Fitch sees Ohio National well positioned in its major life, disability and retirement markets
Fitch confirms stable outlook, reflecting Ohio National’s strong risk-adjusted capitalization
Fitch expects the Constellation transaction announced in March 2021 to have a long-term positive impact on capital
CINCINNATI, July 26, 2021 (GLOBE NEWSWIRE) – Ohio National Financial Services announced that Fitch Ratings has confirmed the financial strength of Ohio National Life Insurance Company and Ohio National Life Assurance Corporation at “A-” with a stable outlook.
The ‘A-‘ rating is Fitch’s seventh highest rating on a 21-point scale. According to Fitch, insurers rated “a” have a high credit quality and are subject to a low risk of credit default.
In its statement, Fitch acknowledges that the affirmation of the rating reflects in part the firm’s strong risk-adjusted capitalization and conservative investment portfolio. The rating also takes into account the company’s proposed sponsored demutualization with Constellation Insurance Holdings, Inc. (Constellation).
In March 2021, Ohio National announced it had completed a strategic transaction with Constellation that, if completed, will result in acquisition by Constellation Insurance Holdings, Inc. In its press release, Fitch states that it expects the company to increase its capitalization over the short to medium term and that the Constellation transaction will have a positive equity impact over the long term.
Fitch also notes in its publication:
- Ohio National’s Risk-Adjusted Capitalization (ONFS) as strong: “Based on 2019 data, ONFS scores in the“ Strong ”category of Fitch’s Prism Capital Model, which matches Fitch’s guidelines for companies rated“ a “Matches.”
- Ohio National’s strong capitalization is also supported by the company’s reported NAIC Risk Based Capital (RBC), which is rated “aaa”.
- “Fitch sees ONFS as well positioned in its main markets of life, disability and pension insurance”
“We are pleased that Fitch is highlighting our strong capitalization and market position in our core product lines,” said Barbara A. Turner, CRCP, Ohio National President and Chief Executive Officer. “In addition, Fitch recognizes the expected long-term positive effects of the Constellation transaction announced in March 2021.”
Turner also said, “We are maintaining our long-standing financial strength and focus on serving our policyholders and fulfilling our mission to achieve ‘your financial security and independence today – and for generations to come’.”
For more information on the Constellation transaction, visit AdvancingOhioNational.com
Via Ohio National
Since 1909, Ohio National has been committed to helping individuals, families, and businesses protect what matters most. Through our network of financial professionals in 49 states (all except New York), the District of Columbia and Puerto Rico, and through affiliated offices in South America, we provide insurance products that help our policyholders achieve financial security and independence. As of December 31, 2020, its affiliates had total assets under management of $ 41.2 billion. The products are issued by Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Recognized by Queen City Certified as a Leader in Gender Equity. Please visit ohionational.com for more information and the latest company updates. Connect with Ohio National on LinkedIn, Facebook, and YouTube.