The Genworth decision gives it access to the organization's 38 million members through its agents as well as the AARP's endorsement.
Genworth said the AARP arrangement could add an additional 20%-25% to its annualized long-term care sales and, over the next five years, about $100 million to $150 million of premiums in force.
"This is a strategically significant relationship for us," said Buck Stinson, president of Genworth's long-term care business.
Long-term care insurance provides protection against extended hospitalization or nursing care, a growing issue as 78 million baby boomers near retirement age.
AARP's decision to go with Genworth replaces an arrangement with MetLife Inc., the nation's largest life insurer. However, AARP said MetLife would continue to provide coverage for 141,000 current AARP policyholders.
AARP arrangements have been very profitable for other insurers. Dominick Washington, a spokesman for UnitedHealth Group Inc., said the health insurer had enrolled more than 9 million AARP members in its plans over the past 10 years.
AARP Vice President John Wider said his group supported the Genworth plans because the pricing was about half the cost of many other products. "Genworth will also have dedicated agents to help people review this face-to-face," he said. The program will be rolled out in October.
Genworth Financial is a leading provider of life insurance, long term care insurance, annuities and money management, employee benefits, and mortgage insurance. Genworth provides its services to over 15 million customers in 24 countries around the world.