New Environment Lures United Guaranty to Taiwan's Market
United Guaranty Corp. and the Taiwan minister of finance have announced the establishment of United Guaranty's first Taiwan branch office.
Through its Taipei location, United Guaranty Corp. subsidiary United Guaranty Mortgage Indemnity Co. will offer mortgage guaranty insurance to Taiwan's financial institutions.
"The establishment of our branch reflects United Guaranty's commitment to the global market," said Bill Nutt, United Guaranty president and CEO. "Mortgage insurance is increasingly offered in markets with advanced housing finance systems, and Taiwan's recent passage of the Financial Asset Securitization Law positions it to create a highly liquid secondary mortgage market. We believe that private mortgage insurance can play an important role in supporting Taiwan's housing finance industry."
"We have been actively exploring Taiwan for a number of years, and our formal investment represents the culmination of a significant effort on the part of many," said Doug Rivenburgh, senior vice president and group executive of United Guaranty's international group. "The Taiwan Ministry of Finance has assisted tremendously in the introduction of this new and unique line of insurance. Without their support, this venture would not have become a reality. The efficiency of the approval process over the past months has been most impressive, and United Guaranty very much appreciates the continued support of the Ministry of Finance."
In a statement released by United Guaranty, Taiwan's Minister of Finance, Dr. Lin Chuan, said that the establishment of a United Guaranty branch in Taiwan "is a positive and constructive development for Taiwan's economy. The timing of United Guaranty's launching of mortgage insurance is excellent with our efforts to actively promote asset securitization and further financial sector reform."
United Guaranty noted that mortgage insurance is offered in a number of countries including Australia, Canada, Hong Kong, Israel, the United Kingdom and the United States. The company said that mortgage insurance has helped increase homeownership, enhance the safety of the banking system and facilitated securitization.
At year-end 2002, United Guaranty insured more than $100 billion of mortgage loans. The company is based in Greensboro, N.C. United Guaranty and its subsidiaries are members of the American International Group, or AIG, which has operations in 130 countries.
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