Ohio National and Constellation

[Lloyds of Lubbock]

Saw this today.
Ohio National Announces Entry into Strategic Transaction with Constellation

Our Board of Directors has unanimously approved an agreement to enter into a strategic transaction with Constellation to acquire Ohio National Mutual Holdings, Inc. Ohio National will serve as Constellation’s platform, leveraging our strengths and infrastructure, and capitalizing on growth opportunities in the financial services industry.

This strategic step forward involves a sponsored demutualization, which means Ohio National will convert to a stock company and become a wholly owned subsidiary of Constellation, whereby eligible members will be compensated for the extinguishment of their membership interests with additional policy benefits or cash. This change requires approval by our members as well as regulatory review and approval.

 

[DHK]

The full emailed announcement:


To Our Valued Field Partners,

Today marks a very important day in our 111-year history.

Over the years, we have taken deliberate steps to position our business for growth, including providing value to our policyholders, supporting you and your independence to build your business your way, offering quality products and services to meet your clients’ needs, and strengthening our balance sheet and risk profile. More recently, together we have faced some difficult moments including prolonged and historic low interest rates, market volatility, regulatory changes, and of course, a global pandemic.

Through it all, and with your help, we have strengthened the Company and solidified our market position. Our work together has laid the groundwork for this announcement today.

Ohio National Announces Entry into Strategic Transaction with Constellation

Our Board of Directors has unanimously approved an agreement to enter into a strategic transaction with Constellation to acquire Ohio National Mutual Holdings, Inc. Ohio National will serve as Constellation’s platform, leveraging our strengths and infrastructure, and capitalizing on growth opportunities in the financial services industry.

This strategic step forward involves a sponsored demutualization, which means Ohio National will convert to a stock company and become a wholly owned subsidiary of Constellation, whereby eligible members will be compensated for the extinguishment of their membership interests with additional policy benefits or cash. This change requires approval by our members as well as regulatory review and approval.

The decision to partner with Constellation is the result of long-term, ongoing, careful and calculated analysis of our business conducted by Ohio National’s executive leadership, outside consultants and our Board of Directors.

Constellation will enable us to accelerate growth and strengthen our financial profile, infusing $500 million of capital to Ohio National over a four-year period. The solidified capital structure and increased flexibility afforded by this transaction enhance our ability to seize growth opportunities and respond to varying market conditions, resulting in a stronger, more responsive and innovative company that is well positioned for the future.

As we embarked on implementing this plan, we established some important guiding principles that would frame any action we took:

• Value your independence: We are committed to continuing to provide you with quality products and services, support and the independence to build your business your way.
• Maintain our long-term focus: We were careful and thoughtful in choosing Constellation as a partner. Constellation was founded by former CEO of Prosperity Life Insurance Group and insurance industry veteran Anurag Chandra, and is backed by investments by two of the world’s largest, premier institutional investors, Caisse de dépôt et placement du Québec (“CDPQ”) and Ontario Teachers’ Pension Plan (“OTPP”). We have been impressed by Constellation and are confident they bring the right level of experience and an aligned perspective on the long-term nature of our business. They’ve made it very clear they want us to continue our growth journey with them, building on our mission and culture.
• Continue to pursue a strengthened financial profile: We have a strong current capital position and are delivering solid financial results. As the environment continues to evolve, it’s more important than ever to further strengthen our balance sheet, enhance our ratings profile, expand our growth opportunities and increase our ability to invest in technology, innovative new products and the future of our business. As part of the transaction, Constellation has committed to infuse $500 million of capital to Ohio National over a four-year period. This capital will enable us to leverage the infrastructure and strengths we have built over our history.
• Maintain our brand, headquarters, leadership team, infrastructure and commitment to our communities: Over the years, Ohio National has built an exceptional brand. We have a long history of financial strength – offering a broad and competitive product portfolio, attracting and growing distribution, delivering on our promises and building valued relationships. The foundational elements of our business – our strong brand, headquarters in Cincinnati, Ohio, leadership team, infrastructure, and commitment to our community – will not change.

Next Steps

I invite you to view this video, to hear more about why I believe this is an exciting opportunity for Ohio National, and for you, our policyholders, associates, and community.

ON-Net will be regularly updated so you can easily find all transaction-related information. It will include a Q&A section to answer your questions. Please submit your questions to: [email protected]. We will monitor this mailbox and update the Q&A frequently.

Important Notification Regarding Whole Life New Policy Issues and Whole Life Illustrations

Please review this important information.

Communicating with Policyholders and Members

We have created a separate website, advancingohionational.com, that will be made public this morning to provide regular updates throughout the process. It includes the following:

• Press release which has more information about our announcement
• Policyholder/Member Communication
• Policyholder/Member Q&A

In the near future, Ohio National will be notifying policyholders/members about this announcement. We will update you as to the timing of this communication. This notification will contain similar information in the “Policyholder/Member Communication” available on the microsite and in the link above.

As a result of the processes and approvals associated with this transaction with Constellation, at this time we may not have as many answers as you have questions. We are, however, committed to being transparent with you throughout this process and updating you regularly with new information.

Thank you for your support of Ohio National. Because of your hard work and commitment to Ohio National, we will continue to advance our mission together to provide the protection products and services that policyholders want and need to secure their financial future.

I look forward to accomplishing great things together in the future.

Barbara A. Turner, CRCP

President and Chief Executive Officer

 

[Lloyds of Lubbock]

Nice company spin.

 

[pfg1]

Nice company spin.

Yep.

I quit selling them years ago and glad I did. I do have some clients with them... hoping it doesn't go terribly wrong. This is the issue with a Mutual Holding company... its not a real Mutual.

 

[Allen Trent]

Yikes--cease & desist writing any new policies.

Being acquired by a Canadian Teachers pension???

From the previous de-mutualizations I can recall from 15-20 years ago (Prudential , Sun Life, Phoenix, Principal, MetLife. Mony, Manulife, Indianapolis Life, Standard, State Mutual, Provident, Equitable-AXA, Anthem, John Hancok)----only a couple are still doing much of anything or writing new business

hopefully Ohio National is able to be like prudential, Principal, John Hancock & not the other ones listed

 

[pfg1]

Yikes--cease & desist writing any new policies.

From the previous de-mutualizations I can recall from 15-20 years ago (Prudential , Sun Life, Phoenix, Principal, MetLife. Mony, Manulife, Indianapolis Life, Standard, State Mutual, Provident, Equitable-AXA, Anthem, John Hancok)----only a couple are still doing much of anything or writing new business

hopefully Ohio National is able to be like prudential, Principal, John Hancock & not the other ones listed

Yeah, I fear its going to be ugly. I'm glad I wasn't telling folks to cash in their retirement and put that money into ON WL. Yikes.

 

[DHK]

It's not like the company was going into receivership.

Gee whiz.

 

[Allen Trent]

Thomas Love is encouraging us to not over-react.

%og_title%

The guy in the video is quoting a stock price of a beer distributor named Constellation that trades on the stock exchanges. The Constellation that is acquiring Ohio National is not publicly traded & is owned by a Canadian teachers pension......I believe

 

[DHK]

The guy in the video is quoting a stock price of a beer distributor named Constellation that trades on the stock exchanges. The Constellation that is acquiring Ohio National is not publicly traded & is owned by a Canadian teachers pension......I believe

"The company is backed by investments by two of the world’s largest, premier institutional investors, Caisse de dépôt et placement du Québec (“CDPQ”) and Ontario Teachers’ Pension Plan (“OTPP”)."

 

[DHK]

Here's the official site:

Advancing Ohio National Financial Services