Ohio National Announces Record Equity and Sales Growth in 2016

CINCINNATI, OH--(Marketwired - February 10, 2017) - Ohio National Financial Services today announced a strong financial report for 2016, with the company exceeding key 2016 sales targets and growing its GAAP equity (including and excluding mark-to-market) and assets under management at record levels. The company also advanced in several business categories, with the launch of new products and an unequalled industry record for life insurance sales growth.

"Ohio National experienced a strong financial year in 2016," reported Gary T. "Doc" Huffman, chairman, president and chief executive officer, at today's board of directors meeting. "While headwinds from changing regulations and low interest rates persist, I'm proud of how our company has faced these challenges. We continued to grow our financial strength, our product lines and our distribution capabilities."

"Our balance sheet and capital position remain strong," Huffman noted. "Ohio National's mutual company heritage allows us to take a long-term strategic view and helps us build a foundation of strength. Our focus remains on delivering long-term policyholder value by providing the highest quality products with the benefits and protection our customers need, today and for generations to come. Our network of financial professionals and policyholders can rest assured in their decision to do business with us."

The company highlighted the following from its 2016 results:

• For the 27^th consecutive year, Ohio National has increased its enterprise individual life insurance sales. This is a record unmatched in the industry. In total, a record-breaking $187.7 million of new annual sales were reported for individual life insurance, up 20.2 percent from 2015.

• In addition to growth in Ohio National's core life insurance line, its other business lines achieved success with sales and new products. Disability income insurance sales in 2016 exceeded 2015's totals. New annual sales equaled $2.7 million, with sales of its most competitive disability income product to date, ContinuON Income Solutions II®, expected to continue to boost this line in 2017. Total annuity sales were $1.5 billion, down from 2015 and reflecting weakness in variable annuity sales across the industry. Sales of the new ONdex fixed indexed annuity exceeded expectations in the 4^th quarter. Retirement plans growth was 16.6 percent ahead of 2015 at $165.9 million.

• Ohio National's Latin America life business exceeded goal by 54.9 percent with $30.8 million (U.S. dollars), 76.5 percent ahead of 2015.

• Total GAAP revenue (excluding realized gains and losses) increased 6.2 percent to $2.0 billion.

• GAAP equity grew at record levels. Equity (excluding mark-to-market) grew to $2.3 billion, an increase of 14.4 percent. Equity (including mark-to-market) grew to $2.5 billion, a 16.6 percent increase.

• Core earnings were $176.7 million. The planned decrease from 2015 represented strategic investments in business and corporate technology assets.

• For the 93^rd consecutive year, Ohio National paid dividends to participating whole life policies. A total of $80.6 million was paid or credited to participating policyholders.

• The O.N. Equity Sales Co., the company's retail broker/dealer subsidiary, saw gross broker/dealer concessions at $41.0 million.

• Our network of financial professionals grew in strong numbers. This includes a record number of new builder general agencies across the United States and more than 1,200 new producing general agents, significantly increasing the company's distribution footprint across the country.

2016 Rating Highlights
Ohio National earned high marks for financial security and claims-paying ability from independent rating analysts:

• 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.
• 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.
• Standard & Poor's: "A+," its fifth-highest ranking on a 21-part scale, noting both very strong capital and earnings and a very strong competitive position.

2016 Company Recognition
Ohio National was recognized as a Top Workplace in Cincinnati by Enquirer Media for the seventh year in a row. The Top Workplace honor was based on confidential associate surveys related to leadership, direction, environment, communications, trust, work/life flexibility, appreciation and benefits.

2016 Community Impact
Ohio National's 15^th and 16^th homes were constructed for Habitat for Humanity in Cincinnati in 2016. The company's overall contribution to the local Habitat for Humanity group since 2009 exceeds $1.3 million. Additionally, The Ohio National Foundation donated more than $1.8 million during 2016 to nonprofit organizations in the Greater Cincinnati area. As part of a new associate community service day benefit launched in 2016, 637 associates logged more than 4,000 volunteer hours in service to local organizations.

The financial data presented above is derived from results on the basis of Generally Accepted Accounting Principles (GAAP), except life insurance new premium, variable annuity sales, retirement plan sales and disability income insurance premium. All financial information in this news release is considered unaudited because the final audit process is not yet complete.

*Total equity is reported at its highest levels in company history since reporting on a GAAP basis in 1997.

Tracing its corporate origins to 1909, Ohio National markets a variety of insurance and financial products through more than 50,000 representatives in 49 states (all except New York), the District of Columbia, Puerto Rico and through affiliated operations in South America. Additional subsidiaries operate in New York and Connecticut. As of December 31, 2016, its affiliated companies have $41.8 billion total assets under management. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Ohio National is proud to be named a "Top Workplace" in Cincinnati for seven consecutive years by Enquirer Media (June 2010-2016) and employs more than 1,300 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. Ratings are accurate as of 12/30/16. For the most current ratings, see www.ohionational.com. Dividend scales are subject to change at the discretion of the Board of Directors.