Genworth Mortgage Insurance Australia will be majority-owned by China Oceanwide Holdings under a $US2.7 billion ($3.5 billion) deal to acquire its parent.

US-based Genworth Financial will become a standalone subsidiary of Beijing-based China Oceanwide, with senior management continuing to lead the business in Virginia.

“Genworth intends to maintain its existing portfolio of businesses, including its mortgage insurance businesses in Australia and Canada,” the US company says.

“Day-to-day operations are not expected to change as a result of this transaction.”

The parent has a 52% stake in Genworth Australia, which debuted on the local stock exchange in May 2014.

China Oceanwide is a privately held, family-owned international financial holding group, founded by Lu Zhiqiang. It has interests in financial services, energy, the media and real estate.

Genworth Financial CEO Tom McInerney says the prospective new owner “recognises the strength of our mortgage insurance platform and the importance of long-term care insurance in addressing an ageing population”.

“The capital commitment from China Oceanwide will strengthen our business and increase the likelihood of obtaining regulatory approval.”

The deal is expected to close next year, subject to clearance by regulators and Genworth Financial stockholders.