CINCINNATI, June 22, 2020 (GLOBE NEWSWIRE) -- Ohio National Financial Services announced today that Moody’s Investors Service has affirmed its ratings for the financial strength of The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation at ‘A3.’ The outlook remains negative.
In its announcement, Moody’s highlights that, “The ratings affirmation of Ohio National and its core life insurance subsidiaries is based on the steps the company has taken to improve its credit profile.” It goes on to note:
- “The company has improved the tenor of its debt ladder through a January 2020 refinancing of a 2022 term loan which reduced near term liquidity risk, raised statutory capital through the sale of a non-core block of life insurance and annuity business, advanced its strategy to grow its protection oriented business, and is actively managing the exposure in its retained VA GMIB block and hedging strategy which reduces its exposure to a downside scenario.”
- “Ohio National continues to maintain a high level of capital adequacy as measured by the combined Company Action Level Risk Based Capital (CAL RBC) ratio of approximately 453% at March 31, 2020 to proactively manage the risk associated with its variable annuity block.”
- “Ohio National also maintains a large block of whole life business, a positive from a product risk perspective, an aligned variable cost distribution, and a consistent record of prudent underwriting that has contributed to a productive and growing life insurance business.”
“We are pleased that Moody’s highlights our high level of capital adequacy and improved credit profile,” noted Gary T. “Doc” Huffman, CLU, ChFC, Ohio National chairman and chief executive officer. “We are successfully executing our strategy, all while maintaining our long-standing financial strength, and we continue to focus on serving our policyholders first.”
Moody’s outlook for Ohio National reflects their view of the impact of the external environment and our ability to grow the company and manage our annuity risk. In April 2020, Moody’s changed the US life insurance industry outlook to negative. Stated in Moody’s release, “The coronavirus-related economic downturn is creating a severe and extensive credit shock across many sectors, regions and markets” including the life insurance industry.
The ‘A3’ rating is Moody’s seventh-highest rating on a 21-part scale. According to Moody’s, insurers rated ‘A3’ are "upper-medium grade and are subject to low credit risk.”
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.
Andy Haskin
513.794.6693 office
513.608.3763 mobile
andy_haskin@ohionational.com