Ohio National Announces Record Sales and Capital Growth in 2014

CINCINNATI, OH--(Marketwired - Feb 13, 2015) - Ohio National Financial Services today announced record capital growth, assets under management and sales, including an unequalled industry record in individual life insurance sales performance.

"Ohio National experienced an outstanding year in 2014," reported Gary T. "Doc" Huffman, chairman, president and chief executive officer, at today's board of directors meeting. "We grew our foundational line of life insurance for the 25^th consecutive year -- a record in the industry. Moreover, our growth in sales continues to outpace the industry.

"Although the protracted low interest rate environment continues to present challenges for our entire industry, Ohio National has continued to significantly grow our financial strength, 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 company 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 2014 results:

• For the 25^th 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 $150.7 million of new annual premium was reported for individual life insurance, up 11.3 percent from 2013. Noteworthy were the sales of Ohio National's whole life insurance products which grew by 32 percent compared to 2013, showing consumers' continued interest in security and guarantees.
  
  
• Total assets under management reached $41.4 billion, increasing 6.6 percent.
  
  
• Equity capital (including mark-to-market) was a record-breaking $2.2 billion, an increase of 12.0 percent. Mark-to-market shows the effect of bonds designated as available for sale at fair value. Equity capital (excluding mark-to-market) grew to $1.9 billion, an increase of 6.8 percent.
  
  
• Core earnings were $197.4 million, achieving the corporate goal established for the year. The planned decrease from 2013 represented strategic investments in business and corporate technology assets.
  
  
• Retirement plan sales, including 401(k) sales, increased 91.7 percent to $140.9 million and disability income insurance sales grew 29.5 percent to $2.2 million, as the company increased its capabilities in both of these areas as part of its corporate strategy.
  
  
• Sales of variable annuities totaled $2.3 billion, in line with corporate targets for the product area.
  
  
• Statutory surplus grew 9.6 percent to $1.1 billion.
  
  
• For the 91st consecutive year, Ohio National paid dividends to all participating whole life policies. A total of $59.1 million was paid to participating policyholders.
  
  
• The O.N. Equity Sales Co., the company's retail broker/dealer subsidiary, grew gross broker/dealer concessions to $45.8 million. This represents a 2.9 percent increase from 2013.
  
  
• The company purchased 50 percent of Curitiba, Brazil-based Centauro Vida e Previdencia, now renamed Centauro-ON. The joint venture leverages the rapidly expanding life insurance marketplace in Brazil, the largest South American economy. Centauro-ON joins Ohio National's growing Latin American presence in Chile and Peru.
  
  
• A total of 190 new positions were added by Ohio National during 2014. Since the beginning of the Great Recession in 2008, the Cincinnati-based company has grown its number of associates to more than 1,200, approximately a 50 percent increase.
  
  
• New financial representatives were recruited in strong numbers. This includes a record number of new builder general agencies across the United States and more than 1,400 new producing general agents, significantly increasing the company's distribution network across the country.
  
  

2014 Rating Highlights
Independent industry analysts in the past year reaffirmed Ohio National's very strong financial security ratings. All ratings were also noted as "stable." 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. 

2014 Company Recognition
Ohio National was recognized as the #1 Top Workplace in Cincinnati (Large Company) by Enquirer Media in 2014. This represents the third consecutive year for this honor and is the fourth of the last five 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.

2014 Community Stewardship
Ohio National's 11th and 12th Habitat for Humanity homes were constructed in Cincinnati during 2014. The company's overall contribution to the local Habitat for Humanity group since 2009 exceeds $1.2 million. Additionally, The Ohio National Foundation donated more than $1.4 million during 2014 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 new premium and statutory surplus. 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 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 affiliated operations in South America. Additional subsidiaries operate in New York and Connecticut. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Ohio National has more than 1,200 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 2/13/15. For the most current ratings, see www.ohionational.com.

Dividend scales are subject to change at the discretion of the Board of Directors.