Annual Report

2020 Annual Report

A message to our policyholders

Life changes. We’ll be there.® Our tagline is more relevant today than at any other time we can remember. 2020 embodied unpredictability in a way many of us have never experienced. The impact of the COVID-19 pandemic is still being felt in an extremely challenging economic landscape and continued low-interest rate environment, but also in the loss of jobs, businesses, travel, face-to-face connection and, most sobering, the lives of so many around the world. In 2020 we paid more than $1.4 billion in benefits to policyholders and beneficiaries.

While challenging in many ways, the COVID-19 pandemic has also presented opportunities to innovate the way we do business. Our Mission to help you achieve financial independence and security today and for generations to come is our guiding force. When life changes, we’ll be there – executing on strategy; serving our policyholders and community; and providing your policy benefits – no matter the economic environment.

Strategically focused

Though external factors, including the political climate, economy and ongoing pandemic continue to change, our commitment to you has not. We continue to focus on serving you and providing a high-value product portfolio and services to meet your changing needs. In 2020, we launched our ONdex fixed indexed annuity, along with new riders for our disability income insurance (DI) and whole life products.

We are particularly proud of how our Ohio National team banded together to seamlessly transition to working from home and ensure you, our policyholders, received the service you deserve. We continually invest in ways to enhance our operational efficiency and agility, improve the customer experience and reduce costs. This year, we leveraged new technology to make doing business easier for our customers, including a paperless experience to submit applications and share lab results, allowing policyholders to stay informed about their health and take action, as well as keeping the underwriting process moving.

Our affiliated broker-dealer, The O.N. Equity Sales Company (ONESCO), addresses the wealth management and financial planning needs of customers and is consistently named among the top broker-dealers.

The need for protection products is growing in Latin American markets and our operations in Brazil, Peru and Chile continue to innovate and meet demand.

Giving back has been a part of our corporate culture for decades. Supporting the communities our associates, financial professionals and policyholders call home is both a priority and a long-term commitment. Through The Ohio National Foundation, we were able to donate $1.6 million to our community, contributing to COVID-19 relief and supporting long-time partners like Habitat for Humanity and United Way as they worked to support those left even more vulnerable by the pandemic.

Financially strong

Ohio National has always focused on financial strength and stability, and being prepared to weather uncertain times. Take comfort in knowing this focus helps us navigate through uncertainty with confidence. Ohio National ended 2019 with a strong capital position, with statutory total adjusted capital (ONLIC) at $1.1 billion. Capital acts as a “shock absorber” on top of reserves in stress situations. Over the course of 2020, total adjusted capital grew 5.9% to a record $1.2 billion.

Ohio National’s general account investment portfolio is well diversified across asset classes and sectors and primarily allocated to high-quality bonds and commercial mortgages – a conservative approach which enables us to perform well during times of volatility. Liquidity is a measure of how easily a company can convert assets into cash. Ohio National’s strong liquidity helps ensure current cash flows can pay current obligations.

Our strong financial standing, prudent risk management and diversified investment strategy help ensure we are continually able to meet the needs of our policyholders.

Leading for the future

Throughout our more than 110-year history we’ve managed through turbulent times, remaining true to our values. We will continue to do so as Ohio National welcomes a new leader. On Jan. 1, 2021, in accordance with a plan approved by the Board of Directors, Barbara A. Turner became Ohio National’s new CEO, and Gary T. “Doc” Huffman retired as CEO and remains as Chairman of the Board. This transition is a new chapter in a long story of consistent and strong leadership.

It is our privilege to work with you and to continue to earn your trust and business. Ohio National enters 2021 with strength, stability and a laser-like focus on protecting you, our policyholder. We wish you and your family health and happiness this year. Know we are here for you – today, and for generations to come.

Sincerely,
Gary T. “Doc” Huffman, CLU, ChFC
Chairman, Board of Directors,
President and Chief Executive Officer (retired Dec. 31, 2020)

Barbara A. Turner, CRCP
President and Chief Executive Officer (effective Jan. 1, 2021)

2020 Highlights

 

Benefits paid to policyholders and beneficiaries:

More than $1.4 billion1

Life insurance in force: 

More than $185 billion

Dividends paid to eligible participating policyholders: 

More than $100 million paid in 2020; dividends have been paid for 97 consecutive years2

 


Financial results

 

Assets under management:

$41.2 billion

Statutory total adjusted capital (ONLIC):

$1.2 billion

GAAP equity (including accumulated other comprehensive income):

Grew 6.9% to $2.8 billion

 


Business results

 

Recurring individual life insurance premium:

Grew by 3.7%. The 10-year compound growth rate is 8.7%

Another record year of disability income insurance sales:

Up 1.7% from 2019, marking the 11th consecutive year of growth

Distribution network: 

Added nearly 1,500 financial professionals, making our products more accessible to you

The O.N. Equity Sales Co. (ONESCO):

Grew gross broker-dealer concessions to $63.0 million, up 2.6% over 2019, and overall ONESCO assets under management reached an all-time high at $12.7 billion

1 Benefits paid in 2020 to policyholders and beneficiaries include cash payments for life insurance benefits, systematic withdrawal transactions on deferred annuity contracts, monthly disability income benefits, retirement plan benefits and annuity lump sum death claims and disbursements. Excludes Latin American operations.

2 Dividends are not guaranteed.

The financial data presented in this letter is derived from results on the basis of Generally Accepted Accounting Principles (GAAP), except benefits paid, recurring life insurance premium, disability income insurance premium, statutory total adjusted capital and assets under management. All financial information in this letter is considered unaudited because the final audit process is not yet complete.

A message from Doc Huffman

Chairman, Board of Directors, President and Chief Executive Officer (retired Dec. 31, 2020)

Doc Huffman

I’d like to thank Ohio National’s Board of Directors, financial professionals and home office associates as I retire. I have been honored to work alongside you over these past 12 years to advance our Mission and serve our customers.

The past decade has brought about unique challenges for the industry and our business. I’m proud to say Ohio National has met each challenge with focus and excellence.

Ohio National’s success is rooted in our commitment to you. Barbara Turner is an outstanding leader with strong credentials and more than 35 years of experience in our industry – without a doubt, the right choice for Ohio National.

With Barbara’s leadership, I am confident Ohio National will continue to advance its Mission now and for generations to come.

It has been my pleasure and privilege to serve you.

A message from Barbara Turner

President and Chief Executive Officer (effective Jan. 1, 2021)

Barbara Turner

It is my honor to serve as Ohio National’s CEO. My passion to help individuals, families and communities achieve financial independence and security is aligned with Ohio National’s Mission. During my 23 years with Ohio National, I’ve witnessed firsthand the difference our products and services make in the lives of others. I am proud to continue this commitment as CEO. I’m also committed to cultivating an environment of diversity and inclusion that extends to the financial professionals we partner with and ultimately, reaches you, our policyholders, with products and solutions that meet your unique and diverse needs.

Most importantly, Ohio National will continue to be here with your policy benefits when you need them, just as we have for more than a century. We are dedicated to expanding our distribution footprint and ensuring our products are more accessible to the many individuals who do not have coverage. Doc Huffman led this company for a decade with strength and fortitude. I am honored to succeed him and thank him for his leadership.

Please let us know how we can continue to serve you. Our entire management team looks forward to being there for you in the years ahead.

2020 financial results

Our financial position is strong and reflects ongoing discipline and focus on operations and expense management.

SEE OUR FINANCIAL RESULTS

Community impact

$00 million

donated in 2020

00+ hours

volunteered by associates since 2016

$00+ million

donated since 1987

Stay in touch. We welcome your questions.

For more information, please email your request to legal@ohionational.com or mail to:

Therese S. McDonough

Secretary
Office: 513.794.6418
Ohio National Mutual Holdings, Inc.
P.O. Box 237
Cincinnati, OH 45201

Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Guarantees are based on the claims-paying ability of the issuer. Product, product features and rider availability vary by state. Disability income insurance is not available in CA. Issuers are not licensed to conduct business in NY. New York contracts issued by National Security Life and Annuity Company.

Ohio National Mutual Holdings, Inc. | Ohio National Financial Services, Inc. | The Ohio National Life Insurance Company | Ohio National Life Assurance Corporation | National Security Life and Annuity Company | The O.N. Equity Sales Company | Ohio National Equities, Inc. | Ohio National Seguros de Vida S.A., Chile | Ohio National Seguros de Vida S.A., Peru | Centauro-ON

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