials.  He is the President and Co-founder of First National Financial LP. He also sits on multiple corporate boards, and was Ernst & Young’s 2007 Ontario Financial Services Entrepreneur of the Year.

While one might assume that having First National’s President behind the new United Guaranty is a big positive, AIG United Guaranty says “it will have to continue to earn the business from all lenders including First National today and in the future as well.”