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)