Ohio National Announces Record Earnings and Sales in 2013

CINCINNATI, OH--(Marketwired - Feb 14, 2014) - Ohio National Financial Services today announced record earnings, assets under management and sales, including an unequalled industry record in individual life insurance sales performance.

"Ohio National experienced an outstanding year in 2013," reported Gary T. "Doc" Huffman, chairman, president and chief executive officer, at today's board of directors meeting. "Although the protracted low interest rate environment continues to create significant challenges for our entire industry, Ohio National has continued to grow our financial strength, grow our product lines and distribution capabilities and deliver long-term policyholder value.

"Our balance sheet and capital position are excellent," Huffman noted. "Ohio National's mutual heritage allows us to take a long-term strategic view and provides a foundation of strength that benefits our policyholders now, and for generations to come."

The company highlighted the following from its 2013 results:

• For the 24th consecutive year, Ohio National has grown its individual life insurance sales. This is a record that is unmatched in the industry. In total, a record-breaking $135.4 million of new annual premium was reported for individual life insurance, up 6.9 percent from 2012. With consumers' continued interest in security and guarantees, sales of Ohio National's whole life insurance products, including the industry's lowest priced participating whole life insurance product, grew 13.7 percent during the year.
  
  
• Total assets under management reached $38.8 billion, increasing 11.8 percent.
  
  
• Core earnings grew to a record $205.7 million. Core earnings are a key measure of how the company is achieving its goals.
  
  
• For the 90th consecutive year, Ohio National paid dividends to all participating whole life policies. A total of $50.6 million was paid to participating policyholders.
  
  
• Equity capital (including mark-to-market) was $2.0 billion, a decrease of 9.1 percent. Mark to market shows the effect of bonds designated as available for sale at fair value.
  
  
• The O.N. Equity Sales Co., the company's retail broker/dealer subsidiary, grew gross broker/dealer concessions to $44.5 million. This represents a 19.6 percent increase from 2012.
  
  
• Retirement plan sales, including 401(k) sales, increased 31.4 percent to $64.4 million and disability income insurance sales grew 15.1 percent to $1.7 million, as the company increased its capabilities in both of these areas.
  
  
• Sales of variable annuities totaled $2.4 billion, in line with corporate targets for the product area. This represents a decrease of 16.0 percent from the previous year. Ohio National introduced a new interest-sensitive variable annuity product benefit rider in 2013 and was also one of the first companies in the industry to finalize reinsurance agreements for variable annuity products since the Great Recession.
  
  
• New financial representatives were recruited in strong numbers. More than 1,750 new representatives were appointed in the traditional sales channel, including 1,350 new personal producing general agents.
  
  

2013 Rating Highlights
Independent industry analysts in the past year have given Ohio National very strong financial security ratings. These included:

• Standard & Poor's: "AA-" (Very Strong), its fourth-highest ranking on a 21-part scale, for financial strength.
• A.M. Best: "A+ (Superior)," its second-highest rating of 16 categories, based on the company's balance sheet strength, operating performance and business profile.
• Moody's: "A1," its fifth-highest financial strength rating on a 21-part scale, based on the ability to pay policyholder benefits and repay debt obligations. 

2013 Company Recognition
Ohio National was recognized as the #1 Top Workplace in Cincinnati (Large Company) by Enquirer Media in 2013. This represents the second consecutive year for this honor and is the third of the last four years for this recognition. The Top Workplace acknowledgment was based on confidential surveys to all associates, including questions related to leadership, direction, environment, communications, trust, work/life flexibility, appreciation and benefits.

2013 Community Stewardship
Ohio National's ninth and tenth Habitat for Humanity homes were constructed in Cincinnati during 2013. In recognition of its centennial in 2009, Ohio National made a $780,000 gift to Habitat for Humanity of Greater Cincinnati, the largest one-time gift in the local group's history. In December 2013, the company committed to the construction of five additional homes in the next five years, bringing the overall contribution to $1.2 million. Additionally, The Ohio National Foundation donated more than $1 million during 2013 to nonprofit organizations in the Greater Cincinnati area.

The financial data presented above is derived from results on the basis of Generally Accepted Accounting Principles (GAAP), except life insurance sales. All financial information in this news release is considered unaudited because the final audit process is not yet complete.

*Including mark to market shows the effect of our bonds designated as available for sale at fair value.

Tracing its corporate origins to 1909, Ohio National today markets a variety of insurance and financial products through more than 50,000 representatives in 47 states (all except Alaska, Hawaii and New York), the District of Columbia, Puerto Rico and through subsidiary operations in Santiago, Chile. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Ohio National has more than 1,000 corporate headquarters associates. Visit www.ohionational.com for more information.

Ohio National has received high marks for financial strength and claims paying ability from major rating agencies; however, such ratings do not refer to the performance of our variable accounts nor imply approval of our variable contracts or their portfolios. All ratings information is according to reports published on: www.standardandpoors.com, www.ambest.com/ratings and www.moodys.com/insurance. Ratings are accurate as of 2/14/14. For the most current ratings, see www.ohionational.com.
Dividend scales are subject to change at the discretion of the Board of Directors.