Fitch views Ohio National’s risk-adjusted capitalization as strong
Stable outlook reflects Fitch’s view the company is well positioned in a challenging external environment
CINCINNATI, July 29, 2020 (GLOBE NEWSWIRE) -- Ohio National Financial Services announced today that Fitch Ratings has assigned ratings for the financial strength of The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation at ‘A-‘ with stable outlook.
The ‘A-’ rating is Fitch’s seventh-highest rating on a 21-part scale. According to Fitch, insurers rated with ‘a’ category have high credit quality and are subject to low credit default risk.
The rating reflects, in part, the company’s insurance operating subsidiaries’ strong risk-adjusted capitalization and leverage, stable financial performance and conservative investment portfolio. The stable outlook reflects Fitch's view the company is well positioned in an external environment that will present earnings-related pressures over the next 12-18 months.
Highlights from Fitch’s release also include:
- “Fitch views Ohio National’s risk-adjusted capitalization as strong and based on YE 2019 data, Ohio National scores in the ‘Strong’ category of Fitch’s Prism capital model which is consistent with Fitch’s guidelines for companies rated in the ‘a’ category.”
- “Ohio National’s 2019 Prism score benefited from actions the company took during 2018 and 2019 which reduce Ohio National’s exposure to the inherent reserve volatility associated with certain legacy variable annuity (VA) benefit riders.”
- “Overall, Fitch views Ohio National’s portfolio to be well positioned relative to peers to weather an economic downturn.”
- “In addition to reported earnings, Fitch also assesses Ohio National on an operating earnings basis, which has continued to experience stable growth driven by moderate premium increases across product lines and predictable investment income. As a result, the company’s operating return metrics have exhibited relatively low variation over the last several years.”
“We are pleased that Fitch highlights our strong capitalization and stable growth in operating earnings,” noted Gary T. “Doc” Huffman, CLU, ChFC, Ohio National chairman and chief executive officer. “This rating highlights we are well positioned in the current economic environment as the coronavirus-related economic downturn is creating a severe and extensive credit shock and earnings pressures across many sectors, regions and markets, including the life insurance industry.”
Huffman continued, “We are successfully executing our strategy, all while maintaining our long-standing financial strength, and we continue to focus on serving our policyholders first.”
About Ohio National Financial Services
Since 1909, Ohio National has been committed to helping individuals, families and businesses protect what matters most. Through our network of financial professionals across 49 states (all except New York), the District of Columbia and Puerto Rico and through affiliated operations in South America, we provide the insurance products that help our policyholders achieve financial security and independence. As of December 31, 2019, its affiliated companies have $40.5 billion total assets under management. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Please explore ohionational.com for more information and for the latest company updates, connect with Ohio National on LinkedIn, Facebook and YouTube.
Contact: Lisa Doxsee, APR
513.794.6418 office
513.218.5519 mobile
lisa_doxsee@ohionational.com
Andy Haskin
513.794.6693 office
513.608.3763 mobile
andy_haskin@ohionational.com