A.M. Best Affirms Financial Strength and Debt Ratings of Ohio National.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Dec. 22, 2003 A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the financial strength rating of A+ (Superior) of Ohio National Life The Ohio National Life Insurance Company, is headquartered in Cincinnati, Ohio. It was originally founded as a stock company in 1909 but converted to mutual company status in 1959. In 1998, Ohio National reorganized as a mutual insurance holding company. Insurance Company (ONLIC ONLIC Ohio National Life Insurance Company (Cincinnati, OH; also seen as ONLI) ) and its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Ohio National Life Assurance Corporation (ONLAC). Concurrently, A.M. Best has affirmed the debt ratings of "a-" on Ohio National Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Inc.'s (ONFS) senior unsecured notes and "a" on ONLIC's surplus notes. ONLIC is owned by ONFS, an intermediate holding company, which is owned by Ohio National Mutual Holdings, Inc. (OHMH), a mutual holding company. The rating outlook for all the ratings is stable. All of the companies are located in Cincinnati, OH. The affirmation of the ratings reflects Ohio National group's expanding national profile, solid risk-adjusted capitalization levels, strong organic sales growth, well-focused business strategy and broad multi-channel distribution systems. ONFS continues to effectively execute on its strategy of organic growth in its core businesses, selling traditional life, fixed and variable annuities Variable annuities Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. . These strengths are partially offset by the group's increased financial leverage (debt to capital), operating leverage Operating Leverage A measurement of the degree to which a firm or project relies on fixed rather than variable costs. Notes: The higher the degree of operating leverage, the greater the potential danger from forecasting risk. (net premiums to capital) and its moderately high exposure to big (below investment grade) bonds and mortgage loans relative to capital. Furthermore, the group's historical 2002 and earlier operating returns have been dampened by rapid business growth and the overall decline in the financial markets. On a going forward basis, A.M. Best expects operating returns on both a statutory and GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). basis to increase due to the significant improvement in the financial markets during the third and fourth quarters of 2003 and continued profit emergence as its book of business matures. The following debt ratings have been affirmed: Ohio National Financial Services, Inc.-- -- "a-" on $150 million 6.35% senior unsecured notes, due April 2013 Ohio National Financial Services, Inc.-- -- "a-" on $200 million 7% senior unsecured notes, due July 2011 Ohio National Life Insurance Company-- -- "a" on $50 million 8.5% surplus notes, due May 2026 -- "a" on $35 million 8.875% surplus notes, due July 2004 A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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