- 11,291
Ohio national has never been a huge company.
Ohio National and Constellation
- Thread starter Lloyds of Lubbock
- Start date
- 10,340
They are selling out for 1% of their total assets. Sure seems like they weren't too far from it...
Yeah, and how many of those policyholders have signed proxies in the past and have given their voting rights to management?
Gee! We are talking about a life insurance company, not health insurance. Why would young healthy clients jump ship en mass? It is not like they are going to be hit with huge rate increases in the future.
- 10,340
This.
Forget dividend paying WL moving forward... at least anything with a good dividend. Goodbye strong renewal rates. Goodbye strong conversion options. Its not a new story.
Hopefully WL policyholders will rally against it.
Crazy to think that they cant come up with that on the open market by issuing bonds, etc. Or even internal conservation by lowering rates.
Very sad day to see for our industry. So much for their "strong commitment to being a mutual company" they used to talk so much about.
- 10,340
Not me. I dont think Ohio National ever did that.
I could never figure out why their DI was so much (typically 20%) less expensive than their competitors like Guardian and Mass (even Principal and Standard in many cases).
I have to wonder looking back if they were just trying to suck up as much premium as possible to stave this off.
- 11,291
Even A.M. best always listed Ohio Nationals assets as between 500 million to 750 million they were never that big of a company.
- 4,591
From the way I read it, Constellation (1st time buyer) is paying $500M for the cash payments to the members/policyholders to buy them out. Then also giving/committing to ON $500M over the next 4-5 years as a cash infusion to help the balance sheet & invest in technology. $40B in assets under management at ON. $20B of that $40B was in Annuities they want to run off the books according to the AM best profile when they were slightly downgraded in 2019.
Probably gonna get stock shares or payment worth about $125 or less for every $10,000 in current cash values
You have to keep in mind, they were not a true mutual... they were a mutual holding company, that could be spun out at any time. Unfortunately that time has come. It will be interesting to see what happens with them, and I hope the effects aren't crushing on the clients.
Because they signed up for a quality div paying life insurance policy. There may be no dividend going forward, or if so it'll likely be very low.
Because they signed up for a quality div paying life insurance policy. There may be no dividend going forward, or if so it'll likely be very low.
