Bridgewater Bank, Canada's newest chartered bank, and AIG United Guaranty(1), Canada's newest mortgage insurer announced today the agreement of a strategic partnership. The two companies will combine their respective mortgage finance and mortgage insurance expertise to deliver innovative products and superior customer service to the Canadian homebuyer market.

Bridgewater Bank's Vice-President & General Manager, Peter O'Neill says, "AIG United Guaranty has shown remarkable willingness to work with us to provide excellent products and services to Canadian homebuyers." AIG President and CEO, Andy Charles adds, "We are pleased to have Bridgewater Bank as our first strategic partner in the Canadian mortgage industry and we look forward to creating additional value for mortgage professionals and Canadian consumers."

Effective January 01, 2006 Bridgewater Bank became Canada's newest chartered bank and maintains a commitment to provide superior service while continuing to enhance its innovative product line up. This partnership announcement supports that commitment confirms O'Neill; "AIG United Guaranty's customer philosophy compliments Bridgewater Bank's commitment to providing relevant and competitive product offerings. We look forward to working together to exceed our customers' expectations."

Earlier this year, AIG United Guaranty received approval from the Office of the Superintendent of Financial Institutions (OSFI) to commence business in the Canadian market. "Our entry to the Canadian market marks a new and exciting chapter in the mortgage insurance industry," said Charles. AIG United Guaranty's launch in the Canadian market, making it the first new entrant in more than decade, has resulted in many positive new innovations for lenders, mortgage professionals, and Canadian consumers. The addition of new players such as Bridgewater Bank and AIG United Guaranty to the Canadian financial services landscape is good news for consumers who will benefit from the increased competition leading to more options, enhanced product offerings, and better service.