SEPTEMBER 10, 2020 02:56 PM (EDT)
AM Best Affirms Credit Ratings of Ohio National Financial Services, Inc. and Its Subsidiaries
FOR IMMEDIATE RELEASE
OLDWICK - SEPTEMBER 10, 2020 02:56 PM (EDT)
The ratings of Ohio National Life Group reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management (ERM).
The group’s balance sheet strength assessment is based on its risk-adjusted capitalization being at the very strong level, as measured by Best’s Capital Adequacy Ratio (BCAR), while maintaining strong liquidity. 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. The assessment of the group’s operating performance considers its long-term positive trend in individual life insurance sales prior to the current disruptions driven by the COVID-19 pandemic, and its stable adjusted GAAP operating results, while the assessment of the group’s ERM recognizes its strong risk management framework, including front-end risk management practices and sound governance structure.
The ratings of NSLAC reflect its balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, very limited business profile and appropriate ERM. The ratings also reflect the support of the company’s parent. The company’s balance sheet strength assessment is based on the strongest level of risk-adjusted capitalization, as measured by BCAR, and a high quality investment portfolio. NSLAC was the exclusive distributor of annuities for the group in New York, but is not writing new business currently.
The following Long-Term IRs have been affirmed with a stable outlook:
Ohio National Financial Services, Inc.—
— “bbb+” on $425 million 5.55% senior unsecured notes, due January 2030
— “bbb+” on $250 million 6.625% senior unsecured notes, due May 2031
The Ohio National Life Insurance Company—
— “a-” on $50 million 8.50% surplus notes, due May 2026
— “a-” 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 media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.