Chinese Company Buys Genworth-Is That Good for U.S. Policy Holders?
First it was Chinese company Anbang buying F&G Life, and now it’s China Oceanside buying Genworth.
It’s one thing for a Chinese company to buy one middle-sized life insurance company like F&G. It’s something completely different for a Chinese company to by the U.S.’s largest provider of long-term care (LTC) insurance (Genworth).
Who is China Oceanside?
China Oceanwide is a privately held, family owned international financial holding group founded by Mr. Lu Zhiqiang. Headquartered in Beijing, China, China Oceanwide’s well-established and diversified businesses include operations in financial services, energy, culture and media, and real estate assets globally, including in the United States
Is the Genworth sale good for U.S. policy holders?
I’m not a protectionist by nature, but I do not get a warm and fuzzy feeling about a company from a communist country buying the U.S.’s largest provider of LTC insurance.
If you asked policy holders what they thought, I wonder what they would say?
It’s a good thing that Oceanside is overpaying for the stock and infusing some initial capital. But what happens if Genworth continues to struggle? What happens down the road when people utilize their benefits more than anticipated?
LTC insurance premiums continue to rise.
The question is, will the Chinese-based Genworth owner be ruthless with price increases?
Will they truly care about the U.S. consumer?
These are all unanswered questions, but if I had the chance to buy a policy in the future from Genworth or a U.S. owned LTC provider, I’d opt for the U.S.-based carrier.
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