Most likely, the company will begin building its business slowly and methodically. It will put plenty of emphasis on establishing relationships and maintaining high service levels.
CEO, Andrew Charles, told the Financial Post: “We've had dialogue with a number of significant lending institutions. Over the period of the next few years we will focus hard on the larger lending institutions."
The Post estimates the company’s market share at 1% at the moment. That’s obviously quite low, but it’s mostly reflective of the unprecedented challenges faced by its predecessor’s parent company (AIG) during the subprime crisis. The subprime fallout was out of AIGUG’s control but it had a deleterious effect on the insurer’s Canadian market share.
Looking forward, Canada Guaranty has a capable team behind it. It will undoubtedly eat into CMHC and Genworth’s market share in coming quarters, drive industry efficiencies, and (hopefully) encourage new product creation.
It’s also got a brand new website and branding. Here is a list of its current products.
The company says that “all [AIG] mortgage insurance policies that were underwritten prior to April 19, 2010 will continue to receive mortgage insurance coverage through Canada Guaranty.”
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