Ohio National and Constellation

[Lloyds of Lubbock]

You can spin this any way you want but this is a fact.
Business will be replaced and it is a closed block.
The young healthy clients will move and the older less healthy clients will stay.
No new business on young helthy clients will come into the block.
The mortality on the block will worsen over time and negatively impact dividends.

 

[DHK]

I'm not spinning anything. Just relaying what has been relayed.

 

[Lloyds of Lubbock]

Did not say you did...said the company did.
A bit touchy aren't we?

 

[Tahoe Ray]

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

THANK YOU! I couldn't for the life of me figure out why Corona and Modelo were buying Ohio National.

 

[DHK]

Did not say you did...said the company did.
A bit touchy aren't we?

I probably am. I've been inundated with messages all morning.

Sorry.

 

[DayTimer]

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

But it is sad to lose yet another good mutual to the investor class.

 

[DHK]

https://www.dynamicadvancedwealth.com/post/myth-11-does-mutual-really-matter-yes-and-no

 

[Allen Trent]

The funny part is how mutual carriers have been marketed over the years to the consumer as "you as policyholder are an owner" but I dont believe any policyholders were consulted on this move or were able to vote. The other marketing over the years from mutuals was "company X doesn't have stockholders that need to be satisfied 1st before you as a policyholder"--IE: mutual tend to perform better to policyholder than the policies from stock companies.

on the up side, the stock they receive can now be sold with capital gains rates & not ordinary income tax rates. Albeit, the stock will have a cost basis of zero as the IRS doesnt show that the person paid anything for the stock.

Lastly, most of the stock performance over the last 15-20 years of most of the carriers that have demutualized has been solid in both Stock price appreciation & annual dividend yield. That likely has come from less policyholder friendly pricing & dividend rates

time will tell I guess

 

[scagnt83]

.... marketed over the years to the consumer as "you as policyholder are an owner" but I dont believe any policyholders were consulted on this move or were able to vote.

...

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,
....

This change requires approval by our members as well as regulatory review and approval.

Members are WL policy holders, and certain Annuity owners.

WL policy holders will get a voting notice about this, at least thats the way I read it.

This notice, specifically states who is and isnt considered a "Member".

But here is the catch Allen. People have to vote. Kind of like our democracy. It doesnt work properly when only a minority of people vote.

And look at that so called Q&A.... a bunch of feel good BS that mentions nothing of the many downsides... or the fact that they can even vote at all...

 

[scagnt83]

Only $500 million?? All of this over $500 million? Wow. They are in serious trouble.