Fitch views Ohio National as well positioned in its primary markets of life, disability and fixed annuities
Fitch affirms stable outlook, reflecting Ohio National’s strong risk-adjusted capitalization
Fitch expects that the Constellation transaction announced in March 2021 will positively impact capital on a long-term basis
CINCINNATI, July 26, 2021 (GLOBE NEWSWIRE) -- Ohio National Financial Services announced that Fitch Ratings has affirmed 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.
In its statement, Fitch acknowledges the affirmation of the rating reflects in part the company’s strong risk-adjusted capitalization and conservative investment portfolio. The rating also considers the company's planned sponsored demutualization with Constellation Insurance Holdings, Inc. (Constellation).
In March 2021, Ohio National announced it entered into a strategic transaction with Constellation and, if completed, will result in its acquisition by Constellation Insurance Holdings, Inc. In its release, Fitch notes it expects that the company will maintain its capital levels over the near to intermediate term, and that the Constellation transaction will positively impact capital on a long-term basis.
Fitch also notes in its release:
- Ohio National’s (ONFS) risk-adjusted capitalization as strong: “Based on YE 2019 data ONFS 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.”
- Further supporting Ohio National’s strong capitalization is the company's reported NAIC risk-based capital (RBC) which is consistent with the 'aaa' category.
- “Fitch views ONFS as well positioned in their primary markets of life, disability and fixed annuities”
“We are pleased that Fitch highlights our strong capitalization and market position in our primary product lines,” stated Barbara A. Turner, CRCP, Ohio National president and chief executive officer. “Further, Fitch recognizes the anticipated long-term positive impact from the Constellation transaction we announced in March 2021.”
Turner also said, “We continue to maintain our long-standing financial strength and our focus on serving our policyholders and fulfilling our mission ‘to help you achieve financial security and independence today – and for generations to come.’”
Additional information about the Constellation transaction can be found on AdvancingOhioNational.com
About 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 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, 2020, its affiliated companies have $41.2 billion total assets under management. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Recognized as a Leader in Gender Equity by Queen City Certified. Please visit ohionational.com for more information and for the latest company updates, connect with Ohio National on LinkedIn, Facebook and YouTube.
Contact: Lisa Doxsee, APR
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