NEW YORK – A Chinese holding company has agreed to buy U.S. insurance company Genworth Financial for about $2.7 billion, sending shares of Genworth down sharply a day after the deal was announced.
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The buyer, China Oceanwide Holdings Group Co., is based in Beijing and owns other financial services companies. It also has real estate investments in New York, California and Hawaii. China Oceanwide says it plans to keep Genworth operating separately out of its Richmond, Virginia, headquarters and doesn't expect its day-to-day operations to change. Genworth sells mortgage insurance, as well as long-term insurance.
The deal is expected to close in the middle of next year.
Shares of Genworth Financial Inc. fell 42 cents, or 8 percent, to $4.79 in morning trading Monday.