SOURCE: Ohio National Financial Services

Ohio National Financial Services

February 11, 2011 13:00 ET

Ohio National Announces Record Earnings, Sales and Capital Growth in 2010

CINCINNATI, OH--(Marketwire - February 11, 2011) - National Financial Services today announced record earnings, sales and capital growth, including an unequalled industry record in individual life insurance sales performance.

"Despite the uneven economy, Ohio National had an outstanding year in 2010," reported Gary T. "Doc" Huffman, president and chief executive officer, at today's board of directors meeting. "Our balance sheet has never been stronger, our capital position is excellent, and we are continuing to deliver long-term policyholder value by providing the highest quality products with the benefits and protection our customers need.

"Additionally, we take great pride in the fact that our strong 2010 results represent year-over-year increases from a very positive year in 2009, and that we are one of the few financial companies to have all of our excellent ratings reaffirmed by independent analysts between 2008-2010," Huffman noted. "That type of consistent performance and value is what Ohio National is known for in the marketplace."

The company highlighted the following from its 2010 results:

  • For the 21st consecutive year, Ohio National has grown its individual life insurance sales. This is a record that is unmatched in the industry. In total, a record-breaking $113.5 million of new annual premium was reported for individual life insurance, up more than 20 percent from 2009. Industry-wide, individual life insurance sales were up 6 percent through the third quarter of the year (according to LIMRA International). Ohio National recorded increases in each of its major product lines -- including traditional life insurance, universal life insurance and term life insurance.

  • Total assets under management grew 11.8 percent, reaching almost $30 billion. Assets under management have grown at a 10-year compound annual growth rate of 12.3 percent.

  • The company maintains a very strong capital position. Equity capital (including SFAS 115) grew 15.2 percent to $1.8 billion from $1.5 billion in 2009. Equity capital (excluding SFAS 115) grew 6.3 percent to $1.6 billion.

  • Core earnings grew to a record $194.7 million, a 44.2 percent increase from $135.0 million recorded in 2009. Core earnings are a key measure of how the company is achieving its goals.

  • For the 87th consecutive year, Ohio National paid dividends to all participating whole life policies. A total of $38.3 million was paid to participating policyholders.

  • Variable annuity sales totaled $1.5 billion, more than 25 percent over the corporate goal. During 2010, the company transitioned to a new withdrawal benefit option available for its ONcore variable product series. The new withdrawal benefit option was added in mid-year, and additional death benefit options were introduced in January 2011.

  • The O.N. Equity Sales Co., the company's retail broker/dealer subsidiary, grew gross broker/dealer concessions to $32.4 million. This represents an 18 percent increase over 2009.

  • The company continues to employ a conservative, diversified investment strategy and strong liquidity position. The company has virtually no exposure to equities or troubled asset classes. At year-end, more than 92 percent of the company's bond portfolio was rated at investment-grade. At year-end, less than one-half of 1 percent of the company's bond portfolio was in or near default, and only 1 percent of the mortgage portfolio was delinquent.

  • New financial representatives were recruited in record numbers. Nearly 2,000 new representatives in the traditional sales channel became affiliated with Ohio National, including a record number of producing general agents.

2010 Leadership Transition
During 2010, the company successfully managed a planned leadership transition, as Huffman succeeded David B. O'Maley as president and chief executive officer, effective December 1, 2010. O'Maley, who had been president and CEO since 1994, continues as executive chairman of the board. O'Maley announced in September his decision to retire, and the board of directors elected Huffman as his successor in November.

2010 Rating Highlights
Ohio National's ratings have not changed since 1991. Independent industry analysts in the past year reaffirmed the affiliated companies' very strong financial security ratings. These included:

  • Standard & Poor's: "AA" (Very Strong), its third-highest ranking on a 21-part scale, for financial strength. The report noted that the rating reflected "very strong capitalization... efficient execution of operating fundamentals, solid competitive position."
  • A.M. Best: "A+ (Superior)," its second-highest rating of 16 categories, based on the company's balance sheet strength, operating performance and business profile. A.M. Best noted that the rating reflected "consistently favorable operating performance... strong core operating fundamentals of persistency, mortality, risk management and investment results."
  • Moody's: "A1," its fifth-highest financial strength rating on a 21-part scale, based on the ability to pay policyholder benefits and repay debt obligations. Moody's cited "prudent risk management measures... strong product development capability... and solid asset/liability management."

2010 Company Recognition
Ohio National was recognized as the #1 Workplace in Cincinnati (large companies) by Enquirer Media in 2010. The Top Workplace recognition resulted from confidential surveys to more than 40,000 employees at more than 100 companies. Survey questions were based on leadership, direction, environment, communications, trust, work/life flexibility, appreciation and benefits.

2010 Community Stewardship
In recognition of its centennial in 2009, Ohio National made a $780,000 gift to Cincinnati Habitat for Humanity, the largest one-time gift in the local group's history. The funds were designated for the construction of 10 homes over five years in several Cincinnati neighborhoods. The third and fourth homes were built and dedicated during 2010.

OHIO NATIONAL MUTUAL HOLDINGS, INC.
 Affiliated companies:
 Ohio National Financial Services, Inc.
 The Ohio National Life Insurance Company
 Ohio National Life Assurance Corporation
 (Consolidated)
 Summary Results: Through December 2010

  12/10 12/09 % change
Total Equity (billions)
(including FAS 115)
$1.8 $1.5 15.2%
Total Equity (billions)
(excluding FAS 115)
$1.6 $1.5 6.3%
Total Assets Under Management (billions) $29.6 $26.5 11.8%
Core Earnings (millions) $194.7 $135.0 44.2%
Total Statutory Surplus (millions) $860.7 $816.7 5.4%

The financial data presented above is derived from results on the basis of Generally Accepted Accounting Principles (GAAP), except for surplus. All financial information in this news release is considered unaudited because the final audit process is not yet complete.

Tracing its corporate origins to 1909, Ohio National today markets a variety of insurance and financial products through more than 50,000 representatives in 47 states (all except Alaska, Hawaii and New York), the District of Columbia, Puerto Rico and through subsidiary operations in Santiago, Chile. Products are issued by The Ohio National Life Insurance Co. and Ohio National Life Assurance Corporation. Ohio National has more than 850 corporate headquarters associates. Visit www.ohionational.com for more information.

Ohio National has received high marks for financial strength and claims paying ability from major rating agencies; however, such ratings do not refer to the performance of our variable accounts nor imply approval of our variable contracts or their portfolios. All ratings information is according to reports published on: www.standardandpoors.com, www.ambest.com/ratings and www.moodys.com/insurance.

Dividend scales are subject to change at the discretion of the Board of Directors.

Contact Information

  • Adrienne Gutbier
    APR
    513.794.6254 office
    513.508.9436 cellular