Genworth Financial President and CEO Thomas McInerney, second from the left, appeared in New York City in April 2015 at an event promoting the importance of long-term care planning. (Photo: Allison Bell/LHP)

China Oceanwide Holdings Group Co. Ltd. has agreed to pay $5.43 per share in cash for Genworth Financial.

Completing the deal would give Genworth — a Richmond, Virginia-based seller of long-term care insurance, mortgage guaranty insurance and annuities — a value of about $2.7 billion, Genworth said Sunday.

China Oceanwide, a family-owned, Beijing-based real estate developer, has also agreed to provide $525 million in cash for Genworth’s U.S. life insurance businesses, and $600 million in cash Genworth can use to refinance or retire notes set to mature in 2018.

Related: Genworth asks to change terms of notes

The deal is subject to approval by Genworth’s stockholders as well as by insurance regulators. The companies hope to complete the deal by mid-2017.

China Oceanwide was founded in 1985 by Lu Zhiqiang. It now owns a securities broker, a wealth management unit and Asia Pacific P&C Insurance as well as the real estate development business. The company would make the Genworth deal through its Asia Pacific Global Capital Co. Ltd. investment company unit.

“Genworth’s day-to-day operations are not expected to change as a result of this transaction,” Genworth said.

China Oceanwide would operate Genworth as a stand-alone subsidiary, and Genworth’s senior management team would continue to run the business from the current offices in Richmond, Genworth said.

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Long-term care insurance

In related news, Genworth said it expects to add $400 million to $450 million to its long-term care insurance claim reserves because a review found that claims may last longer than the company had expected. The company is also taking $275 million to $325 million in charges in connection with “deferred tax assets,” or stored-up deductions that the company will probably not be able to use.

Lu said in a statement that his company is impressed by Genworth’s focus on helping people manage the financial challenges of aging.

Related: World Bank urges China health care reform to save 3 percent of GDP

“Genworth is an established leader in both mortgage insurance and long-term care insurance, which are markets that present significant long-term growth opportunities,” Lu said.

Genworth said it will continue to seek to increase long-term care insurance premiums.

Increasing rates “is essential to stabilizing the financial position of the legacy LTC business,” Genworth said. “China Oceanwide has no current intention or future obligation to contribute additional capital to support Genworth’s legacy LTC business.”

Related:

Rating agencies react to Genworth reserve announcement

Genworth reports long-term care insurance results

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