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Press release content from Business Wire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Business Wire
Press release content from Business Wire. The AP news staff was not involved in its creation.

AM Best Affirms Credit Ratings of Ohio National Financial Services, Inc. and Its Subsidiaries

September 30, 2021 GMT

OLDWICK, N.J.--(BUSINESS WIRE)--Sep 30, 2021--

AM Best has affirmed the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” (Excellent) of The Ohio National Life Insurance Company and its wholly owned subsidiary, Ohio National Life Assurance Corporation (together referred to as the Ohio National Life Group). These companies are the principal insurance subsidiaries of Ohio National Financial Services, Inc. (ONFS), which is an intermediate holding company wholly owned by Ohio National Mutual Holdings, Inc. Concurrently, AM Best has affirmed the FSR of A- (Excellent) and the Long-Term ICR of “a-” (Excellent) of National Security Life and Annuity Company (NSLAC). Additionally, AM Best has affirmed the Long-Term ICR of “bbb+” (Good) and all Long-Term Issue Credit Ratings (Long-Term IR) of ONFS. The outlook of these Credit Ratings (ratings) is stable. All companies are headquartered in Cincinnati, OH. (See below for a detailed listing of the Long-Term IRs).

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The ratings reflect Ohio National Life Group’s balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. The group’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is at the strongest level, and despite a decline in operating results in 2020, AM Best anticipates improved results going forward. It continues to display favorable premium growth trends in the core life insurance and disability income product lines. Ohio National Life Group’s distribution channels also continue to diversify and expand.

Early in 2022, the group is expected to complete a sponsored demutualization with Constellation Holdings in an effort to further strengthen its capital position and provide opportunities for future growth.

AM Best notes that the group’s risk-adjusted capitalization has been enhanced by the issuance of surplus notes, and the use of captive structures to support redundant statutory reserves and to reduce volatility from its annuity living benefit riders. AM Best considers the group’s consolidated financial leverage and interest coverage ratios to be within acceptable ranges.

NSLAC’s ratings reflect its balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, very limited business profile and appropriate enterprise risk management. The ratings also reflect the strength and support of the Ohio National Life Group. Despite the absence of new business, the entity remains well-capitalized with high capital quality and liquidity.

The following Long-Term IRs have been affirmed with a stable outlook:

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Ohio National Financial Services, Inc.—
-- “bbb+” (Good) on $425 million 5.55% senior unsecured notes, due January 2030
-- “bbb+” (Good) on $250 million 6.625% senior unsecured notes, due May 2031

The Ohio National Life Insurance Company—
-- “a-” (Excellent) on $50 million 8.50% surplus notes, due May 2026
-- “a-” (Excellent) on $250 million 6.875% surplus notes, due June 2042

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

View source version on businesswire.com:https://www.businesswire.com/news/home/20210930005995/en/

CONTACT: Christopher Lewis

Financial Analyst

+1 908 439 2200, ext. 5065

christopher.lewis@ambest.com

Thomas Rosendale

Senior Director

+1 908 439 2200, ext. 5201

thomas.rosendale@ambest.com

Christopher Sharkey

Manager, Public Relations

+1 908 439 2200, ext. 5159

christopher.sharkey@ambest.com

Jim Peavy

Director, Communications

+1 908 439 2200, ext. 5644

james.peavy@ambest.com

KEYWORD: EUROPE UNITED STATES NORTH AMERICA NEW JERSEY

INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES

SOURCE: AM Best

Copyright Business Wire 2021.

PUB: 09/30/2021 05:24 PM/DISC: 09/30/2021 05:24 PM

http://www.businesswire.com/news/home/20210930005995/en