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January 10, 2005
Ohio National, Security Mutual Announce Termination of Agreement

Cincinnati, OH and Binghamton, NY -- The stock purchase agreement dated February 9, 2004, between Security Mutual Life Insurance Company of New York and The Ohio National Life Insurance Company has been terminated due to the failure of the agreement to receive the approval of the New York Insurance Department.

Last February, Ohio National and Security Mutual announced the signing of the stock purchase agreement that called for Ohio National to acquire Security Mutual through a sponsored demutualization. Under the terms of the agreement, Security Mutual was to convert to a stock company and then sell its stock to Ohio National. The transaction required the approval of the New York Insurance Department. The department officially disapproved the agreement effective December 30, 2004.

David B. O’Maley, Chairman, President and CEO of Ohio National, and Bruce W. Boyea, Chairman, President and CEO of Security Mutual, advised in a joint statement that “although the proposed transaction was attractive to both parties from a number of perspectives, and despite exhaustive efforts by Ohio National, Security Mutual and the New York Insurance Department, the companies were unable to agree to amendments to the stock purchase agreement that would have made it satisfactory to the Insurance Department.”

Mr. O’Maley added, “While we are disappointed that the transaction will not be taking place, this acquisition was not critical to our continued growth. We are closing 2004 with a very strong sales and financial year, and we are looking forward to 2005 with an extremely competitive portfolio of products, corporate focus and confidence. In individual life sales for 2004, we will achieve our 15th consecutive year of sales increases – a record unmatched in the industry.”

Mr. Boyea stated, “The termination of the proposed transaction will not change contractual benefits, guaranteed values or dividend eligibility of Security Mutual’s policyholders. Policyholders will continue to enjoy all entitlements relative to a mutual life insurance company. Security Mutual will close the year with outstanding sales results in both our individual and benefits divisions. We are financially strong, and will continue to implement steps to build surplus and further strengthen our capital position in the interest of our policyholders.”

Tracing its corporate origins to 1909, Cincinnati-based Ohio National today markets a variety of insurance and financial products in 47 states (all except Alaska, Hawaii and New York), the District of Columbia and Puerto Rico, with subsidiary operations in Santiago, Chile. At the end of December 2003, Ohio National had more than $18.2 billion of assets under management.

Founded in 1886, Binghamton-based Security Mutual Life Insurance Company of New York is licensed in all 50 states, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. It markets a variety of individual life and group insurance products. At the end of December 2003, Security Mutual had assets of $1.7 billion. Visit www.smlny.com for more information.

 

 

 

 

 

 


  

 

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©2014 Ohio National Financial Services, Inc.
Product Issuers: The Ohio National Life Insurance Company
and Ohio National Life Assurance Corporation
Registered Products Distributed by: Ohio National Equities, Inc.
Member FINRA
One Financial Way | Cincinnati, Ohio 45242
513.794.6100