CINCINNATI, OH--(Marketwire - February 13, 2009) - Ohio National Financial Services today
announced records in earnings, sales and capital growth for 2008, including
an unequalled industry record in individual life insurance sales
performance.
"Ohio National had an outstanding year in 2008, despite one of the most
volatile economic climates anyone can remember," reported David B. O'Maley,
chairman, president and chief executive officer, at today's board of
directors meeting. "We have been able to consistently grow our enterprise
capital strength in the face of unprecedented market conditions while
providing high-value, low-cost products to our customers. Given the
extremely difficult economic environment that financial services companies
face, our results are exceptional."
"At the core of our belief system and focus is delivering policyholder
value, which derives from our mutual company heritage," O'Maley said. "Our
management view and operational execution are long term because our
commitments to policyholders are long term. We maintain a rigorous,
conservative risk management discipline. Most importantly, our focus has
been consistent through the years."
2008 Financial Highlights
-- GAAP equity (excluding FAS 115) was reported at $1.53 billion, an 8.7
percent increase, and representing a 10-year compound annual growth rate of
9.2 percent.
-- Pre-tax operating earnings climbed to $386.1 million, a 125.4 percent
increase.
-- Net income (after tax) climbed to $146.3 million, a 26.4 percent
increase.
2008 Sales Highlights
For the 19th consecutive year, the company has grown its individual life
insurance sales. This sales record is unmatched in the industry. In
addition, Ohio National's growth is organic and not achieved through
acquisition. In total, a record $93.5 million of new annual premium was
reported for individual life insurance, up from $92.7 million in 2007.
Industry-wide, individual life insurance sales were down 6 percent for the
year (according to LIMRA International).
Rating Highlights
Independent industry analysts in the past year reaffirmed the affiliated
companies' very strong financial security ratings. These included:
-- Standard & Poor's: "AA" (Very Strong), its third highest ranking on
a 21-part scale, for financial security characteristics. The report
noted that the rating reflected the "consistently favorable operating
performance, solid competitive position built on diverse distribution
channels, very strong capitalization, and strong life insurance
underwriting discipline."
-- 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 repay punctually senior
policyholder claims and obligations). In addition to the rating
reaffirmation in November, Moody's stated that Ohio National's "rating
outlook is stable," which is noteworthy given Moody's "negative"
outlook for the U.S. insurance sector in October.
Additional 2008 Information
Dividends paid to participating policyholders were $38.6 million, a 9.4
percent increase. For the 85th consecutive year, Ohio National paid
dividends on all participating whole life policies.
OHIO NATIONAL MUTUAL HOLDINGS, INC.
Affiliated companies:
Ohio National Financial Services, Inc.
The Ohio National Life Insurance Company
Ohio National Life Assurance Corporation
(Consolidated)
Summary Results(1): Through December 2008
12/08 12/07 % change
--------- --------- --------
Total Equity (billions)
(excluding FAS 115) $ 1.53 $ 1.41 8.7%
--------- --------- --------
Pre-tax Operating Earnings (millions) $ 386.1 $ 171.3 125.4%
--------- --------- --------
Total GAAP Revenue (billions)(2) $ 1.24 $ 1.17 5.5%
--------- --------- --------
Total Assets Under Management (billions) $ 21.6 $ 24.7 -12.6%
--------- --------- --------
Total Equity (billions)
(including FAS 115) $ 1.27 $ 1.44 -12.1%
--------- --------- --------
Net Income (millions)
(after tax) $ 146.3 $ 115.8 26.4%
--------- --------- --------
(1) The financial data presented above is on the basis of Generally
Accepted Accounting Principles (GAAP), except for dividends. In
addition, all financial information in this news release is consistent
with financial results reviewed with our outside auditors and is
considered unaudited because the final audit process is not yet
complete.
(2) Total GAAP revenue includes premiums, policy charges, investment
income, net realized losses and change in derivatives.
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. Voted Cincinnati's
"Best Place to Work" (large category) by the Business Courier (November
2003) and "25 Best Medium-Sized Companies to Work for in America" by the
Great Place to Work Institute (June 2004), Ohio National has more than 850
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.
Dividend scales are subject to change at the discretion of the Board of
Directors.
Contact Information: Contact:
Adrienne Gutbier, APR
513.794.6254 office
513.520.1612 cellular